Apple says the App Store ecosystem in the U.S. facilitated $406 billion in developer billings and sales in 2024, according to a study conducted by Professor Andrey Fradkin from Boston University Questrom School of Business and economist Dr. Jessica Burley from Analysis Group.
Importantly, for more than 90% of the billings and sales facilitated by the App Store, developers did not pay any commission to Apple, the tech giant says.
According to the study, over the last five years, the size of the App Store ecosystem has nearly tripled from US$142 billion in 2019 to $406 billion last year, and earnings for U.S.-based developers also more than doubled. Small developers in particular have done exceptionally well as their earnings increased by 76% between 2021 and 2024.
The new study estimates that in 2024 the App Store ecosystem facilitated $277 billion in total billings and sales from physical goods and services, $75 billion from in-app advertising, and $53 billion from digital goods and services. Key drivers included growth in food and grocery delivery, entertainment, and enterprise apps.
According to the study, since 2019, spending on physical goods and services has more than tripled, while in-app spending on digital goods and services and in-app advertising more than doubled. In the physical goods and services category, general retail spending and grocery delivery increased more than fourfold.
By 2024, spending on travel and food delivery and pickup both surpassed ride hailing, with users increasingly turning to apps to book travel, and restaurants increasingly offering delivery options through apps. U.S. developers also saw their earnings grow across top categories like productivity, education, and business, with the games category seeing the highest earnings in 2024.
According to the study, U.S. developers have also found tremendous success globally, with the ability to list their apps on storefronts in 175 countries and regions. You can find details about the study here.
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