MUSIC STREAMING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Music Streaming Market Size and Forecast – 2024-2031

Global Music Streaming Market is estimated to be valued at USD 40.12 Bn in 2024 and is expected to reach USD 121.43 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.1% from 2024 to 2031.

Key Takeaways from the Music Streaming Market Report:

• On-demand Streaming is expected to contribute the highest market share of 51.3% in 2024.
• Audio is expected to contribute the highest market share of 49.3% in 2024.
• Individual user segment is expected to contribute the highest market share of 56.3% in 2024.
• North America is a leading market with a projected growth of 44.1% market share in 2024.

Market Overview:

The music streaming market is expected to witness significant growth during the forecast period. Factors such as growing adoption of smartphones and smart gadgets, increasing internet penetration across the globe, and changing consumer preference towards streaming music online rather than owning physical copies are expected to drive the growth of the market. Additionally, ongoing technological advancements in streaming services allowing users to access music on the go through their mobile apps along with feature enhancements like improved audio quality, personalized playlists, and offline listening are further propelling the demand for music streaming. Major players in the market are focusing on expanding their music libraries and constantly updating their catalogs to provide users with access to a large volume and variety of songs in different genres and languages.

Segmental Insights

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Service Insights, Convenience and accessibility drives the dominance of On-demand streaming

By Service, On-demand Streaming is expected to contribute the highest market share of 51.3% in 2024 owning to its convenience and accessibility. On-demand streaming allows users to choose the music they want to listen to at their own will and convenience without any scheduling limitations. They can create personalized playlists and listen to any song or genre of their choice from a vast catalog at anytime from anywhere via their smart devices.

Content Insights, Audio Content Drives Higher Engagement on Music Streaming Platforms

By Content, Audio is expected to contribute the highest market share of 49.3% in 2024 mainly due to higher levels of engagement it drives on music streaming platforms. While the market for music videos is growing, audio content in the form of songs continue to be the primary reason users turn to music streaming services. Several research surveys indicate that the users spend more time passively listening to music playlists or genres of their choice rather than watching music videos.

Individual Users are the Major Adopters of Music Streaming Driven by Personalization

By End-user, Individual user segment is expected to contribute the highest market share of 56.3% in 2024 owing to their need for personalized music experiences. Music streaming being a very personal activity, individual users have warmed up to its ability to cater playlists and recommendations according to their unique tastes. With more music discovery and curation tools available, individuals can shape highly customized music experiences as per their changing moods and interests. 

Regional Insights

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North America Music Streaming Market Trends

North America is a leading market for music streaming and is expected to account for 44.1% market share in 2024. The growth can be attributed to factors such as high smartphone and internet penetration, availability of diverse music content from major labels, and presence of global streaming platforms. Countries like the U.S. and Canada have seen widespread adoption of streaming among both young and older demographic segments.

Asia Pacific Music Streaming Market Trends

Asia Pacific music streaming market is a fast-growing market and is expected to account for 33.4% market share in 2024. The growth is mainly attributed to the increasing digitalization and increase in young population with rising disposable incomes across developing countries. Lower data rates and availability of low-cost plans have boosted streaming uptake. Local players have also contributed to the market expansion.

Music Streaming Market Outlook for Key Countries

United States Music Streaming Market Trends

 The way music is being consumed in the United States is rapidly changing due to evolving streaming trends. Listeners are switching from owning music to renting access via streaming subscriptions. This change favors on-demand, ad-supported platforms like Spotify that allow users to instantly listen to tens of millions of songs from any device with an internet connection. As consumers cut cable cords and listen to music on smartphones everywhere they go, the immediacy and convenience of streaming has transformed music into an "on-tap" rather than "on-the-shelf" experience.

China Music Streaming Market Trends

The evolving music streaming preferences and habits of younger generations of music listeners in China are likely to heavily influence music streaming trends in 2024. Younger Chinese between the ages of 16-30 currently make up the largest proportion of music streamers in the country. This demographic tends to favor interactive music experiences like playlists, livestreaming, and social features more so than older generations. As this younger cohort continues gaining purchasing power and dominance in the overall music market in coming years, music streaming platforms will need to devote more resources towards developing engaging social and live streaming features to captivate this audience.

India Music Streaming Market Trends

The music streaming market in India has seen tremendous growth over the past few years due to rising smartphone and internet penetration. As per recent reports from TRAI, India now has over 800 million internet users. This growth in digital connectivity has made music streaming services easily accessible for users. As this trend is expected to continue towards 2024 with more Indians coming online, it is positively influencing the music streaming market trends.

Japan Music Streaming Market Trends

The rise of music streaming as a popular way to listen to music in Japan has significantly impacted music consumption trends in recent years. Younger music listeners have embraced streaming services as their primary way to access music, as it allows them to easily and affordably explore a huge catalog of songs on demand. This trend of growing streaming user base is expected to continue influencing the Japan music market into 2024. 

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In July 2024, UMG experienced a significant market valuation drop, losing over USD 16 billion due to weaker-than-expected streaming revenue growth, highlighting the industry's sensitivity to streaming performance metrics.
• In January 2024, UMG removed its music from TikTok after failing to reach a licensing agreement, citing concerns over fair compensation for artists.
• In September 2023, UMG and Deezer launched an artist-centric streaming model aimed at better remunerating artists and enhancing the value of music that fans engage with the most.
• In October 2023, UMG partnered with BandLab Technologies to protect artists' rights and ensure the ethical use of Artificial Intelligence (AI) in music creation and distribution.

