Music Streaming Industry Overview
The global music streaming market size is expected to reach USD 103.07 billion by 2030, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 14.7% from 2022 to 2030. The growth of the market can be attributed to the rising popularity of music streaming platforms, coupled with the increasing disposable income of individuals. Spotify, YouTube Music, Pandora, SoundCloud, iHeartRadio, and Apple Music are some of the most well-known digital music platforms in the market. Many music streaming companies offer free trials as well as paid subscriptions. They also offer premium accounts at certain fees to provide users with various benefits, such as no ads and offline listening. The availability of such digital options, along with the declining sales of physical CDs, is contributing to the rapid adoption of music streaming services.
Moreover, cloud-based music is gaining wide popularity in the market. Companies are focused on developing user-friendly apps that allow music to be streamed easily on tablets and smartphones. The inclusion of the cloud component in music streaming platforms enables companies to enhance their services by offering benefits such as storage saving and easy streaming from multiple devices. Furthermore, factors such as the presence of a digitally literate population and the adoption of smart devices are accelerating market growth.
Music streaming services enable customers to browse and play music of their preference at any time. 5G has become one of the most popular market developments, offering lucrative opportunities to service providers. For instance, Amazon.com, Inc. has capitalized on this opportunity by launching a new music HD service that will provide lossless music tracks and downloads to music enthusiasts in the U.K., Japan, Germany, and the U.S. Furthermore, emerging technological breakthroughs such as artificial intelligence, virtual reality, and machine learning are expected to enable service providers to offer personalized playlists and a seamless user experience, thus boosting the growth of the market.
Music Streaming Market Segmentation
Grand View Research has segmented the global music streaming market based on service, platform, content type, end-use, and region:
Based on the Service, the market is segmented into On-demand Streaming, and Live Streaming.
- The on-demand streaming segment captured the largest revenue share of over 70.0% in 2021. This segment is likely to dominate the market over the forecast period. On-demand streaming services have substantially restricted illegal music streaming and downloading for all parties, from distributors to musicians. Moreover, they help improve customer convenience by offering discovery features and suggestions based on their preferences.
- The live streaming segment is anticipated to register the highest CAGR of 16.0% from 2022 to 2030. The potential of live streaming to reach a larger audience is the primary factor driving the segment. Live streaming is the process of delivering live content to individuals via the internet in real-time. Apart from services that are specifically designed for live streaming, several social media outlets also endorse live videos.
Based on the Content Type, the market is segmented into Audio, and Video.
- The audio segment captured the largest revenue share of over 60.0% in 2021. Audio content allows listeners to multitask, mainly while commuting, exercising, or completing house chores. Furthermore, commercial places such as gyms, cafes, restaurants, and pubs widely use audio streaming platforms to play music, thus contributing to the segment growth.
- The video segment is projected to expand at the fastest CAGR of 15.6% from 2022 to 2030. This can be attributed to the growing preference of consumers for Over-the-Top (OTT) platforms worldwide. The market is expected to flourish from the increasing use of OTT platforms for live performance and streaming. Moreover, the growing interest of users in music videos is prompting providers to integrate this feature into their offers.
Based on the Platform, the market is segmented into Apps, and Browsers.
- The apps segment accounted for the largest revenue share of over 85.0% in 2021 and is expected to witness the fastest growth from 2022 to 2030. Music apps dominate the music streaming industry as they offer up to thousands of song tracks for purchase and a significant number of tunes to stream for free.
- Music streaming services allow music and video content to be delivered via the internet without the need for traditional broadcasting or cable players. These services are delivered on apps and browsers on consumers' handheld devices, such as tablets, smartphones, and laptops. Moreover, the global rollout of 5G internet connections is expected to trigger the demand for streaming technologies that can provide users with a continuous listening experience without the need to download files on personal devices.
Based on the End-use, the market is segmented into Individual, and Commercial.
- The individual segment captured the largest revenue share of over 60.0% in 2021 and is projected to dominate the market over the forecast period. Users have been able to effortlessly stream millions of songs on demand since the launch of music streaming services. The segment growth is fueled by the evolving lifestyles of youngsters, which include listening to music while going about their everyday activities.
- The commercial segment, which includes restaurants, cafeterias, pubs, salons, and gyms, is projected to exhibit the fastest CAGR of 15.9% from 2022 to 2030. This is attributed to the growing need for a better ambiance in order to retain customers. Furthermore, music helps keep people energized and happy at work, which leads to improved productivity. As a result, commercial property owners are increasingly turning to music streaming services.
Key Companies Market Share Insights
The market is fragmented owing to the presence of numerous global and regional competitors. Service providers are using a two-step strategy to grow their subscriber base. First, they use advertising campaigns to enroll people in their freemium platform, and then they pitch them with appealing offers and discounts to persuade them to upgrade to a paid subscription. Participants in the sector are also focused on expanding their geographical reach. For instance, in April 2020, Apple, Inc. introduced its music streaming service in 52 new countries to expand Apple Music's global reach.
Prominent industry players are pursuing mergers acquisitions and strategic partnerships to extend their company presence and thrive in an exceedingly competitive business environment. For instance, in December 2021, Spotify AB partnered with Tinder, Inc., an online dating and geosocial networking application, to improve the mood of music for singles during Christmas. Moreover, companies have introduced the Music Mode feature, Tinder’s biggest update since the Swipe feature. Music Mode allows users to embed their favorite tunes in their dating profiles. Some prominent players in the global music streaming market include:
- Apple, Inc.
- Spotify AB
- com, Inc.
- Google LLC
- Deezer
- Pandora Media, Inc.
- Tencent Music Entertainment Group
- Tidal
Order a free sample PDF of the Music Streaming Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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