Sophie Blake
Global consumer spending on mobile apps continued to rise in the first quarter of 2026, with in-app purchase (IAP) revenue across iOS and Google Play reaching $43.5 billion, representing 9% year-over-year growth, according to Sensor Tower’s latest report. The quarter also marked the 13th consecutive period of positive expansion for the mobile app economy.
Non-gaming apps remained the main growth driver. Per the report, revenue generated by non-game apps increased 18% compared to the same period last year, surpassing $23 billion, while mobile gaming revenue stayed relatively stable at around $20–21 billion. Subscription-focused categories including Generative AI, Utilities, and Business & Productivity contributed significantly to the increase.
Platform performance also showed changing dynamics between Apple’s App Store and Google Play. While iOS continued to lead total consumer spending with approximately $29.3 billion in IAP revenue, Google Play recorded faster growth at 14% year-over-year, compared to 7% growth on iOS. Non-gaming revenue on Google Play expanded 31%, more than twice the pace seen on Apple’s platform.
AI apps remained one of the fastest-growing segments. ChatGPT kept its leading position by revenue, but competitors accelerated their expansion. Claude reported 235% growth, Gemini increased 119%, and Grok rose 103%, indicating increasing competition within the generative AI market.
AI Assistant apps also continued to gain users, with downloads rising 60% year-over-year, while Short Drama apps emerged as another rapidly growing category, posting 138% growth during the quarter.
The United States market, however, showed signs of pressure. US mobile IAP revenue grew only 3.5% year-over-year, marking its weakest performance in recent periods and extending a slowdown that has now continued for two quarters. In contrast, Western European markets delivered stronger results, helping offset softer US spending.
Outside the app economy, digital advertising spending in the United States climbed to $48 billion in Q1 2026, increasing 15% year-over-year, while ad impressions approached 4.9 trillion. Reddit became the fastest-growing advertising channel during the period, followed by mobile apps, Instagram, and TikTok.
Generative AI brands also increased their marketing investments significantly. Advertising spend from AI companies surpassed $430 million, more than tripling compared to Q1 2025 as competition intensified across AI products and services.
The quarter also brought a notable milestone for the web market. Mobile devices accounted for 50.7% of global web visits, overtaking desktop traffic for the first time. However, desktop remained dominant in engagement metrics, representing more than 70% of total time spent online.
Global app downloads stayed relatively stable at 37.5 billion, although gaming installs declined 12% year-over-year, reaching their lowest first-quarter level since before the pandemic. Emerging markets continued to support expansion, with India leading download growth and African markets posting the fastest regional increases.
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