Background Music Market to Grow by USD 527.2 Million (2024-2028) with Retail Sector Driving Demand, AI's Role in Market Transformation - Technavio Report

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global background music market size is estimated to grow by USD 527.2 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 8.76% during the forecast period. Demand for BGM in retail sector is driving market growth, with a trend towards growth of music subscription services. However, low margins for BGM vendors poses a challenge. Key market players include Almotech Media Solutions, AMI Entertainment Network LLC, Auracle Sound Ltd., Brandtrack Inc., CMRRA SODRAC Inc., Heartbeats International AB, HIBOU MUSIC LIBRARY, Imagesound Group, Liberty Media Corp., Mood Media Corp., Open Ear Music Ltd., Qsic Pty Ltd., Rockbot Inc., SOUNDMACHINE, Soundreef, Soundtrack Your Brand Sweden AB, Stingray Media Group., TouchTunes Music Corp., USEA Pte Ltd. , and Xenox Music and Media B.V..

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Key Market Trends Fueling Growth

The music industry has experienced significant revenue growth in the past three years, primarily driven by the popularity of subscription-based streaming music channels. These channels include paid subscriptions, streaming radio, and ad-supported services. In contrast to the traditional pay-per-track/album model, the high cost of music under this regime discouraged many from purchasing music legally, leading to piracy. However, the emergence of affordable monthly subscription services, ranging from USD5.99 to USD9.99, has made music consumption more accessible and cost-effective. The proliferation of mobile applications and websites has facilitated the growth of digital services like Background Music Market. The increasing adoption of smartphones and tablets, with around 1.2 billion units shipped in 2023, has contributed to this trend. Several music service providers have shifted to the subscription model to remain competitive. For instance, Pandora launched Qmunity, a sponsored radio station, in June 2020. Amazon Prime members receive free access to Amazon Unlimited, and telecom operators like Airtel and Reliance Jio offer unlimited music streaming as part of their premium plans. Additionally, smart speaker solutions, such as Amazon Echo, Google Home, and Sonos, require permanent subscriptions and offer customized music services. 

The Background Music Market is thriving with trends that cater to various business sectors. Low volume music is popular for creating a relaxing experience in visual content and improving the ambience in offices for a positive working atmosphere. Stress, tension, nervousness, and anxiety are addressed through calming music in hospitals, healthcare facilities, and fitness centers. In retail, hospitality, and entertainment venues, music motivates customer engagement and sets the mood. Ambient music, audio content, and recordings are used in elevators, housing buildings, and personalized traveling to enhance the experience. In the corporate sector, background music boosts productivity and creativity. Music also plays a significant role in recreation, such as in fitness centers, physical activities like aerobics and yoga, and health consciousness. Tourists and travelers enjoy traveling songs during their journeys. The market includes TouchTunes, iPods, AV system equipment, and more. The business aspect includes marketing and customer engagement, making it a valuable investment for various industries. 

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Market Challenges

• The Background Music Market is a competitive industry with numerous vendors offering similar services at low costs, resulting in thin profit margins. Major revenue shares go to artists, content creators, publishers, and music labels, leaving little income for background music providers. To generate profits, these providers rely on subscriber volume and music sales. However, attracting a large user base is challenging due to the emergence of music-streaming startups. Even large providers like Spotify, which operates the Spotify Business Background Music store, have been running losses for several years. The revenue generation model in the industry is expected to remain a significant challenge for vendors, despite the growing number of music subscribers.
• In today's business world, background music plays a significant role in various sectors like Retail, Hospitality, Healthcare, and Entertainment venues. Ambient music, a popular form of audio content, enhances the customer experience by creating a soothing shopping environment or a positive mood in restaurants and entertainment venues. TouchTunes, a leading digital music solution provider, offers value-added options for businesses, including digital subscription-based music and digital broadcasts. Retail stores, cafes & restaurants, leisure & hospitality, and public organizations use background music to engage customers, improve business productivity, and build consumer relationships. Modern infrastructures like AV systems and music streaming platforms enable businesses to play soft tunes in multiple speakers, creating a consistent ambience. Background music also benefits the corporate sector, with studies showing it improves performance, concentration, and arousal levels. Value-added options like recorded sound for commercials, films, marketing videos, and virtual spaces cater to various business needs. The younger demographics also appreciate background music, making it an essential marketing aspect for businesses. In conclusion, background music is a crucial element in business operations, providing value-added services, enhancing customer experience, and contributing to business success.

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Segment Overview

This background music market report extensively covers market segmentation by

1. Product Type
• 1.1 Music streaming
• 1.2 AV system
2. End-user
• 2.1 Hospitality
• 2.2 Retail
• 2.3 Commercial buildings
• 2.4 Public infrastructure
• 2.5 Others
3. Geography
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Music streaming- The global Background Music Market is set to experience significant growth during the forecast period due to the increasing use of smart devices and digital platforms. Music streaming services, which include websites for watching music videos, listening to audio, and subscribing to podcasts, are gaining popularity. Features such as customized playlists, song recommendations, and seamless connectivity on apps and browsers make these platforms attractive to consumers. Additionally, the expanding podcast genre on these portals is driving market growth. Another notable trend is the adoption of 5G connections, which will enhance the user experience on digital platforms. As a result, the Background Music Market is expected to witness growth during the forecast period.

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Research Analysis

The Background Music Market encompasses the production and distribution of ambient music and audio content for various industries. This market caters to sectors like Retail, Hospitality, Healthcare, Entertainment venues, Recreation, and more. Ambient music plays a significant role in creating the right ambience, enhancing customer engagement, and improving business productivity. In Retail, it sets the tone for a modern shopping experience, complementing consumer relationships and boosting sales. In Hospitality and Entertainment venues, it adds value to the consumer experience, creating a soothing environment for relaxation and enjoyment. The market offers digital subscription-based music, digital broadcasts, and Beat Suite Music for businesses. Recorded sound is used in commercials, films, marketing videos, and soft tunes for improving sleep quality. Overall, background music is an essential component of modern infrastructures, contributing to effective marketing, consumer engagement, and business success.

Market Research Overview

The Background Music Market encompasses various sectors, including Retail, Hospitality, Healthcare, Entertainment venues, and the Corporate sector. Ambient music and audio content play a significant role in these industries, enhancing customer engagement, creating a modern infrastructure, and providing a value-added experience. TouchTunes and other music streaming services offer digital subscription-based music for retail stores, cafes & restaurants, leisure & hospitality, and public organizations. In retail environments, background music sets the tone for a soothing shopping experience, complementing consumer relationships and product offerings. In hospitality and entertainment venues, music adds to the ambience and contributes to a positive mood, reducing stress, tension, nervousness, and anxiety. The AV system is crucial for delivering music and visual content, with multiple speakers and digital broadcasts creating a consistent and high-quality listening experience. Background music is also used in various settings like fitness centers, housing buildings, and elevators to improve productivity, motivation, and overall atmosphere. Value-added options, such as personalized traveling playlists and recordings for virtual spaces, cater to younger demographics and tourists, creating a more experience. Soft tunes are used in fitting rooms, offices, and study areas to improve concentration and creativity, while upbeat music can boost performance and energy levels. In summary, background music plays a multifaceted role in various industries, from enhancing the shopping experience to creating a positive working atmosphere, and is an essential component of modern business strategies.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type
• Music Streaming
• AV System
• End-user
• Hospitality
• Retail
• Commercial Buildings
• Public Infrastructure
• Others
• Geography
• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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