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Home ➤ Information and Communications Technology ➤ Music Streaming Market
Music Streaming Market
Music Streaming Market
Published date: Jan. 2024 • Formats:
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  • Home ➤ Information and Communications Technology ➤ Music Streaming Market

Global Music Streaming Market By Type (Paid Music Streaming and Free Music Streaming), By Service (On Demand Streaming and Live Streaming), By Platform (Website and App), By End-User (Individual and Commercial), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

  • Published date: Jan. 2024
  • Report ID: 12086
  • Number of Pages: 289
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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  • Quick Navigation

    • Report Overview
    • Analyst Viewpoint
    • Key Takeaways
    • Type Analysis
    • Service Analysis
    • Platform Analysis
    • End-User Analysis
    • Key Market Segments
    • Driving Factor
    • Restraining Factor
    • Growth Opportunity
    • Challenge
    • Trending Factors
    • Regional Analysis
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    The Global Music Streaming Market size is expected to be worth around USD 125.70 Billion by 2032 from USD 36.7 Billion in 2023, growing at a CAGR of 15.10% during the forecast period from 2023 to 2032.

    Music streaming refers to the digital distribution of music over the internet, allowing users to access and listen to a vast library of songs on-demand. It has revolutionized the way people consume music, offering convenience, flexibility, and a personalized listening experience. Music streaming platforms enable users to explore different genres, discover new artists, create playlists, and access music anytime, anywhere, using various devices such as smartphones, tablets, computers, and smart speakers.

    These platforms employ sophisticated algorithms to curate personalized recommendations based on users’ listening habits and preferences. Music streaming has become increasingly popular due to its ease of use, affordability, and the ability to access a wide variety of music from diverse artists and genres.

    The Music Streaming Market refers to the industry that encompasses the development, operation, and provision of music streaming services. It includes music streaming platforms, record labels, artists, and service providers. The market offers various types of music streaming services, including on-demand streaming and live streaming. On-demand streaming allows users to choose specific songs, albums, or playlists to listen to, while live streaming enables real-time streaming of concerts, music events, and radio broadcasts.

    Music Streaming Market by Type

    The market is highly competitive, with major players offering subscription-based models, ad-supported free tiers, or a combination of both. Revenue is generated through subscription fees, advertising, and partnerships with brands and advertisers. The Music Streaming Market is expected to continue its growth trajectory as streaming becomes the dominant method of music consumption globally, presenting opportunities for innovation, expansion, and collaboration within the industry.

    Analyst Viewpoint

    The music streaming market is experiencing a robust expansion, driven by a confluence of technological advancements, shifting consumer preferences, and strategic initiatives by key market players. The proliferation of smartphones and enhanced internet connectivity globally acts as a cornerstone for this growth, enabling users to access a vast array of music content with unprecedented ease.

    Moreover, the integration of advanced technologies such as artificial intelligence and machine learning in music streaming platforms has significantly improved user experience through personalized playlists and recommendations, thereby augmenting user engagement and retention rates. In January 2022, Gamma Gaana Ltd., the Indian music application, introduced a new feature leveraging AI to enhance music suggestions and improve the overall user experience.

    From a market opportunity perspective, the increasing adoption of streaming services in emerging economies presents a lucrative avenue for expansion. As internet penetration deepens in these regions, coupled with a growing middle-class population, there is a considerable untapped audience for music streaming services. In November 2022, Amazon Music, a subsidiary of Amazon.com, Inc., broadened its Prime membership benefits, providing users access to an extensive music catalog featuring over 100 million songs and top podcasts, all ad-free.

    Additionally, the trend towards subscription-based models over ad-supported ones is gaining traction, offering a stable revenue stream for service providers. Collaborations with artists and record labels for exclusive content releases also present strategic opportunities to differentiate offerings and attract a diverse user base.

    Key Takeaways

    • The Music Streaming Market is projected to reach a substantial USD 125.70 Billion by 2032, experiencing a remarkable CAGR of 15.10% from 2023 to 2032.
    • Free music streaming dominates the market due to widespread accessibility, ad-supported revenue models, and the ease of streaming on mobile devices.
    • On-demand streaming, which provides users with personalized and convenient music experiences, generated the largest share of sales.
    • Music streaming apps, thanks to their user-friendly interface, have a dominant market position, allowing users to access their music library on the go.
    • Individual users cover the largest revenue share (59.8%), with music streaming becoming an integral part of daily activities. Commercial users, aiming to improve customer satisfaction, are also increasingly adopting music streaming services.
    • In 2022, North America held a dominant market position (more than 31%) due to high internet penetration and strong digital music consumption culture. Europe also showed robust growth, driven by diverse cultural preferences and artist rights support.

