SAN FRANCISCO, Nov 4, 2020 /PRNewswire/ -- The global music streaming marketsize is estimated to reach USD 76.9 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 17.8% from 2020 to 2027. The growing adoption of digital music services is one of the key factors driving the market. Thanks to the flexibility and ease of use offered by various music applications. The industry has witnessed a notable shift from traditional viewership to online content consumption over the last decade. This is owing to the availability of vast databases of audio and video songs across streaming platforms.
Key suggestions from the report:
Growing preference for on-demand music services on platforms such as Spotify, Apple Music, Tidal, SoundCloud, and Bandcamp is likely to drive the industry over the forecast period
The video content segment is expected to witness considerable growth, registering a CAGR of nearly 19.0% over the forecast period
Consumers are seen to be favoring the usage of music apps due to their user-friendly interfaces, advancements in smartphones, and handiness for listening to songs
The commercial end-use segment is anticipated to capture nearly 40.0% of the revenue share by 2027
In the Middle East and Africa, the market is likely to witness a CAGR of over 21.0% from 2020 to 2027
The increasing integration of technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Extended Reality (ER) is expected to support the growth of the market over the forecast period. For instance, ML-integrated music platforms analyze the artists, songs, and albums a user listens to most frequently to discover what appeals to them. Based on the analysis, daily playlists are created and related tracks are suggested, improving search engines, and providing a better understanding of consumer preferences. These technologies are further expected to bring advanced capabilities, such as song mixing, automated one-touch personalized playlists, and voice assistance, to the platforms.
Furthermore, the industry is expected to witness significant growth amidst the COVID-19 pandemic globally, as most of the outdoor leisure activities are on a standstill. The download and usage of music streaming apps have been on the rise since lockdowns were imposed across several countries severely affected by the pandemic. For instance, Spotify witnessed an upsurge in its monthly active users by 29.0% year-on-year to 299 million users in the second quarter of 2020. The increasing rate of digitalization and the rise in the adoption of digital music are fueling the industry's growth.
The app segment dominated the market and accounted for the largest revenue share in 2019. This segment is expected to continue its dominance over the forecast period. This is attributed to the availability of thousands of soundtracks on applications that can be streamed for free. Users can also purchase selective songs available on these applications.
The audio segment dominated the market and accounted for the largest revenue share in 2019. This is attributed to an increasing number of commercial end-users including pubs, restaurants, cafes, and gymnasiums, who play songs in their commercial places for entertainment. Rising consumer preference for listening to songs while exercising, commuting, working, and doing household chores is driving the segment.
Grand View Research has segmented the global music streaming market on the basis of service, platform, content type, end-use, and region:
Music Streaming Service Outlook (Revenue, USD Billion, 2016 - 2027)
Music Streaming Platform Outlook (Revenue, USD Billion, 2016 - 2027)
Music Streaming Content-Type Outlook (Revenue, USD Billion, 2016 - 2027)
Music Streaming End-use Outlook (Revenue, USD Billion, 2016 - 2027)
Music Streaming Regional Outlook (Revenue, USD Billion, 2016 - 2027)
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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.