The US is the Most Lucrative Market for AI Apps, But It's Not the Only One
This is a single insight from This Week in Apps - Big Opportunities for AI Apps. Check out the full article for more insights.
The rise in demand for AI apps is a global trend, especially when looking at where the downloads are coming from, but revenue is a bit different - and that's important for app makers to know.
We broke down consumer spending on AI apps by country and ranked every country. Can you guess who's at the top?
You probably guessed right - the US. The US is responsible for 64% of all AI app revenue going back to the beginning of 2023, when this trend started.
The UK, Germany, Canada, and China make up the top five, each with 6%, 5%, and 4% x2 share of revenue. Although small, these still represent more than $100M in consumer spending on AI apps in each of these countries.
For developers of AI apps, focusing on the US may seem intuitive but where there's money there's competition. The opportunity in the "smaller" markets is much easier to benefit from, and smart developers know this and optimize for it.
Because even though the US is bigger, demand across the globe is growing in pretty much the same direction - the up-and-to-the-right kind.
Our AI report shows that quarterly revenue has risen consistently in the US and worldwide since the beginning of 2023, hitting an all-time high at the end of 2024 with $221M from the US and $150M coming in from the other top 10 countries.
That represents a 16% increase from Q3 for the US but more than double, 32%, growth for the other countries.
I expect to see demand in and out of the US to continue growing but outside of the US, where saturation hasn't hit yet because everyone's focused on the US, competition will be far less challenging, enabling some to grow quickly.
It won't last long, so make sure to check all 10 Top Markets charts in the report (starting with page 12).
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All figures included in this report are estimated. Unless specified otherwise, estimated revenue is always net, meaning it's the amount the developer earned after Apple and Google took their fee.
