Enjoy complimentary customisation on priority with our Enterprise License!
The music market size is forecast to increase by USD 70.02 billion at a CAGR of 12.57% between 2023 and 2028. The music market is experiencing significant growth, driven by the surge in digital music adoption, with streaming and downloading contributing to nearly 60% of recording segment revenue. This trend is bolstered by the ease of accessing music online. Mergers, acquisitions, and strategic alliances among the recording players and the entry of new market participants are also shaping market growth. Global and regional vendors are offering diverse products, intensifying competition. Moreover, companies are increasingly partnering with technology providers to gain a competitive edge and maintain market positions. This market expansion is crucial for understanding trends like playlist customization and the emergence of new portals and video streaming services, catering to the preferences of millennials and fostering a vibrant community. Market research and growth analysis reports provide valuable insights into these dynamics.
The individual segment is estimated to witness significant growth during the forecast period. Factors such as the developments in network infrastructure that are lowering the cost of Internet services and providing people with access to music-streaming services on mobile devices are significantly contributing to the growth of this segment. In addition, there has been an incremental increase in mobile data traffic because of the growth in 4G and 5G services.
Get a glance at the market contribution of various segments View the PDF Sample
The individual segment was the largest segment and was valued at USD 41.74 billion in 2018. Moreover, mobile data traffic is expected to grow significantly during the forecast period, which, in turn, will positively affect the growth of the global market. In addition, the developments in telecommunication standards, such as 4G and 5G are also expected to fuel the individual user segment, as these networks enable individual users to access high-quality music from anywhere at any given point in time. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the source, the segment is classified into recording, live, and others. The main revenue sources of the recording segment include the creation and distribution of musical recordings, publishing songs, and providing sound recording and related services. In addition, music on mobile platforms has grown dramatically in recent years. This is mainly due to the increased Internet penetration and the growth of smartphones and tablets, particularly in emerging markets. Moreover, 96% of consumers increased their online consumption in 2023. Therefore, there is an increase in demand for music content via mobile platforms which is fuelling the growth of this segment which in turn drives the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is a significant growth of the market in North America due to the strong growth in streaming revenue. One of the main countries in North America which is fuelling the market growth in the region is the US due to the high spending capacity of the population. In addition, Apple and Spotify are the two largest music-streaming service players in the region, with both companies having paid subscriber bases of more than 25 million. Furthermore, the players in the region are expanding their business by collaborating with artists and gaining exclusive rights to their songs or by acquiring small companies in the the industry. Hence, such factors drive the market in North America during the forecast period.
In the ever-evolving landscape of entertainment, streaming platforms have revolutionized the way we consume media, driving the wave of digitalization in the industry. However, navigating complex copyright laws is essential to protect intellectual property rights amidst technological advancements. Understanding consumer preferences is key for streaming platforms to curate content effectively while addressing piracy concerns that threaten revenue streams. Adhering to the industry regulations, streaming platforms play a pivotal role in shaping trends such as declining album sales and the rise of digital formats like downloads.
Additionally, they influence the market for concert tickets through live streaming events. Thorough market growth and forecasting enable stakeholders to anticipate trends and opportunities, guiding strategic decisions based on accurate market forecasting.
One of the key factors driving the market growth is the increasing adoption of digital music. There is a growing popularity for digital music which includes music streaming and downloading, contributing almost 60% of the revenue generated by the recording segment. In addition, the ease of accessing and downloading songs through the Internet is also fuelling the adoption of digital music.
Moreover, the convenience offered by digital music eliminates the need to carry physical forms, such as compact discs (CDs) and cassettes. In addition, the rising penetration of mobile devices such as smartphones and tablets and the availability of high-speed internet connectivity are driving the growth of digital music. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
A key factor shaping the market growth is the increase in mergers and acquisitions (M&A) and strategic alliances among market players and entry of new players. Several global and regional vendors are offering differentiated products in the market, which is intensifying the competition among companies. In addition, there is an increasing focus on new strategies, such as partnering with technology providers, to gain a competitive edge in the market and retain their market positions.
