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Home ➤ Information and Communications Technology ➤ AI in Music Market
AI in Music Market
AI in Music Market
Published date: Oct. 2024 • Formats:
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  • Home ➤ Information and Communications Technology ➤ AI in Music Market

Global AI in Music Market By Deployment (Cloud, On-premises), By Component (Software, Services), By Application (Music composition and generation, Music streaming recommendation, Music production, and mastering), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

  • Published date: Oct. 2024
  • Report ID: 120117
  • Number of Pages: 337
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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  • Quick Navigation

    • Report Overview
    • Key Takeaways
    • Deployment Analysis
    • Component Analysis
    • Application Analysis
    • Key Market Segments
    • Drivers
    • Restraints
    • Opportunities
    • Challenges
    • Latest Trends
    • Regional Analysis
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    The Global AI in Music Market size is expected to be worth around USD 38.7 Billion By 2033, from USD 3.9 Billion in 2023, growing at a CAGR of 25.8% during the forecast period from 2024 to 2033.

    Artificial Intelligence (AI) has revolutionized the music industry by introducing new levels of creativity and efficiency. AI technologies enable the creation of music compositions without human input, leading to innovative genres and styles. These technologies analyze data from existing music to generate new tracks that maintain harmony, rhythm, and structure.

    The AI in Music market is experiencing substantial growth driven by increasing demand. This surge is primarily attributed to the integration of AI technologies that enhance music production, distribution, and consumption. AI’s ability to create personalized playlists, generate new music, and provide data-driven insights is revolutionizing the music industry, leading to its widespread adoption.

    The increasing popularity of the AI in Music market is evident as more artists and producers embrace these tools to innovate and streamline their creative processes. AI algorithms are not only improving efficiency but also pushing the boundaries of what can be achieved musically, making it an indispensable tool in the modern music landscape.

    AI in Music Market

    The expansion of the AI in Music market is propelled by continuous advancements in AI technology and its growing accessibility. Companies are investing heavily in developing more sophisticated AI solutions that cater to a wider range of music-related applications, from enhancing sound quality to offering real-time music composition, further broadening the market’s scope.

    The AI in music market presents numerous opportunities for further expansion. One major opportunity lies in the integration of AI with emerging technologies such as virtual reality (VR) and augmented reality (AR), which can create immersive musical experiences that are more engaging for users. There is also potential for growth in developing AI-driven educational tools that can personalize learning paths for music students based on their progress and learning style.

    Moreover, as AI continues to evolve, there is an opportunity to enhance live performances with AI-driven visual and audio effects, providing audiences with a unique and interactive experience. These opportunities highlight the potential for AI to not only influence music creation but also to transform how music is taught and experienced.

    According to dittomusic.com, 60% of musicians are embracing AI for music creation and production. On the other hand, a survey by ukmusic.org shows that 77% of people are concerned that AI-generated music often overlooks the need to credit the original artists, thereby leading to potential copyright issues.

    The Generative AI in the Music Market is projected to experience remarkable growth in the coming years, reaching a value of approximately USD 2,660 Million by 2032. This signifies a significant increase from its valuation of USD 294 Million in 2023, with a noteworthy compound annual growth rate (CAGR) of 28.6% during the forecast period from 2024 to 2033.

    The speed at which AI can create music is truly impressive, as it can generate musical compositions 20 times faster than humans. This efficiency is driving its adoption among artists and musicians, with 20.3% of them having utilized AI for music production. Moreover, AI technology is being employed by 30.6% of artists for mastering tracks and 38% for creating artwork associated with their music.

    The overall perception of AI in the music industry is largely positive, with 40% of artists expressing a favorable view, and 39% believing that AI aligns well with their goals and aspirations. However, despite its potential, AI-written songs currently make up only a modest 1.5% of the music played on the top music stations in the UK.

    Streaming platforms like Spotify are leveraging AI capabilities to analyze the mood of songs, leading to accurate predictions of listener preferences with an impressive 86% accuracy rate. Additionally, AI recommendations play a significant role in music content consumption, as approximately 30% of music consumption on platforms such as YouTube occurs through AI-driven suggestions.

