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Sensor Tower’s State of Mobile Gaming Report for 2025 reveals that the mobile gaming industry returned to growth in 2024 after a period of stagnation. Global in-app purchase (IAP) revenue surged to $82 billion, marking a 4% year-over-year (YoY) increase.
Engagement also saw a significant rise, with players spending 3.5 trillion hours on mobile games, up 8% from the previous year. Additionally, total gaming sessions grew by 12%, reflecting the industry’s ability to retain and engage users.
However, new app downloads dipped to 49 billion, reflecting a 7% YoY decline. Instead of focusing on new users, developers prioritized player retention and monetization, emphasizing long-term engagement. Games that combined IAPs and advertising saw a 37% boost in revenue, demonstrating the effectiveness of hybrid monetization strategies.
The United States remained the top market for mobile gaming, generating nearly $24 billion in IAP revenue, an 8% YoY increase. Meanwhile, China (iOS only) and Japan held their positions as the second and third-largest markets, though Japan experienced a 6% revenue decline.
Game genres also played a crucial role in revenue trends. Strategy and RPG titles dominated the global landscape, while Casual games led revenue in Western markets. Shooter and Simulation games gained traction, while puzzle-based games like Royal Match continued to drive significant IAP earnings.
The mobile advertising landscape also shifted. TikTok emerged as the leading discovery platform for mobile games, capturing 67% more ad impressions YoY. Meanwhile, Applovin saw a 397% increase in ad placements, showcasing a major shift in marketing strategies.
Developers embraced Live Ops models, consistently delivering fresh content to boost user retention. This strategy paid off, with games using Live Ops contributing 84% of total IAP revenue in 2024.
Oliver Yeh, CEO & Co-founder of Sensor Tower, highlighted the industry’s evolution: “The mobile gaming ecosystem has matured, with developers now doubling down on retention, engagement, and monetization. With user acquisition costs rising, studios have embraced strategies such as Live Ops and hybrid monetization to maximize long-term revenue.”
Additionally, emerging markets were essential to the growth of the sector. IAP revenue decreased by 3% in Asia, but it increased impressively in Latin America (+13%) and the Middle East (+18%). Brazil cemented its status as a major center for soft launches for international publishers.
Mobile gaming is still strong in spite of competition from social media and video platforms. The industry is set up for more innovation in 2025 thanks to changing monetization tactics and expanding into high-growth areas.