Moreover, the companies are partnering with each other for business expansions through new distribution channels. In addition, investments in M&A and strategic alliances help service providers improve their market reach and customer base. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
The decline in physical sales of music is one of the key challenges hindering the market growth. There has been a significant decline in the retail sales of CDs and digital downloads of music since the arrival of music-streaming in the market. In addition, customers are reluctant to purchase single tracks when they can access the complete album through music streaming services.
For instance, in 2020, approximately 257.2 million digital-music singles were downloaded in the US. In addition, the sale of physical media, such as CDs, also declined in 2021 compared with the past five years. Furthermore, a large number of users of digital downloads and CDs have switched to music-streaming. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc: The company offers music services such as YouTube music with and without ads.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the market, the landscape is shaped by internationalization, connecting diverse music communities worldwide through intelligent devices and digital platforms. With the proliferation of websites and audio streaming services, listeners enjoy access to a vast array of content, including podcasts and customized playlists tailored to their preferences. In this dynamic environment, song recommendations and podcast genres play a crucial role in guiding users through the plethora of content available on online and social media platforms. Recording companies and record labels leverage artists & repertoire (A&R) expertise and strategic marketing initiatives to navigate the evolving music ecosystem. While Amazon Music and Apple Music dominate the digital trend, video content on platforms like YouTube Premium and Tindle expands the scope of music consumption. Despite the rise of digital platforms, physical music revenue remains significant, catering to both traditional collectors and nostalgic enthusiasts.
Smart devices and online music streaming services enable seamless access to music content on connected devices, facilitated by improving fixed broadband speeds and digital payment systems. Bundle packs offered by platforms like the Financial Times enhance user experience in this moderately consolidated market. Artist collaborations and live performances continue to thrive, enriching the music experience beyond digital realms with captivating music videos and engaging interactions with fans. As the market evolves, innovation and collaboration remain essential drivers of its vibrancy and growth.
The recording industry, along with the live business, forms the backbone of the music industry, with entities like Nielsen providing crucial insights into market trends and consumer behavior. Artists like Naezy play a significant role in shaping the music community and influencing popular culture. In recent years, the music industry has witnessed a shift towards digital platforms, with the proliferation of mobile apps and desktop applications offering access to a vast array of music content. Social networking sites have emerged as important tools for artists to connect with their fanbase, while the games industry has integrated music into its offerings, often leveraging in-app purchases to monetize content. The modeling approach to analyzing music consumption patterns has evolved, with a bottom-up approach gaining prominence. This method focuses on individual user behavior, providing a more nuanced understanding of preferences and trends within the music community. As a result, platforms like the App Store and mobile apps have become invaluable resources for discovering new music and engaging with artists and fellow enthusiasts alike.
The Market is undergoing a profound transformation fueled by digital innovation and changing consumer behaviors. With platforms like YouTube Music and Wynk Music catering to diverse musical tastes, Bollywood and international artists like DIVINE and Lauv are reaching global audiences. Record labels such as Sony Music and Rimas Publishing are adapting to the digital economy, leveraging rights management and royalty administration systems for customer billing and business intelligence. Live events at iconic venues like the Royal Opera House and podcast genres are thriving, facilitated by PTZ camera series and video switchers for immersive experiences. Forecasting techniques like S-curve function and exponential trend smoothing guide industry stakeholders, while insights from statistical offices and trade associations inform decision-making amidst fluctuating exchange rates and evolving consumer attitudes.
Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.57% |
Market Growth 2024-2028 |
USD 70.02 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.1 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 43% |
Key countries |
US, China, UK, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Aspiro AB, Bertelsmann SE and Co. KGaA, Curb Records Inc., Deezer SA, Kobalt-Music Group Ltd., NORTHERN MUSIC.Co. Ltd., Pioneer Music.Co., Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Tencent Music Entertainment Group, THEME MUSIC.Co. Pvt. Ltd., Universal Music-Group NV, Vivendi SE, Warner-Music Group Corp, Yamaha Corp., and Zee Entertainment Enterprises Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.