The mobile app market is experiencing unprecedented growth in 2024, with consumer spending on apps hitting a record $100 billion faster than ever before. This points to a broader shift in consumer behavior, with users increasingly turning to their smartphones for a wide range of activities, from communication and entertainment to shopping and fitness.
Mobile apps shatter records with $100 billion in consumer spending
Consumers reached the $100 billion milestone for app spending in record time this year, highlighting the reliance on mobile platforms. Rapid rises in spending is fueled by several factors, including the convenience of mobile access, an expanding app ecosystem, and a surge in new users from emerging markets.
Mobile apps usage is expanding across demographics, but the growth is particularly robust in countries with burgeoning internet penetration rates and a growing middle class.
Emerging markets are pivotal in this trend, with major increases in app use and consumer engagement. Countries like Indonesia, Brazil, and India are seeing explosive growth in mobile adoption.
In Indonesia, for example, app usage time is now averaging six hours per day per user. This surge is driven by factors such as increased smartphone penetration, affordable data plans, and a young, tech-savvy population eager to engage with new digital experiences.
These markets are adopting established global apps and nurturing a range of homegrown applications tailored to local preferences, further driving app downloads and spending.
AI apps are dominating download charts this quarter
In the third quarter of 2024, AI-powered apps stand out as the fastest-growing segment in the mobile app market. Two of the top three apps by download growth are leveraging AI to deliver unique, value-added services to users:
- ChatGPT: This app, driven by conversational AI, provides users with an interactive, human-like experience in text-based conversations, answering questions, providing recommendations, and engaging users in a wide variety of topics.
- Remini: A photo editing app that uses AI to touch up and restore photos. Through employing deep learning algorithms, Remini automatically improves image quality, providing a convenient solution for users looking to upgrade their photo collections. The app handles complex editing tasks well—something that would typically require professional software—to attract a broad user base.
The rise of AI-powered apps is expected to continue, driven by advancements in machine learning, natural language processing, and other AI technologies.
As these technologies become more sophisticated and accessible, they let developers create apps that offer personalized, context-aware, and highly engaging user experiences at scale. The affordability of AI tools and platforms also lowers the entry barrier for smaller developers, contributing to a wider variety of AI-powered apps entering the market.
Must-know apps that are making waves right now
Fitness, social, and gaming apps in the spotlight
Several categories of apps have seen remarkable growth in the last quarter, reflecting diverse consumer interests and trends:
- Fitness apps: Apps like Strava, AllTrails, onX Hunt, and Runna continue to attract users, leveraging GPS tracking, social sharing features, and personalized workout plans to engage fitness enthusiasts. Increasing demand for health and wellness solutions, along with the trend towards outdoor activities, has positioned these apps for continued growth.
- Social apps: Instagram remains a dominant force in the social app category, leveraging its established user base and continuous innovation in features such as Reels, Stories, and in-app shopping. These features boost user engagement and bring opportunities for monetization, helping maintain Instagram’s strong market position.
- Video streaming apps: ReelShort, a short-form video streaming app, has gained traction by capitalizing on the trend toward bite-sized content. As more consumers prefer quick, easily digestible content formats, apps like ReelShort offer a compelling alternative to longer videos, driving growth in downloads and usage.
Threads takes off fast but faces a rocky road ahead
Meta’s Threads app, launched as a competitor to X/Twitter, experienced an explosive start, reaching 150 million downloads faster than any other app in history. By the end of Q3 2023, Threads had secured the top spot in overall downloads with 236 million, slightly ahead of TikTok’s 229 million downloads.
Rapid growth of the Threads app was driven by its unified integration with Instagram, letting users port their followers and contacts easily, leveraging Instagram’s massive user base for an initial boost.
The app’s momentum slowed quickly, however. 80% of Threads’ downloads occurred in July, its first month, but by August, downloads had dropped to 25 million, and further declined to 19.5 million in September.
This sharp decrease suggests that the initial interest may have been fueled by curiosity and existing Instagram user migrations, rather than sustained engagement with the app’s unique features.
To maintain relevance and encourage continued user engagement, apps like Threads may need to introduce new functionalities or pivot its strategy to differentiate itself more clearly from other social platforms.
Keep an eye on these up-and-coming apps
Two emerging apps have shown major growth in Q3, reflecting evolving consumer preferences and market opportunities:
- Temu: This shopping app climbed to the #3 breakout app position in Q3, up from #5 in the first half of the year. It emerged as the top breakout app in key European Union markets, including France, Germany, Italy, and Spain, where Threads has yet to launch. Temu’s success can be attributed to its focus on providing a diverse product range, competitive pricing, and an engaging user experience, capturing the attention of consumers in these regions.
- TikTok Music: The app has made its debut with a soft launch in markets such as Brazil, Indonesia, Mexico, Australia, and Singapore. It ranked as the #10 breakout app in Brazil during Q3, showing early signs of traction. Combining TikTok’s existing user base and short-form video content expertise with music streaming, TikTok Music aims to create a unique value proposition in a competitive market.
Why your brand needs to think mobile-first right now
Consumers are living on their phones—don’t miss out
There’s a clear trend of consumers increasingly using smartphones as their primary means of accessing the internet and engaging with brands.
As mobile usage continues to dominate digital interactions, brands lacking a robust mobile-first marketing strategy risk missing out on a substantial share of consumer engagement.
Smartphones provide a direct line to consumers, offering personalized and timely interactions that drive engagement and loyalty. Brands that prioritize mobile optimization—from responsive websites and apps to mobile-friendly content and advertising—are better positioned to capture and retain consumer attention in an increasingly crowded digital market.
Emerging markets surge ahead in app usage
Asia-Pacific countries are setting new records for app time
Emerging markets are at the leading edge of app usage growth. In Q3 2024, three out of the six markets where consumers spend more than five hours per day on apps are in the Asia-Pacific region:
- Indonesia: Leads with an average of six hours per day per user, driven by widespread mobile adoption, affordable data plans, and a young population.
- Thailand and India also rank high in app usage, showing growing demand for mobile services and the rapid digital transformation occurring in these economies.
These markets are a fertile ground for app developers and brands looking to expand their user base. Understanding local preferences, cultural nuances, and consumer behaviors will be key for success in these high-growth regions.
What every app developer and marketer needs to know moving forward
The mobile app market shows no signs of slowing down, with consumer spending and app usage continuing to rise globally. AI-powered apps are gaining ground, while emerging markets are becoming increasingly important for growth.
Adopting a mobile-first strategy and closely monitoring new app launches and trends in these markets will be key for businesses seeking to stay competitive and capitalize on new opportunities.
Final thoughts
As mobile apps continue to dominate consumer behavior and spending, one question becomes increasingly urgent: Is your brand ready to meet your audience where they already are—on their smartphones?
If your digital strategy isn’t laser-focused on mobile, you may be leaving untapped potential on the table. How will you adapt to capture this growing wave of opportunity, or risk being left behind in a market that never stops moving?
