Music Streaming Market Size, Share & Trends Report

Music Streaming Market Size, Share & Trends Analysis Report By Service (On-demand Streaming, Live Streaming), By Platform, By Content Type, By End Use, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Oct, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-218-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 130

Report Overview

The global music streaming market size was valued at USD 20.9 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 17.8% from 2020 to 2027. The growing popularity of digital platforms and the increasing adoption of smart devices is expected to positively impact industry growth during the forecast period. Music streaming services include platforms that allow users to listen to audio, podcasts, and watch music videos. Moreover, these platforms offer features such as song recommendations, auto customization of the playlist, and hassle-free accessibility on apps as well as browsers, which is also expected to gain the attention of end-users during the forecast period. An upsurge in podcast genres on these platforms is further driving the market.

U.S. music streaming market size

Most countries affected by COVID-19 have declared lockdowns to contain the spread of the virus. This resulted in an increase in the number of users who engaged in live streaming via platforms such as YouTube and Instagram. According to the China-based Tencent Music Entertainment (TME) group, the year-over-year revenue from online music subscriptions increased by 70.0% in the first quarter of 2020. Additionally, the number of online music paying users touched 42.7 million, a year-over-year rise of nearly 50.0%. Moreover, the growing popularity of live streaming and the availability of local content on online platforms are propelling the market growth.

Many platform providers allow a trial run for their premium subscriptions. Promotional offers such as free monthly trials and price cuts in subscription models in emerging markets are also fueling market growth. Likewise, the increasing number of consumers opting for paid subscriptions is expected to boost the demand for music streaming services. For instance, Spotify, a music streaming platform, reported a 29.0% year-on-year growth in paid subscribers in 2019. In Q4 2019, the company registered 124 million paid users. According to a report from the Recording Industry Association of America (RIAA), paid streaming services in the U.S. added an average of over one million new subscriptions each month, and the overall number of paid subscribers in the U.S. surpassed 60.0 million in 2019.

The rise in the number of service providers and the wide scale penetration of smartphones across all the globe are positively impacting market growth. Furthermore, key market participants are focusing on the integration of advanced technologies, such as 5G for streaming, Augmented Reality (AR), Virtual Reality (VR), hologram, and Artificial Intelligence (AI), into their music streaming platforms to gain a competitive edge over others. For instance, MelodyVR, a VR music platform has built a collection of live shows, recorded for streaming on VR headsets, such as Oculus Go and Samsung Gear VR, or Android and iPhone devices through its app. Likewise, Deezer, a French music streaming platform, offers a fully-immersive AR music experience to the users, leveraging a specially created Snapchat lens.

According to the RIAA, in 2019, music streaming accounted for 80.0% of the overall revenue generated by the recorded music industry in the U.S. However, the threat of privacy and security of user databases could hinder market growth to a certain extent over the forecast period. These threats are increasingly bringing the market under stringent regulations. For instance, in October 2018, the U.S. government implemented a Music Modernization Act to update and streamline music licensing processes for service providers. This measure is aimed at monitoring copyright-related issues regarding music and audio recordings and digital streaming.

Service Insights

The on-demand streaming segment dominated the market in 2019, with a revenue share of nearly 70.0%. The segment is expected to expand at a promising pace over the forecast period as well, thanks to the increasing need to handle the risk of piracy. On-demand streaming services have emerged as a promising solution for stakeholders, right from distributors to musicians, for restricting the illegal sharing and downloading of music. The segment is likely to witness considerable growth over the forecast period as it adds to the convenience of the consumers by providing them discovery features and recommendations based on their preference.

The live streaming segment is anticipated to witness substantial growth, recording a CAGR of over 19.0% from 2020 to 2027. The primary factor contributing to this growth is the ability to reach a broader audience. Live streaming refers to broadcasting live content in real-time to people over the internet. Apart from the platforms built for live streaming, most social media channels also promote live videos. Owing to the increasing reach of live videos, an increasing number of artists are going live on platforms such as YouTube Live, Facebook, Instagram, and Periscope from Twitter. This trend is further expected to fuel the segment’s growth over the forecast period.

