TLDR: A new report by AI performance advertising firm Moloco reveals a remarkable 669% surge in generative AI app usage across India in the last year, positioning the country as a global leader in mobile app market growth. While gaming continues to dominate overall app activity, AI applications are rapidly reshaping user behavior and advertising strategies.
India has emerged as a powerhouse in the global mobile app market, demonstrating an unprecedented surge in the adoption of artificial intelligence (AI) applications. According to a recent report from Moloco, a prominent AI performance advertising firm, generative AI app usage in India has skyrocketed by a staggering 669% over the past year.
The findings highlight a significant shift in how Indian users engage with mobile applications. While gaming remains the dominant category, accounting for 34% of the total time spent in apps and experiencing an 11% year-on-year growth, generative AI has undeniably become the fastest-growing segment. This explosive growth underscores India’s dynamic and evolving digital landscape.
The report also indicates broader trends in mobile app consumption. Indian users collectively spent an additional 68 billion hours on entertainment apps and 50 billion hours more on social media in 2024 compared to the previous year. Conversely, engagement with sports apps saw a slight decline of 130 million hours.
Moloco’s insights point to India as one of the fastest-growing mobile app markets globally. Siddharth Jhawar, Country Manager for Moloco India, emphasized this, stating, “India is one of the fastest-growing mobile app markets globally, and our data clearly shows a dramatic shift in user behaviour—particularly the explosive rise of generative AI usage and the continued strength of gaming.” Jhawar further noted the broader economic implications for the mobile industry: “With in-app purchases and subscription revenues rising 25% in 2024 to $70.5 billion globally, Moloco projects that consumer mobile app revenue will surpass gaming revenue within the next two years. For advertisers, the message is clear: India is not just a high-growth app market—it is the growth engine for the next phase of mobile advertising.”
Advertisers are also being urged to diversify their strategies beyond traditional platforms. Tom Shadbolt, Senior Insights Manager at Moloco, commented on this trend: “Too many advertisers are still over-indexing on Google and Meta. The biggest returns we are seeing are happening outside big tech.” This suggests a growing opportunity for businesses to reach consumers through emerging and rapidly expanding app categories, particularly in the AI space.
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The data from Moloco paints a clear picture of India’s pivotal role in shaping the future of mobile app usage and advertising, driven significantly by the rapid integration and adoption of AI technologies.
