In-App Purchase Market: $340.76B by 2027, 19.8% CAGR ⋆

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In-App Purchase Market: $340.76B by 2027, 19.8% CAGR

According to the report published by Allied Market Research, the global In-app purchase market garnered $76.43 billion in 2019 and is projected to reach $340.76 billion by 2027, growing at a CAGR of 19.8% from 2020 to 2027. In-app purchase

Prime determinants of the market

An increase in in-app purchase payments in developing countries, a rise in data usage & internet penetration, and low data tariffs, and an increase in smartphone penetration are the major factors that propel the growth of the global In-app purchase market. Nevertheless, digital illiteracy and limited digital infrastructure impede market growth. However, a surge in expenditure on digital advertisement and a rise in demand for fast and hassle-free transaction services are anticipated to usher in new opportunities in the near future.

Impact of Covid-19 on In-App Purchase Market: (Pre and Post Pandemic Analysis)

During COVID-19, subscriptions to video streaming, gaming, and other health & fitness applications among end-users significantly increased.
The gaming and non-gaming mobile applications are offering new features and functionality at reasonable prices which, in turn, is increasing their demand.

The iOS segment is anticipated to dominate the market by 2027

Based on the operating system, the iOS segment contributed to the largest market share in 2019, accounting for around half of the global In-app purchase market, and is projected to maintain its lead status during the forecast period. This is attributed to the growing adoption of iOS-based smartphones, tablets and other devices among the developed nations of North America and Europe. However, the Android segment is estimated to manifest the highest CAGR of 20.9% from 2020 to 2027.

The subscription segment held the lion’s share in 2019

Based on type, the subscription segment accounted for the highest market share, contributing to nearly three-fifths of the global in-app purchase market in 2019, and is expected to maintain its dominant share by 2027. This is due to various advantages, such as flexibility in terms of billing & payment, the conversion of fixed costs into variable costs, ease of distribution, and reliability & consistency in the revenue stream. However, the non-consumable segment is anticipated to grow at the highest CAGR of 22.7% during the forecast period. The non-consumable application provides the ability to the user to remove the advertising that is pooping while the user is using the app. This factor drives the growth of the segment.

Asia-Pacific, followed by North America, would lead the trail by 2027

Based on region, the Asia-Pacific region, followed by the North America region held the largest share of the global In-app purchase market, contributing to more than two-fourths of the total share in 2019, and will continue its leadership position during the forecast period. In addition, the same region is anticipated to manifest the fastest CAGR of 21.3% from 2020 to 2027. This is attributed to growing in-app purchases among the major Asian countries which include China and Japan and a decrease in purchasing cost of mobile apps such as Liftoff, AppsFlyer, Clickky, and AppLift. and Aarki.