    Type Analysis

    Free Music Streaming Holds the Major Market Share Compared to Paid Music Streaming.

    In 2022, the Free Music Streaming segment held a dominant market position, capturing a more significant market share in the music streaming industry. This segment’s dominance can be attributed to several key factors. Primarily, the widespread accessibility and appeal of free music streaming services have driven their popularity among a vast user base. These platforms typically offer a vast library of songs and playlists without requiring a subscription fee, making them particularly attractive to budget-conscious consumers and those reluctant to commit to paid subscriptions.

    Moreover, the ad-supported revenue model of free music streaming services has proven effective. While users access music at no direct cost, revenue is generated through advertisements, creating a sustainable business model. This model not only benefits the service providers but also offers advertisers a lucrative channel to reach a diverse and large audience.

    Additionally, the growth in smartphone penetration and internet accessibility has significantly contributed to the expansion of this segment. With more people having access to mobile devices and reliable internet, the ease of streaming music anytime and anywhere has bolstered the free streaming services’ user base.

    Service Analysis

    The on-demand streaming segment generated the largest share of sales.

    In 2022, the On-Demand Streaming segment held a dominant market position in the Music Streaming market, capturing a significant share. This segment’s strong market position can be attributed to several factors. On-demand streaming services provide users with the flexibility to access a vast library of music at their convenience. Users can choose specific songs, albums, or playlists and stream them instantly, allowing for a personalized and tailored music experience. This level of control over music selection has resonated with consumers, as it offers the freedom to explore various genres, discover new artists, and create customized playlists.

    On-demand streaming services also provide features such as offline listening, high-quality audio, and personalized recommendations based on users’ listening preferences. Furthermore, the popularity of smartphones and the increasing availability of high-speed internet have made on-demand streaming easily accessible to a wide range of users. The convenience of streaming music on mobile devices, coupled with the seamless synchronization across multiple devices, has further boosted the demand for on-demand streaming services.

    Additionally, the on-demand streaming segment has witnessed the rise of subscription-based models, where users pay a monthly fee for unlimited access to music. This revenue model has contributed to the segment’s market share, providing a stable and recurring source of income for service providers. As the music streaming market continues to evolve, the on-demand streaming segment is expected to maintain its dominance, driven by the consumer demand for personalized and convenient music experiences.

    Music Streaming Market by Service

    Platform Analysis

    The Apps Segment Leads the Market with a Major Share in the Global Music Streaming Market.

    In 2023, the App segment held a dominant market position in the Music Streaming market, capturing a significant share. The strong market position of the App segment can be attributed to several factors. Music streaming apps have become increasingly popular due to the widespread adoption of smartphones and the convenience they offer. These apps provide users with the ability to access music on the go, with features like personalized playlists, recommendations, and offline listening. The seamless integration of streaming apps with mobile devices allows users to have their entire music library at their fingertips.

    Furthermore, music streaming apps provide a user-friendly interface and intuitive navigation, enhancing the overall user experience. These apps also leverage advanced technologies such as machine learning and AI algorithms to curate personalized recommendations based on users’ listening habits and preferences. Additionally, app stores and digital distribution platforms have made it easier for users to discover and download music streaming apps, contributing to the segment’s dominance.

    The revenue generated by in-app purchases and subscription-based models has played a significant role in the App segment’s market share. With the constant evolution of mobile technology and the increasing demand for on-the-go music streaming, the App segment is expected to maintain its dominant position in the Music Streaming market in the coming years.

    End-User Analysis

    An individual segment covers the largest revenue share of 59.8% to dominate the market. Since the advent of music streaming services, users have been able to easily stream millions of songs on demand. The growth of this segment will be driven by the evolving lifestyles of young people, such as listening to music as part of their daily activities and using personalized playlists.

    Many tech companies allow their employees to listen to music on headphones while working in peace. As wireless networks become more accessible and mobile devices become more prevalent, the market is increasingly overtaking downloads in the digital music market.

    The commercial segment is expected to show the fastest growth. This is due to the growing need for a better atmosphere to retain customers and improve customer satisfaction. In addition, music can uplift people at work, keep them happy, and increase their productivity. Due to this, commercial users are turning to music streaming services. However, business owners cannot play the songs on standard streaming services.

    Business users must follow the rules set by local or global music authorities. For example, in Australia, commercial entities must pay a live performance fee to the Australian Performing Rights Association (APRA), the copyright management organization, to legally perform music. Such fees support royalties to composers, publishers, and artists.