    Key Takeaways

    • The global AI in Music market was valued at USD 3.9 billion in the year 2023 and is estimated to reach USD 38.71 Billion in the year 2033 with a CAGR of 25.8% during the forecast period.
    • Based on the deployment, the cloud-based segment has the largest market share of 71.4% in the year 2023.
    • Based on the component, the software segment has dominated the market with a share of 63% in the year 2023.
    • Based on the application segment, the music streaming recommendation segment has dominated the market with a share of 45.7% in the year 2023.
    • 74% of internet users have utilized AI in some capacity for discovering or sharing music.
    • By 2025, revenue from AI-generated music is expected to exceed $6 billion.
    • AI is capable of generating a basic melody in less than 2 seconds.
    • 82% of listeners report being unable to distinguish between music composed by humans and music composed by AI.
    • AI music platform Amper Music has successfully secured $4 million in seed funding to further its development in AI-generated music.
    • Over 50% of the top 20 global hits on music streaming platforms are influenced by AI recommendations.
    • AI-generated music is anticipated to contribute to a 17.2% increase in revenue in the music industry by 2025.

    Deployment Analysis

    Based on the deployment, the market is segmented into cloud-based and on-premise, where the cloud-based segment has the largest market share of 71.4% in the year 2023. Cloud-based AI’s dominance in the music industry is mostly due to its scalability, adaptability, and affordability. Music organizations may easily grow their infrastructure and resources to suit shifting demands and evolving business strategies due to cloud-based technologies. This adaptability is crucial in a sector where streaming service and digital music consumption trends can fluctuate dramatically over time.

    Furthermore, cloud-based AI solutions are an affordable choice for music companies since they do not require significant upfront investments in hardware maintenance or infrastructure. Businesses may access cutting-edge AI technologies without having to pay large upfront fees due to a pay-as-you-go pricing model, which enables them to more wisely use their resources and make the necessary investments.

    Furthermore, the cloud-based platform offers a smooth connection with current analytics, distribution, and music production systems, facilitating improved artist, producer, and musician collaboration and streamlining workflows. Due to this, cloud-based solutions are now the go-to option for music labels wishing to use AI to stay competitive and adapt to the quickly changing digital market.

    AI in Music Market Share

    Component Analysis

    Based on the component the market is segmented into software and services segment, where the software segment has dominated the market with a share of 63% in the year 2023.  The needs and preferences of professionals in the music industry are well-matched by several important variables that contribute to the AI software segment’s supremacy in the market.

    With the unmatched versatility and customization choices provided by AI software solutions, users may adapt their tools and workflows to suit a variety of creative approaches, musical tastes, and genres. This degree of personalization is crucial in a field that values originality and artistic expression, enabling producers, composers, and musicians to craft distinctive sounds and works.

    Furthermore, compared to other hardware platforms, software AI platforms are frequently easier to use and more accessible, which makes them perfect for a variety of users, including artists and aspiring musicians. Users don’t need to have a lot of technical knowledge or training to use the software solutions as they have user-friendly interfaces, in-depth tutorials, and robust customer support.

    Furthermore, the software industry gains from the quick development of AI algorithms and machine learning methods, which enables developers to enhance and broaden their product offerings with additional features and functionalities. This never-ending cycle of invention guarantees that AI software solutions remain at the forefront of technological development, propelling market dominance and adoption in the AI space in the music industry.

    Application Analysis

    Based on the application segment, the market is segmented into Music composition and generation, Music streaming recommendation, and Music production and mastering segment where the music streaming recommendation segment has dominated the market with a share of 45.7% in the year 2023. As AI can match the increasing demand from consumers for individualized music experiences, it has become a dominant force in the music market for music streaming recommendations.

    Users are overloaded with enormous song, album, and playlist catalogs as a result of the digital music streaming platforms’ explosive expansion, making it challenging to find new music that appeals to them. This problem is addressed by AI-based recommendation engines, which generate tailored music recommendations by examining user data such as listening history, preferences, and behavior.

