The global in-app purchase market size reached a value of USD 195.74 billion in 2024. The market is expected to grow at a Compound Annual Growth Rate (CAGR) of 20.70% during the forecast period of 2025-2034, reaching a value of USD 1284.55 billion by 2034. Several factors are driving this remarkable growth, including increasing smartphone penetration, the rise of mobile gaming, and the growing adoption of subscription-based models. As more people across the globe access mobile apps for entertainment, shopping, learning, and more, the role of in-app purchases (IAP) in the app economy is becoming more significant. This blog will explore the key drivers, trends, segmentation, and regional dynamics of the global IAP market.

Market Overview

In-app purchases refer to the purchase of virtual goods, services, or content within mobile applications. This model has become one of the most popular and effective ways for developers to monetize their apps. Unlike one-time purchases, in-app purchases allow app developers to continuously generate revenue through virtual items, premium features, subscriptions, and more.

The in-app purchase market is growing rapidly as mobile apps continue to gain traction in both developed and emerging markets. In-app purchases not only help app developers generate recurring income but also provide users with a more engaging, personalized experience. From gaming to entertainment to education, in-app purchases are enabling users to enhance their experience without the need for downloading separate content or upgrading to entirely new apps.

Market Segmentation

By Operating System

Android

Android holds a significant share of the global in-app purchase market. With over 2.8 billion active devices worldwide, Android offers a vast user base for developers to tap into. The Android ecosystem's accessibility and diverse range of apps make it a go-to platform for in-app purchases across various categories, particularly mobile gaming. Android’s openness and affordability have also spurred app development in emerging markets, further boosting the in-app purchase ecosystem.

Apps like Candy Crush, PUBG Mobile, and Clash of Clans contribute heavily to Android's dominance in the IAP market, offering a mix of consumable items and premium content.

iOS

iOS continues to be the leader in terms of premium in-app purchases, particularly in markets like the United States and Western Europe. The iOS ecosystem is known for its high-paying user base, making it a key platform for subscription-based in-app purchases. The App Store’s strict review process ensures a high-quality app experience, making iOS a preferred platform for paid apps and premium content.

Popular apps like Apple Music, Netflix, and Spotify drive substantial revenue through subscription models, leveraging iOS’s secure payment gateways and premium user base.

Others

Though Android and iOS dominate the in-app purchase market, other operating systems, such as Windows Phone and HarmonyOS, also contribute, albeit on a smaller scale. These operating systems mainly cater to niche markets and emerging economies but are steadily growing as smartphone penetration increases in regions like the Middle East and parts of Africa.

By Type of In-App Purchase

Consumable

Consumable in-app purchases are items or services that can be used once and then need to be purchased again. Examples include in-game currency, extra lives in mobile games, and one-time premium features in various apps. This model is widely used in mobile games, as it encourages players to buy small items repeatedly, driving continuous revenue. Apps like Fortnite and Clash of Clans have made a massive impact through consumable purchases, enabling them to generate billions in revenue globally.

The flexibility and low entry cost of consumables appeal to a broad range of consumers, increasing the frequency of in-app purchases and driving up revenue for developers.

Subscription

Subscription-based in-app purchases have gained significant traction, particularly in apps for entertainment, health and fitness, and learning. Users can pay on a recurring basis for access to premium content or services, such as ad-free experiences, additional features, or exclusive content. Subscription models are becoming increasingly popular as they generate stable, recurring revenue for developers while offering users continuous access to premium offerings.

Apps like Netflix, Spotify, and Headspace have capitalized on this trend, offering monthly or yearly subscription plans that provide users with uninterrupted access to content. This model is particularly effective in industries like entertainment, fitness, and education.

By App Category

Gaming

Gaming is by far the most dominant category when it comes to in-app purchases. Mobile gaming accounts for a significant portion of the total IAP revenue, with games offering a variety of purchases ranging from consumables like power-ups and skins to expansions and extra levels. The global gaming market continues to grow, with mobile games like PUBG Mobile, Candy Crush, and Clash Royale pushing the boundaries of in-app purchases.

The mobile gaming sector continues to expand, and its future remains promising, with an increasing number of players in emerging markets.

Entertainment and Music

In-app purchases in entertainment and music apps mainly consist of subscription models for ad-free or premium content. Streaming services like Spotify and Apple Music rely heavily on IAP to monetize their user base. Music lovers are increasingly turning to subscription models for uninterrupted listening experiences, and these platforms are driving IAP revenues worldwide.

Health and Fitness

Health and fitness apps, such as MyFitnessPal and Fitbit, are tapping into the growing trend of health-conscious consumers by offering premium features through in-app purchases. Users can access personalized workout plans, nutrition advice, and other resources via subscriptions, which significantly contribute to the apps' revenue streams.

Travel and Hospitality

In the travel and hospitality industry, apps use in-app purchases to offer premium services, such as upgraded hotel rooms, VIP experiences, and exclusive travel deals. Apps like Airbnb and Booking.com capitalize on IAPs to generate revenue from users seeking higher-end services and experiences.

Retail and E-Commerce

E-commerce apps are also increasingly adopting in-app purchases, offering features like exclusive deals, memberships, and early access to sales. These purchases help retailers enhance customer experience while boosting app revenue. Retailers like Amazon and Alibaba integrate in-app purchases to offer loyalty programs and exclusive discounts.

Education and Learning

Education apps are gaining traction with users seeking subscriptions for premium content such as extra lessons, certifications, and ad-free experiences. Apps like Duolingo, Khan Academy, and Coursera utilize subscriptions to generate consistent revenue while providing valuable learning resources to users.

Regional Market Analysis

North America

North America remains a significant player in the global in-app purchase market, driven by the high adoption rate of smartphones and mobile apps. The region's consumer base is highly engaged with mobile apps, with platforms like iOS leading the charge in premium IAP models. North America’s app developers also benefit from a well-established payment infrastructure and strong consumer trust in mobile payments.

Europe

Europe’s in-app purchase market is growing steadily, with a focus on premium subscriptions in entertainment, gaming, and health apps. European users are increasingly adopting subscription models, especially in markets like the UK, Germany, and France, where disposable income and mobile app usage are high.

Asia-Pacific

Asia-Pacific is the largest and fastest-growing market for in-app purchases, with countries like China, India, and Japan leading the way. The growing smartphone penetration in these regions, along with the booming mobile gaming industry, has resulted in significant revenue generation through in-app purchases. Moreover, the rise of mobile-first internet access in developing countries is fueling market expansion.

Rest of the World

Emerging markets in Latin America, the Middle East, and Africa are also contributing to the growth of in-app purchases, though at a slower rate compared to other regions. As mobile internet adoption increases and mobile payment systems evolve, these regions are expected to see a rise in IAP revenues.

Competitive Landscape

Key players in the in-app purchase market include major tech giants such as Apple, Google, Amazon, and Microsoft, which control the primary app stores—Google Play Store and Apple App Store. Additionally, companies specializing in app development and payment solutions, such as Stripe and PayPal, play a crucial role in enabling seamless in-app purchases.

In-app purchase models continue to evolve, with businesses experimenting with microtransactions, subscription bundles, and innovative reward systems to enhance user engagement and revenue.

Future Outlook (2025-2034)

The global in-app purchase market is poised for substantial growth between 2025 and 2034. Innovations in mobile app monetization, such as incorporating AI-driven recommendations, augmented reality (AR), and virtual reality (VR) in-app purchases, will further fuel market expansion. As the app ecosystem becomes more diverse, developers will continue to innovate new ways to integrate IAPs, ensuring the model remains sustainable and profitable.