In-App Purchase Market Forecasts to 2030 – Global Analysis By Type (Consumable, Non-consumable, Auto Renewable Subscription, Non-Renewing Subscriptions and Other Types), Operating System, Application and By Geography

In-App Purchase Market Forecasts to 2030 – Global Analysis By Type (Consumable, Non-consumable, Auto Renewable Subscription, Non-Renewing Subscriptions and Other Types), Operating System, Application and By Geography

According to Stratistics MRC, the Global In-App Purchase Market is accounted for $220.27 billion in 2024 and is expected to reach $506.85 billion by 2030 growing at a CAGR of 14.9% during the forecast period. In-App Purchase (IAP) is a transaction made within a mobile application or digital service, where users buy additional features, content, or services. IAPs can include virtual goods, premium features, subscriptions, or unlock-able content, enhancing the user experience. These purchases are typically processed through app stores like Apple’s App Store or Google Play. IAPs are a common revenue model for free-to-play games, mobile apps, and services, allowing developers to monetize their apps without upfront costs for users.

Market Dynamics:

Driver:

Growth of mobile and gaming apps

The growth of mobile and gaming apps became more popular, developers use IAPs as a primary revenue model, offering users the ability to buy virtual goods, subscriptions, or enhanced features. This shift toward premium models allows users to download apps for free but spend money on in-app content, which boosts the overall market. The gaming industry's continuous innovation, with new levels, skins, characters, and power-ups, creates ongoing demand for in-app purchases. Additionally, the rise of social and multiplayer mobile games encourages more spending, as users seek to improve their in-game experience or status.

Restraint:

Consumer resistance to micro-transactions

Many users view micro-transactions as exploitative or frustrating, especially when they feel pressured to make purchases to progress in a game or app. This resistance can result in negative reviews, decreased app ratings, and reduced user retention, ultimately limiting the potential customer base. Furthermore, a lack of transparency or misleading pricing models can lead to a loss of consumer trust. Some consumers prefer to avoid apps with frequent IAPs due to concerns about hidden costs or overspending. As a result, developers may need to rethink their monetization strategies to maintain user satisfaction and drive long-term growth, thereby hampering the growth of the market.

Opportunity:

Increasing adoption in non-gaming apps

The increasing adoption of in-app purchases (IAPs), such as social media, fitness, and productivity apps, are integrating IAPs to offer premium features, subscriptions, or exclusive content. This trend allows app developers to tap into new revenue streams and enhance user experience by offering customization options or enhanced functionality. The rise in subscription-based models, particularly in entertainment, news, and streaming services, is a significant factor contributing to this growth. Moreover, IAPs enable non-gaming apps to engage users for longer periods, improving customer retention and monetization. As consumers increasingly prefer paying for incremental benefits rather than upfront costs, this shift is further fuelling the market's expansion.

Threat:

User fatigue and burnout

User fatigue and burnout had become overwhelmed by constant push notifications or aggressive in-app purchase prompts, they may disengage from apps entirely. This leads to lower user retention rates, which directly impacts revenue generation for developers. Over time, the repetition of purchase requests can cause frustration, prompting users to abandon apps for alternatives that offer a less intrusive experience. Additionally, users experiencing burnout may avoid apps that require constant monetary investment, diminishing the potential market size.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the In-App Purchase (IAP) market, driving a surge in mobile app usage as people turned to digital entertainment, learning, and services during lockdowns. This led to increased in-app spending, particularly in gaming, fitness, and entertainment apps. The shift to online services and virtual experiences boosted subscriptions, premium features, and virtual goods sales. However, the economic uncertainty also affected discretionary spending, leading to varying IAP trends across different consumer segments and regions.

