Global Music Streaming Market Report and Forecast 2024-2032

Global Music Streaming Market Size

The global music streaming market reached a value of around USD 37.1 billion in 2023. During the forecast period of between 2024 and 2032, the market is expected to grow at a CAGR of 14.5% to reach around USD 125.3 billion by 2032.

Music Streaming Market Outlook

• The total time spent globally listening to music each week is approximately 18.4 hours or 1.6 hours per day, which shows the rising demand for music streaming services.

• Over 4 trillion songs were streamed in the US in 2023, with more than 1 trillion songs being streamed on demand.

• As per industry reports, music streaming makes up 84% of music industry revenue, with global revenue at USD 17.5 billion.

• Spotify is the dominant music streaming service with 210 million premium subscribers worldwide as of Q1 2023.

Music Streaming Market Growth

Music streaming is a type of online service that allows users to listen to music instantly on their devices without having to download audio files. These services provide access to extensive libraries of songs and albums, and they often offer both free ad-supported tiers and paid subscription plans. These services allow users to discover new music based on their listening history. Users can also create, share, and collaborate on playlists with others, making it a social and interactive experience.

The increasing adoption of digital platforms and the widespread utilisation of smart devices has supported the music streaming market value. The rising popularity of music streaming services, offering features like personalised song recommendations, automatic playlist customisation, and seamless accessibility across various applications and web browsers, is significantly contributing to market growth. Moreover, advancements in technologies like Artificial Intelligence (AI) and Machine Learning (ML) are enhancing the streaming experience by improving search recommendations, further propelling the market forward.

Key Trends and Recent Developments

Increasing adoption of 5G connectivity, popularity of live streaming, and introduction of spatial audio have resulted in music streaming market development

May 2024

YouTube Music has introduced a new "hum-to-search" feature for Android users, allowing song identification by humming, singing, or playing a melody using AI technology. This feature aims to help users find songs stuck in their heads without knowing the lyrics.

May 2024

Spotify has introduced a new exclusive font called "Spotify Mix" that will replace the current font used in its in-app and desktop experiences. The new font aims to reflect the vibrancy and creativity of Spotify's community of listeners, artists, and creators.

May 2023

Apple launched new concert discovery features on Apple Maps and Apple Music, allowing users to find and explore live music events more easily. Over 40 new Guides were curated by Apple Music editors to highlight the best venues for live music in major cities worldwide.

Increasing adoption of 5G connectivity

The increasing adoption of 5G connectivity is a significant trend driving music streaming market growth as it not only improves the quality of music streaming but also opens opportunities for seamless access to high-definition audio content. This ultimately enhances the user experience and boosts the music streaming demand.

Growing integration of AI and ML

Leading platforms such as Spotify offers a ‘Discover Weekly playlist’, which uses ML algorithms to suggest new songs based on a user's listening history. This trend is enhancing user experiences and revolutionising music discovery and consumption.

Rising popularity of live streaming

The growing demand for live streaming of music shows and events is a trend increasing the demand of music streaming market. Platforms like YouTube and Twitch have become popular destinations for live music performances, allowing fans to experience concerts and events in real-time.

Emergence of spatial audio

Leading services like Apple Music and Tidal have introduced spatial audio support. Apple's Spatial Audio with Dolby Atmos technology creates a three-dimensional audio environment, which offers a more immersive and lifelike sound experience for users.

Music Streaming Market Trends

During the COVID-19 pandemic, artists and music festivals turned to live streaming to connect with audiences and generate revenue, highlighting the importance of live streaming in the evolving music industry landscape. As live streaming continues to gain traction, it presents new opportunities for artists, venues, and streaming platforms to engage with audiences globally. This facilitates music streaming market growth.

As per the music streaming market dynamics and trends, players like Amazon Music is leveraging the faster data transmission capabilities of 5G networks by offering its new Music HD service. It aims to make high-quality lossless audio more accessible to music enthusiasts in the U.K., Germany, and Japan. The service provides over 50 million songs in High Definition (HD) quality, with CD-quality 16-bit audio at 44.1kHz, and an average bitrate of 850kbps.

Industry Outlook

The Global Music Report 2023 from International Federation of the Phonographic Industry (IFPI) states that in 2022, the growth rate of music streaming services was 10.3%. This is the seventh year in a row that the global music industry has grown, with a 9% gain overall.

