India’s non-gaming app market grew 28 percent last year, driven by streaming services and AI-powered tools, yet spending per user remains far below global averages. A new report from research firm Sensor Tower shows total app downloads hit 27 billion in 2025, with streaming apps accounting for nearly 40 percent of that growth. AI applications, including chatbots and productivity tools, also saw a sharp rise in adoption, especially among urban users aged 18 to 34.
Global platforms dominate this expansion. Netflix, Amazon Prime Video, and YouTube together control over half of the streaming market in India. Local players like JioCinema and SonyLIV have gained ground but still trail behind. For AI tools, Google Assistant and Microsoft Copilot lead, while Indian startups struggle to match their scale. The disparity reflects a broader trend: Indian companies provide the demand, but foreign firms capture most of the revenue.
Spending per user in India averaged $1.20 last year, compared to $8.50 in the United States and $5.30 in China. This gap persists despite India’s rapid digital adoption. Lower disposable income and price sensitivity among Indian consumers limit how much they spend on apps. Streaming services, for example, rely on ad-supported tiers rather than subscriptions, further reducing revenue per user.
The government has pushed for local alternatives, offering subsidies and tax breaks to domestic developers. Yet even with these incentives, global platforms maintain their lead. The report suggests India’s app economy will keep growing, but without a significant shift in spending habits or policy enforcement, foreign companies will continue to benefit most.
Source: techcrunch.com