The increasing number of AI app downloads in India has caught the attention of companies like NVidia and Microsoft, leaving no stone unturned to cement their domination in this space.
The year 2024 has been witnessing a digital revolution as Artificial Intelligence (AI) apps have taken the world by storm. Developers are leaving no stone unturned to integrate advanced AI features into their apps, particularly targeting tech-savvy people worldwide. Interestingly, India, once again, emerged as the frontrunner in new technology adoption, leading the charge in AI app downloads.
According to the latest report by Sensor Tower, the number of AI app downloads exceeded 2.2 billion worldwide between January and August 2024. This figure is projected to surpass 3.3 billion by the end of the year, with an impressive 26% YoY growth. The financial side is just as remarkable, with in-app purchase (IAP) revenue from AI apps topped $2 billion in the first eight months of 2024. This revenue is projected to climb to $3.3 billion by December, with a strong 51% YoY growth.
Given the global excitement surrounding artificial intelligence and its potential benefits, the jaw-dropping figures for AI app downloads and revenue are not really surprising. The launch of ChatGPT by OpenAI has also ignited a wave of AI app development as companies strive to capitalise on the growing interest among tech-savvy individuals. And guess which country has emerged as the biggest consumer of AI-powered content and tools? It’s India!
India’s Dominance in AI App Downloads
India has become the largest market for AI app downloads, accounting for a significant 21% of the global total in 2024. This translates to an astounding 462 million downloads, proving the nation’s enthusiasm for AI-driven solutions. Following closely behind are Latin America with 20%, Europe with 15%, and Southeast Asia with 14% of total downloads, showing the global reach and appeal of AI apps.
However, it’s important to highlight that despite India’s remarkable achievement in download numbers, it has not ranked among the top six revenue-generating countries for AI apps in 2024, so far. This paradox highlights an essential aspect of the Indian market: while the population is large and enthusiastic about technology, it is also notably extremely price-sensitive. Indias often seek free or low-cost solutions, limiting the revenue potential of AI applications in this region.
In stark contrast, North America, which accounted for only 11% of downloads, has emerged as the top revenue generator for AI apps globally during the first eight months of 2024. The region accounted for a whopping 47% of the global AI app revenue, amounting to $940 million. This financial success is largely attributed to a combination of higher spending power and a robust consumer willingness to invest in premium apps.
Europe (21%), Latin America (8%), and China (6%) followed North America in revenue contributions between January and August 2024.
World’s Most Downloaded AI Apps 2024
The world’s five most downloaded AI apps in 2024 are Chatgpt, Remini, Photoroom AI photo editor, Google Gemini and Doubao (ByteDance’s AI smart assistant). What’s noteworthy is that among the top 30 most downloaded AI apps globally, the majority are either chatbots or photo/video editors. This trend indicates a growing interest among users, particularly those under 50, in tools that enhance communication and creativity.
AI Chatbots Take Center Stage
AI chatbot apps, in particular, have experienced unprecedented growth over the past year. Global downloads surged over 14x YoY to nearly 600 million in 2023 and exceeded 630 million in just the first eight months of 2024.
The revenue generated by AI chatbot apps has also skyrocketed, increasing nearly 10x YoY in 2023 to $380 million. So far, in 2024, the AI chatbot IAP revenue has reached $580 million, largely driven by the popularity of ChatGPT, which continues to dominate the market.
Speaking of dominance, ChatGPT’s monthly active users (MAU) have steadily risen, reaching over 190 million in August 2024, placing it ahead of all other AI apps globally. Notably, India ranks as the third market for ChatGPT by MAUs, representing 13.4% of its global user base. The top two markets – Europe and Latin America – accounted for 24.8% and 19.7% of global active users, respectively. This highlights not only the app’s widespread appeal but also the competitive landscape in which it operates.
From January to August 2024, ChatGPT generated $230 million in revenue, accounting for an impressive 39.7% of the total revenue in the AI chatbot market.
