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The music market size is forecast to increase by USD 70.02 billion at a CAGR of 12.57% between 2023 and 2028. The market is experiencing significant growth, driven by the surge in digital music adoption, with streaming and downloading contributing to nearly 60% of recording segment revenue. This trend is bolstered by the ease of accessing music online. Mergers, acquisitions, and strategic alliances among the recording players and the entry of new market participants are also shaping market growth. Global and regional vendors are offering diverse products, intensifying competition. Moreover, companies are increasingly partnering with technology providers to gain a competitive edge and maintain market positions. This market expansion is crucial for understanding trends like playlist customization and the emergence of new portals and video streaming services, catering to the preferences of millennials and fostering a vibrant community. Market research and growth analysis reports provide valuable insights into these dynamics.
The individual segment is estimated to witness significant growth during the forecast period. Factors such as the developments in network infrastructure that are lowering the cost of Internet services and providing people with access to music-streaming services on mobile devices are significantly contributing to the growth of this segment. In addition, there has been an incremental increase in mobile data traffic because of the growth in 4G and 5G services.
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The individual segment was the largest segment and was valued at USD 41.74 billion in 2018. Moreover, mobile data traffic is expected to grow significantly during the forecast period, which, in turn, will positively affect the growth of the global market. In addition, the developments in telecommunication standards, such as 4G and 5G are also expected to fuel the individual user segment, as these networks enable individual users to access high-quality music from anywhere at any given point in time. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the source, the segment is classified into recording, live, and others. The main revenue sources of the recording segment include the creation and distribution of musical recordings, publishing songs, and providing sound recording and related services. In addition, music on mobile platforms has grown dramatically in recent years. This is mainly due to the increased Internet penetration and the growth of smartphones and tablets, particularly in emerging markets. Moreover, 96% of consumers increased their online consumption in 2023. Therefore, there is an increase in demand for the content via mobile platforms, which is fuelling the growth of this segment, which in turn drives the market during the forecast period.
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North America is estimated to contribute 43% 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. There is a significant growth of the market in North America due to the strong growth in streaming revenue. One of the main countries in North America which is fuelling the market growth in the region is the US due to the high spending capacity of the population. In addition, Apple and Spotify are the two largest music-streaming service players in the region, with both companies having paid subscriber bases of more than 25 million. Furthermore, the players in the region are expanding their business by collaborating with artists and gaining exclusive rights to their songs or by acquiring small companies in the industry. Hence, such factors will drive the market in North America during the forecast period.
The Music Industry is evolving rapidly with the rise of digital platforms and intelligent devices. Major players like Apple Music and Wynk Music are transforming how we consume music, while artists like DIVINE and Naezy lead the Bollywood and recording industry. The live business thrives, supported by platforms such as Nielsen for analytics. Internationalization and the digital economy are driving the market, with mobile apps, desktop applications, and social networking sites playing key roles. The App Store offers through in-app purchases, catering to a diverse community. Additionally, podcasts, websites, and the games industry contribute to the music ecosystem. A combined modeling approach using bottom-up strategies ensures comprehensive market insights.
One of the key factors driving the market growth is the increasing adoption of digital music. There is a growing popularity for digital music which includes streaming and downloading, contributing almost 60% of the revenue generated by the recording segment. In addition, the ease of accessing and downloading songs through the Internet is also fuelling the adoption of digital music.
Moreover, the convenience offered by digital music eliminates the need to carry physical forms, such as compact discs (CDs) and cassettes. In addition, the rising penetration of mobile devices such as smartphones and tablets and the availability of high-speed internet connectivity are driving digital music. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
A key factor shaping the market is the increase in mergers and acquisitions (M&A) and strategic alliances among market players and entry of new players. Several global and regional vendors are offering differentiated products in the market, which is intensifying the competition among companies. In addition, there is an increasing focus on new strategies, such as partnering with technology providers, to gain a competitive edge in the market and retain their market positions.
Moreover, the companies are partnering with each other for business expansions through new distribution channels. In addition, investments in M&A and strategic alliances help service providers improve their market reach and customer base. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
The decline in physical sales of music is one of the key challenges hindering the market growth. There has been a significant decline in the retail sales of CDs and digital downloads of music since the arrival of music-streaming in the market. In addition, customers are reluctant to purchase single tracks when they can access the complete album through music streaming services.
For instance, in 2020, approximately 257.2 million digital-music singles were downloaded in the US. In addition, the sale of physical media, such as CDs, also declined in 2021 compared with the past five years. Furthermore, a large number of users of digital downloads and CDs have switched to music-streaming. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
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 company offers music services such as YouTube music with and without ads.
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.
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The market is being reshaped by technological advancements and changing consumer attitudes. Companies like Saregama, Sony Music, and Rimas Publishing leverage platforms like Amazon Music and Napster to reach smartphone users and those with mobile broadband connections.
Artists such as Luis Fonsi, Ed Sheeran, and Lauv are making waves globally. The Royal Opera House and innovative tools like the PTZ Camera Series, video switchers, and wireless video transmitters from Sky Wire Broadcast enhance live performances. Rights management, customer billing, and royalty administration are crucial for record labels and recording companies. Techniques like the S-curve function, exponential trend smoothing, and bottom-up approach are used for accurate forecasts. The level of digitization, exchange rates, and data from statistical offices and trade associations further inform forecasting techniques and market trends.
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Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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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 12.57% |
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Market Growth 2024-2028 |
USD 70.02 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
12.1 |
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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 43% |
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Key countries |
US, China, UK, Germany, and France |
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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, Bertelsmann SE and Co. KGaA, Curb Records Inc., Deezer SA, Kobalt-Music Group Ltd., NORTHERN MUSIC.Co. Ltd., Pioneer Music.Co., Sirius XM Holdings Inc., Sony Group Corp., Spotify Technology SA, Tencent Music Entertainment Group, THEME MUSIC.Co. Pvt. Ltd., Universal Music-Group NV, Vivendi SE, Warner-Music Group Corp, Yamaha Corp., and Zee Entertainment Enterprises Ltd. |
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Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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