The android segment is expected to be the largest during the forecast period

Over the estimation period, the android segment is likely to capture the largest market share, due to its large user base across diverse global markets. With Android’s open-source nature, it supports a wide range of applications, many of which rely on IAPs for monetization, including games, social apps, and utility tools. The Google Play Store offers easy integration of IAP systems, making it accessible for developers to implement revenue-generating features. Furthermore, Android's growing adoption in emerging economies increases the availability and usage of mobile apps, further boosts IAP growth. The ability to target a broad audience through Android devices, coupled with seamless payment integration, contributes significantly to the market's expansion.

The health & fitness apps segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the health & fitness apps segment is predicted to witness the highest growth rate, by offering premium features such as personalized workout plans, nutrition tracking, and access to expert advice. These apps often provide subscription-based services, creating a steady stream of revenue through recurring IAPs. With the growing consumer focus on health and wellness, users are increasingly willing to invest in these apps for enhanced functionality and better outcomes. Additionally, gamification elements, such as rewards and achievements, encourage users to make in-app purchases for added motivation. The widespread adoption of smart devices and wearable tech also supports the continued demand for health and fitness apps, further fuelling market growth.

Region with largest share:

Over the forecast period, the Asia Pacific region is anticipated to hold the largest market share due to the increased smartphone penetration and high mobile internet usage across countries like China, India, and Japan. With a large, tech-savvy population, consumers in the region are rapidly adopting mobile apps in sectors like gaming, entertainment, health, and education, driving significant revenue through IAPs. Additionally, a growing middle class with disposable income and changing consumer behaviours are contributing to the market's expansion.

Region with highest CAGR:

During the forecast period, the North America region is anticipated to register the highest CAGR, owing to pay for premium digital experiences. North American users are particularly active in spending on mobile games, entertainment, and lifestyle apps, which make up a significant portion of IAP revenue. The market is further supported by the strong presence of major tech companies like Apple, Google, and Amazon, providing seamless platforms for in-app transactions. The region's advanced infrastructure and access to cutting-edge mobile technologies make it a key market for developers and businesses seeking to monetize apps through IAPs. Additionally, the increasing popularity of subscription-based services in entertainment, fitness, and productivity apps has expanded the scope for in-app purchases in the North American market.

Key players in the market

Some of the key players profiled in the In-App Purchase Market include Apple Inc., Google LLC, Amazon.com, Inc., Tencent Holdings Ltd., Epic Games, Inc., Microsoft Corporation, Electronic Arts Inc., Activision Blizzard, Inc., Roblox Corporation, Zynga Inc., Unity Technologies, Niantic, Inc., Baidu, Inc., Supercell Oy, ByteDance Ltd., Snap Inc., Glu Mobile Inc., Square Enix Holdings Co., Ltd. and BIGO Technology.

Key Developments:

In October 2024, Google LLC has been actively expanding its involvement in the in-app purchase market through strategic partnerships and product developments with Vodafone, where they extended their partnership to include AI-powered services and enhanced TV experiences. This collaboration leverages Google's Gemini models and Google Cloud to improve Vodafone’s services, offering new AI-based features.

In April 2024, Microsoft announced a $1.5 billion investment in G42, an AI technology firm based in Abu Dhabi. The partnership will focus on advancing AI technologies in key regions such as the UAE, Central Asia, and Africa, with a strong emphasis on cloud services and secure AI deployment.

In January 2024, Microsoft entered into a decade-long partnership with Vodafone, valued at $1.5 billion, to enhance digital services and customer experiences across Europe and Africa. This collaboration also includes leveraging Microsoft's AI and cloud platforms, which could boost in-app purchase capabilities through enhanced customer personalization and transaction services.

Types Covered:
• Consumable
• Non-consumable
• Auto Renewable Subscription
• Non-Renewing Subscriptions
• Other Types

Operating Systems Covered:
• iOS
• Android
• Other Operating Systems

Applications Covered:
• Gaming
• Entertainment & Media Apps
• Health & Fitness Apps
• Education & Learning Apps
• Productivity Apps
• E-Commerce Apps
• Travel & Navigation Apps
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements