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The global music streaming market size is forecast to increase by USD 31.10 billion between 2022 and 2027, accelerating at a Compound annual growth rate (CAGR) of 15.67%. In 2017, the US held the largest market share, projecting an annual revenue of USD 54.74 billion. The market's growth is influenced by factors such as the growing preference for music streaming services, the widespread availability of the Internet and smartphones, and the revenue generation from mobile ads.
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The global market will be driven by consumers' growing demand for these services. In the second quarter of 2022, there was a worldwide increase of 30.5% in the number of consumers who chose to pay for subscription services in order to stream music. One million new users choose to sign up for music streaming services each month. Global Internet bandwidth has increased as a result of the development of wired and wireless technologies as well as telecommunication standards like 3G, 4G, and 5G. This has helped to foster the global adoption of music streaming services.
Several companies have made significant changes. For example, in September 2020, Amazon debuted its HD service in Canada. Additionally, the business provides a one-month free trial and an Amazon Prime member discount. For example, the US had 90.37% more paid music customers in 2021 than it did in 2014. Over the course of the forecast period, these factors are anticipated to fuel the expansion of the regional music streaming market by driving up demand for music streaming services.
Growing demand for cloud-based services is a key trend shaping the market growth. The shift from iPods and traditional music systems to cloud-based music is gaining momentum, offering users easy storage, streaming, downloading, and sharing of content. Cloud-based services provide a convenient solution as users can access music without concerns about device storage limitations. The music library is stored in the cloud, and customers can access it through payment deals like monthly or yearly subscriptions.
Tech giants such as Amazon, Apple, and Alphabet rely on the cloud for various features, including storage, serving as a remote locker for downloaded tracks. Ad-based cloud music access services, like Spotify, have played a crucial role in expanding customer bases. These services require customers to listen to ads before streaming music, but afterward, they enjoy high-quality songs at faster rates. While Apple offers ad-free streaming with over 50 million songs, which can be downloaded to the iTunes library, vendors are expected to offer both ad-based and ad-free cloud-based services, making it a significant trend for the market growth and trends in the forecast period.
The Free segment is the Leading Segment to Dominate the Market
The Free segment was the largest segment and was valued at USD 13.65 billion in 2017. Moderate growth is anticipated in the market. Free music streaming is an ad-supported service whereby providers monetize the content by displaying adverts while the user is listening to music or when they make non-free in-app purchases. The two biggest global suppliers of free streaming services are Spotify and Alphabet. The music on free memberships is ad-supported and has limited availability.
Market - Revenue Share by Free Segment, 2017-2027
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North America Holds a Prominent Position in the Market
North America is estimated to contribute 44% to the growth of the global market during the forecast period. North America's market is probably going to increase at a flat rate. The fact that the US, the region's largest market, was among the first to adopt services and that the country's industry is currently approaching saturation is one of the main causes of this. The broad market expansion for services in the area is being aided by the substantial portfolio of music customers that these providers oversee managing. The players in the region are expanding their business by collaborating with artists and gaining exclusive rights to their songs or by acquiring smaller companies in the music industry. For instance, in August 2021, Apple acquired a classical service known as Prime Phonic. Hence, these determinants will increase the demand for music streaming services, which is expected to drive the growth of the regional music streaming market during the forecast period.
Market Size, By Region, Global, 2017-2027
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The Market is fragmented in nature. Some significant players include Alphabet Inc., Amazon.com Inc., Apple Inc., Bharti Airtel Ltd., Curb Records Inc., Deezer SA, Gamma Gaana Ltd., iHeartMedia Inc.,
The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
KKBOX, Meredith Corp., Mixcloud Ltd., RealNetworks Inc., Reliance Industries Ltd., Sirius XM Holdings Inc., SoundCloud Global Ltd. and Co. KG, SOUNDMACHINE, Soundtrack Your Brand Sweden AB, Spotify Technology SA, Tencent Holdings Ltd., and TuneIn Inc.
The music streaming market thrives on digital platforms, accessible through smart devices and websites, offering a vast array of music videos, podcasts, and audio files. Advancements in 5G connectivity enhance streaming quality and speed, shaping the landscape for key players like Tencent Music Entertainment and Amazon Music. 5G technology, coupled with Artificial Intelligence and Machine Learning, fuels personalized recommendations on platforms, including Indian music applications. Amid the COVID-19 pandemic, streaming platforms emerge as a primary source of entertainment, with live streaming gaining prominence on social media websites like Instagram and YouTube Live. Segments like on-demand streaming and data analytics tools drive the market's growth, catering to both individual and commercial users across various platforms.
The market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2021.
Music Streaming Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.67% |
Market growth 2023-2027 |
USD 31.10 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.83 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Bharti Airtel Ltd., Curb Records Inc., Deezer SA, Gamma Gaana Ltd., iHeartMedia Inc., KKBOX, Meredith Corp., Mixcloud Ltd., RealNetworks Inc., Reliance Industries Ltd., Sirius XM Holdings Inc., SoundCloud Global Ltd. and Co. KG, SOUNDMACHINE, Soundtrack Your Brand Sweden AB, Spotify Technology SA, Tencent Holdings Ltd., and TuneIn Inc. |
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, Market condition analysis for forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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