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The music streaming market size is forecast to increase by USD 49.62 billion, at a CAGR of 19.99% between 2023 and 2028. The music streaming market is experiencing significant growth, driven by several key factors. These include the increasing preference for on-demand music consumption, fueled by the convenience and accessibility offered by streaming services. Additionally, the rising penetration of the internet and smartphones is expanding the reach of these platforms. Furthermore, the surge in mobile advertising revenue is providing a lucrative source of income for music streaming apps. This trend is expected to continue, as technology advances and consumer preferences continue to shift towards digital music consumption.
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The music streaming market is experiencing significant growth with the increasing adoption of smart devices and advanced connectivity technologies such as 5G. Consumers can now access high-quality music streams, music videos, podcasts, audio files, and live events from various sources including websites, OTT platforms, and social media websites like YouTube Live and Facebook Periscope. The integration of AI and ML features in music streaming services offers prime membership benefits such as personalized recommendations and uninterrupted listening experiences. The music industry is leveraging cloud-based infrastructure to deliver live streaming services to individual segments like restaurants, cafeterias, salons, and gyms. The availability of 5G technology enhances the consumer experience by enabling faster downloads and seamless streaming of music and live videos. The market is expected to continue its expansion as more content is produced and distributed through legal channels.
Increasing popularity of digital platforms and smart devices that enable an extensive library of music, music videos, podcasts, and audio files is a key trend shaping the market. The advancements in technologies such as 5G connectivity and 4G technology have significantly improved Internet bandwidth, allowing for high-quality music streams and live streaming capabilities. These digital offerings have gained traction among consumers in the age group of 18-40 years, with over 1 million new subscribers joining every month. Music streaming services offer prime membership benefits, including uninterrupted access to music, AI and ML features for personalized recommendations, and the ability to rewind, fast forward, or pause music streams.
Moreover, the adoption of these services has led to a decline in unauthorized music downloads and sharing. 5G technology and cloud-based infrastructure have further enhanced the music streaming experience, enabling live streaming of music videos and audio files. OTT platforms and social media websites, such as YouTube Live and Facebook Periscope, have also contributed to the growth of the music industry's audio and video segments. The commercial segment, including restaurants, cafeterias, salons, gyms, and other establishments, has also embraced music streaming services, providing a more engaging and personalized experience for their customers. The convenience and accessibility of music streaming services have made them an integral part of our daily lives, transforming the way we consume and engage with music. Such factors will increase the market growth during the forecast period.
Increasing music consumption, which gives rise to music streaming services is akey trend. These services, including YouTube Music, Pandora, Spotify, Deezer, and Tidal, are accessible on various smart devices and websites. They offer music videos, podcasts, and audio files, catering to diverse consumer preferences. With the advent of 5G connectivity, music streams can be enjoyed seamlessly, surpassing the limitations of 4G technology. Advancements in technologies, such as AI and ML, have enabled personalized recommendations and auto playlist customization. For instance, YouTube Music utilizes Google account data and AI technology to make song selections and recommendations for users. Prime membership benefits and unauthorized music streaming are also features that distinguish music streaming services from one another. Live videos, social media websites, and OTT platforms have expanded the music industry's audio and video segments.
Furthermore, the consumers can now rewind, fast-forward, or pause music streams on demand. The individual segment, including restaurants, cafeterias, salons, gyms, and cloud-based infrastructure, has embraced music streaming services for their commercial applications. Music streaming services are accessible on smartphones, tablets, laptops, and smart speakers, ensuring convenience and flexibility for consumers. Live streaming has become a popular feature, allowing users to enjoy their favorite music and events in real-time. Overall, music streaming services continue to evolve, offering high-quality music streams and innovative features to cater to the ever-changing needs of consumers. Such factors will increase the market growth and trends during the forecast period.
Lack of ownership and challenges associated with internet penetrations hinders the growth of the market. Digital platforms have revolutionized the way we consume music, with smart devices becoming the primary tools for accessing music streaming services. These services offer vast collections of songs, music videos, podcasts, and audio files, accessible through websites and apps. However, there are drawbacks to this model. Music streams require consistent internet connectivity, and while 5G technology promises faster and more reliable connections, 4G technology still dominates in many regions. Advancements in technologies like Artificial Intelligence (AI) and Machine Learning (ML) have introduced features such as personalized playlists and recommendations, enhancing the user experience. Prime membership benefits and unauthorized music streaming pose challenges to the industry.
However, the live music videos on social media websites like YouTube Live and Facebook Periscope add to the diversity of content. The music industry is segmented into audio and video segments, with OTT platforms, individual and commercial segments, and various industries like restaurants, cafeterias, salons, gyms, utilizing music streams. Cloud-based infrastructure supports live streaming, enabling consumers to rewind, fastforward, or pause their music as desired. Despite the lack of ownership, the convenience and accessibility offered by music streaming services continue to attract consumers. Such factors will hinder market growth during the forecast period.
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 analysis strategies.
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.
The market research and growth 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.
The market share growth by the free segment will be significant during the forecast period. The free music streaming segment is expected to grow moderately during the forecast period. Free music streaming is an ad-based service that providers use to generate revenue by serving ads during music streaming or when users make paid in-app purchases. Spotify and Alphabet are the world's leading providers of these services.
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The value of the free segment in 2018 was USD 15.12 billion. Free subscriptions have limited access to music with ads. For example, subscribers to Spotify's free, ad-based music-streaming service can only access 750 songs that aren't part of the on-demand service, with ads every two tracks. Similarly, Alphabet allows free users to access up to 50,000 songs from its music library, and users see ads between tracks. Therefore, the free music streaming segment is expected to drive the growth of the market during the forecast period.
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North America is estimated to contribute 47% 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.
The audio and video content market via application- and web-based platforms in North America is projected to exhibit moderate growth during the forecast period. The US, a significant market in the region, has nearly reached saturation in music streaming services adoption. Consequently, the decline in the sale of physical components like CDs is evident. This market expansion is sustained by the substantial subscriber base of music streaming service providers. Interactive and social features, such as collaborative playlists, AI-driven personalization, and social sharing, are key revenue channels. Non-subscription models and commercial use also contribute to the market's growth. Global expansion, localization, and user-generated content are essential aspects of the music streaming industry's evolution. High-fidelity and lossless streaming, live audio, virtual concerts, and remix culture are emerging trends. Subscription bundling, smart devices, smart speakers, alarms, voice command, and virtual assistant integration are essential for enhancing user experience. Network connection, data transfer rates, latency, and buffering times significantly impact the market's growth and user satisfaction.
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The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The music streaming market is a significant sector in the digital media industry, driven by the increasing popularity of on-demand music services. Music streaming platforms offer a vast library of songs, podcasts, and other audio content, making them an essential part of consumers' daily lives. The market is witnessing growth due to factors such as the proliferation of smartphones and high-speed internet, increasing disposable income, and the convenience of accessing music anytime, anywhere. Additionally, the integration of artificial intelligence and machine learning algorithms in music streaming services enhances the user experience by providing personalized recommendations. The market is expected to continue its growth trajectory, with video content and social media integration being key trends. Music streaming services are transforming the way we consume music, making it a must-have in today's digital world.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.99% |
Market growth 2024-2028 |
USD 49.62 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
16.15 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 47% |
Key countries |
US, China, UK, Germany, and Japan |
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 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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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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