    These recommendation systems improve engagement and retention by using sophisticated machine-learning algorithms to predict user interests and expose relevant information. Furthermore, as a result of user interactions and feedback, music streaming recommendation algorithms are always learning and adapting, which enhances the relevance and accuracy of recommendations over time. Long-term loyalty and happiness are encouraged by this iterative learning process, which makes sure customers are exposed to a wide variety of music that fits their changing interests and preferences.

    Strategic alliances and collaborations between streaming platforms and AI technology suppliers also contribute to the streaming music recommendation segment’s dominance. Through these collaborations, streaming services may take advantage of cutting-edge AI capabilities and offer consumers a smooth and simple way to discover new music, thereby improving their standing in the streaming music suggestions market.

    Key Market Segments

    By Deployment

    • Cloud
    • On-premises

    By Component

    • Software
    • Services

    By Application

    • Music composition and generation
    • Music streaming recommendation
    • Music production and mastering

    Drivers

    Increasing need for a customized listening experience

    One of the main factors propelling AI’s expansion in the music industry is the rising need for customized listening experiences. Consumers want individualized information that is catered to their tastes and preferences in the digital age. AI technology provides advanced music discovery systems and recommendation engines, which are crucial in fulfilling this need.

    These AI-powered systems examine a vast amount of user data, such as listening history, genre preferences, mood preferences, and environmental cues, using sophisticated algorithms. AI can make customized playlists, suggest artists, albums, and appropriate tracks, and even anticipate the next song a listener will choose by getting to know their musical tastes and listening habits.

    AI also aids in the real-time adaptation and improvement of recommendations in response to user interactions and input, hence enhancing the precision and applicability of tailored information. Users are more engaged, satisfied, and loyal as a result of this tailored music experience, which increases usage and retention across streaming platforms and services. AI in the music industry is expected to rise as the desire for personalized music keeps rising and as long as AI technology keeps advancing, more complex and individualized music experiences will be possible.

    Restraints

    Data privacy and security concerns

    AI in the music industry is severely hampered by data privacy issues, which have an impact on both customer confidence and legal compliance. When integrating AI technology, a lot of user data – such as listening preferences, behavioral patterns, and personal data – must be gathered, processed, and analyzed. Users are becoming more skeptical and scrutinizing data privacy issues, nevertheless, as a result of high-profile scandals and breaches raising awareness of the problem. As they are worried about how their personal information will be utilized, preserved, and maybe exploited by AI-based platforms, many music lovers are reluctant to contribute it.

    Consumer trust is also being undermined by worries about data breaches, unauthorized access, and improper use of private information. Strict data protection laws, like the California Consumer Privacy Act (CCPA) in the US and the General Data Protection Regulation (GDPR) in Europe, present additional difficulties for market players since they call for robust privacy policies, open data practices, and users.

    Since failing to protect user data can result in reputational harm, legal repercussions, and a loss of customer trust, addressing data privacy concerns is essential to the long-term growth and success of AI in the music industry. Thus, to reduce risks and foster stakeholder trust, market participants need to give priority to privacy-enhancing measures and take a proactive approach to data security.

    Opportunities

    Changing customer preferences

    The current state of the music industry offers AI a huge chance to develop and adjust to shifting customer tastes. With the music industry always changing due to shifts in culture, technology, and consumer behavior, artificial intelligence (AI) technology offers special opportunities to take advantage of new trends and improve your listening experience.

    For instance, the demand for curated playlists and tailored material has increased due to the growth of streaming platforms and on-demand music consumption. Recommendation engines driven by artificial intelligence (AI) utilize user data to offer tailored music suggestions, enabling streaming services to enhance user engagement and retention.

    Furthermore, the increasing need for genre-responsive AI-based music production tools is being driven by the popularity of genres including hip-hop, K-pop, and electronic dance music (EDM). Artificial intelligence algorithms are capable of analyzing trends throughout different genres, spotting shared traits, and assisting producers and performers in making genuine, commercially successful music. Furthermore, artists may provide immersive and engaging experiences that are appropriate for contemporary audiences by incorporating AI into their performances and concerts.

    AI technology improves the visuals and interaction of live music performances, opening up new channels for artistic expression and public participation. Examples of this include AI-generated visuals synced to music and real-time audio manipulation and synthesis. All things considered, contemporary music trends offer a rich environment for AI innovation, enabling market participants to remain ahead of the curve and satisfy the constantly shifting demands of global music fans.

