In-App Purchase Market Share, Size, Trends, Industry Analysis Report, By Operating System (Android, iOS, Others), By Type (Consumable, Non-Consumable, Auto-Renewable Subscription, Non-Renewing Subscriptions), By Application, By Region, And Segment Forecasts, 2024 - 2032
- Published Date:Feb-2024
- Pages: 117
- Format: PDF
- Report ID: PM4264
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global in-app purchase market was valued at USD 165.90 billion in 2023 and is expected to grow at a CAGR of 12.5% during the forecast period.
This growth is driven by the rising downloads of applications in video streaming, gaming, health, and fitness. Additionally, the market expansion is attributed to the implementation of various promotional strategies, such as increased spending on digital initiatives and loyalty programs. Key players in the in-app purchase (IAP) sector are actively working on developing advanced technological solutions to meet the evolving demands of consumers.
The increasing need for real-time analytics is a substantial opportunity for the market. Companies in various industry sectors are realizing the importance of immediate insights and actionable data for enhancing their decision-making processes. Real-time analytics solutions empower businesses to monitor app performance, track engagement metrics, and understand user behavior promptly. This capability facilitates timely interventions and streamlines app experiences. Additionally, real-time analytics bestows organizations with a competitive edge by enabling swift responses to evolving consumer needs and market trends.
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Concerns regarding the collection and potential utilization of personal data by websites are identified as factors that could potentially impede the market's growth. This encompasses the entire history of customer interactions, responses, changes in purchase decisions, defections, acquisitions, and credit defaults. In response to these concerns, government bodies worldwide have introduced various regulations to mitigate the occurrence of data breaches. Recognizing that cloud-based deployment is becoming the preferred mode for e-commerce businesses, several governments have implemented stringent regulatory frameworks to safeguard the privacy and security of data stored in the cloud.
Industry Dynamics
Growth Drivers
Growing Mobile App Usage
The increasing usage of smartphones and mobile apps globally has been a significant driver for the In-App Purchase market. As more users engage with mobile applications, the potential for in-app transactions and purchases also rises.
The integration of emerging technologies such as Artificial Intelligence (AI) and machine learning has empowered companies to analyze customer behavior and purchasing patterns through advanced analytics. These technologies are swiftly being adopted across various industry verticals to optimize critical aspects of operations. Moreover, the application of machine learning and AI has the potential to revolutionize the loyalty industry. Businesses can utilize AI capabilities to provide personalized products and services to their customers. For instance, HSBC Holding, has employed AI to reward customers based on their purchase behavior. This predictive analysis aims to attract customers, enhance user experience, and is anticipated to drive market demand in the forecast period.
Report Segmentation
The market is primarily segmented based on operating system, type, application, and region.
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By Operating System |
By Type |
By Application |
By Region |
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By Operating System Analysis
iOS segment accounted for the largest market share in 2023
iOS segment accounted for the largest share. In the iOS operating system, in-app purchases offer a superior user experience by not disrupting the user's application use with advertisements. StoreKit, a feature of iOS, facilitates the purchase of digital products or services within user apps across all Apple platforms. This capability allows users to engage in activities such as playing, gaming, and reading. Furthermore, it provides a consistent experience, enabling users to manage or cancel subscriptions without leaving the app.
Android segment will grow rapidly. This system enables users of Android applications to sell digital products and content. Google Play facilitates the integration of in-app purchases in Android applications through the Google Play in-app billing API and the Play Console. Additionally, the operating system allows interaction with the Google Play Services layer, offering users the product selection available in their applications and methods for managing essential user tasks, such as initiating the purchase process.
By Application Analysis
Gaming segment held the significant market share in 2023
Gaming segment held the significant market share. The rise of mobile gaming as a global phenomenon has attracted billions of users engaging in gaming activities on their smartphones and tablets. As the popularity of mobile gaming continues to grow, game developers have found innovative ways to monetize their products. Individuals worldwide are leveraging smartphones to install diverse gaming applications, catering to their personal and professional needs, influenced by factors like age and gender. In-app purchases offer players the opportunity to acquire virtual goods and services within the game, ranging from premium content and power-ups to extra lives.