As per the music streaming industry analysis, with 23% of all music consumed, paid music streaming is the most widely used music source. Video streaming services come in second, accounting for 22% of music consumption. Radio continues to be a major source, accounting for 16% of the share. Eleven percent of music consumption is made up of short videos, like those on TikTok. Nine percent use ad-supported music streaming services; this is the same proportion of people who still buy music on CDs and downloads. Five percent comes from other sources, which include things like renting music and using Netflix. Just 3% of individuals listen to music via social media, while just 2% of people attend live concerts.

Music Streaming Industry Segmentation

The EMR’s report titled “Music Streaming Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• On-Demand Streaming

• Live Streaming 

Market Breakup by Revenue Model

• Subscription

• Non-Subscription

Market Breakup by Platform

• App

• Browser

Market Breakup by Content Type

• Audio

• Video

Market Breakup by End User

• Individual

• Commercial

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Music Streaming Market Share

Subscription segment generates high revenue by offering enhanced features and exclusive content to paying subscribers

The subscription segment is expected to dominate the market due to the increasing popularity of premium music streaming services that offer users ad-free listening, high-quality audio, offline playback, and exclusive content. Leading platforms like Spotify, Apple Music, and Amazon Music have witnessed substantial growth in their paid subscriber bases, indicating a strong preference for the premium music streaming experience. As per music streaming industry report, the subscription segment not only provides a stable revenue stream for music streaming companies but also generates higher average revenue per user (ARPU).

On the other hand, the non-subscription segment, encompassing free and ad-supported music streaming services play a crucial role in expanding the user base and driving the adoption of music streaming among a wider audience. While these services offer a limited catalog, lower audio quality, and incorporate advertising to monetise the free tier, they serve as a valuable entry point for users new to music streaming. Platforms such as YouTube Music and Spotify's free tier have amassed large user bases, although they generate lower ARPU compared to paid subscribers.

Apps leads the market due to its user-friendly interfaces and mobile accessibility

As per music streaming market analysis, apps dominates the market as it offers a seamless and user-friendly interface for discovering, playing, and managing music libraries. Features like offline playback, personalised recommendations, and app integrations contribute to its prominence. The widespread adoption of smartphones and preference for mobile-first experiences also solidify the apps segment's leading position. The browsers segment, while smaller, offers flexibility and cross-device compatibility. It's popular for accessing music on smart TVs, gaming consoles, and other connected devices without dedicated apps.

The Growth of the Global Music Streaming Market Driven by Digitalization and Consumer Demand

• Digitalization: Increasing digitalization and high-speed internet access globally.

• Consumer Demand: Growing consumer demand for on-demand music access and personalized experiences is boosting the music streaming demand growth.

• Mobile Device Penetration: High penetration of smartphones and mobile devices.

• Subscription Models: Success of subscription-based models offering ad-free and offline listening.

• Music Library: Vast music libraries and availability of diverse genres catering to global audiences.

Challenges Impacting the Growth of the Global Music Streaming Market Include Licensing Issues and Revenue Distribution

• Licensing Issues: Complex and costly music licensing agreements.

• Revenue Distribution: Disputes over revenue distribution between streaming services, artists, and record labels is negatively impacting the music streaming market revenue.

• High Competition: Intense competition among various music streaming platforms.

• Data Privacy: Concerns over data privacy and user data protection.

• Content Exclusivity: The challenge of acquiring exclusive content to differentiate services.

Opportunities in the Global Music Streaming Market Driven by Emerging Markets and Technological Advancements

• Emerging Markets: Expansion opportunities in emerging markets with growing internet penetration.

• Technological Advancements: Integration of AI, machine learning, and data analytics for personalized recommendations is creating several music streaming market opportunities.

• Podcasts and Audiobooks: Diversification into podcasts and audiobooks to attract a wider audience.

• Collaborations: Partnerships with artists and record labels for exclusive releases and promotions.

• Ad-Supported Models: Growth of ad-supported models providing free access with advertisements.

Setbacks Faced by the Global Music Streaming Market Due to Technological Barriers and Regulatory Challenges

• Regulatory Challenges: Navigating regulatory challenges and compliance with local laws.

• Artist Compensation: Ongoing debates over fair compensation for artists and creators may affect the music streaming demand forecast.

• Market Saturation: Saturation in developed markets leading to slower growth rates.

• Technological Barriers: Challenges in ensuring seamless streaming and high-quality audio delivery.

