Global Generative AI in Music Market Report By Component (Solutions, Services), By Deployment (Cloud-based, On-premises), By Application (Composition and Music Generation, Performance Enhancement and Virtual Collaboration, Personalized Music Recommendations, Music Production and Remixing, Music Transcription and Analysis, Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Generative AI in Music Market size is expected to be worth around USD 3,637.1 Million by 2033, from USD 294 Million in 2023, growing at a CAGR of 28.6% during the forecast period from 2024 to 2033.

Generative AI in music refers to the use of artificial intelligence to create or assist in composing music. This technology leverages machine learning algorithms to generate melodies, harmonies, and rhythms, enabling musicians and producers to explore new creative possibilities. AI tools can analyze vast datasets of music to identify patterns and generate new compositions that mimic the style of specific genres, artists, or eras.

The demand for generative AI in music is growing due to its ability to streamline the creative process and offer musicians innovative ways to produce original compositions. The rise of digital platforms and streaming services has also contributed to the demand for AI-generated music, as content creators look for unique, cost-effective music solutions.

Opportunities are arising as AI technologies improve, offering more personalized music creation tools and collaboration platforms. Additionally, the music industry is seeing increased interest in AI-generated music for use in virtual reality (VR) and augmented reality (AR) environments. While there are concerns about the role of AI in human creativity, the integration of AI in music production is expected to grow as it complements human creativity rather than replacing it.

Generative AI in music refers to the use of artificial intelligence to create, produce, and assist in various aspects of music-making. This technology has seen rapid adoption in the industry. In 2023, 60% of independent musicians reported using AI tools in their creative process, according to a survey by Ditto Music.

Specifically, 66% of artists use AI for mixing and mastering, and 62% for music production. AI platforms like AIVA, trained on over 30,000 iconic scores, are helping musicians generate music in different styles, providing both creative inspiration and technical assistance.

This shift is transforming the way music is created, offering artists powerful tools to streamline production while also raising important questions about creativity, ownership, and copyright in the music industry.

The generative AI in music market is expanding rapidly as more artists and producers embrace AI-driven tools to enhance their workflows. Growing interest in AI-powered plugins and platforms is evident, with 28.6% of music producers identifying AI tools for mixing and mastering as the most valuable, according to Bedroom Producers Blog.

With the launch of services like Spotify’s AI Playlist function in 2024, which personalizes playlists based on user input, AI is also becoming a key player in enhancing listener experiences.

The market is further fueled by investments in AI, both from the private and public sectors. The U.S. government allocated $1.7 billion in AI research in 2022, a 13% increase from the previous year. Similarly, AI investments in the EU and UK reached €9 billion in 2023, highlighting the global commitment to leveraging AI for innovation and growth in various sectors, including music.

Several factors are driving the growth of generative AI in music. The increasing demand for more efficient music production processes is pushing artists to adopt AI tools for tasks like mixing, mastering, and even songwriting. AI-powered platforms are making it easier for independent musicians to produce high-quality music at a lower cost.

Opportunities in this space include the development of more advanced AI toolkits that can further assist with creative aspects like composition and sound design. As AI continues to evolve, it is expected to play a larger role in every stage of music creation, from ideation to distribution.

Governments are recognizing the potential of AI across industries, including music. The U.S. government’s investment of $1.7 billion in AI research reflects a broader strategy to maintain leadership in AI innovation.

Similarly, the €9 billion invested by the EU and UK in 2023 underscores the international race to capitalize on AI advancements. These investments are not only pushing the boundaries of AI technology but also creating regulatory frameworks to ensure responsible use, particularly in creative sectors like music.

Key Takeaways

• The Generative AI in Music Market was valued at USD 294 million in 2023, and is expected to reach USD 3,637.1 million by 2033, with a CAGR of 28.6%.
• In 2023, Solutions dominate the component segment with 65%, driven by growing demand for AI-driven music creation tools.
• In 2023, Cloud-Based leads deployment with 74%, enabling scalability and remote collaboration in the music industry.
• In 2023, Composition and Music Generation dominates the application segment with 28%, as AI reshapes creative processes.
• In 2023, North America leads with 38%, benefiting from its established tech industry and innovative music production.

Component Analysis

Solutions dominate with 65% due to their foundational role in enabling generative AI capabilities in music.

