Subscription Models Drive Mobile App Revenue Despite Falling Downloads in 2025

The global mobile app market continued to see a paradoxical trend in 2025: downloads declined for the fifth consecutive year, yet consumer spending soared. According to Appfigures’ annual report, the total number of mobile app and game downloads via the App Store and Google Play reached an estimated 106.9 billion, a 2.7% drop compared to 2024. Meanwhile, consumer spending jumped 21.6%, hitting approximately $155.8 billion.

This pattern highlights how developers and publishers are successfully monetizing their existing users through in-app purchases and subscription services, even as the influx of new downloads slows.

Non-Games Begin to Outpace Mobile Games in Revenue

While mobile games have historically dominated app revenues, 2025 marks a noticeable shift. Consumers spent $72.2 billion on mobile games, representing about 46% of total app spending—a 10% increase from 2024. However, spending on non-game apps surged even more dramatically, climbing 33.9% year-over-year to reach $82.6 billion, according to Appfigures.

The growing emphasis on subscription models has created a more sustainable revenue path for app developers. “While consumers may not enjoy that nearly every app now has in-app purchases or a subscription model, this approach has allowed developers to generate reliable income,” the report noted.

The ecosystem supporting these subscription-driven apps is also expanding. For instance:

• RevenueCat, a subscription management platform, raised a $50 million Series C in 2025.

• Appcharge, a startup optimizing monetization for mobile games, announced a $58 million Series B in August.

• Liftoff Mobile, which provides marketing and monetization services for apps, filed for an IPO this week.

Download Numbers Continue to Decline

Despite rising revenues, total app downloads have been steadily decreasing since the pandemic peak of 135 billion in 2020. Last year’s 106.9 billion installs marked a decline from 109.8 billion in 2024, following a 3.3% drop between 2023 and 2024.

Mobile game downloads experienced a steeper decline: 39.4 billion downloads, down 8.6% year-over-year, after a 6.6% fall from 2023 to 2024. Non-game app downloads were relatively stable, rising slightly by 1.1%, reaching 67.4 billion.

Spotlight on the U.S. Market

In the United States, consumers spent an estimated $55.5 billion on mobile apps in 2025, up 18.1% from $47 billion in 2024, while downloads fell to 10 billion, down 4.2% from 10.4 billion in 2024.

Breaking this down further:

• U.S. non-game app spending: $33.6 billion (+26.8% year-over-year)

• U.S. game spending: $21.9 billion (+6.8% year-over-year)

• Non-game app downloads: 7.1 billion

• Mobile game downloads: 2.9 billion

The data confirms a clear trend: even as new installs plateau or decline, subscription and in-app purchase models continue to fuel growth in the mobile economy.

Author: Din Kumar