    Challenges

    The conflict between authenticity and quality

    One of the biggest obstacles facing AI in the music industry is the conflict between authenticity and quality. Although AI technology is quite good at producing precise, technically complex music, it frequently lacks the emotional nuance and human touch found in music written and performed by people. The difficulty of replicating the complex expressions, minute changes, and peculiarities that provide music its authenticity and significance is the root of this problem.

    Customers appreciate music for its emotional impact and creative integrity in addition to its superior technical quality. Therefore, listeners who value authenticity and originality in their musical experiences may be skeptical of or hostile to AI-generated music. In addition, concerns about creative autonomy, ownership of the arts, and the place of technology in cultural expression are brought up by the growing popularity of AI-generated music.

    Reliance on AI techniques, according to critics, has the potential to homogenize music production, inhibit innovation, and erode the range of voices and artistic viewpoints present in the field. Achieving a balance between utilizing AI’s potential to enhance music production and maintaining the distinctively human components that define musical art is crucial in addressing the problems of authenticity and quality. To produce music that resonates, market actors should work to develop AI tools that support human creativity rather than reduce it.

    Latest Trends

    Advancements in AI technology

    AI-generated music composition is a major AI trend in the music industry that is transforming content creators’, composers’, and musicians’ creative processes. The AI system can autonomously create original musical compositions in a variety of genres, styles, and moods by utilizing cutting-edge machine-learning algorithms. The exponential advancement in AI’s capacity to examine vast databases of previously recorded music, spot trends, and produce brand-new works that imitate established artistic elements is what’s driving this trend.

    Among the many advantages of AI-generated music are its quick production speed, scalability, and accessibility to a diverse array of musical genres and inspirations. AI composition tools can also be quite beneficial for artists who are struggling to come up with ideas or breakthrough creative blockages. AI technology encourages musical experimentation and invention by offering immediate feedback, making musical suggestions, and identifying original melodies or harmonies.

    AI-generated music is also being used in a wider range of media output, such as movies, TV shows, commercials, video games, and streaming services. These compositions provide content producers with an affordable choice while offering royalty-free music options that may be customized to fit particular storylines or themes. AI-powered music composition is a trend that is expected to grow as technology advances, revolutionizing the way that music is created and enjoyed by bringing diversity and accessibility to a wider audience.

    Regional Analysis

    North America region has dominated the market with a share of 36.5% in the year 2023. There are several important reasons why the AI recommendation business in North America dominates the music industry. The music industry in North America is booming and has a long history of creativity and technological improvement.

    The demand for AI in Music in North America was valued at USD 1.4 billion in 2023 and is anticipated to grow significantly in the forecast period. The region’s leading music streaming services and IT firms have been early adopters of AI-based recommendation systems, using their substantial user bases and abundant resources to create algorithms.

    A customized music experience is provided via sophisticated math. Furthermore, the population of North America is very tech-savvy and diversified, with a great desire for digital music and a willingness to accept new technology. Due to the region’s advantageous market conditions, high internet penetration, and widespread smartphone use, AI-based music recommendation services are being quickly adopted by consumers.

    Furthermore, North America’s thriving ecosystem of AI startups, research facilities, and technology hubs has aided in the creation of cutting-edge music discovery apps and sophisticated recommendation algorithms. North American corporations can maintain a competitive advantage and dominate the music industry due to the region’s collaborative ecosystem and vibrant start-up culture, which have fostered AI innovation.

    AI in Music Market Region

    Key Regions and Countries

    • North America
      • US
      • Canada
    • Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Russia
      • Netherlands
      • Rest of Europe
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Australia
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
    • Middle East & Africa
      • South Africa
      • Saudi Arabia
      • UAE
      • Rest of MEA

    Key Players Analysis

    The artificial intelligence (AI) in the music market features several prominent companies that are innovating and transforming how music is created, distributed, and consumed. iZotope leads with its advanced audio technology software that assists music producers in enhancing and repairing audio tracks.

