Sensor Tower

India's App Market Shifts from Downloads to Payments

India's mobile app market recorded $345 million in consumer spending in Q2 2026, a 35% year-over-year increase, according to Sensor Tower. Growth is being driven by generative AI, streaming, and productivity apps rather than gaming, while quarterly downloads have held steady at about 6.3 billion. Wider adoption of digital payments such as the Unified Payments Interface (UPI) and digital wallets has reduced friction for in-app purchases, boosting subscriptions and premium services. Sensor Tower data shows OpenAI and Anthropic accounted for nearly 83% of AI app revenue in India during Q2, and non-gaming apps represented 68% of mobile app revenue in H1 2026. Appfigures notes subscription growth continues but at a slower pace after an AI-fueled surge.

Meta's Influence in India Surges, Draws Government Scrutiny

CNBC's Inside India newsletter reports that Meta has become the dominant social media force in India after Gen Z-led protests widely used Instagram to organize and document events. Data from Sensor Tower shows large daily active user bases for Meta properties in India, with WhatsApp, Instagram and Facebook ahead of rivals such as Google’s YouTube and Elon Musk’s X. The spike in Instagram usage — including a selfie-style video by Prime Minister Narendra Modi that drew hundreds of millions of views — has strengthened Meta’s reach but also intensified government scrutiny over content moderation, compliance with India’s Information Technology Rules, deepfakes and other issues. Experts say the platform’s prominence boosts long-term monetization opportunities and ad spending in India while exposing Meta to regulatory and political risk. The newsletter also notes related business items including a large IPO by Temasek-owned Manipal Hospital and comments from Indian pharma executives.

Mobile IAP Falls 2% as Ad Spend Rises in H1 2026

Sensor Tower's H1 2026 Gaming Digital Market Index shows global mobile in-app purchase (IAP) revenue fell 2% year-over-year to $40 billion while downloads dropped 12% to 24 billion. Gaming ad spend grew 8% to $7 billion with ad impressions up 14% to 1.4 trillion. Honor of Kings reclaimed the top spot for IAPs. Tencent remained the leading publisher; Century Games climbed from fourth to second with a 45% IAP revenue increase. Strategy led genre IAPs ($9.3bn) while puzzle grew nearly 20%. Regional shifts included US IAPs down ~7%, China flat, and Europe up ~10%.