India is Becoming a Profitable Market in the Mobile Apps Sector

For years, India has remained the world's largest app download market, yet monetizing users there has been considered one of the toughest challenges. However, according to reports based on ixbt.com, this situation is now beginning to change, with Indian consumers spending more on AI, entertainment, and other premium applications, Techcrunch.com reports .

Citing a new report from analytics firm Sensor Tower, India's mobile app market set a consumer spending record in the second quarter of this year, reaching 345 million dollars. This represents a 35 percent increase compared to the same period last year. Experts note that this growth is driven more by generative AI, streaming, and productivity apps rather than games.

The Role of Digital Payments and Subscriptions

This record figure builds upon a general trend of growing app monetization. Sensor Tower analyst Yve Chen told TechCrunch that revenue per download in India has more than doubled over the past three and a half years, while quarterly download volumes have remained steadily around 6.3 billion since 2023.

Such positive shifts have been driven by the widespread adoption of digital payments, including the Unified Payments Interface (UPI) and digital wallets, which allow users to transfer funds directly from their bank accounts. These systems have reduced barriers to in-app purchases and strengthened users' positive attitudes toward digital services and subscriptions.

Global Growth Rates

According to the provided data, this trend is also clearly visible on a global scale. In the second quarter, India achieved the highest revenue growth rate among major app markets. For comparison, this figure was 30 percent in Mexico and 25 percent in Turkey, while app market revenue in the US decreased by 3 percent during the same period.

Nevertheless, India still lags significantly behind mature markets. Specifically, revenue per download is approximately 4.60 dollars in the US, 3.90 dollars in South Korea, and 6.10 dollars in Japan. In India, however, this figure remains considerably lower.

The Share of AI and Non-Gaming Apps

Despite this, experts believe that the growth trajectory is more important than absolute figures. The steady increase in revenue indicates great potential for long-term prospects. In particular, generative AI has become one of the fastest-growing sectors.

According to Sensor Tower data, in the second quarter, OpenAI's ChatGPT and Anthropic's Claude app together accounted for nearly 83 percent of AI app revenue in India. Furthermore, non-gaming apps accounted for the majority of total app revenue in the country, reaching 68 percent in the first half of this year.