In the generative AI market for music, the components are broadly categorized into solutions and services. The dominant sub-segment here is Solutions, which constitutes 65% of the market. This category includes software, platforms, and tools that incorporate AI to generate, compose, and produce music.

These solutions are pivotal in providing the core functionalities that enable users, from amateur musicians to professional producers, to harness AI for creative music generation and music streaming.

Services, though not as dominant, play a critical role in supporting the deployment, maintenance, and optimization of these AI solutions. They include consultation, training, and after-sales services, which help users maximize the value of their AI in music tools.

The predominance of the Solutions sub-segment is attributed to the increasing demand for innovative tools that can assist in music creation. These tools leverage AI to automate parts of the creative process, thereby reducing the time and skill required to produce music. This aspect is particularly appealing in an industry that values both speed and innovation.

Despite the dominance of Solutions, the Services segment is essential for the growth and effective utilization of AI music technologies. As these technologies become more sophisticated, the role of Services in educating and supporting users will become increasingly vital. This support helps users integrate AI music solutions into their creative processes seamlessly and effectively.

Deployment Analysis

Cloud-based dominates with 74% due to its scalability, cost-effectiveness, and accessibility.

Deployment options for generative AI in music are primarily divided into cloud-based and on-premises solutions. Cloud-based deployment overwhelmingly dominates this sector, accounting for 74% of the market. The cloud offers a scalable, accessible, and cost-effective solution for storing and processing large datasets, which is essential for training and operating AI systems in music.

On-premises solutions, while offering more control over data and more customizable integrations, are less favored due to their higher upfront costs and complexity in maintenance.

The cloud’s dominance is driven by its numerous advantages, including lower barriers to entry for users of all sizes, from individual artists to large studios, and the ability to leverage advanced computational resources without significant investment. Additionally, cloud managed services typically offer more robust and frequent updates, improving the functionality and security of AI music applications.

While cloud-based solutions lead the way, on-premises deployment remains relevant for organizations that require greater control over their data for privacy or regulatory reasons. However, as cloud providers continue to enhance security and compliance measures, the shift towards cloud-based solutions is expected to continue.

Application Analysis

Composition and Music Generation dominates with 28% due to its core relevance to music creation.

Applications of generative AI in music vary widely, but Composition and Music Generation is the leading segment, accounting for 28% of the application market. This sub-segment utilizes AI to create new music pieces, either from scratch or based on existing music frameworks. It is a fundamental use of AI in music, reflecting the technology’s potential to directly enhance creative processes.

Other applications include Performance Enhancement and Virtual Collaboration, Personalized Music Recommendations, Music Production and Remixing, Music Transcription and Analysis, and other emerging applications. Each of these segments leverages AI to tackle different aspects of music consumption and production, expanding the technology’s reach across the industry.

The dominance of Composition and Music Generation is due to its direct impact on the creative side of music, providing tools that can inspire artists and help them explore new musical possibilities. AI-driven composition tools are particularly popular in environments where the demand for digital music content is high and continuous, such as in gaming and content streaming.

Though less dominant, other applications like Personalized Music Recommendations and Music Production are crucial for enhancing the listener’s experience and optimizing music production processes, respectively. These applications contribute to the overall growth of the market by expanding the use cases of generative AI in music, thereby attracting a broader range of users and investment into the sector.

Key Market Segments

By Component

• Solutions
• Services

By Deployment

• Cloud-based
• On-premises

By Application

• Composition and Music Generation
• Performance Enhancement and Virtual Collaboration
• Personalized Music Recommendations
• Music Production and Remixing
• Music Transcription and Analysis
• Other Applications

Driver

Growing Demand for Personalized Music Drives Market Growth

The Generative AI in Music Market is driven by several key factors. One of the primary drivers is the growing demand for personalized music experiences. Consumers today expect music that reflects their unique tastes and moods, and generative AI allows for the creation of customized playlists and tracks that cater to individual preferences.

Another significant driver is the increased adoption of AI by music streaming platforms. Major players like Spotify and Apple Music are incorporating AI-driven algorithms to enhance user experience by recommending songs and creating playlists based on listener habits. This trend is pushing the generative AI market forward.

The rising integration of AI tools in music creation and production is also fueling market growth. Musicians and producers are using AI in music composition to assist with everything from melody generation to mixing and mastering, streamlining the production process and allowing for more creativity in music composition.

