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Report: Non-gaming apps drove mobile spending growth in Q2 as games fell 4.5%

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Why This Matters

The report highlights a significant shift in the mobile app industry, with non-gaming apps, especially AI-driven ones, driving revenue growth despite a decline in gaming revenue. This trend underscores the increasing importance of AI and other non-gaming categories for developers and investors, shaping future industry strategies and consumer engagement. The growth in non-gaming apps signals a broader diversification in mobile app monetization and user preferences.

Key Takeaways

A new report from Sensor Tower shows that non-gaming apps continued to drive global mobile spending growth in Q2 2026 across iOS and Android, while gaming revenue declined 4.5% year over year. Here are the details.

AI apps lead non-gaming growth as mobile game spending declines

Last month, during Apple’s fiscal Q3 2026 earnings call, the company attributed part of its Services revenue slowdown to weaker mobile gaming performance and regulatory changes affecting the App Store business model.

Today, Sensor Tower published its Q2 2026 Digital Market Index report, offering a closer look at how mobile app spending and downloads changed during the quarter.

According to the report, non-gaming revenue rose 14.6% year over year in Q2 2026, while gaming revenue declined 4.5% over the same period. In absolute terms, non-gaming apps generated $24.4 billion in revenue and 25.5 billion downloads, compared with $19.2 billion in revenue and 11.3 billion downloads for games.

Source: Sensor Tower

The report also noted that U.S. IAP revenue declined 3% year over year, but the country still led the world in spending at $14.8 billion. China came in a distant second at $5.98 billion, despite seeing revenue grow 10% over the same period.

When it came to the top markets by app downloads, India remained in first place with 6.67 billion installs, up 4% year over year. The U.S. followed with 3.08 billion downloads, down 0.2%, while Brazil ranked third with 2.43 billion, down 2%.

Source: Sensor Tower

As for which app categories generated the most revenue, here’s what Sensor Tower said:

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