Top Strategies Followed by Music Streaming Market Players

• Established Players: Established Players heavily invest in research and development to deliver innovative products and services. Industry leaders like Spotify, Apple Music and Amazon Music spend 5-10% of their annual revenues on R&D. Their extensive R&D efforts are focused on enhancing audio quality, developing personalized playlists and improving recommendation algorithms. Several strategic partnerships have also helped big players expand their ecosystems. For example, Spotify's partnership with Samsung allows music streaming directly from Galaxy devices.
• Mid-level Players: Mid-sized players compete through cost-effective solutions. Services like Deezer and SoundCloud have simplified subscription plans starting at USD 5 per month to attract price-sensitive users. They also cut costs through collaborations. For instance, SoundCloud partners with labels and publishers to obtain licenses for a large catalog at low rates.
• Small Players: Small players find success through niche specialization. Musical apps focused on specific genres or interests have built loyal fan bases. Platforms targeting indie artists provide exposure through specialized playlists and promotions. New entrants also leverage latest technologies like VR and AR through early adoption. Local partnerships help relatively unknown names gain traction in specific regions.

Emerging Startups - Music Streaming Industry Ecosystem

• Innovation: Several startups are pioneering innovative technologies. Companies like Anthropic develop artificial intelligence solutions to automatically generate personalized playlists and concert recommendations. Others focus on immersive audio, with startups building VR/AR platforms to simulate live concerts.
• Sustainable Solutions: Sustainability is a priority for many startups. Platforms like SoundBetter offer services for musicians to record and distribute songs with near-zero carbon footprint. EcoSongs helps independent artists promote environmental messages through music. Their initiatives set examples for larger entities to reduce industry's ecological impact.
• Niche Specialization: Startups also meet niche demands through collaborations. Platforms partnering with local music schools and colleges give new talents exposure. Some work directly with independent labels to promote underground artists ignored by big players. 

Market Report Scope

Market Dynamics

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Music Streaming Market Driver:  Subscription-based Business Model Attracts Industry Growth

The music streaming industry has largely moved towards a subscription-based business model in recent years. By offering affordable monthly subscription plans, streaming services have been able to attract more users onto their platforms while also providing a stable recurring revenue stream. Rather than relying primarily on one-time downloads of individual songs or albums, subscriptions allow users to easily access a huge catalog of music without any restrictions. This on-demand, all-you-can-listen model has truly transformed how people consume and discover new music. The major streaming leaders like Spotify and Apple Music among others have perfected the subscription experience, offering both free ad-supported tiers as well as premium subscription plans for just a few dollars per month.

Music Streaming Market Challenge: Lack of Seamless and Consistent Internet Connectivity

One of the major challenges faced by the music streaming market is the lack of consistent and reliable internet connectivity across various regions. Music streaming requires a stable internet connection to play songs and listen to playlists. However, in many developing markets and remote rural areas, internet penetration is still low and connectivity remains unreliable. This poses a significant roadblock for growth of music streaming services. People in such areas often experience buffering, delays and disruptions while using streaming platforms. This significantly impacts the user experience and engagement. As a result, adoption of streaming remains low in locations with poor network infrastructure.

Music Streaming Market Opportunity: Bundling with other services

One of the major opportunities for growth in the music streaming market is bundling streaming services with other offerings. Music streaming platforms can partner with telecom operators and bundle their subscription plans along with mobile and broadband internet packs. This will make streaming more affordable for users and incentivize them to opt for premium paid tiers. The platforms can also bundle music streaming with video and audio OTT platforms to provide more value and entertainment options to subscribers. Bundling music streaming along with other digital and lifestyle services like online shopping discounts and commerce packages can further boost subscriber additions. By adopting such bundling strategies, the streaming companies can leverage synergies, drive higher engagement with composite service usage and benefit from expanded customer reach through partnerships. 

Analyst Opinion (Expert Opinion)

• The music streaming market continues to grow rapidly due to increasing smartphone and internet penetration. Younger generations are displaying less interest in owning music files as they prefer accessing vast libraries through affordable subscription plans. This shift from ownership to access based models will propel the streaming segment. However, piracy remains a major restraint along with limited monetization in developing nations.
• North America currently dominates streaming revenues owing to early adoption and vast content libraries of players like Spotify and Apple Music catering to localized tastes. However, Asia Pacific is projected to emerge as the fastest growing regional market. Rapid rises in disposable incomes and smartphone users in India and China will boost their streaming user base manifolds in the coming years.
• Within streaming models, paid subscriptions are gaining higher traction compared to ad-funded variants as consumers recognize the value of on-demand, interruption-free access. Platforms are also diversifying into podcasts, video and live events to bolster subscriber attractions and retention. Nevertheless, monetization of free tiers through targeted ads presents an opportunity if privacy issues are appropriately addressed.
• Overall, ongoing migration from physical to digital consumption patterns of music, proliferation of mobile internet and increasing affordability of premium plans will fuel music streaming adoption globally over the next decade.

Market Segmentation

• Service Insights (Revenue, USD Bn, 2019 - 2031)
• • On-demand Streaming
  • Live Streaming
•  Content Insights (Revenue, USD Bn, 2019 - 2031)
• • Audio
  • Video
• End-user Insights (Revenue, USD Bn, 2019 - 2031)
  • Individual
  • Commercial
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Spotify AB
  • Apple, Inc.
  • com, Inc.
  • Google LLC
  • Deezer SA
  • Pandora Media, Inc.
  • Tencent Music Entertainment Group
  • Tidal
  • SoundCloud Global Limited & Co. KG
  • iHeartMedia, Inc.