Music Streaming Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, UK, Germany - Size and Forecast 2023-2027

Music Streaming Market Size 2023-2027

The Global Music Streaming Market size is forecast to increase by USD 31.10 billion at a CAGR of 15.67% between 2022 and 2027.

The market for music streaming services is experiencing significant growth, driven by the increasing implementation of smart devices and the adoption of digital platforms. Websites offering music videos, audio streaming, and podcasts are gaining popularity, thanks to features like automatic playlist customization and song recommendations, as well as seamless connectivity across apps and browsers. This expansion is further fueled by the diversification of podcast genres available on these platforms.

Factors such as the growing preference for music streaming services, coupled with the widespread availability of the Internet and smartphones, contribute to the success of these apps. The rise in high-end smartphones and improved Internet accessibility has led users to favor online streaming services, providing them with more mobile options for accessing music content. Moreover, music streaming providers are exploring Over-The-Top (OTT) platforms to meet the increasing demand for mobile Internet connections, further driving market growth..This market analysis and report 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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Music Streaming Services Market Share 

Figure 1: Market Share

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In the dynamic world of digital entertainment, the market has emerged as a significant player. Prime members of unauthorized platforms like Amazon Prime, Live, Facebook, and YouTube utilize these services for their uninterrupted music needs. Benefits such as Musics from various genres, on-demand availability, and affordable pricing make Musics Streaming an indispensable part of our daily lives. Moreover, services like Spotify, Apple Music, and Google Play Music offer personalized recommendations based on users' listening history, making the experience more engaging. The market is a Strategic and competitive business, with Over-The-Top (OTT) players vying for a larger market share. Industry trends indicate that the market will continue to grow, with Musics being a Segment that will witness significant growth in the coming years. In conclusion, the market offers a wide range of benefits, including on-demand availability, affordability, and personalized recommendations, making it an essential part of our daily lives. The market is competitive, with various players vying for a larger market share, indicating its Strategic importance.

Market Dynamics

In the dynamic world of digital entertainment, Music Streaming Services have emerged as a dominant force. With the keywords Musical Devices, Smartphones, and Tablets becoming ubiquitous, platforms like Spotify, Apple Music, and Tidal have seized the opportunity to provide Music, On-demand to users, Making Streaming a major trend in the Music Industry. These services offer Technology that caters to various preferences, allowing users to Discover new tunes, Download tracks for offline access, and even create custom Playlists. Podcasts are also integrated into these services, adding to their appeal. The Market is expected to grow significantly, with download speeds and Affordability being key factors. The convergence of Artificial Intelligence and Music Streaming is also a noteworthy development, enabling personalized recommendations and enhancing the user experience. In essence, these services are revolutionizing the way we consume Music, making it more accessible, convenient, and personalized than ever before. 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.

Key Market Drivers

An increase in mobile ads driving revenue for music streaming apps is a key factor driving the market growth. The surge in mobile advertisements is bolstering the revenue of music streaming apps. Mobile apps have emerged as a lucrative channel for advertisers to tap into a vast consumer base. Time spent on mobile devices has outpaced that on PCs and laptops, with the average individual spending approximately 250 minutes daily on a mobile device in 2020, increasing to 270 minutes in 2022. This growing reliance on mobile devices for media consumption has led marketing firms to shift their focus and allocate more resources to mobile promotions to expand their customer reach.

The projected Compound Annual Growth Rate (CAGR) of over 13% in advertising expenditure on mobile ads further underscores the significance of mobile advertising as a revenue source for app developers, particularly for these services. As the number of app downloads continues to rise, the prominence of mobile advertainments grows, generating substantial revenue for music streaming providers. 

Significant Market Trends

Growing demand for cloud-based music streaming 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, companies are expected to offer both ad-based and ad-free cloud-based music streaming services, making it a significant trend for the growth of the global market in the forecast period.