Content Type Insights

The audio segment dominated the market in 2019, with a revenue share of more than 60.0%. The rising demand for audio content can be attributed to the growing preference of users for multi-tasking, especially listening to songs while commuting to work, exercising, or doing household chores. Moreover, the rising number of commercial end-users, such as restaurants, cafés, pubs, and gymnasiums, using audio streaming platforms to play songs in their commercial spaces is anticipated to drive the segment.

The video segment is expected to witness significant growth during the forecast period. Increasing preference for the Over-the-Top (OTT) platforms among users globally is the primary factor driving the growth of video streaming services. Furthermore, the growing use of OTT platforms for live performance and broadcasting is anticipated to drive the segment’s growth over the forecast period. The growing fondness for music videos among consumers is encouraging service providers to include the video feature in their offerings. For instance, in July 2020, Gamma Gaana Ltd., the Indian music streaming service provider launched the video feature Gaana HotShots to its platform.

The availability of audio as well as video content on streaming platforms makes music more accessible to everyone anywhere. Several other benefits of streaming platforms are working in the market’s favor, including the much superior sound quality of streamed content and the fact that the content does not take up space on the user’s hard drive. Customers are also made aware of new releases from their favorite artists. Moreover, subscribers can easily create their audio and video playlists, thus increasing the popularity of these platforms among millennials.

End-use Insights

The individual end-use segment dominated the market in 2019 with a revenue share of nearly 65.0%. Since the introduction of music streaming services, users have been able to access millions of songs on demand easily. The changing lifestyle of millennials, which often comprises listening to songs during their daily chores, propels the segment’s growth. Many tech companies allow their employees to plug in earphones to listen to songs and work in isolation. Furthermore, with the improved accessibility of wireless networks and extensive use of mobile devices, the music streaming market is increasingly replacing downloads in the digital music market. These factors are also expected to drive the adoption of these platforms among an increasing number of individuals globally.

The commercial end-use segment includes spaces such as gyms, salons, pubs, cafeterias, and restaurants. The segment is expected to grow significantly over the forecast period due to the increasing need to provide better ambiance to entice customers. Moreover, music can keep employees energized to work happily, which results in improved performance. Hence, commercial space owners are widely adopting music streaming services.

However, the owners of commercial spaces are not allowed legally to play songs via regular streaming services. There are various streaming platforms specifically meant for commercial purposes, such as SoundSuit, Heartbeats International, and Soundtrack. Furthermore, commercial users are required to follow the prescribed guidelines set by regional or national music streaming authorities. For instance, in Australia, it is mandatory to pay public performance fees to the Australian Performing Right Association (APRA), a copyright management organization, to cover royalties for the composer, publisher, and the artist, to legally play songs in commercial places.

Platform Insights

The apps segment dominated the market in 2019 and accounted for the largest revenue share of 85.2%. The segment is expected to register the highest CAGR of over 18.0% from 2020 to 2027. Music apps have established a stronghold in the industry as they provide thousands of song tracks that can be purchased from the app, along with a large number of tracks that can be streamed for free. Furthermore, the rising popularity of media streaming, driven by high-speed internet and the growing adoption of smartphones, is significantly driving the demand for music streaming apps globally. Over time, several platform providers in the industry have developed web as well as mobile media platforms. The services are made available on different platforms for cross-device access, such as web, desktop, and mobile apps for various operating systems.

Music streaming platforms are used to deliver audio and video content over the internet without any traditionally-laid broadcasting or cable players. These services are predominantly provided over the consumers’ handheld devices, such as tablets, smartphones, and laptops over a wireless internet connection through apps and browsers. With the advent of 5G internet connections globally, streaming technologies that can provide a continuous listening experience, without requiring the user to save files on personal devices, are likely to observe substantial demand.

