The growing number of AI app downloads in India has caught the attention of companies like NVidia and Microsoft, who are doing everything possible to consolidate their dominance in this space.
In 2024, artificial intelligence (AI) apps are taking the world by storm and a digital revolution is taking place. Developers are leaving no stone unturned to integrate advanced AI features into their apps, especially targeting tech-savvy people around the world. Interestingly, India has once again emerged at the forefront of new technology adoption, leading the way in AI app downloads.
According to Sensor Tower’s latest report: AI app downloads exceeded 2.2 billion worldwide from January to August 2024. This number is expected to reach over 3.3 billion by the end of the year, a staggering 26% year-over-year growth. The financial aspects are equally noteworthy. In-app purchase (IAP) revenue from AI apps exceeds $2 billion This revenue is expected to reach $3.3 billion by December, a significant 51% year-over-year growth.
Given the global excitement surrounding artificial intelligence and its potential benefits, the impressive numbers in AI app downloads and revenue aren’t all that surprising. OpenAI’s announcement of ChatGPT also sparked a wave of AI app development as companies look to capitalize on the growing interest among tech-savvy individuals. And guess which country has become the biggest consumer of AI-powered content and tools? India!
India’s advantage in AI app downloads
India will be the largest market for AI app downloads, accounting for a significant 21% of the global total by 2024. This equates to a staggering 462 million downloads, proving the public’s enthusiasm for AI-driven solutions. Latin America followed with 20% of total downloads, followed by Europe with 15% and Southeast Asia with 14%, demonstrating the global reach and appeal of AI apps.
However, despite India’s impressive achievements in download numbers; Not ranked in the top 6 countries for AI app revenue 2024, for now. This contradiction highlights an important aspect of the Indian market. While it has a large population and is passionate about technology, it is also very price sensitive. Indians often seek free or low-cost solutions, limiting the revenue potential of AI applications in the region.
In stark contrast, Accounting for just 11% of downloads, North America emerged as the largest revenue source for global AI apps in the first eight months of 2024. The region accounted for a whopping 47% of global AI app revenue, totaling $940 million. This economic success is largely due to a combination of high purchasing power and strong consumer appetite to invest in premium apps.
In terms of revenue contribution from January to August 2024, Europe (21%), Latin America (8%), and China (6%) followed North America.
Most downloaded AI apps in the world in 2024
The five most downloaded AI apps in the world in 2024 are Chatgpt, Remini, Photoroom AI photo editor, Google Gemini, and Doubao (ByteDance’s AI smart assistant). Notably, it is in the top 30 most downloaded AI apps worldwide. The majority are chatbots or photo/video editors. This trend shows that users, especially those under 50, are increasingly interested in tools that enhance communication and creativity.
AI chatbots take center stage
AI chatbot apps in particular have seen unprecedented growth over the past year. Global downloads have soared more than 14 times year over year, reaching nearly 600 million in 2023. More than 630 million people in the first eight months of 2024 alone.
Revenue generated by AI chatbot apps has also skyrocketed, increasing almost 10x year over year to $380 million in 2023. So far, in 2024; AI chatbot IAP’s revenue reached $580 millionThis is primarily driven by the popularity of ChatGPT, which continues to dominate the market.
Speaking of advantages, ChatGPT’s Monthly Active Users (MAU) have been steadily increasing to over 190 million in August 2024, surpassing all other AI apps worldwide. especially, India ranks as ChatGPT’s third market by MAU, accounting for 13.4% of the global user base. The top two markets, Europe and Latin America, account for 24.8% and 19.7% of global active users, respectively. This highlights not only the app’s broad appeal but also the competitive environment in which it operates.
From January to August 2024, ChatGPT generated $230 million in revenue and accounted for 39.7% of the total AI chatbot market revenue.
Interestingly, despite having only 12.7% of ChatGPT’s MAUs, the US has emerged as a major revenue source, contributing a significant 42.4% to global revenue so far this year.
Meanwhile, the European market, which includes Germany, the UK, and France, accounted for 29.7% of ChatGPT’s total revenue in the first eight months of 2024. Japan and South Korea followed with shares of 4.6% and 3.4%, respectively. India is not among the top 5 countries by ChatGPT revenueeven though the country has a large user base for this AI chatbot.
To better understand the demographics of ChatGPT’s user base in the US, the 25-34 age group accounts for the largest share of usage at 39%, followed by 18-24 at 25%. You can see. whole, An astonishing 64% of ChatGPT’s user base is under 35 years old. While this demographic data is specific to ChatGPT users in the United States, similar trends are emerging globally, as most technology professionals using chatbot apps tend to be under 40 years old.
While it’s true that chatbot apps like ChatGPT are primarily used by technical professionals, this raises some interesting questions. What about other segments of society? Specifically, those who work in the media and entertainment industry, or many university students, especially women, who use the Are you leveraging AI applications? The answer is a resounding yes.
AI Art Generator: A new creative frontier
The popularity and usage of AI image and video apps is skyrocketing like never before. AI art generator apps have emerged as the most profitable subgenre within the AI app market, revolutionizing the way users create and share visual content. From January to August 2024, these innovative apps accounted for a whopping 53% of the total AI app market revenue, amounting to approximately $1.1 billion.
Apps like AI art generator Remini and Cray AI filters are gaining traction, especially among young people, and are generating millions of dollars in revenue. These apps are also highly favored by women who want to improve the quality of their photos and videos before sharing them on social media platforms like Instagram and TikTok.
India, which has the highest number of social media users in the world, accounted for 36% of total downloads of the AI Art Generator appMeanwhile, the US accounted for 43% of total IAP revenue in 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 dominate the AI app market, another type of app is capturing the attention of the masses. Companion AI app. These apps provide personalized companionship and emotional support, meeting a growing desire for human-like interaction.
Leading the way is Character AI, which reached a historic high of 22 million MAUs in August 2024 and has recorded nearly 19 million downloads so far this year.
Interestingly, the top three revenue-generating companion AI apps in 2024 are Replika, Character AI, and Talkie AI. From January to August 2024, Replika generated over $9 million in IAP revenue, bringing total global revenue to nearly $90 million.
What’s especially appealing about companion AI apps is their high level of user engagement. For example, Character AI users perform an average of 25 sessions per day, with each session lasting nearly 4 minutes. This equates to more than 1.5 hours of daily usage, significantly exceeding the engagement levels of ChatGPT users. Other companion AI apps like Talkie AI, Linky AI, and HiWaifu also boast impressive usage times of around an hour or more per day.
Does this mean humans are feeling lonely and turning to AI apps for companionship? A thought-provoking question.
What is most surprising and concerning is that these companion AI apps are particularly popular among younger users, with users between 18 and 35 making up more than 70% of the US user base.
Character AI is particularly popular among 18-24 year olds, with 66% of users falling into this age group.
This trend is raising important debates about social dynamics and the nature of relationships in an increasingly digital world. As people seek companionship from AI, it highlights potential changes to the way we form and maintain relationships, prompting us to consider what this means for our social interactions and mental well-being. I am.
In conclusion, the global AI apps market is witnessing remarkable growth due to the increasing popularity of AI chatbots, photo/video editors, and companion AI apps. These innovations have been embraced primarily by young, tech-savvy people around the world and are reshaping the way we interact with technology.
As AI technology continues to evolve, we expect more innovative and impactful AI apps to shape our digital future. However, it is also important to be aware of the potential downsides, as these advances can increase feelings of isolation and disconnection between individuals.
