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The background music market size is forecast to increase by USD 527.2 million at a CAGR of 8.76% between 2024 and 2028. The background music market experiences continuous expansion, driven by various factors. Primarily, the retail sector's increasing demand for evocative and engaging background scores significantly contributes to market growth. Additionally, the expanding utilization of background music in public spaces, such as malls, restaurants, and offices, further fuels market expansion. Moreover, regulatory pressures intensify, with a focus on combating piracy and copyright infringement, thereby creating a legal and secure business environment for market participants. These factors collectively propel the background music market forward, ensuring its sustained growth and development.
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In today's landscape, ambient music isn't just background noise—it's an integral part of customer engagement and ambiance in entertainment venues and recreation spaces. With the rise of AI-powered music curators, businesses harness the power of tailored playlists to enhance customer engagement and consumer relationships. Modern infrastructures leverage value-added options like complimentary food and digital broadcasts, ensuring a soothing shopping environment. From commercials to films, soft tunes enhance the consumer shopping experience while promoting sleep quality in healthcare settings. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for background music in the retail sector is the key factor driving the global market. The right tempo and rhythm of BGM have proven to influence engagement with the environment and increase the time spent shopping. Soft and slow melody has a relaxing effect on shoppers, which leads them to browse longer at stores. Background score, therefore, plays an important role in creating a positive store experience, which is a major selling point of background score subscriptions globally.
Background score has several advantages that help businesses retain and attract new customers. Moreover, there is also a high demand for digital audio content, including background score. This demand for digital audio content is attributed to the rise in the number of Internet downloads and the availability of melody-related applications. The increase in the online streaming of melody is expected to drive the demand for background score during the forecast period.
The growth of music subscription services will fuel the global market. The industry has witnessed continuous growth in revenues over the last three years with high revenues observed from subscription-based streaming channels. These streaming channels include paid subscription services, streaming radio services, and advertisement-supported streaming services.
Traditionally, people used to buy on a pay-per-track/album basis. However, the high cost of the work under such a revenue regime discourages people from purchasing them. This compels them to resort to piracy to fulfil their demand. Moreover, the growing number of mobile applications and websites has helped digital services, such as background soundtrack services, attract a large audience. The increase in the number of mobile applications is attributed to the increased adoption of smartphones and tablets. Such factors will increase the market during the forecast period.
The low-profit margins for background music companies are a major challenge to the global market. The industry is highly competitive, with the presence of many companies that provide homogeneous services at very low costs with some variation. A major share of the revenues earned by the companies goes to the artists, content creators, publishing companies, and labels, which leaves very little income for them (bgm providers). This slim profit margin makes it difficult for companies to sustain themselves in the market, thereby proving to be a challenge for the market.
The providers of background score are largely dependent on the volume of subscribers and sales to generate profits. However, with the presence of several technology streaming startups, garnering a large user base is becoming difficult, while the profitability and income in the industry are beginning to stagnate. Even large soundtrack providers are facing difficulties in increasing their profits. Most other background streaming providers are also facing low margins and losses. Although the number of subscribers continues to grow, the revenue-generation model is expected to remain a challenge for the companies.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
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.
AMI Entertainment Network LLC - The company offers background music with a robust catalog, scheduling tool, and curated playlists.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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.
By Product Type
The market share growth by the music streaming segment will be significant during the forecast period. Streaming services include websites that let users watch videos, listen to audio, and subscribe to podcasts. Moreover, the use of smart devices will also rise along with the increased penetration of digital platforms, which will drive market during the forecast period.
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The music streaming segment showed a gradual increase in market share with USD 661.05 million in 2018. Owing to functions such as automatic playlist customization, song recommendations, and hassle-free connectivity on apps and browsers, streaming platforms are becoming more popular. Additionally, the expanding podcast genres of these portals are fueling market. One of the most popular trends in the global market is the expanding use of 5G connections. Thus with the high demand for digital platforms, the global market is expected to witness high growth during the forecast period.
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Europe is estimated to contribute 45% 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.
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. During the forecast period, the market in Europe is expected to experience accelerated revenue growth as countries in Eastern and Central Europe still remain untapped. Europe accounts for the highest per capita consumption. The global average consumption by a user with access to a media device is four hours. However, an average citizen in the region (Europe) consumes 15% more than the global average. The high level of passion for the art is expected to drive the market in Europe.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In today's corporate sector and beyond, the emergence of AI Powered Music Curator revolutionizes the creation of ambiance, leveraging tailored playlists to enhance business productivity and positive mood. From Gyms and health clubs, yoga to Cafes & restaurants, digital subscription-based music sets the tone for physical activities, aerobics and relaxing experiences, catering to health consciousness. In retail stores and shopping malls, beat suite music and recorded sound amplify the consumer shopping experience, influencing performance and concentration. With a focus on younger demographics, low-volume tunes mitigate stress and anxiety, promoting creativity and motivation. From marketing videos to virtual spaces, background music shapes consumer engagement and fosters positive working atmospheres in various settings, highlighting its pervasive influence across leisure, hospitality, and public organizations.
Industry Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.76% |
Market growth 2024-2028 |
USD 527.2 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.87 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 45% |
Key countries |
US, UK, China, Germany, Italy, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Almotech Media Solutions, AMI Entertainment Network LLC, Auracle Sound Ltd., Brandtrack Inc., CMRRA SODRAC Inc., Heartbeats International AB, HIBOU MUSIC LIBRARY, Imagesound Group, Liberty Media Corp., Mood Media Corp., Open Ear Music Ltd., Qsic Pty Ltd., Rockbot Inc., SOUNDMACHINE, Soundreef, Soundtrack Your Brand Sweden AB, Stingray Media Group., TouchTunes Music Corp., USEA Pte Ltd. , and Xenox Music and Media B.V. |
Market dynamics |
Parent market analysis, Market forecasting, 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 the market 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 Product Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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