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Home » Blog » global in app purchase spending to jump by 28 and hit 296b by 2027

Global In-App Purchase Spending to Jump by 28% and Hit $296B by 2027

Jastra Kranjec
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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.

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.

Jastra Kranjec
Jastra Kranjec

Jastra is an editor, writer, and PR specialist with years of experience in the news, research, and report writing. Over the years, she has covered different topics including gaming, the entertainment industry, and the tech market.

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