Key Price Indicators of the Global Music Streaming Market

• Subscription Tier Differentiation: Variations in pricing based on different subscription tiers (e.g., student discounts, family plans, high-fidelity audio options) impact overall revenue and attract diverse user segments.

• Currency Exchange Rates: Fluctuations in currency exchange rates can affect the pricing strategies for global markets, influencing subscription costs in different regions and impact the growth of the music streaming market.

• Regional Pricing Strategies: Customized pricing strategies for different regions based on local economic conditions and competitive landscapes can impact the overall market pricing.

• Bundling Offers: Prices influenced by bundling music streaming services with other products or services (e.g., telecom plans, other digital subscriptions) which can enhance value propositions and affect pricing dynamics.

• Infrastructure Costs: Investments in infrastructure, such as data centers and content delivery networks, to ensure seamless streaming and high-quality audio delivery. 

• Taxation and Regulatory Costs: Impact of local taxes, tariffs, and regulatory compliance costs on the final pricing of music streaming services in various regions.

Key Demand Indicators of the Global Music Streaming Market

• Demographic Trends: Shifts in demographic preferences, including younger generations increasingly favoring digital and on-demand music consumption.

• Cultural Influence: Regional and cultural preferences for specific genres, languages, and local artists are driving demand in different markets which is a key trend of music streaming market.

• User Engagement Metrics: Levels of user engagement, such as average listening time, playlist creation, and interaction with personalized recommendations, indicating demand strength.

• Freemium to Premium Conversion Rates: Rates at which free users convert to paid subscribers, reflecting the attractiveness and perceived value of premium features.

• Smart Speaker Adoption: Growth in the adoption of smart speakers and home assistant devices that integrate with music streaming services, driving demand.

• Live Streaming and Virtual Concerts: Increasing popularity of live streaming concerts and virtual events hosted on music streaming platforms as an additional demand driver.

• Integration with Social Media: The role of social media in promoting music streaming services, sharing playlists, and influencing user behavior and preferences.

Competitive Landscape

Market players are adopting 5G connectivity to provide high-quality music streams and integrating AI and ML technologies to improve music recommendations to drive user engagement

Amazon.com, Inc., founded in 1994 and headquartered in Washington, United States, is a multinational technology company known for its e-commerce platform, cloud computing services, and digital content offerings. In the music streaming market, it offers Amazon Music, a service that provides on-demand access to a vast library of songs and albums.

Anghami was founded in 2012 and is headquartered in Dubai, United Arab Emirates. As per the music streaming market report, the company offers users access to a wide range of music content tailored to the preferences of listeners in the Middle East. It has also collaborated with Amazon to offer an Alexa Skill, allowing users to control music playback using voice commands.

Spotify AB, founded in 2006 and headquartered in Stockholm, Sweden, offers on-demand access to a vast library of songs, albums, and playlists. Spotify has also expanded into podcast streaming, providing users with a diverse range of audio content.

Google LLC, founded in 1998 and headquartered in California, United States, is a multinational technology company known for its search engine, online advertising, and cloud computing services. It also operates YouTube Music, a service founded in 2015 to provide on-demand access to music videos and songs.

Other key players in the global music streaming market include TIDAL Music AS, Deezer, iHeartMedia, Inc., LiveXLive, Corp., Apple Inc., and SoundCloud Global Limited & Co. KG, among others.

Music Streaming Market Regional Analysis

North America leads the market due to the presence of major players and high adoption of smartphones

North America, particularly the United States, is the largest market for music streaming services, driven by the high adoption of smartphones, availability of high-speed internet, and the presence of major players like Spotify, Apple Music, and Amazon Music. Moreover, the region has a large percentage of consumers using expensive premium plans, which has increased music streaming market share in the region.

Asia Pacific, on the other hand, is expected to witness the highest growth rate in the coming years, with countries like China, India, and Japan leading the way. China is the largest market in the region, dominated by local players like Tencent Music and NetEase Music, as well as growing international players like Spotify and Apple Music. The increasing adoption of smart devices, rising popularity of local music genres like Bollywood and K-pop, and advancements in digital music technology are increasing the music streaming industry revenue in Asia Pacific.

Key Highlights of the Report

Music Streaming Market Report Snapshots

Music Streaming Market Size

Music Streaming Market Growth

Music Streaming Market Trends

Music Streaming Market Share

Music Streaming Companies

Music Streaming Market Regional Analysis