Health & fitness segment is expected to gain substantial growth rate. In-app purchases are becoming increasingly significant in the health & fitness sector, driven by the rising emphasis on building and sustaining brand reputation and equity, as well as enhancing customer loyalty. Companies in this sector are collaborating with loyalty management firms to strengthen their relationships with customers.
By Type Analysis
Auto-renewable segment held the significant market share in 2023
Auto-renewable segment held the significant market share. Auto-renewable subscriptions offer users continuous access to services, content, and premium features in their applications. These subscriptions automatically renew at the end of their term unless the user decides to cancel. This feature eliminates the need for users to remember renewal dates or undergo lengthy renewal procedures, ensuring convenient and uninterrupted service. Additionally, auto-renewable subscriptions are supported by iOS, iPadOS, macOS, watchOS, & tvOS.
Consumable segment is expected to gain substantial growth rate. This category is applicable to products that can be purchased multiple times. For instance, a user's in-game character may acquire additional life points or virtual currency for their inventory. The provisioning of in-app products involves delivering the benefits or effects of a paid item within the application. It is the user's responsibility to oversee and track how in-app products are distributed to users.
Regional Insights
Asia Pacific dominated the global market in 2023
The expansion of internet usage and the continual growth of retail, consumer goods, & e-commerce in countries are anticipated to propel the in-app purchase market's growth in the region. Moreover, advanced in-app purchase solutions, available at affordable prices, are contributing to their increased demand among consumers in various sectors such as hospitality, tourism, retail, and consumer goods. The ongoing digitalization across the region is further encouraging brands and retailers to embrace advanced loyalty programs, aligning with the prevailing industry trend.
Latin America will grow with substantial pace. The increasing incorporation of advanced solutions to monitor and track consumer behavior, along with efforts to enhance customer engagement, is projected to fuel market growth in the region. With intensifying competition, there is a notable surge in the adoption of customer loyalty programs aimed at retaining existing customers and attracting new ones, leading to heightened customer satisfaction, and strengthened brand loyalty. Additionally, the widespread availability of various digital payment options to enhance the consumer experience is poised to contribute positively to the region’s growth.
Key Market Players & Competitive Insights
Some of the major players operating in the global market include:
- AdMaven
- Apple Inc.
- Brainly
- Creative Clicks
- Disney
- Google LLC
- InMobi
- King.com Ltd.
- Netflix, Inc.
- POCKETGUARD
- Propeller Ads
- PubMatic
- Recurly
- Roblox
- Tango
Recent Developments
- In September 2023, Roblox Corporation, a gaming platform, has unveiled enhanced features on its gaming platform to facilitate the creation and management of subscriptions. Users of Roblox who subscribe to the company's premium plans gain the ability to design and sell 3D products. Additionally, they now can sell more traditional 2D assets that were previously exclusive to the platform's marketplace.
- In June 2022, Rexall Pharmacy Group has collaborated with Exchange Solutions, a loyalty solution provider, to deliver personalized offers, rewards, and incentive programs to Be Well members through the Be Well app.
- In April 2022, Google has introduced a new billing system that mandates developers to utilize the company's payment system for in-app purchases. The updates redirect users to purchase premium subscriptions either directly from the company's site or from alternative sources.
In-App Purchase Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 186.39 billion |
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Revenue forecast in 2032 |
USD 479.26 billion |
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CAGR |
12.5% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2024 to 2032 |
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Segments covered |
By Operating System, By Type, By Application, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
Navigate through the intricacies of the 2024 In-App Purchase Market with precision, thanks to the comprehensive statistics on market share, size, and revenue growth rate assembled by Polaris Market Research Industry Reports. This thorough analysis not only provides a glimpse into the historical context but also extends its reach with a market forecast outlook until 2032. Immerse yourself in the richness of this industry analysis by securing a complimentary PDF download of the sample report.
FAQ's
AdMaven, Apple, Brainly, Creative Clicks, Disney, Google, InMobi, Propeller Ads, PubMatic, Recurly are the key companies in In-App Purchase Market.
The global in-app purchase market is expected to grow at a CAGR of 12.5% during the forecast period.
The In-App Purchase Market report covering key segments are operating system, type, application, and region
Gaming Industry Growth are the key driving factors in In-App Purchase Market.
The global in-app purchase market size is expected to reach USD 479.26 billion by 2032
