App Store Drives $1.3 Trillion in Developer Sales in 2024

Apple’s App Store continues to be a significant driver of global commerce, facilitating $1.3 trillion in developer billings and sales in 2024, according to a recent study by economists Professor Andrey Fradkin and Dr. Jessica Burley.

The study categorizes the $1.3 trillion in billings and sales into three primary segments:

• Digital Goods and Services: Accounting for $131 billion, this segment includes revenue from apps offering games, photo and video editing tools, and enterprise solutions.
• Physical Goods and Services: Exceeding $1 trillion, this category saw substantial growth driven by increased demand for online food delivery, pickup services, and grocery orders.
• In-App Advertising: Generating $150 billion, in-app advertising has become a vital revenue stream, enabling many apps to remain free or low-cost for users.

Since 2019, spending across these categories has more than doubled, with physical goods and services experiencing the most significant growth, increasing by 2.6 times.

The App Store’s global reach is evident, attracting over 813 million average weekly visitors worldwide. Over the past five years, billings and sales facilitated by the App Store ecosystem have more than doubled in key regions, including the United States, China, and Europe.

The study also highlights how Apple supports its developers through its extensive suite of free tools and frameworks, including over 250,000 APIs. These resources enable developers to add new functionalities to their apps and harness powerful capabilities like machine learning and augmented reality.

Initiatives like App Store Small Business Program have contributed to the growth of small developers, who comprise more than 90% of all developers on the App Store. Between 2020 and 2022, small developers globally grew their revenue by 71%, with U.S.-based small developers seeing an 83% increase.

As the App Store continues to evolve, Apple remains dedicated to investing in tools and capabilities that help developers distribute their apps, reach new audiences, and build successful businesses