Mobile app usage is projected to decline significantly in the coming years due to the rise of AI assistants, shifting consumer behaviors, and evolving marketing strategies.
By 2027, Gartner forecasts a 25 percent decrease in mobile app usage, largely driven by the growing capabilities of AI assistants like Apple Intelligence, ChatGPT, Google Gemini, and Meta AI. These tools will enable users to consolidate app functions, reducing the need for multiple applications. Additionally, app consolidation across brands and companies will streamline user experiences but decrease individual app engagement.
The global mobile application market, valued at $252.89 billion in 2023, is expected to grow at a 14.3 percent CAGR from 2024 to 2030. Covering sectors like gaming, fitness, entertainment, social networking, and e-commerce, its growth is driven by smartphone adoption, rising internet use, and advancements in AI and machine learning. Popular platforms for app downloads include the Google Play Store and the App Store.
Gartner says this shift poses challenges for brands that rely heavily on app-driven revenue and user engagement. According to Emily Weiss, Senior Principal for Gartner Marketing Practice, brands with low app retention are at the highest risk. The decline in app usage will lead to reduced first-party data collection and a diminished ability to engage users through mobile push notifications. While this could lower app development costs for some brands, others may suffer from decreased visibility and user interaction.
Beyond app usage, the broader digital marketing landscape is also evolving. By 2026, over one-third of web content will cater to generative AI-powered search, reshaping how brands attract traffic. As search engines prioritize AI-optimized content, marketers will need to invest in talent skilled in AI-driven search optimization to maintain visibility and traffic.
The challenges extend to social media and subscription channels. By 2028, 30 percent of digital marketers’ paid social budgets will shift toward advertising and partnerships on subscription-based platforms like Substack, Patreon, and Discord. These platforms offer an alternative to traditional social media, appealing to audiences seeking curated, algorithm-free content experiences.
Furthermore, by 2027, 85 percent of customer data will come from automated interactions or AI-led engagements. This trend underscores the growing role of AI agents in customer interactions, requiring brands to adapt and trust these systems to manage customer-facing tasks.
The combined impact of AI advancements, content optimization shifts, and changes in consumer engagement habits signals a transformative period for digital marketing and app usage. Brands must strategize to navigate these changes, balancing cost efficiencies with the need to maintain meaningful user connections.
Rajani Baburajan
