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Last year mobile phone users worldwide spent almost $205bn on in-app purchases, the highest value in the app market`s history. This figure is set to grow by around 12% year-over-year and hit $231bn in 2023 as millions of people continue spending more money on apps than ever. Still, that is nothing compared to the growth rates expected in the following years.
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According to data presented by SafeBettingSites.com, global in-app purchase spending is forecasted to jump by 28% in the next four years and hit over $296bn by 2027.
Revenues to Grow by an Average of $18.5B Per Year
Although in-app advertising has always been the largest revenue stream of the app market, in-app purchase revenues have also grown immensely over the years. According to a Statista survey, global IAP revenues grew by a massive 125% between 2018 and 2022, rising from $91.5bn to nearly $205bn. This year is expected to see a 12% growth, with people worldwide spending roughly $231bn on in-app purchases. Statista expects global IAP revenues to grow by an average of $18.5bn per year and hit $296.8bn by 2027.
In comparison, in-app advertising, the largest revenue stream in the market, will see a much bigger growth rate in this period. Statista expects global in-app advertising revenues to jump by an impressive 47%, rising from $306bn in 2023 to roughly $451bn in 2027. Paid apps are expected to bring in close to $7.3bn in revenue by 2027, up from $5.8bn this year.
Analyzed by geography, statistics show that one-third of total IAP spending comes from China. Statista data show Chinese will spend over $71bn on in-app purchases in 2023, or $10bn more than a year ago. This figure will grow by 35% and hit $95.9bn by 2027. As the second-largest market globally, the United States will generate $62.3bn in in-app purchase revenue this year and more than $78bn by 2027.
IAP to Make 39% of Total App Revenue by 2027, Down from 42% this Year
Although global spending on in-app purchases will grow by a considerable 28% in the next four years, IAP revenue share is still projected to drop in this period. Statista data show that 42.5% of total app revenue in 2023 comes from in-app purchases. In-app advertising makes up another 56% of revenues.
By 2027, IAP revenue share is expected to drop to around 39%, while in-app advertising will see its revenue share grow to a massive 59% in the next four years.
The full story and statistics can be found here: https://www.safebettingsites.com/2023/06/20/global-in-app-purchase-spending-to-jump-by-28-and-hit-296b-by-2027/