    Key Market Segments

    By Type

    • Paid Music Streaming
    • Free Music Streaming

    By Service

    • On-Demand Streaming
    • Live Streaming

    By Platform

    • Website
    • App

    By End-User Analysis

    • Individual
    • Commercial

    Driving Factor

    “Advancements in Mobile Technology and Internet Accessibility”

    The growth of the music streaming market is significantly driven by advancements in mobile technology and increased internet accessibility. The widespread availability of smartphones and improved internet connectivity, especially in 4G and 5G technologies, have made music streaming services more accessible to a broader audience.

    Consumers enjoy a seamless and uninterrupted music experience, contributing to the rising popularity of streaming platforms. This technological evolution has also enabled music streaming companies to innovate and enhance their services, offering high-quality audio and personalized user experiences through advanced algorithms. The ease of accessing a vast library of music anytime and anywhere fosters the continuous growth of this sector.

    Restraining Factor

    “Concerns Over Copyright and Licensing Agreements”

    A major restraining factor in the music streaming market is the complexity surrounding copyright and licensing agreements. Music streaming services must navigate a web of legalities to secure rights from record labels, artists, and publishers. These agreements are crucial for the legal distribution of music but can be challenging due to differing laws across countries, high costs, and negotiations. Failure to adequately address these concerns can lead to legal disputes and restrict the availability of diverse content on streaming platforms, potentially impacting user satisfaction and subscriber growth.

    Growth Opportunity

    “Expansion into Emerging Markets with Rising Middle-Class Population”

    A significant growth opportunity for the music streaming market lies in its expansion into emerging markets. These regions, characterized by a rising middle-class population, are witnessing increased disposable incomes and digital adoption.

    As internet penetration grows and smartphone usage becomes widespread, these markets offer a vast, untapped audience for streaming services. Catering to local music preferences and languages, and offering affordable subscription models, can accelerate market penetration and subscriber base growth in these regions, contributing substantially to the global expansion of the music streaming industry.

    Challenge

    “Navigating the Competitive Landscape and Differentiation in Service Offerings”

    One of the primary challenges in the music streaming market is the intensely competitive landscape. With numerous players, both established and new entrants, the market is highly competitive. Companies must continually innovate to differentiate their offerings and retain user interest. This includes offering exclusive content, superior audio quality, user-friendly interfaces, and personalized experiences.

    Moreover, adapting to rapidly changing consumer preferences and technology trends is crucial. Successfully navigating this competitive environment requires strategic planning, continual investment in technology, and an in-depth understanding of consumer behavior to maintain and grow market share.

    Trending Factors

    Music streaming services have transformed the music streaming industry. Users no longer have to buy individual songs or CDs to listen to their favorite music. Instead, pay a small monthly fee to a music streaming service that gives full access to all the songs and a seamless user experience. Active users now have unlimited access to their favorite songs, related songs, and personalized playlists. This made it easier for smaller artists to find them and increased their visibility. It’s also changing how music is enjoyed, opening up new possibilities for the live-streaming experience.

    “MelodyVR” is a modern experience platform that brings you live music. A Virtual Reality headset app that takes you to a new level of live music. Users can bring the live music festival experience directly to consumers by purchasing tickets to see live performances at festivals and favorite music venues. In some ways, this is the first of its kind and gives the music industry a glimpse into the future of streaming.

    The Metaverse is a new idea for music streaming services. As metaverses grow in popularity, the music industry is waiting to see how live streaming works, what music streaming services integrate with customer convenience, and how it changes the music landscape. It’s a concept that can potentially evolve into something bigger than we imagine. However, some say Spotify has already hinted at an entry into the metaverse. This could be all new to the music industry

    Regional Analysis

    In 2022, North America held a dominant market position in the music streaming sector, capturing more than a 31% share. This substantial market presence is attributed to high levels of internet penetration, a strong presence of major streaming platforms, and a culture deeply embedded in digital music consumption. The region’s advanced technological infrastructure and high disposable income levels further bolster this dominance.

    Moving to Europe, the region shows robust growth in music streaming, driven by diverse cultural preferences and the rapid adoption of various music streaming services. Europe’s strong regulatory framework supporting artists’ rights also plays a critical role in the market’s development, encouraging fair revenue models.

