Music Streaming Market Expected To Witness A Substantial Growth Of $103.07 Billion By 2030: Grand View Research Inc.

Written by

San Francisco, 05 March 2024: The Report Music Streaming Market Size, Share & Trends Analysis Report By Service (On-demand Streaming, Live Streaming), By Platform (Apps, Browsers), By End-use (Commercial, Individual), By Content Type, By Region, And Segment Forecasts, 2023 – 2030

The global music streaming market size is expected to reach USD 103.07 billion by 2030, growing at a CAGR of 14.4% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth is attributed to the rising popularity of music streaming platforms and the growing disposable income of individuals. The trend of implementing a dual revenue model by providing free trial options and paid subscriptions that help consumers choose their service depending on their requirements is driving the market growth further. In addition, they offer various advantages including an ad-free experience and offline listening capabilities.

These emerging trends by key players are anticipated to stimulate the expansion of the market. Furthermore, there is a significant rise in the popularity of cloud-based music as companies are focused on the development of user-friendly applications that facilitate seamless music streaming on portable devices like tablets and smartphones. Integrating the cloud element into music streaming platforms allows companies to enhance their services by providing advantages, such as streaming across multiple devices and efficient storage utilization, which is expected to drive market growth over the forecast period.

Key companies are focusing on launching new products and offerings to serve the large customer base and strengthen their foothold in the industry. For instance, in May 2023, SoundCloud Global Limited & Co. KG partnered with Merlin Limited, a music licensing partner company. The partnership aimed to support Merlin members and affiliated artists, enabling them to actively engage in SoundCloud’s Fan-Powered Royalties (FPR) model. Through implementing FPR, the company aims to prioritize a user-centric approach that ensures artists get royalties based on the tunes that appeal to their unique fan bases. Such developments by key companies are expected to augment the growth of the overall market in the years to come.

The growing adoption of digital platforms and the widespread utilization of smart devices is expected to drive market expansion over the forecast period. The popularity of music streaming services, which include websites that allow users to see music videos and listen to podcasts along with audio files, is rising considerably, owing to the attractive features offered, which include personalized song recommendations, automatic playlist customization, and seamless accessibility across various applications and web browsers.

Request sample report of Music Streaming Market@ https://www.grandviewresearch.com/industry-analysis/music-streaming-market/request/rs1

The rising adoption of 5G connectivity has also emerged as a prominent trend in the global market. Following this trend, the key players in the market started new music services that offer music streams and downloads for music enthusiasts. With 5G technology becoming more prevalent, along with the significant speed and data transmission capabilities of 5G over 4G, the companies can provide high-quality music streams. These advancements in technologies and connectivity are further driving the market growth. Moreover, the implementation of technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), enhances the streaming experience of music by improving search recommendations.

Music Streaming Market Report Highlights

  • The live streaming services segment is expected to register the fastest CAGR of 15.7% over the forecast period owing to the increasing popularity of live videos that has encouraged artists to stream live on social media websites
  • The application platform segment accounted for the largest revenue share of 86.4% in 2022 owing to the preference for easy accessibility with apps over browsers
  • Based on the content type, the video segment is expected to grow at the fastest CAGR of 15.4% over the forecast period. The growing demand for Over-the-Top (OTT) platforms globally is acting as a driver for the segment growth
  • The individual end-use segment accounted for the largest revenue share of 63.2% in 2022 due to the changing lifestyles of the younger generations who embrace the habit of incorporating music into their daily routines
  • Middle East & Africa is anticipated to emerge as the fastest-growing regional market with a CAGR of 17.5% from 2023 to 2030. The rising trend of smartphone adoption, along with increasing internet penetration, is driving the region’s growth

For instance, in January 2022, Gamma Gaana Ltd., an Indian music application, launched a new feature in their application that uses AI to improve music suggestions and enhance user experience. Such strategies by companies are expected to fuel market growth over the forecast period. The COVID-19 pandemic has created lucrative growth opportunities for the market. The pandemic has led to increased subscribers on music streaming platforms, such as Tencent Music Entertainment, Spotify, and Amazon Music, among others. Moreover, with people staying at home due to lockdowns and social distancing measures, there has been a surge in demand for music.

Individuals turned to streaming platforms to discover and enjoy music, resulting in increased user engagement and longer listening sessions, leading to the growth of the market. Moreover, music streaming companies are focused on offering music video streaming, song lyrics, and podcasts on their platforms to improve customer experience. For instance, in November 2022, Amazon.com, Inc.’s subsidiary company, Amazon Music, expanded its prime membership benefit by offering a full catalog of music with over 100 million songs and their top podcasts ad-free. Such types of developments by industry players are expected to drive the market demand over the forecast period.

The audio segment accounted for the largest revenue share of 61.8% in 2022 and is expected to continue the trend over the forecast period. The growth is attributed to its convenience in catering to the multitasking tendencies of listeners, as it enables users to engage in various activities, such as exercising, commuting, or performing household chores that require audio content to provide a seamless and convenient entertainment experience.

Music Streaming Market Report Scope

Report Attribute Details
Market size value in 2023 USD 40.20 billion
Revenue forecast in 2030 USD 103.07 billion
Growth rate CAGR of 14.4% from 2023 to 2030
Base year for estimation 2022
Historical data 2018 – 2021
Forecast period 2023 – 2030

The video segment is expected to grow at the fastest CAGR of 15.4% over the forecast period. The growing demand for Over-the-Top (OTT) platforms globally serves as one of the key factors for the video segment growth. Consumers’ growing preference for OTT platforms, which provide convenient and on-demand access to a wide range of video content, is augmenting segment growth. Moreover, the utilization of OTT platforms for live performances and video streaming is expected to propel the segment’s growth.

The market is classified as highly competitive with the presence of several key players that focus on strategic alliances, mergers & acquisitions, expansions, and product developments to remain competitive in the industry. For instance, in May 2023, Google LLC launched MusicLM, an AI-based model that can generate high-fidelity music with the help of text. This technology can convert a series of written descriptions into a cohesive musical story or narrative, utilizing existing melodies, whether they are communicated through whistling, humming, singing, or instrumental playing. Such initiatives by key players are anticipated to augment the market growth over the forecast period.

Some prominent players in the global music streaming market:

  • 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.

 

Article Categories:
Business

Leave a Reply

Your email address will not be published. Required fields are marked *