Money Spent on Mobile Applications in Play Store and App Store Increases Every Year

In 2021, as a global pandemic continues that has locked everyone in their homes for months, consumer spending on mobile apps in app markets such as the Play Store and App Store reached a historic high of $132 billion. It was a question of whether this growth would decrease after the pandemic. However, it has managed to continue to increase, albeit at a slightly more moderate pace, due to the end of quarantines in most countries.

With all that being said, it's important to note that Sensor Tower forecasts an estimated 12% annual growth rate for the app ecosystem, which includes both the App Store and Google Play Store. This brings potential consumer spending to over $233 billion in 2026. Google is growing pretty fast. However, its projected growth is well below the rate Apple is expected to achieve in the next few years.

According to this report, Apple's growth rate in terms of consumer spending is expected to be around 13.7%. This is well above Google's expected annual growth rate of 8.9%. And all things considered, this would widen the gap between the two companies. Based on these statistics, consumer spending on the App Store is expected to grow from $85 billion to over $161 billion by 2026. Also, Google is expected to grow from $47 billion to $75 billion.

Not surprisingly, the United States will lead most of this growth. Both Apple and Google will see higher growth rates in this region than the global average. Because it's interesting because it's the kind of thing that could potentially consolidate the dominance of American consumers for years to come. Apple's compound annual growth rate in the US is estimated to be around 18.8%. On the other hand, Google will once again rank second with an estimated consumer spending growth rate of around 12.3%.

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Play Store is Far Ahead of the App Store in Downloads

One area where Google actually managed to beat Apple is download numbers. The average growth rate for both app stores is estimated to be around 4.7% per year. Apple is expected to see an annual growth rate of 2.9%, while Google is expected to see an annual growth of 5.2%. This will cause first-time app installs on the App Store to drop from 33 billion in 2021 to just under 38 billion in 2026. Meanwhile, Google will see app downloads rise from 111 billion to 143 billion for the first time. And that will make it the best platform to launch new apps.

While Apple is much more strict about the apps it allows in the App Store, that could explain the inconsistency. Both companies will perform below average in the US market. This gives some credence to the idea that the real growth is elsewhere, such as in the Asian continent. Google dominates in Asia, where it is expected to grow at an annual rate of 7.2%, well above the 1.7% annual growth rate that demonstrates Apple's dependence on American consumers.