According to the latest "State of Mobile" report from app intelligence provider Sensor Tower, consumer spending on apps is expected to reach $150 billion globally in 2024, a 13% increase from the previous year. The driving force behind this growth is the rising demand for generative AI, which has led to a significant surge in interest in AI-powered apps.

The report highlights that AI apps have seen a staggering 200% year-over-year increase in consumer spending, with the total amount spent in this category reaching nearly $1.1 billion in 2024. If this growth rate is sustained, AI apps could break into the top 10 categories by consumer spending within a year, notes Sensor Tower.

The release of new AI models, such as OpenAI's GPT-4, has contributed to the growth in app revenue, but it's not the only factor. Consumer demand for AI apps has been consistent throughout the year, resulting in nearly 7.7 billion hours spent using AI apps in 2024. Additionally, apps mentioning "AI" were downloaded 17 billion times in the same year.

ChatGPT, a prominent AI app, has reached 50 million monthly active users, a milestone achieved faster than popular apps like Temu, Disney+, or YouTube Music. This indicates a growing appetite for AI apps and those with AI features, suggesting that the market is far from saturation.

Other app categories that saw significant movement in 2024 include streaming, crypto, e-commerce, and fintech. Streaming apps experienced a slight decline in engagement, despite growth in in-app revenue and downloads. Crypto apps, such as Binance and Tonkeeper, moved into the top 10 finance apps by downloads in 2024.

E-commerce apps Temu and Shein ranked as the top two apps in the retail subgenre, thanks to their expansions in Europe, Latin America, and Asia. Meanwhile, finance apps retained double-digit year-over-year growth for time spent in 2024 and neared 7.5 billion downloads, up 8% from 2023.

Sensor Tower's report also reveals that four games and one app became the latest to reach the milestone of passing $1 billion in consumer spending in 2024. These include Last War, Whiteout Survival, Dungeon & Fighter, Brawl Stars, and WeTV.

The full "State of Mobile" report is available on Sensor Tower's site and provides an in-depth analysis of the iOS App Store and Google Play, although it does not cover third-party app stores in other regions, like China.

The report's findings have significant implications for the tech industry, highlighting the growing importance of AI-powered apps in the market. As AI technology continues to advance, it will be interesting to see how consumer behavior and spending habits evolve in response.

In conclusion, the surge in demand for generative AI has driven consumer spending on apps to unprecedented heights, with AI apps emerging as a significant category in their own right. As the market continues to evolve, it's clear that AI will play an increasingly prominent role in shaping the future of the app economy.