The Shift in Mobile App Monetization: In-App Purchases Dominate Non-Game App Revenue
In-app purchases (IAP) have become a common feature in our favorite mobile applications, be it for subscriptions, loot boxes, or ad removal. However, the landscape of mobile app revenue is undergoing a significant change, with non-game apps taking the lead in IAP revenue.
Non-Game Apps Overtake Game Apps in IAP Revenue
According to market intelligence firm Sensor Tower, in 2025, non-game apps generated $85.6 billion in IAP revenue, surpassing game app spending for the first time. This represents a 21% increase over 2024's performance. This shift signifies a growing trend in consumer behavior towards spending on non-gaming apps.
Factors Contributing to the Growth of Non-Game App IAP Revenue
Jonathan Briskman, director of market insights at Sensor Tower, attributes the increase in non-game app IAP revenue to three main factors:
- Improved Monetization Strategies: App developers are becoming more sophisticated in their monetization strategies, offering subscription models and creative one-time purchases.
- Consumer Comfort with In-App Payments: As consumers spend more time on their phones and use mobile payment platforms like Apple Pay, Google Pay, Venmo, or PayPal, they are becoming more accustomed to making payments on their devices.
- Deep Engagement with Mobile Apps: Consumers are spending more time on mobile devices, leading to deeper engagement with apps, and a willingness to pay for premium content and features.
The Rise of Generative AI Apps
One of the most notable subcategories contributing to the growth in non-game app IAP revenue is generative AI apps. These apps experienced a staggering $3.5 billion year-on-year growth in 2025.
Implications for the North East Region and India
The trend of increased IAP revenue in non-game apps has significant implications for app developers and consumers across India, including the North East region. As consumers become more comfortable with in-app payments, we can expect to see an increase in the number of apps monetizing through this method. This trend may also encourage more developers to create innovative and engaging apps, particularly in the generative AI sector.
Looking Ahead: AI-Powered Apps and the Future of Mobile Monetization
The growing popularity of in-app purchases and the increasing use of AI in mobile apps suggest that we can expect to see more apps incorporating these technologies in the future. As consumers continue to spend more time on mobile devices, the demand for premium content and features will likely persist, driving the growth of IAP revenue in both game and non-game apps.