Interestingly, the United States, despite having only 12.7% of ChatGPT’s MAUs, emerged as its leading revenue generator, contributing a significant 42.4% to its global revenue so far this year.
Meanwhile, European markets, including Germany, the UK, and France, collectively accounted for 29.7% of ChatGPT’s total revenue in the first eight months of 2024. Japan and South Korea followed with 4.6% and 3.4% shares, respectively. India isn’t among the top five revenue-generating countries for ChatGPT, even though the country has a large user base for this AI chatbot.
To better understand the demographics of ChatGPT’s user base in the United States, we see that the 25-34 age group leads in usage, commanding a substantial 39% share, followed by 18-24-year-olds at 25%. Overall, a remarkable 64% of ChatGPT’s user base is under the age of 35. Although this demographic data is specific to U.S. ChatGPT users, a similar trend emerges globally, as most tech professionals using chatbot apps tend to be under the age of 40.
While it’s true that chatbot apps like ChatGPT are predominantly used by tech professionals, this raises an interesting question: what about the other segments of society? Specifically, those in the media and entertainment industries, or the many college students, especially females – are they also leveraging AI applications to enhance their creative processes or streamline their work? The answer is a resounding yes.
AI Art Generators: A New Creative Frontier
The popularity and usage of AI image and video apps are soaring like never before. AI Art Generators apps have emerged as the top-grossing subgenre within the AI app market, revolutionizing the way users create and share visual content. Between January and August 2024, these innovative apps accounted for a whopping 53% of the total AI app market revenue, amounting to nearly $1.1 billion.
AI Art Generators Apps like Remini and clay AI filters are particularly gaining traction among youngsters, generating millions in revenue. These apps are also strongly favoured by females eager to enhance the quality of their pictures and videos before sharing them on social media platforms like Instagram and TikTok.
India, boasting the highest number of social media users globally, accounted for 36% of the total downloads of AI Art Generator apps, while the US accounted for 43% of the total IAP revenue during the first eight months of 2024.
The Rise of Companion AI Apps: A New Kind of Relationship
Even though AI chatbots and photo/video editing apps have been dominating the AI app market, another type of app is capturing the public’s interest – companion AI apps. These apps offer personalized companionship and emotional support, catering to the growing desire for human-like interactions.
Leading the charge is Character AI, which reached a historic high of 22 million MAU in August 2024, with nearly 19 million downloads recorded so far this year.
Interestingly, the top three revenue-generating companion AI apps in 2024 are Replika, Character AI, and Talkie AI. Between January and August 2024, Replika generated over $9 million in IAP revenue, bringing its total global earnings to nearly $90 million.
What’s particularly fascinating about companion AI apps is their high user engagement. Character AI users, for example, average 25 sessions per day, with each session lasting nearly 4 minutes. This translates to over 1.5 hours of daily usage, significantly surpassing the engagement levels of ChatGPT users. Other companion AI apps, such as Talkie AI, Linky AI, and HiWaifu, also boast impressive daily usage times of around or exceeding one hour.
Does this mean humans are feeling lonely and are turning to AI apps for companionship? It’s a thought-provoking question.
What’s most surprising and concerning is that these companion AI apps are especially popular among younger users, with those aged 18-35 accounting for over 70% of the user base in the United States.
Character AI, in particular, has a strong following among 18-24-year-olds, with 66% of its users falling within this age group.
This trend raises important discussions about social dynamics and the nature of human connections in an increasingly digital world. As people seek companionship in AI, it highlights a potential shift in how relationships are formed and maintained, prompting us to consider what this means for our social interactions and emotional well-being.
In conclusion, the global AI app market is experiencing remarkable growth, driven by the increasing popularity of AI chatbots, photo/video editors, and companion AI apps. Predominantly embraced by tech-savvy young people worldwide, these innovations are reshaping how we interact with technology.
As AI technology continues to advance, we can expect to see even more innovative and impactful AI apps shaping our digital future. However, it is also important to acknowledge the potential downsides of these advancements, as they may contribute to feelings of loneliness and disconnection among individuals.
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