Mumbai: Consumer apps are entering a transformative phase as artificial intelligence and game design principles converge, unlocking a projected $112 billion market opportunity by 2031, according to a new report by BITKRAFT Ventures.
The report, titled ‘The Future of Consumer Apps: How AI + Game Design Principles Are Reshaping Every Category’, highlights how these apps are evolving rapidly with the integration of AI-driven, game-like experiences.
The report underscores that consumer apps are being fundamentally reshaped by the fusion of AI capabilities and gaming mechanics, creating more engaging and adaptive user experiences.
It further explores how this convergence is driving the emergence of a new generation of apps across global markets.
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Non-Gaming Apps Overtake Gaming Revenue
In a significant milestone for consumer apps, non-gaming applications surpassed gaming in global app store revenue for the first time in 2025.
This shift was largely driven by the rapid adoption of AI-powered consumer apps, particularly in the generative AI segment, which saw revenues triple to over $5 billion.
The report notes that consumer apps are benefiting from a major behavioural shift among users. More than 40% of the global population now exhibits gaming-conditioned habits, expecting instant feedback, visible progress, and personalised rewards from apps. However, many existing applications have yet to fully meet these expectations.
AI Apps 2.0 Redefine Landscape
BITKRAFT introduces the concept of “AI Apps 2.0,” a new class of consumer apps that leverage AI to learn from users, adapt in real time, and continuously improve engagement.
These next-generation apps are no longer constrained by high development costs, as AI has made sophisticated, game-like personalization accessible even to early-stage teams.
The report highlights that consumer apps built on AI-native infrastructure can deliver adaptive experiences that were previously possible only with large-scale studio resources.
This democratization of technology is expected to accelerate innovation across the ecosystem.
Jens Hilgers, Founding General Partner, BITKRAFT Ventures, said, “Gaming is not just the largest entertainment sector; it is the foundational design language for the next generation of consumer experiences. AI has made it possible for any founder to build the kind of adaptive, personalised product that once required a studio-scale budget.
The founders who combine game-design thinking with AI-native infrastructure will build the most consequential consumer companies of this decade. The behavioural shift has already happened and the infrastructure costs are falling. What remains is execution, and knowing where to aim.”
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Sector-Wide Impact Across Categories
The report evaluates six major sectors where apps are undergoing transformation: Education, FinTech, E-commerce, Health & Wellness, Social & Community, and emerging verticals such as spirituality and creative co-creation.
Each of these sectors presents unique opportunities for apps to leverage gamification and AI to enhance user engagement and unlock new revenue streams. The report also identifies areas where traditional incumbents are most vulnerable to disruption by innovative apps.
Investment Trends Signal Untapped Potential
The data reveals that consumer apps incorporating gamification have attracted $20.7 billion in private market transactions since 2020, spanning 208 deals.
However, the majority of investments in consumer apps have been concentrated in just three verticals: EdTech, Fitness & Wellness, and Entertainment & Social.
This leaves significant untapped potential for consumer apps in sectors such as finance, commerce, and social connectivity. The global gamification market, a key driver for consumer apps, is projected to grow from $29 billion to $112 billion by 2031.
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Underinvestment Presents Opportunity
Despite their growing importance, consumer apps remain underrepresented in venture capital allocations. While consumer-focused companies account for approximately 20% of all unicorns, they receive less than 10% of venture capital funding.
BITKRAFT projects that investment activity in consumer apps will reach $50 billion within the next five years, spanning multiple verticals. This suggests a significant opportunity for investors to capitalize on the evolving consumer apps landscape.
Future Outlook: New $10B Consumer Apps by 2035
Looking ahead, the report forecasts that by 2035, at least five non-gaming consumer apps companies valued at over $10 billion will emerge – companies that do not yet exist today.
BITKRAFT emphasizes that the window to establish category leadership in consumer apps is limited to the next 18 to 24 months, making this a critical period for founders and investors.
The report is based on eight years of investment insights and draws from the firm’s experience with over 150 portfolio companies, providing a comprehensive view of the future trajectory of apps globally.