The cost efficiency in music generation for independent artists is driving the market. AI-powered tools allow smaller artists to create high-quality music without the need for expensive studio sessions, democratizing the music production process and expanding the market.

Restraint

Ethical Concerns and Legal Issues Restrain Market Growth

Despite the promising potential, the Generative AI in Music Market faces several restraining factors. Ethical concerns over AI-generated music are a major issue. Critics argue that AI-produced music lacks the emotional depth and creativity of human-made compositions, which could limit its acceptance among consumers and musicians alike.

Additionally, the lack of intellectual property protections for AI-generated content creates legal uncertainty. As AI generates more music, questions arise about who owns the rights to these creations, which can lead to disputes and slow down market adoption.

High initial investment for advanced AI tools is another restraint. While larger companies may be able to afford the cost of developing or purchasing AI systems, smaller musicians and startups may find it challenging to enter the market.

Limited consumer acceptance of fully AI-generated music may hinder market growth. While AI can assist in music production, many consumers still prefer music that is created or influenced by human musicians, which could limit the broader appeal of AI-generated content.

Opportunity

Film and Gaming Industries Provide Opportunities for Growth

The Generative AI in Music Market offers numerous growth opportunities, particularly in the film and gaming industries. AI-generated music can be used to create unique soundtracks that adapt in real-time to the narrative, offering a dynamic and immersive experience. This application is increasingly popular in video games, where music adjusts based on player actions.

Another opportunity is the development of AI-assisted collaborative tools for musicians. Artificial Intelligence can be used to suggest melodies, chord progressions, or even lyrics, helping artists create music more efficiently. This trend is expected to grow, particularly as more musicians seek to enhance their creative processes with AI.

AI’s growing use in music curation for personalized advertising is also providing new opportunities. Brands are using AI to create tailored music that matches their target audience’s preferences, improving engagement in marketing campaigns.

The expansion of generative AI into regional and niche music markets presents further opportunities. AI can be used to explore less commercialized music genres or regional styles, creating new possibilities for artists and companies looking to tap into underserved markets.

Challenge

Balancing AI Creativity and Human Input Challenges Growth

The Generative AI in Music Market faces several challenges, including the need to balance AI creativity with human input. While AI can assist in the creation process, maintaining the right mix of human and machine creativity is critical to producing music that resonates with audiences.

Maintaining quality in large-scale AI music generation is another challenge. As demand for AI-generated content grows, ensuring that the music maintains a high standard can be difficult, especially as AI systems may produce repetitive or less nuanced results without human oversight.

Competition from traditional music production methods also poses a challenge. Many artists and producers still prefer the traditional, human-led approach to creating music, which may slow the adoption of AI in certain segments of the industry.

Navigating legal and copyright complexities is another significant challenge. As AI generates more music, it becomes difficult to determine ownership rights, especially in collaborative settings where AI is used alongside human creators. This legal ambiguity can slow down the adoption of AI in the music industry.

Growth Factors

Advancements in AI Technology and Industry Collaboration Drive Market Growth

The Generative AI in Music Market is experiencing strong growth due to several key factors. One of the primary growth drivers is the continuous advancements in deep learning and neural networks for music generation.

Rising investment in AI research for creative industries is another important growth factor. Companies and governments are allocating more resources to developing AI tools specifically designed for creative applications like music composition. This investment is driving innovation and making AI more accessible to artists and producers, fueling the market’s growth.

The increasing focus on AI-powered music composition software is also contributing to market expansion. Software tools that leverage AI to assist in composing, arranging, and producing music are becoming popular among both amateur and professional musicians. These tools streamline the creative process, allowing artists to experiment with new sounds and styles more efficiently.

The growing collaboration between AI developers and music industry professionals is helping accelerate market growth. By working together, AI technologists and musicians can create more refined and user-friendly tools, leading to wider adoption of generative AI in the music industry.

Emerging Trends

AI-Driven Virtual Artists and Music Recommendation Systems Trend

Several trends are shaping the Generative AI in Music Market. One notable trend is the increasing use of AI to remaster old tracks. AI tools can enhance the quality of older recordings by cleaning up sound, adjusting levels, and even restoring lost audio, breathing new life into classic tracks.

Another growing trend is the expansion of AI-powered music recommendation algorithms. Music streaming platforms are increasingly relying on AI to analyze user data and make personalized song suggestions, enhancing user engagement and retention.

