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The music on demand market size is estimated to grow at a CAGR of 13.41% between 2022 and 2027. The music on demand market size is forecast to increase by USD 38,775.66 million. The growth of the market depends on several factors, including growth in mobile advertisement spending, the surge in subscription-based services, and bundled services provided by market players.
This market report extensively covers market segmentation by type (music streaming and radio on demand), end-user (individual users and commercial users), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growth in mobile advertisement spending is notably driving the music on demand market growth, although factors such as free music access to users through modified apps may impede market growth. 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 growth in mobile advertisement spending is one of the key factors driving the global music on demand market growth. Mobile advertising is currently one of the most popular advertising methods, driven primarily by the proliferation of tablets and smartphones, the proliferation of the internet, and the development of various mobile apps. In 2020, over 90% of the world's total population had internet access. The global mobile app download market recorded 218 billion downloads in 2020. Service providers develop mobile applications for easy access and use by their customers.
The growing adoption of mobile devices and the subsequent increase in mobile application downloads have made most of the songs and albums available in-app for streaming and downloading. These apps also provide easy payment options for the subscribers of premium services, which attracts more customers. Users are required to fill in their personal details, which helps vendors to retain a larger customer base through targeted advertising. Thus, the growth in mobile advertising spending is driving the growth of the global music on demand market.
An increase in the adoption of cloud services is a high-performing trend in the global music on demand market. Cloud computing is a trend in the global music-on-demand market because it provides consumers with legal access to online music, and is being rapidly adopted by music companies due to its increased portability. It enables subscription users to access the digital content stored in remote servers. Various companies like Apple, Google, and Amazon primarily focus on cloud services as a remote locker for downloaded tracks. Cloud computing is rapidly being adopted by music companies to give users legal access to online music from remote servers, regardless of the device used by subscribers.
Many vendors in the market are exploring this field to integrate lyrics and sing-along features into the audio file. This provides them with a unique selling proposition (USP) and enables them to differentiate themselves from other vendors. This trend among vendors is expected to fuel the growth of the market during the forecast period.
Free music access to users through modified apps will be a major challenge that may impact negatively the global music on demand market. The modified app can access many streaming services for free on rooted Android and jailbroken iOS devices. Rooting/jailbreaking is the process of modifying a mobile device's software that provides access to the core services used to operate the mobile phone. Many illegal or cracked apps can be installed on rooted/jailbroken devices and used to access paid services for free.
Most of the revenue in the global music on demand market comes from paid-for services. Thus, cracked apps pose a challenge to the global music-on-demand market. By using cracked apps that are illegal, a user can get access to app versions without making any payments. This affects the sales as well as profit margins of music streaming service providers. Such factors hinder the growth of the global music on demand market.
The 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 growth strategies.
Global Music on Demand Market Customer Landscape
Vendors 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 on demand music through two applications such as YouTube music and Google Music.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the music streaming segment will be significant during the forecast period. During the forecast period, the paid music streaming service segment is expected to increase its revenue share as many consumers switch from the free subscription model to the paid subscription model. This is because the premium service offers a number of features such as no interruptions from ads, suggestions for new songs, access to an extensive catalog of songs, customized playlists, third-party integrations such as Amazon Alexa, and more. As such, we expect more people to opt for premium services with subscription fees.
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The music streaming segment was valued at USD 22,274.90 million in 2017 and continued to grow until 2021. The high subscription fees charged by some music streaming service providers may hamper the market growth. Due to these high prices, some users prefer free music streaming services. The prices of paid subscription services are expected to rise in the coming years, preventing more people from choosing them. However, there is a huge population willing to pay for premium services which are expected to drive the growth of the music on demand market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global music on demand market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The music on demand market in North America is driven primarily by the presence of a large number of artists, music publishers, and a well-developed network infrastructure. Additionally, most of the major players in the music on demand market are based in North America, including Apple Inc. and iHeartMedia Inc. These providers, therefore, ensure that all new services are available in North America first, resulting in high market growth.
The COVID-19 outbreak has increased demand for music streaming amid the lockdown. With the temporary closure of stadiums and music concerts, people turned to music on demand services to listen to their favorite music. The number of subscribers to music-on-demand services in the region has grown significantly. The proliferation of digital platforms and the increasing use of smart devices are expected to boost the growth of the market and this trend is set to increase significantly during the forecast period.
The music on demand market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global music on demand market as a part of the global interactive media and services market within the media and entertainment market. The global interactive media and services market includes companies engaged in content and information creation or distribution through proprietary platforms, where sales are primarily generated through pay-per-click advertisements. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Music On Demand Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.41% |
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Market growth 2023-2027 |
USD 38,775.66 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
12.43 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 37% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Aspiro AB, Auracle Sound Ltd., Bennett Coleman and Co. Ltd., Bharti Enterprises Ltd., Canadian Broadcasting Corp., Deezer SA, Hungama Digital Media Entertainment Pvt. Ltd., iHeartMedia Inc., Mixcloud Ltd., Modern Streaming Solutions Pvt. Ltd., Mood Media Corp., Reliance Industries Ltd., Rhapsody International Inc., SoundCloud Global Ltd. and Co. KG, Spotify Technology SA, Tencent Holdings Ltd., and Viant Technology LLC |
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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. |
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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. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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