India’s app market is booming — but global platforms are capturing most of the gains

2026-04-23 · Source: AI News & Artificial Intelligence | TechCrunch · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Emerging Technologies & Innovation · Depth: Fundamental Awareness, quick

Summary

India's mobile app market achieved record revenue in Q1, with in-app purchases exceeding $300 million, a 33% year-over-year increase, according to Sensor Tower. Non-gaming apps drove this growth, generating over $200 million, up 44% year-over-year, led by utilities, video streaming, and generative AI categories. Annual in-app purchase revenue in India has grown from $520 million in 2021 to over $1 billion in 2025, projected to reach $1.25 billion this year. While downloads stabilized at 25 billion annually, user engagement and willingness to pay for digital services are increasing. Global platforms like Google One, Facebook, ChatGPT, and YouTube captured most of this spending, though domestic players like JioHotstar and Sony LIV performed well in video streaming.

Key takeaway

For AI Product Managers evaluating market entry or expansion in India, recognize the significant and growing monetization potential, particularly within non-gaming sectors like generative AI and video streaming. While global platforms currently capture much of the revenue, the market's increasing maturity and user engagement suggest opportunities for localized strategies. Focus on deepening user engagement to convert downloads into sustained in-app purchases, even as the market remains relatively low-spending per download compared to other regions.

Key insights

India's mobile app market is rapidly monetizing, driven by non-gaming apps and increasing user willingness to pay.

Principles

• Deepening engagement precedes monetization.
• Global platforms dominate early market monetization.

In practice

• Focus on non-gaming app categories for growth.
• Prioritize video streaming and generative AI apps.

Topics

• India Mobile App Market
• In-App Purchase Revenue
• Global Platform Dominance
• Generative AI Apps
• Video Streaming Monetization

Best for: AI Product Manager, Product Manager, Investor, Entrepreneur

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Editorial summary, takeaway, and curation by AIssential. Original article published by AI News & Artificial Intelligence | TechCrunch.