Sensor Tower, a leading authority on mobile market data, has released its 2026 State of Mobile report, revealing a record-breaking year for in-app purchases (IAP) and a major shift in consumer behavior. In 2025, global IAP revenue hit $167 billion, a 10% increase year-over-year (YoY). Notably, non-gaming apps—propelled by the rise of Generative AI services—overtook games in revenue for the first time, posting a 21% YoY increase and nearly tripling their spending compared to five years ago.
“Over the past few years we have observed increasing revenue growth for apps outside the gaming category,” said Oliver Yeh, CEO and Co-founder of Sensor Tower. “This has primed the market for Gen AI apps, which not only saw mass adoption, but also experienced significant revenue growth. ChatGPT was the third-highest grossing app of 2025 behind TikTok and Google One, signaling a decisive shift in both consumer spend and attention.”
Mobile Users More Engaged Than Ever
Consumers spent 5.3 trillion hours on apps globally in 2025, underscoring the centrality of mobile devices in daily life. While games continue to dominate both time spent and revenue, social apps, short-form drama platforms, and AI apps are emerging as key competitors. Among these, short-form drama apps grew 278% YoY and AI apps grew 148% YoY, highlighting explosive category expansion.
Social media remains a dominant force, with users logging nearly 2.5 trillion combined hours in 2025—far ahead of any other category. Other leading non-gaming revenue drivers include streaming movies and TV shows, and dating apps.
Key Trends From 2025
- Gaming Shifts From Scale to Efficiency: Rising user acquisition costs pushed top gaming apps to improve unit economics through deeper monetization strategies and live operations, often leveraging high-attention ad formats.
- Finance Apps Evolve: Downloads of credit and lending apps rose 18% YoY, offsetting declines in investing, financial management, and cryptocurrency apps.
- Retail Apps Face Headwinds: Global downloads and engagement declined, impacted by slowing expansion of players like Temu and SHEIN. Retailers are experimenting with AI shopping tools, such as Amazon’s Rufus and Walmart’s Sparky, to enhance recommendations and digital experiences.
- Food Delivery Surpasses Pandemic Peaks: Restaurant and food delivery apps grew 14% YoY, with Uber Eats capturing advertising budgets from 15 of the top 20 QSR brands to expand reach.
- Sports Betting Captures Attention Globally: In the U.S., time spent on sports betting apps rose 7% YoY, while global downloads grew 24%, fueled by new market launches like Brazil and fantasy sports expansion in India.
Generative AI Emerges as a Major Player
Perhaps the most significant trend is the rise of Generative AI apps, which are reshaping the non-gaming landscape. Tools like ChatGPT have not only captured massive consumer attention but are also becoming serious revenue generators, signaling a shift in both spending habits and the competitive mobile ecosystem.
The report illustrates a mobile economy increasingly defined by diverse app categories, AI innovation, and persistent consumer engagement, emphasizing that future growth will be driven as much by creative, high-value app experiences as by traditional games.
