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The music on demand market size is forecast to increase by USD 61.45 billion at a CAGR of 17.45% between 2023 and 2028. The music on-demand market is experiencing significant growth, driven by the increasing use of digital platforms and smart devices. With the rise of music streaming services, consumers now have unlimited access to their favorite tunes at any time and anywhere. The adoption of 5G connectivity is further fueling this trend, enabling faster streaming and downloading of high-quality audio and video content. Artificial Intelligence and Machine Learning technologies are also transforming the industry, providing personalized recommendations and enhancing user experience. The on-demand streaming segment, which includes audio and video, is expected to dominate the market, while the live streaming segment is gaining popularity due to the increasing demand for real-time music experiences.
The OTT (Over-The-Top) market is also contributing to the growth of the music industry, offering integrated music streaming services with video content. Overall, the music on-demand market is poised for continued growth, driven by technological advancements and changing consumer preferences.
The music industry has witnessed a significant shift towards on-demand streaming, fueled by the rise of digital platforms and the proliferation of smart devices. With 5G connectivity revolutionizing the way we consume content, music streaming services have become more accessible than ever before. Artificial intelligence and machine learning have transformed the way we discover new music, with platforms like Tencent Music Entertainment and Spotify utilizing AI-based models to curate personalized playlists. The on-demand streaming segment continues to dominate the market, with services like Spotify Premium, Apple Music, and ad-supported streaming services offering unlimited access to audio and video content.
Moreover, the video segment, including OTT platforms, has also gained traction, allowing users to watch music videos and live performances. Smartphones and connected devices have made music on demand a convenient and commercial option, with streaming subscriptions replacing digital downloads of MP3s and FLAC files. Browser-based music streaming services and music apps have made it possible to access music anywhere, anytime. The live-streaming segment has also gained popularity, with radio stations adapting to the digital age and offering live performances and interactive experiences. Overall, the future of music consumption lies in the intersection of technology and creativity, with AI and machine learning paving the way for a more personalized and listening experience.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The music streaming segment is estimated to witness significant growth during the forecast period. The market encompasses two primary types of streaming services: commercial and free. During the forecast period, the commercial segment is projected to witness significant growth due to the rising preference for premium features among consumers. These features include ad-free listening, personalized song recommendations, expanded music libraries, playlist customization, and integration with smart home devices. As a result, major streaming platforms like Spotify Premium and Apple Music are gaining popularity over ad-supported services. Digital downloads, such as MP3s and FLAC files, still hold a substantial market share, but the trend is shifting towards streaming subscriptions. Overall, the music industry is evolving, with technology playing a pivotal role in shaping consumer behavior.
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The music streaming segment was valued at USD 25.12 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 40% 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.
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The North American music on-demand market is experiencing significant growth due to the region's abundant music content creators, and advanced network infrastructure. Consumers are increasingly turning to music streaming platforms for their music needs, spending an average of 14 hours and 39 minutes per week engaged with these services. Key features, including personalized playlists, song recommendations, and seamless connectivity across apps and browsers, are fueling the popularity of on-demand music services on smartphones and connected devices. Digital downloads of MP3s and FLAC files are gradually being replaced by streaming subscriptions from providers like Spotify Premium and Apple Music, as well as ad-supported services.
Our researchers analyzed the data with 2023 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.
Growth in mobile advertisement spending is the key driver of the market. The digital music industry has witnessed significant growth with the advent of music on demand through smart devices. In 2020, over 90% of the global population gained Internet access, leading to mobile app downloads, reaching 218 billion. Service providers have responded by creating mobile applications, enabling users to access and stream music easily. Music streaming services, such as Tencent Music Entertainment and Spotify, dominate the on-demand segment. Additionally, the live streaming segment and both the audio and video segments of the OTT industry have experienced growth due to 5G connectivity and advancements in Artificial Intelligence and Machine Learning technologies. These developments have made an extensive music library readily available to consumers, enhancing their listening experience.