Major Market Challenges

Illegal downloads and piracy is a major challenge hindering the market growth. The global service market faces hindrances due to illegal downloads and piracy practices. These activities adversely affect the revenue generated by companies. Despite expectations that these services would reduce online piracy, many individuals still access premium accounts of the providers without paying.

Spotify, for example, reported instances of piracy groups blocking ads on their platform, granting unauthorized access equivalent to a premium account. Fraudulent users account for approximately 1%-3% of Spotify's customer base. Stream-ripping is a common piracy practice where music tracks from streaming websites are illegally downloaded as mp3 files through unauthorized sources for offline listening. If piracy persists, it is likely to impede the market's growth during the forecast period.

Market Segmentation

This market research and growth report extensively covers market segmentation by type (free and paid), end-user (individual users and commercial users), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The audio content market is projected to expand moderately during the forecast period. Free, application- and web-based platforms, such as Spotify and Alphabet, dominate this sector through ad-supported services. Users accessing these non-subscription models have restricted features, including limited music selection and advertisements. Revenue is generated via ads and in-app purchases. Individual and commercial users benefit from interactive and social features, global expansion, localization, and social sharing. High-fidelity and lossless streaming, AI-driven personalization, live audio, virtual concerts, user-generated content, and remix culture are emerging trends. Subscription bundling, partnerships, and integration with smart devices, including smartphones, smart speakers, alarms, voice command, and smart home devices, are key growth drivers. High-speed internet connectivity, network connection, data transfer rates, latency, and buffering times significantly impact user experience.

Type Analysis

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. 

Figure 2: Market by Type (2017-2017)

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The value of the free segment in 2017 was USD 13.65 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.  

Regional Analysis

Figure 3: Market by Region

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North America is estimated to contribute 44% 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 music industry in North America is witnessing a plateau in growth due to the US market's saturation with these services. Digital platforms, such as websites and smart devices, have significantly increased music streaming services' adoption. Music streams include audio files, music videos, podcasts, and live events. Advancements in technologies like 5G connectivity enhance the user experience. AI and ML features, prime membership benefits, and unauthorized streaming are shaping the market. OTT platforms and social media websites like YouTube Live and Facebook Periscope cater to individual and commercial segments. Consumers can rewind, fast-forward, and pause music streams on various devices. The music industry's audio and video segments are increasingly relying on cloud-based infrastructure for live streaming in restaurants, cafeterias, salons, gyms, etc.

Major Market Companies and Competitive Insights

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.

iHeartMedia Inc.- The company offers music-streaming, podcasts and live radio stations for free.

• 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.
• TuneIn Inc.

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.

Market Analyst Overview

In the dynamic digital world, streaming services have revolutionized the way we consume music. The market is a significant segment of the digital media industry, driven by major players like Spotify, Apple Music, and Amazon Prime Music. These platforms offer a vast library of songs, personalized playlists, and seamless streaming technology. Tech companies like Google and YouTube also compete fiercely in this space with their music streaming services. The market is further propelled by advancements in technology, such as Artificial Intelligence and Machine Learning, which enable personalized recommendations and interactive user experiences. Additionally, collaborations between music streaming services and telecom companies offer bundled packages, making music streaming more accessible and affordable for consumers. The market is expected to grow further with the integration of social media and virtual reality technologies, creating immersive music experiences for users.

The market is witnessing a rapid evolution with the advent of 5G technology and its predecessor 4G technology, facilitating seamless and high-quality music streams. Leveraging Artificial Intelligence (AI) and Machine Learning (ML) algorithms, streaming platforms offer personalized recommendations and curated playlists tailored to individual preferences. The AI feature enhances user engagement, while the Prime membership benefit and access to exclusive content incentivize subscriptions. However, unauthorized music streaming remains a concern, prompting the need for robust security measures. The rise of Over-the-Top (OTT) platforms and the popularity of live videos cater to diverse audience segments. Furthermore, data and analytics tools empower providers to gain insights into user behavior and preferences, driving innovation in the industry.

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 trends and analysis, Market growth and trends and 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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