    Aiva Technologies is recognized for its AI-driven music composition tool, which helps users create soundtracks for various media formats. Amper Music, owned by Shutterstock Inc, offers an AI music creation platform that enables quick and tailored soundtrack production for content creators.

    BRAINFM Inc. leverages AI to generate music that improves focus and productivity, while LANDR provides automated mastering services, using AI to polish music tracks. Boomy Corporation enables users to create and release songs with its AI music creation tool, democratizing music production. Magenta, a project by Google Inc, explores the role of AI in creating new tools and experiences in several artistic domains including music.

    Top Key Players in the Market

    • iZotope
    • Aiva Technologies
    • Amper Music (Shutterstock Inc)
    • BRAINFM Inc
    • LANDR
    • Boomy Corporation
    • Magenta (Google Inc)
    • SOUNDRAW Inc.
    • Amadeus Code
    • Klangio GmbH
    • Mubert
    • Musimap
    • OpenAI
    • Other Key Players

    Recent Developments

    • In April 2024, Saregama, one of the well-known music brands launched AI AI-based music learning app named Padhanisa.
    • In April 2024, Udio launched an AI music creation app that is backed by Will.i.am that creates professional quality tracks in 40 seconds.

    Report Scope

    Report Features Description
    Market Value (2023) USD 3.9 Bn
    Forecast Revenue (2033) USD 38.7 Bn
    CAGR (2024-2033) 25.8%
    Base Year for Estimation 2023
    Historic Period 2019-2022
    Forecast Period 2024-2033
    Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments Covered By Deployment (Cloud, On-premises), By Component (Software, Services), By Application (Music composition and generation, Music streaming recommendation, Music production, and mastering)
    Regional Analysis North America – US, Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, Rest of Europe; Asia Pacific – China, Japan, South Korea, India, New Zealand, Singapore, Thailand, Vietnam, Rest of APAC; Latin America – Brazil, Mexico, Rest of Latin America; Middle East & Africa – South Africa, Saudi Arabia, UAE, Rest of MEA
    Competitive Landscape iZotope, Aiva Technologies, Amper Music (Shutterstock Inc.), BRAINFM Inc, LANDR, Boomy Corporation, Magenta (Google Inc), SOUNDRAW Inc., Amadeus Code, Klangio GmbH, Mubert, Musimap, OpenAI, Other Key Players
    Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)

    Frequently Asked Questions (FAQ)

    What is AI in the music market?

    AI in the music market refers to the use of artificial intelligence technologies to create, produce, distribute, and analyze music. This includes applications like music composition, sound synthesis, music recommendation systems, audio analysis, and even marketing strategies.  

    How big is AI in Music Market?

    The Global AI in Music Market size is expected to be worth around USD 38.7 Billion By 2033, from USD 3.9 Billion in 2023, growing at a CAGR of 25.8% during the forecast period from 2024 to 2033.

    What are the key factors driving the growth of the AI in Music market?

    Increasing adoption of AI for music composition, production, and recommendation systems, along with advancements in machine learning and deep learning technologies.

    What are the current trends and advancements in AI in Music market?

    Development of AI-driven music creation tools, personalized music streaming services, and AI-powered music analysis for mood-based playlists.

    What are the major challenges and opportunities in the AI in Music market?

    Challenges include ethical concerns, copyright issues, and high costs of AI integration. Opportunities lie in enhancing user experiences, creating innovative music content, and expanding AI applications in music education and therapy.

    Who are the leading players in the AI in Music market?

    iZotope, Aiva Technologies, Amper Music (Shutterstock Inc.), BRAINFM Inc, LANDR, Boomy Corporation, Magenta (Google Inc), SOUNDRAW Inc., Amadeus Code, Klangio GmbH, Mubert, Musimap, OpenAI, Other Key Players

    AI in Music Market
    AI in Music Market
    Published date: Oct. 2024
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    • iZotope
    • Aiva Technologies
    • Amper Music (Shutterstock Inc)
    • BRAINFM Inc
    • LANDR
    • Boomy Corporation
    • Magenta (Google Inc)
    • SOUNDRAW Inc.
    • Amadeus Code
    • Klangio GmbH
    • Mubert
    • Musimap
    • OpenAI
    • Other Key Players
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