India is starting to pay for apps, not just download them
India's app market generated a record $345 million in Q2. For years, India was the world's largest app download market but one of its toughest places to make money. That is beginning to change as Indian consumers spend more on AI, entertainment, and other premium apps.
Key Takeaways
- India's mobile app market generated a record $345 million in consumer spending during the second quarter of this year, up 35% from a year earlier, according to a new report by Sensor Tower.
The app-market intelligence firm said the gains were increasingly driven by generative AI, streaming, and productivity apps rather than gaming, as Indian consumers became more willing to pay for digital subscriptions.
- Chen attributed the change to the wider adoption of digital payments, including India's Unified Payments Interface (a system that lets people pay directly from their bank accounts) and digital wallets, which have reduced friction for in-app purchases, alongside growing acceptance of app-based subscriptions and premium digital services.
- Revenue per download stands at about $4.60 in the U.S., $3.90 in South Korea, and $6.10 in Japan, compared with a small fraction of that in India.
Nonetheless, Chen said the trajectory matters more than the absolute level, with India's steadily improving monetization suggesting significant room for long-term growth.
- The latest data also suggests global subscription apps continue to be among the biggest beneficiaries of rising app spending in India, with Google One becoming India's highest-grossing mobile app during the quarter.
Streaming platforms such as Amazon Prime Video, Crunchyroll, Sony LIV, and JioHotstar also saw growing consumer spending.
- Appfigures estimates that ChatGPT generates about $60,000 a day in India and attracted around 1.8 million downloads over the past month, although that's down from roughly $80,000 a day last October.
Stats & Key Facts
- #India's app market generated a record $345 million in Q2.
- #India's app market generated a record $345 million in Q2.
- #India's mobile app market generated a record $345 million in consumer spending during the second quarter of this year, up 35% from a year earlier, according to a new report by Sensor Tower.
- #India's revenue per download has more than doubled over the past three-and-a-half years, while quarterly app downloads have remained at around 6.3 billion since 2023.
India's mobile app market generated a record $345 million in consumer spending during the second quarter of this year, up 35% from a year earlier, according to a new report by Sensor Tower. The app-market intelligence firm said the gains were increasingly driven by generative AI, streaming, and productivity apps rather than gaming, as Indian consumers became more willing to pay for digital subscriptions. The record quarter builds on a broader trend of rising app monetization.
India's revenue per download has more than doubled over the past three-and-a-half years, while quarterly app downloads have remained at around 6.3 billion since 2023. "We would describe India today as a rapidly evolving mobile market with a large user base and growing willingness to pay for digital services," Eve Chen, an insights analyst at Sensor Tower, told TechCrunch. Chen attributed the change to the wider adoption of digital payments, including India's Unified Payments Interface (a system that lets people pay directly from their bank accounts) and digital wallets, which have reduced friction for in-app purchases, alongside growing acceptance of app-based subscriptions and premium digital services.
The trend also stands out globally. India's app revenue saw its fastest growth in Q2 among major app markets, generating more than $200 million in quarterly consumer spending, per Sensor Tower's data shared with TechCrunch. In contrast, Mexico grew 30% and Turkey 25%, while U.S. app revenue actually declined 3% over the same period.
For more details please read the original article at TechCrunch AI.
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