The rise of AI-driven virtual music artists and performances is also becoming a key trend. Virtual artists created and managed by AI systems are gaining popularity, offering entirely new forms of music and entertainment experiences that blend technology with art.

The expansion of AI in live music streaming is another important trend. AI is being used to enhance live performances by creating real-time music adjustments, ensuring high-quality sound and even automating certain aspects of performance management, contributing to a richer audience experience.

Regional Analysis

North America Dominates with 38% Market Share

North America leads the Generative AI in Music Market with a 38% market share, valued at USD 111.72 million. This dominance is driven by the presence of major AI companies, a strong music industry, and high adoption of AI technologies in content creation. The region’s tech giants, combined with a thriving creative ecosystem, push innovation in AI-generated music.

The region benefits from advanced AI research, significant investments in music tech startups, and widespread use of AI tools for composing, producing, and personalizing music. North America’s leading music streaming platforms also integrate AI-driven music recommendations and production, adding to the region’s strong market presence.

North America’s market share is expected to grow further as generative AI in music becomes more mainstream. Increased demand for personalized music experiences, AI-enhanced production, and content creation tools will drive continued market expansion.

Regional Mentions:

• Europe:
  Europe is a key player in the market, with strong AI research and a vibrant music industry. The region’s focus on innovation in digital music production drives adoption of AI tools.
• Asia-Pacific:
  Asia-Pacific is rapidly expanding, driven by growing investments in AI technologies and the rise of digital music consumption in countries like China and South Korea.
• Middle East & Africa:
  The Middle East & Africa are emerging in the generative AI music space, with investments in music technology and growing interest in AI-driven content creation.
• Latin America:
  Latin America is gradually adopting generative AI in music, particularly in music production and streaming services. The region’s growing digital economy supports the integration of AI in the creative industry.

Key Regions and Countries covered іn thе rероrt

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • 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 Generative AI in Music Market is driven by innovation and cutting-edge technologies from key players. The top three companies—OpenAI, Google DeepMind, and AIVA Technologies—are at the forefront of this rapidly growing market, leveraging AI to transform music creation and distribution.

OpenAI has established itself as a leading player in generative AI across multiple industries, including music. Its powerful language models, such as GPT, are used to generate music compositions, lyrics, and melodies. OpenAI’s strategic positioning in the AI space allows it to offer advanced music generation tools that cater to musicians, content creators, and producers looking for AI-driven creativity.

Google DeepMind is a dominant player in AI research and innovation, with a significant impact on the generative AI in music market. Google’s investment in AI-powered music creation tools, combined with its extensive resources in machine learning, positions DeepMind as a leader in this space. By integrating AI into music production, Google DeepMind is pushing the boundaries of creativity, providing artists with new tools to explore music generation.

AIVA Technologies stands out in the generative AI music market with its focus on AI-powered music composition software. AIVA’s platform enables users to compose music in various genres using AI, making it a key player in the democratization of music creation. Its strategic focus on offering user-friendly AI tools for both professional and casual users strengthens its influence in the market.

These companies lead the Generative AI in Music Market through their innovative AI-driven platforms and solutions. Their ability to integrate AI with music composition and production allows them to shape the future of music creation and distribution.

Top Key Players in the Market

• Shutterstock Inc.
• Soundful
• Boomy Corporation
• OpenAI
• Google DeepMind
• AIVA Technologies
• Amper Music
• Mubert
• Other Key Players

Recent Developments

• Meta and Universal Music Group: In August 2024, Meta and Universal Music Group expanded their global agreement to cover music licensing across Meta’s platforms, including Facebook and Instagram. The deal aims to protect artists, ensure fair compensation, and combat unauthorized AI-generated content while creating new monetization opportunities for UMG artists.
• YouTube Music: In September 2024, YouTube Music is set to introduce an AI-powered chatbot that provides personalized music suggestions and playlist recommendations based on user preferences. This feature is part of YouTube’s broader push to integrate AI into its music streaming services.
• Adobe: In September 2024, Adobe launched a generative AI tool to help users create and edit music from text prompts. This tool allows for easier music generation and collaboration, similar to Adobe’s Photoshop, extending generative AI into the music industry.
• AI-Generated Songs: In July 2024, AI technology reached the capability to generate full songs based on minimal input, raising questions about the future of music production and originality. This development presents both opportunities and challenges for the music industry, potentially transforming how music is created and consumed.

Report Scope