An increase in the adoption of cloud services is the upcoming trend in the market. The music on-demand market is experiencing significant growth due to the increasing adoption of digital platforms and smart devices. Music streaming services, such as Tencent Music Entertainment and Spotify, are increasingly popular, with the on-demand streaming segment and live streaming segment driving market expansion. Cloud computing plays a pivotal role in this trend, enabling users to access music from remote servers via 5G connectivity. Artificial Intelligence and Machine Learning technologies are also transforming the industry, enhancing user experience and personalizing content. Consumers are shifting towards cloud-based music streaming services, which offer the convenience of storing, downloading, streaming, and sharing content from any device.
Companies like Apple, Alphabet, and Amazon are capitalizing on this trend by focusing on cloud services as a remote locker for downloaded tracks.
Free music access to users through modified apps is a key challenge affecting the market growth. Digital platforms have revolutionized the way we consume music, with smart devices and music streaming services becoming increasingly popular. The on-demand segment of the music industry, which includes both audio and video streaming, has experienced significant growth due to the convenience and accessibility offered by these services. With the advent of 5G connectivity, the use of artificial intelligence and machine learning algorithms in music recommendation and personalization is on the rise. Companies like Tencent Music Entertainment and Spotify lead the market, offering a wide range of features and services. However, some users resort to using modified apps and rooting or jailbreaking their devices to access premium services for free. Sites such as RevDL, Cracked APK, APK pure, APK4Free, and hacked it provide access to these cracked apps. While this practice may seem appealing, it is important to consider the ethical and legal implications.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc. - The market is served by the company through two applications, YouTube Music and Google Music, providing users with instant access to their preferred songs and tunes on-the-go.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The music industry has seen a significant shift towards on-demand streaming services, driven by the proliferation of digital platforms and smart devices. With the advent of 5G connectivity and artificial intelligence (AI) technologies like machine learning, the music streaming landscape is becoming more innovative and personalized. The on-demand streaming segment, which includes services like Spotify and Apple Music, is expected to dominate the market. However, the live streaming segment, offering livestreaming musical performances and interactive experiences, is also gaining traction. Both audio and video services are available on streaming platforms, with OTT (Over-The-Top) providers and ad-supported services catering to different consumer segments.
Moreover, high-speed internet services, including high-speed broadband and mobile data, are essential for uninterrupted streaming. Personalization algorithms, exclusive content, artist collaborations, and licensing are key revenue streams for music streaming services. However, issues such as copyright infringement, piracy, content moderation, censorship, data privacy concerns, and regulatory scrutiny continue to pose challenges. The live music sector, including radio, radio stations, and radio networks, is also evolving, with live streaming of musical performances and virtual concert experiences becoming increasingly popular. The rise of AI-driven recommendation algorithms, audio experiences, and virtual concerts is expected to further transform the music industry. The increasing internet penetration and smartphone adoption, particularly in the middle class population, are fueling the growth of music on demand services.
Further, data analytics and machine learning are being used to understand consumer interests and preferences, enabling content personalization and targeted advertising revenue. Domestic and international players are investing in innovative products and services to cater to the evolving consumer demands. However, regulatory issues, antitrust concerns, and consumer interests remain key challenges for the music streaming industry.
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Market Scope |
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Report Coverage |
Details |
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Page number |
165 |
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Base year |
2023 |
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Historic period |
2017-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.45% |
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Market Growth 2024-2028 |
USD 61.45 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.67 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 40% |
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Key countries |
US, China, UK, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Apple Inc., Aspiro AB, Auracle Sound Ltd., Bennett Coleman and Co. Ltd., Bharti Enterprises Ltd., Canadian Broadcasting Corp., Deezer SA, Hungama Digital Media Entertainment Pvt. Ltd., iHeartMedia Inc., Mixcloud Ltd., Modern Streaming Solutions Pvt. Ltd., Mood Media Corp., Reliance Industries Ltd., Rhapsody International Inc., SoundCloud Global Ltd. and Co. KG, Spotify Technology SA, Tencent Holdings Ltd., and Viant Technology LLC |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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