Enticing users to spend money in the app is something that app developers have long been trying to focus on because of the fact that this is the sort of thing that could potentially end up boosting their revenue streams by quite a lot. 2020 proved to be a watershed year for this metric, with in-app purchase among American users increased by a whopping 35.2% to reach a total of $30.4 billion.
The growth rate has declined gradually to 23% the following year, and with all of that having been said and now out of the way it is important to note that the rate of growth for 2022 currently stands at 13%. This suggests an inevitable decline in growth percentage to the single digits, but in spite of the fact that this is the case Americans are spending more money in apps than ever before. The growth rate is projected to drop down to 8% in 2023, 5% in 2024, 4.5% in 2025 and then 4% in 2026.
While the rate of growth is declining, the fact that it is continuing is a sign of how strong the American market is. With in app spending expected to cross $42 billion by the end of the year, app developers are continuing to see solid returns. If the growth rate was maintained such purchases might have already crossed $50 billion, but it will still eventually happen by 2025 if growth predictions remain accurate.
Each individual smartphone user is now spending around $165 per year on in app purchases. This includes an average of $72 per year on subscriptions and about $84 on virtual goods. The market continues to remain hot, and it will be interesting to see where things go from here on out. The continued, though diminishing, rate of growth suggests that this surge was not a pandemic induced one off, and we might see it changing the paradigm of app development in the near future. App developers are less likely to go the freemium route now that consumers are so willing to buy subscriptions.
H/T: eMarketer
Read next: Forecast For Smartphone Shipments In 2022 Shows A Decline Of 1.36 Billion Units
The growth rate has declined gradually to 23% the following year, and with all of that having been said and now out of the way it is important to note that the rate of growth for 2022 currently stands at 13%. This suggests an inevitable decline in growth percentage to the single digits, but in spite of the fact that this is the case Americans are spending more money in apps than ever before. The growth rate is projected to drop down to 8% in 2023, 5% in 2024, 4.5% in 2025 and then 4% in 2026.
While the rate of growth is declining, the fact that it is continuing is a sign of how strong the American market is. With in app spending expected to cross $42 billion by the end of the year, app developers are continuing to see solid returns. If the growth rate was maintained such purchases might have already crossed $50 billion, but it will still eventually happen by 2025 if growth predictions remain accurate.
Each individual smartphone user is now spending around $165 per year on in app purchases. This includes an average of $72 per year on subscriptions and about $84 on virtual goods. The market continues to remain hot, and it will be interesting to see where things go from here on out. The continued, though diminishing, rate of growth suggests that this surge was not a pandemic induced one off, and we might see it changing the paradigm of app development in the near future. App developers are less likely to go the freemium route now that consumers are so willing to buy subscriptions.
H/T: eMarketer
Read next: Forecast For Smartphone Shipments In 2022 Shows A Decline Of 1.36 Billion Units
