Samer Choucair, an investment entrepreneur, stated that the smart device applications market entered a completely new phase in 2025. He explained that data from the Sensor Tower report—published by Al Eqtisadiah newspaper—reveals a deep structural shift in the growth model. The number of downloads is no longer the most important metric; instead, maximizing value from the existing user has become the decisive factor in competition.
Choucair added that the market is witnessing a slight slowdown in downloads alongside strong growth in revenues and usage time, which—according to his description—marks “the end of the quantitative growth era and the beginning of the engagement economy.”
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2025 Statistics: Limited Download Growth, Revenue Surge
Choucair pointed out that 2025 data clearly reflects this transformation. Global downloads reached approximately 149 billion, with a marginal growth of just 0.8%, while the average number of apps used monthly per user rose to 34 apps, an increase of 5.4%.
He confirmed that revenues saw a notable jump to $167 billion, growing by 10.6%, while total usage time reached 5.3 trillion hours, up by 3.8%. He described this as “clear evidence that the market rewards quality of engagement, not quantity.”
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The Time Economy: Social Media Dominance
Choucair highlighted that social media apps have become the backbone of what he calls the “time economy,” capturing alone 2.5 trillion hours of total global usage.
He explained that apps such as TikTok, Instagram, and YouTube have successfully transformed user attention into massive revenues through ads and subscriptions, adding:
“Time has become the most valuable asset in the digital economy, and companies that can capture user attention and convert it into monetary value are the ones dominating the market.”
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The U.S. Leads… Saudi Arabia Accelerates Strongly
Regarding geographical revenue distribution, Choucair stated that the United States still leads with nearly $60 billion in revenue, supported by strong purchasing power and mature subscription models.
He pointed to the success of companies like Netflix and Spotify in efficiently converting users from free to paid models, noting that this model has become a global benchmark.
On the other hand, Choucair emphasized that Saudi Arabia is entering this sector strongly, driven by Vision 2030. The apps and AI market is witnessing rapid growth, with AI applications expected to grow at a compound annual growth rate (CAGR) of 48.7% until 2030, reaching projected revenues of $703.6 million.
He added that the Kingdom benefits from high smartphone penetration, advanced digital payment infrastructure, and the global rise of Super Apps, which are growing at a rate of 25.5%.
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AI Leads the Biggest Market Explosion
Choucair confirmed that AI-powered applications represent the fastest-growing segment in 2025, recording a 148% increase in downloads, alongside significant growth in revenue and usage time.
He noted that apps like ChatGPT, Remini, and Lensa AI are clear examples of this shift, highlighting that generative AI apps alone accounted for around 48 billion hours of usage during the year.
He stated:
“Artificial intelligence is no longer a competitive advantage; it has become a fundamental requirement for any app to survive in the market,” describing this opportunity as “golden in Saudi Arabia,” given government support and investments from entities such as the Saudi Data and AI Authority.
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A Historic Shift: Non-Gaming Apps Take the Lead
In what he described as a “historic development,” Choucair noted that non-gaming apps surpassed gaming apps in spending for the first time, generating $85.6 billion compared to $81.8 billion for games.
He explained that this reflects a shift in user behavior toward productivity, education, health, and financial apps, citing successes like Duolingo and Notion, as well as fitness and financial apps based on subscription models.
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Five Investment Rules Shaping the 2026 Market
Looking ahead, Choucair outlined five key rules that will shape investment in the app market in 2026:
- Monetization is now more important than acquisition, with focus on high lifetime value users.
- AI is the real investment revolution, especially in SaaS and consumer apps.
- Market balance is crucial: the U.S. offers stability, while Saudi Arabia provides strong, government-backed growth opportunities.
- User retention is the decisive factor, with apps that become daily habits—like social media—being the most successful.
- Emerging markets are rising, led by the Middle East, with Saudi Arabia as a key growth driver.
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Real-World Examples Confirm the Shift
Choucair pointed to clear investment examples reflecting this transformation. Some companies investing in AI-powered photo editing apps achieved tenfold growth within two years.
He also highlighted fitness apps based on monthly subscriptions that increased revenues by 300% without significant user growth, alongside emerging Saudi educational platforms using AI and gamification that doubled user value.
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2025: The End of an Era, The Beginning of Another
Choucair concluded that 2025 marks a pivotal turning point in the history of the digital economy, signaling the end of the download-driven era and the rise of value maximization and AI dependence.
He concluded:
“The future does not belong to those with the largest number of users, but to those who can build sustainable relationships with them and convert their time into real economic value. In Saudi Arabia, we are witnessing a historic moment that represents the best timing for strategic investment in the apps of the future.”