The mobile app market sent a clear signal in 2025. Growth is no longer about volume. It is about value.

According to the latest annual report from Appfigures, global app downloads declined for the fifth year in a row, while consumer spending surged to almost $156 billion. The takeaway for founders, product teams, and marketers is simple. Monetization strategies are working, even as user acquisition becomes harder and more expensive.

Fewer downloads, more money

In 2025, total downloads across the Apple App Store and Google Play reached 106.9 billion, a 2.7% decrease year over year. At the same time, global consumer spending climbed 21.6%, reaching an estimated $155.8 billion.

This gap tells an important story. Developers and publishers are getting better at converting existing users through subscriptions and in-app purchases, rather than relying on constant inflows of new installs.

The subscription economy is now the backbone

While users may not love the fact that almost every app pushes subscriptions or in-app upgrades, this model has become the most sustainable path forward for the app economy.

Recurring revenue has not only stabilized developer income but has also fueled an entire ecosystem of supporting platforms. Companies like RevenueCat, which raised a $50 million Series C, and Appcharge, which secured $58 million in Series B funding, are clear proof of how central monetization infrastructure has become. This momentum continued as Liftoff Mobile filed for an IPO, underscoring investor confidence in the space.

Games are no longer the only revenue engine

Mobile games still generate massive revenue, but their dominance is fading.

In 2025:

Mobile games generated $72.2 billion, about 46% of total app spending, up 10% year over year.
Non-game apps generated $82.6 billion, growing 33.9% year over year.

This marks a structural shift. Productivity, health, finance, education, and creator tools are now driving more revenue than games, powered largely by subscription-based models.

Downloads keep sliding, especially for games

The long-term trend is clear. After peaking at 135 billion downloads in 2020, installs have steadily declined.

Total downloads fell from 109.8 billion in 2024 to 106.9 billion in 2025.
Mobile game downloads dropped sharply to 39.4 billion, down 8.6% year over year.
Non-game app downloads remained almost flat, rising just 1.1% to 67.4 billion.

For developers, this means acquisition-heavy growth strategies are becoming less viable. Retention, engagement, and lifetime value matter more than ever.

A closer look at the U.S. market

The U.S. followed the same pattern, but with even stronger spending growth.

Total consumer spending reached $55.5 billion, up 18.1% year over year.
Downloads fell 4.2%, landing at 10 billion installs.
Non-game apps drove $33.6 billion in spending, up 26.8%.
Games generated $21.9 billion, growing just 6.8%.

U.S. users downloaded 7.1 billion non-game apps and 2.9 billion games, reinforcing the global shift toward utility and subscription-driven products.

What this means for product and tech teams

For teams building digital products in 2026 and beyond, the message is clear. Growth is no longer about shipping more apps or chasing installs at any cost. It is about:

Designing for long-term value
Building subscription-first experiences
Optimizing onboarding, retention, and monetization
Treating apps as evolving products, not one-off downloads

At Control F5 Software, this is exactly where we see the market heading. Strong product architecture, scalable monetization logic, and data-driven decision-making are no longer optional. They are the difference between apps that survive and apps that scale.