Music Streaming Market to Grow by USD 49.63 Billion (2024-2028), Due to Rising Popularity of Streaming Services, Impact of AI on Market Trends- Technavio

NEW YORK, Aug. 28, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape- The global music streaming market size is estimated to grow by USD 49.62 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 19.99%  during the forecast period. Increasing preference for music streaming services is driving market growth, with a trend towards increasing introduction of differentiated music streaming services. However, lack of ownership in music streaming  poses a challenge. Key market players include Alphabet Inc., Amazon.com Inc., Apple Inc., Bharti Airtel Ltd., Curb Records Inc., Deezer SA, Gamma Gaana Ltd., iHeartMedia Inc., KKBOX, Meredith Corp., Mixcloud Ltd., RealNetworks Inc., Reliance Industries Ltd., Sirius XM Holdings Inc., SoundCloud Ltd. And Co. KG, SOUNDMACHINE, Soundtrack Your Brand Sweden AB, Spotify Technology SA, Tencent Holdings Ltd., and TuneIn Inc..

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Market Driver

Vendors in the global music streaming market are distinguishing themselves by introducing unique features in their services. Companies like YouTube Music from Alphabet, Pandora, Spotify, Deezer, and Tidal (an Aspiro AB subsidiary) offer personalized recommendations, easy accessibility on multiple platforms, and high audio quality. YouTube Music uses Google account data and artificial intelligence technology for song selections and location-based recommendations. Pandora plans to create podcasts based on its Music Genome Project. Spotify provides accessibility across various operating systems and focuses on social features. Apple and Amazon have integrated their music streaming services with their hardware, eliminating the need for additional software installation. These differentiated services are a significant trend driving the growth of the music streaming market.

Music streaming market is witnessing notable trends in 2023. Subscription models continue to dominate, with individual use being the primary driver. However, non-subscription options are gaining traction. Interactive features like collaborative playlists and social sharing are popular among users. Global expansion and localization are key focus areas for music streaming services. AI-driven personalization, live audio, and virtual concerts are emerging trends. High-fidelity and lossless streaming are in demand for superior user experience. Social features, user-generated content, and remix culture are shaping the future of music streaming. 5G connectivity and smart devices, including smart speakers, alarms, and virtual assistants, are driving adoption. Advancements in technologies like network connection, data transfer rates, and latency are essential for seamless streaming. Digital platforms, websites, music videos, podcasts, audio files, and 4G technology also play a role in the market. Subscription bundling with other services is a growing trend.

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Market Challenges

• The global music streaming market is characterized by the digital distribution of music through subscription-based licenses. This model grants consumers access to vast music libraries without the option to own the tracks. A potential drawback is the requirement for an internet connection to stream music, as not all providers offer downloads. The absence of ownership may deter some customers from subscribing, potentially limiting market expansion during the forecast period.
• The music industry has seen significant shifts with the rise of digital platforms and smart devices. Music streaming services, websites, and apps have become the go-to destination for consumers to access music, music videos, podcasts, and audio files. With the advent of 5G connectivity, high-quality music streams and live videos are now possible, providing a superior user experience. Advancements in technologies like Artificial Intelligence (AI) and Machine Learning (ML) offer personalized recommendations and prime membership benefits. However, challenges persist, including unauthorized music streaming, piracy, and competition from OTT platforms and social media websites like YouTube Live and Facebook Periscope. Revenue channels include subscription models, ads, and partnerships with businesses like restaurants, cafeterias, salons, gyms, and cloud-based infrastructure for live streaming. Consumers can now rewind, fastforward, pause, and access audio and video content on application-based platforms or web-based platforms, making music more accessible than ever before.

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Segment Overview 

This music streaming market report extensively covers market segmentation by  

1. Type 
• 1.1 Free
• 1.2 Paid
2. End-user 
• 2.1 Individual users
• 2.2 Commercial users
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Free-  The free music streaming segment is expected to experience moderate growth in the music streaming market during the forecast period. Free music streaming is an advertising-supported service where vendors generate revenue by displaying ads during music play or when users make in-spot purchases. Leading global providers like Spotify and Alphabet offer free streaming services with limited music access and intermittent ads. For instance, Spotify's free users can access 750 songs, while Alphabet provides up to 50,000 songs with some ads. The free segment's growth is attributed to its widespread popularity and accessibility, making it a significant driver for the global music streaming market's expansion.

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Research Analysis

Music streaming services have revolutionized the way consumers access and enjoy their favorite tunes, podcasts, and even live performances. With the rise of smart devices, music streams can now be accessed on-demand through websites and mobile apps, making music more convenient than ever before. Music videos and audio files can be streamed in high quality, with some services offering benefits like 5G connectivity for faster streams and downloads. 5G technology and 4G technology have made it possible for consumers to enjoy uninterrupted music streams, even on-the-go. Artificial Intelligence (AI) and Machine Learning (ML) have also made their way into music streaming, with features like personalized playlists and song recommendations based on listening history. Prime membership benefits, live videos, and social media websites like YouTube Live and Facebook Periscope have added to the music streaming experience. The music industry has embraced Over-the-Top (OTT) platforms, with individual segments like restaurants, cafeterias, salons, and gyms adopting cloud-based infrastructure for their music needs. However, unauthorized music streaming remains a concern, with consumers turning to piracy sites and apps to access copyrighted content. Rewind features and live streaming capabilities have added to the appeal of music streaming services, making them an essential part of modern entertainment.

Market Research Overview

Music streaming market is a dynamic and rapidly growing industry, driven by the proliferation of digital platforms and smart devices. Music streaming services, available as websites and application-based platforms, offer consumers on-demand access to music videos, podcasts, audio files, and live streams. Advancements in technologies like 5G connectivity and AI/ML enable high-quality music streams and personalized recommendations. Consumers can rewind, fastforward, pause, and interact with social features like collaborative playlists and live streaming. Revenue channels include non-subscription and subscription models for individual and commercial use. Unauthorized music streaming remains a challenge, while live videos, social media websites, and OTT platforms offer new opportunities. The music industry is transforming, with the audio and video segments experiencing significant growth. Cloud-based infrastructure, AI-driven personalization, and virtual concerts are shaping the future of music streaming. Smart devices, from smart speakers to alarms and voice commands, are making music streaming more accessible and convenient. Global expansion and localization are key trends, with social sharing and collaborative playlists enhancing the user experience.

Table of Contents:

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

• Type
• Free
• Paid
• End-user
• Individual Users
• Commercial Users
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

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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