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The music streaming market size is forecast to increase by USD 49.62 billion at a CAGR of 19.99% between 2023 and 2028. The market is experiencing significant growth, driven by the increasing preference for on-demand music consumption and the introduction of differentiated services. Commercial use of music streaming platforms is on the rise, with interactive and social features becoming increasingly important. Global expansion and localization are key trends, as companies seek to cater to diverse audiences. Social sharing and collaborative playlists enable users to engage with each other, fostering a sense of community. High-fidelity and lossless streaming are becoming more popular, offering improved audio quality. AI-driven personalization is another trend, allowing users to discover new music based on their preferences. Live audio, virtual concerts, and other innovative offerings are also emerging, enhancing the user experience. However, the lack of ownership in music streaming remains a challenge, as some users prefer the tangible experience of owning physical media. Overall, the market is dynamic and innovative, with continuous advancements in technology and consumer preferences shaping its future.
The market is witnessing significant growth due to the increasing popularity of smart devices and the proliferation of music streaming services. Consumers can now access music streams, music videos, podcasts, and audio files from various websites on their smartphones, laptops, and other connected devices. The integration of 5G connectivity and 4G technology is enhancing the user experience by enabling high-quality music streams and faster downloads. Artificial intelligence (AI) and machine learning (ML) are being integrated into music streaming services to provide AI features such as personalized playlists and recommendations. Prime membership benefits, live videos, and social media websites are also contributing to the growth of the market. The music industry is embracing over-the-top (OTT) platforms, with individual segments such as restaurants, cafeterias, salons, and gyms adopting cloud-based infrastructure for live streaming music. Consumers can rewind and enjoy their favorite tracks, making music streaming a preferred choice for entertainment.
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 free segment is estimated to witness significant growth during the forecast period. The market is experiencing significant advancements, driven by high-quality music streams and technological innovations. Connectivity and subscription-based models, such as Prime membership benefits, are becoming increasingly popular. Two leading global providers, Spotify and Alphabet, dominate the free music streaming segment. This service model relies on advertisements for revenue generation, with limited access to music for subscribers. Unauthorized music streaming remains a challenge, but advancements in Artificial Intelligence (AI) and Machine Learning (ML) are helping to mitigate this issue. Live videos on social media websites, such as YouTube Live and Facebook Periscope, are also contributing to the growth of the market.
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The free segment was valued at USD 15.12 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 47% 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 market is projected to exhibit steady growth during the forecast period, primarily driven by the United States, which is a leading market in the region. The widespread adoption of high-quality music streams and advancements in technologies such as Artificial Intelligence (AI) and Machine Learning (ML) have significantly impacted the market. These features, which are now considered prime membership benefits, have led to a decline in the sale of physical music components like compact discs (CDs). Unauthorized music streaming remains a challenge, but the integration of live videos and social media websites has helped music streaming platforms to engage and retain subscribers. Despite the market reaching near saturation in the US, the large subscriber base continues to fuel the growth of music streaming services across North America.
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.
The increasing preference for music streaming services is the key driver of the market. The global music streaming service market is experiencing significant growth due to the increasing preference for digital platforms to access music content. According to recent reports, the number of consumers subscribing to paid music streaming services increased by approximately 30.5% in Q2 of 2022, with an average of 1 million new subscribers joining monthly.
Furthermore, this trend is driven by advancements in technology, including 5G connectivity, which enables faster music streams and downloads, and the availability of music videos, podcasts, and audio files on various websites and smart devices. The development of telecommunication standards such as 3G, 4G, and 5G has improved Internet bandwidth, making music streaming a more viable option for consumers. Furthermore, music streaming services offer a legal alternative to illegal downloading and sharing of music, and cater to a demographic primarily consisting of individuals aged 18-40 years.
The increasing introduction of differentiated music streaming services is the upcoming trend in the market. The market is witnessing significant growth as companies introduce differentiated services to cater to the evolving preferences of consumers. Digital platforms are leading this market with features like easy accessibility on smart devices, auto playlist customization, and high audio quality.
Furthermore, with the advent of 5G connectivity, music streams and downloads are expected to experience smoother and faster delivery, further enhancing the user experience. Additionally, the market for music videos, podcasts, and audio files is expanding, providing consumers with diverse content options.
The lack of ownership in music streaming is a key challenge affecting the market growth. The digital music publishing landscape is dominated by music streaming services, which allow consumers to access vast collections of music, music videos, podcasts, and audio files through digital platforms and smart devices. These services operate on a subscription-based model, granting users unlimited access to a vast library of content.
However, one disadvantage of music streaming services is that they do not offer consumers the ability to own the music outright. Moreover, to stream music, subscribers must maintain an internet connection, with some providers not permitting downloads for offline use. This lack of ownership may deter potential customers from subscribing to music streaming services, potentially impeding the growth of the global market during the forecast period. With the advent of advanced technologies like 5G, faster connectivity is expected to enhance the music streaming experience, enabling higher-quality streams and more seamless access to content. Both 4G and 5G technology play a crucial role in the delivery of music streams, ensuring uninterrupted access to digital music for consumers.
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 companies provide consumers with various options to access their preferred music and tunes.
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 market is experiencing significant growth due to the increasing popularity of digital platforms for accessing music. Music streaming services, available on websites and application-based platforms, offer consumers the ability to stream music, music videos, podcasts, and audio files in high-quality. Advancements in technologies such as 5G connectivity and AI feature integration are enhancing the user experience by providing faster connectivity, lower latency, and personalized recommendations. The market caters to both individual and commercial segments, with businesses in sectors such as restaurants, cafeterias, salons, and gyms adopting music streaming services for background music. The revenue channels include non-subscription and subscription models, with prime membership benefits offering additional features like rewind, fast forward, and pause.
Furthermore, live streaming of music and videos, including live concerts and virtual events, is gaining popularity. Social media websites like YouTube Live and Facebook Periscope are also contributing to the market's growth by enabling user-generated content and collaborative playlists. The market's expansion is global, with localization and social sharing features driving engagement. The audio segment dominates the market, but the video segment is growing rapidly, with AI-driven personalization and lossless streaming becoming key differentiators. The market's future growth is expected to be driven by the adoption of smart devices, including smart speakers, alarms, voice command, and virtual assistant integration. The music industry's shift towards OTT platforms and the remix culture are also influencing market trends.
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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 |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.99% |
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Market growth 2024-2028 |
USD 49.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.15 |
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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 47% |
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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., 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. |
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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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