Global music streaming market share

The browser segment accounted fora small share of the market in 2019. A browser enables the user to access playlists and libraries without a dedicated app. Key market players are emphasizing on providing their music streaming services through browsers as well, allowing them to capture other new platforms without having to develop and support customized apps for every new platform. For instance, in April 2020, Apple Inc. announced the launch of the Apple Music streaming player for the web, followed by the launch of the public beta web browser version of the music streaming service in September 2019, which works across all browsers, including Firefox, Chrome, and on all devices, such as desktops, tabs, laptops, and smartphones.

Regional Insights

In 2019, North America accounted for the largest revenue share of over 30.0% in the market. The regional market is expected to retain its dominance over the forecast period. The presence of key market players, such as Amazon.com, Inc.; Apple, Inc.; Google LLC; and Pandora Media, Inc., is one of the primary factors driving the market in the region. Moreover, fixed broadband speeds and coverage, the high penetration of connected devices, and better digital payment infrastructure also supplement the development of these services in the region.

In Europe, the market was valued at around 5.0 billion in 2019 and is anticipated to witness substantial growth from 2020 to 2027. A shift in consumer internet consumption patterns from traditional phones to smartphones is one of the significant factors driving the increased adoption of music streaming services in this region. According to a report by the European Commission in its Digital Economy and Society Index, which analyzes the development of countries in the European Union (EU) toward a digital economy and society, 81.0% of internet users in the region used the internet for listening to songs, watching videos, or playing games online in 2019.

In MEA, the market is expected to witness the fastest growth over the forecast period. Many domestic players as well as global companies are expanding their businesses across the region. For instance, in March 2019, Viu, a Hong Kong-based provider of video streaming services, launched its freemium model of OTT services in South Africa, offering local, regional, and original content. Moreover, in Asia Pacific, the market is also expected to grow at a significant pace over the forecast period. Many local players provide the freemium model of streaming services to sustain the volume-driven market in this region and to retain existing customers as well as attract new ones.

Key Companies & Market Share Insights

The market comprises numerous global as well as regional players, making the competitive landscape fragmented. Service providers in the market follow a two-step approach to expand subscribers: first enrolling them in their freemium platform using advertising campaigns and then pitching them with attractive discounts and offers to convince them to become paying subscribers. Furthermore, market participants are also focusing on expanding their geographic footprint. For instance, in April 2020, Apple Inc. launched its music streaming service in 52 new countries to expand Apple Music’s global presence.

Market participants engage in mergers and acquisitions to expand their business presence and sustain the competition. For instance, in February 2019, Sirius XM Holdings, a U.S.-based audio entertainment company, acquired Pandora Media, Inc., a U.S.-based music streaming service provider. With this acquisition, Sirius XM Holdings increased its customer base across its audio products by bringing both Sirius XM Holdings’ subscription-based exclusive content and Pandora’s highly personalized free ad-supported service under one roof. Some of the prominent players in the music streaming market include:

  • Spotify AB

  • Apple, Inc.

  • Amazon.com, Inc.

  • Google LLC

  • Deezer

  • Pandora Media, Inc.

  • Tencent Music Entertainment Group

  • SoundCloud Limited

  • Tidal

Music Streaming Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 24.4 billion

Revenue forecast in 2027

USD 76.9 billion

Growth Rate

CAGR of 17.8% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Service, platform, content type, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

Apple, Inc.; Amazon.com, Inc.; Google LLC; Spotify AB; Deezer; SoundCloud Limited; Pandora Media, Inc.; Tencent Music Entertainment Group

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global music streaming market report based on service, platform, content type, end-use, and region:

  • Service Outlook (Revenue, USD Billion, 2016 - 2027)

    • On-demand streaming

    • Live streaming

  • Platform Outlook (Revenue, USD Billion, 2016 - 2027)

    • Apps

    • Browsers

  • Content Type Outlook (Revenue, USD Billion, 2016 - 2027)

    • Audio

    • Video

  • End-use Outlook (Revenue, USD Billion, 2016 - 2027)

    • Individual

    • Commercial

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K. 

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

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