The music streaming market is estimated to be valued at US$ 121.43 Billion in 2031

A newly published report by Coherent Market Insights reveals a sustainable growth in opportunities in the music streaming market. Coherent Market Insights’ analyst projected the music streaming market to be valued at US$ 121.43 Bn in 2031. It is expected to exhibit a CAGR of 17.1% over the forecast period 2024 -2031.

Growing popularity of on-demand music streaming platforms such as Spotify, Apple Music, Amazon Music, JioSaavn, Gaana drives market growth. These platforms allow users to stream music on-demand without actually owning music files. User convenience of streaming unlimited tracks on any device is further augmenting the market growth.

Moreover, constant innovation in streaming technology to provide enhanced music streaming experience through high-quality audio and reduced buffering is propelling the demand for music streaming services.

Key Market Trends: Adoption of Freemium Model is a key trend driving market growth. Major music streaming platforms such as Spotify and Apple Music have adopted a freemium business model. These models provide basic services offered free of cost and premium features such as high audio quality and offline playback are offered on a subscription basis. This model has encouraged widespread adoption of music streaming among cost-conscious customers, especially in price-sensitive emerging markets.

Customized Playlists and Radio Stations: Platforms are offering advanced personalization features wherein users can create customized playlists as per their preferences. In addition, auto-generated personalized radio stations based on user’s favorite music or mood help retain users. These features offer a unique streaming experience and continue to engage users for longer durations on platforms.

Music Streaming Market Opportunities: On-demand streaming accounts for the major share of the global music streaming market currently. The on-demand streaming service allows users to stream music on-demand from music catalogues. Users can listen to any song they want without any commercial interruptions. The growing popularity of streaming platforms like Spotify, Apple Music and others is driving the growth of on-demand streaming.

Live streaming of concerts and music festivals is expected to offer lucrative growth opportunities over the forecast period. Major streaming platforms are now offering live streaming of concerts and shows. This allows music fans across the world to enjoy live performances virtually. The ability to engage with global audiences without location constraints through live streaming will propel the segment’s growth.

The audio segment dominates the global music streaming market currently owing to wide availability of song libraries and playlists across platforms. Audio streaming allows users to listen to music libraries on-demand across different devices. The portability of audio streaming and ability to enjoy music seamlessly across phones, laptops etc. drives this segment’s growth.

Key Market Takeaways: The global music streaming market is anticipated to witness a CAGR of 17.1% during the forecast period 2024-2031. This is owing to rising penetration of smartphones and easy availability of high-speed internet globally.

On the basis of service, on-demand streaming segment is expected to hold a dominant position. This is accounting for over 70% share due to vast song libraries and personalized playlist offerings.

On the basis of content, audio is expected to dominate over videos. This is due to increased music consumption through smartphones and other portable devices.

On the basis of region, North America is expected to hold a dominant position over the forecast period. This is due to high adoption of digital services and presence of major players.

Competitor Insights: Key players operating in the music streaming market include

• Spotify AB
• Apple, Inc.
• com, Inc.
• Google LLC

Recent Developments: In July 2024, UMG’s market valuation dropped by almost USD 16 billion due to lower-than-expected streaming revenue growth, illustrating the industry’s reliance on streaming success indicators. In January 2024, UMG removed its music off TikTok due to licensing issues and worries over appropriate artist pay. More information is available in full report