India’s App Market Is Booming — But Global Platforms Are Capturing Most Of The Gains

India’s mobile app marketplace is generating grounds revenue, pinch in-app purchases crossing $300 cardinal successful nan first quarter, up 33% year-over-year, according to Sensor Tower — but overmuch of that spending is flowing to world platforms.

Non-gaming apps were nan main driver of maturation successful Q1, generating complete $200 cardinal successful in-app acquisition gross — rising 44% year-over-year and expanding their stock of wide spending, Sensor Tower said successful its report. The gains were led by categories including utilities, video streaming, and generative AI.

The advancement reflects a broader displacement successful India’s app market, wherever yearly in-app acquisition gross has risen from $520 cardinal successful 2021 to more than $1 cardinal successful 2025 and is projected to scope $1.25 cardinal this year, per Sensor Tower. While downloads person stabilized astatine astir 25 cardinal a year, clip spent connected apps continues to grow, pointing to deeper engagement and a greater willingness among users to salary for integer services.

Much of India’s spending successful Q1 was captured by world platforms, pinch Google One, Facebook, ChatGPT, and YouTube among nan apical earners. Domestic players were much salient successful video streaming, pinch JioHotstar and SonyLIV ranking highly. A akin shape emerged successful downloads, wherever ChatGPT, Instagram, and nan Chinese short-drama app FreeReels led nan market, followed by Indian apps including Story TV, JioHotstar, and Meesho.

Image Credits:Sensor Tower

India’s app marketplace has matured connected nan download side, but monetization is strengthening arsenic usage deepens and integer costs habits go much embedded, Donny Kristianto, main marketplace insights head astatine Sensor Tower, told TechCrunch.

Despite nan gains, India remains a comparatively low-spending market, generating astir $0.03 successful gross per download, compared pinch much than $0.20 successful Southeast Asia and Latin America, Sensor Tower information shared pinch TechCrunch showed.

While newer categories are driving maturation successful India’s mobile app market, spending remains concentrated successful a fistful of mature segments, peculiarly productivity, societal media, and video streaming apps, which predominate nan apical rankings. Video streaming unsocial accounts for astir half of nan apical 10 revenue-generating apps, underlining its outsized monetization power, nan information showed.

Even so, shifts successful personification request propose room for further growth. Generative AI apps saw downloads emergence 69% year-over-year, pinch ChatGPT ranking among nan apical apps by some installs and revenue. India has agelong been ChatGPT’s largest market by users, while different AI apps are besides gaining ground.

Short play platforms are increasing moreover faster, pinch downloads up much than 400%, led by apps for illustration FreeReels. The inclination suggests India’s app marketplace is still early successful its monetization journey, moreover arsenic caller categories grow what users are consenting to salary for.