    Music Streaming Market Regional Analysis

    Key Regions and Countries Covered in this Report:

    • North America
      • The US
      • Canada
      • Mexico
    • Western Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Portugal
      • Ireland
      • Austria
      • Switzerland
      • Benelux
      • Nordic
      • Rest of Western Europe
    • Eastern Europe
      • Russia
      • Poland
      • The Czech Republic
      • Greece
      • Rest of Eastern Europe
    • APAC
      • China
      • Japan
      • South Korea
      • India
      • Australia & New Zealand
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Colombia
      • Chile
      • Argentina
      • Costa Rica
      • Rest of Latin America
    • Middle East & Africa
      • Algeria
      • Egypt
      • Israel
      • Kuwait
      • Nigeria
      • Saudi Arabia
      • South Africa
      • Turkey
      • United Arab Emirates
      • Rest of MEA

    Key Players Analysis

    Spotify, Amazon, and Apple Music dominate the Global Music Streaming Market.

    In the dynamic landscape of the global music streaming market, several key companies have played pivotal roles in shaping the industry’s growth and competitiveness. These companies have engaged in strategic alliances, mergers & acquisitions, product innovations, and technology advancements to maintain their positions and capture a significant market share.

    Top Key Players

    • Spotify AB
    • Apple, Inc.
    • Amazon.com, Inc.
    • Google LLC
    • Deezer SA
    • Pandora Media, Inc.
    • Tencent Music Entertainment Group
    • Tidal
    • SoundCloud Global Limited & Co. KG
    • iHeartMedia, Inc.

    Recent Developments

    In 2023, Spotify:

    • Partnership with TikTok: In April 2023, Spotify integrated with TikTok, allowing users to directly share Spotify tracks and playlists on their TikTok profiles. This aimed to enhance music discovery and social sharing for both platforms.
    • Spatial Audio with Dolby Atmos: In June 2023, Spotify launched a beta test of spatial audio with Dolby Atmos for select users, offering an immersive listening experience.

    In 2023, Apple:

    • Lossless Audio Expansion: Apple Music expanded its lossless audio library to include all songs in its catalog in June 2023, offering higher-quality audio streaming at no additional cost.

    In 2023, Amazon:

    • Amazon Music HD Expansion: Amazon Music expanded its high-definition (HD) audio library to include millions of songs in May 2023, offering improved audio quality at no additional cost.

    Report Scope

    Report Features Description
    Market Value (2023) US$ 36.7 Bn
    Forecast Revenue (2032) US$ 125.7 Bn
    CAGR (2023-2032) 15.1%
    Base Year for Estimation 2022
    Historic Period 2016-2022
    Forecast Period 2023-2032
    Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments Covered By Type – Paid Music Streaming and Free Music Streaming; By Service – On Demand Streaming, and Live Streaming; By Platform – Website and App); By End-User – Individual and Commercial.
    Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; the Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA
    Competitive Landscape Spotify AB, Apple Inc., Amazon.com Inc., Google LLC, Deezer SA, Pandora Media Inc., Tencent Music Entertainment Group, Tidal, SoundCloud Global Limited & Co. KG, iHeartMedia Inc.
    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 licenses 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)

    How big is the music streaming industry?

    The Global Music Streaming Market is projected to reach US$ 125.7 Billion by 2032 from US$ 31.9 Billion in 2022.

    What is a music streaming service market?

    A music streaming service is a streaming media service that primarily focuses on music and operates on digital platforms. These services allow users to stream copyrighted digital songs on demand from a library provided by the service.

    What are the different types of music streaming?

    The market is divided into paid music streaming and free music streaming. Free music streaming holds the major market share compared to paid music streaming.

    Which platform leads the music streaming market?

    The app segment leads the music streaming market, accounting for the largest revenue share. Music streaming apps are popular and widely used, offering a vast library of songs for users to access.

    How do music streaming services benefit commercial users?

    Music streaming services offer commercial entities the opportunity to create a better atmosphere, enhance customer satisfaction, and increase productivity through the power of music.

    Who are the major end-users of music streaming services?

    The individual segment covers the largest revenue share in the music streaming market. Many individuals use music streaming services for their daily activities and personalized playlists.

    What are the drivers of the music streaming market?

    Easy access to music and free subscriptions are significant drivers in the music streaming market. The availability of multi-device compatible services and the integration of voice assistants also contribute to market growth.

    How is future for the music streaming market?

    The music streaming market is expected to continue its growth trajectory, driven by advancements in technology, expanding internet connectivity, and the increasing popularity of streaming platforms.

    Music Streaming Market
    Music Streaming Market
    Published date: Jan. 2024
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    • Spotify AB
    • Apple, Inc.
    • Amazon.com, Inc. Company Profile
    • Google LLC
    • Deezer SA
    • Pandora Media, Inc.
    • Tencent Music Entertainment Group
    • Tidal
    • SoundCloud Global Limited & Co. KG
    • iHeartMedia, Inc.
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