Music Streaming Subscription Service Market Size, Share 2030

Report Description

Music Streaming Subscription Service Market Outlook

The global music streaming subscription service market size was valued at USD 18,323.5 Million in 2020 and is projected to reach USD 41,152.8 Million by 2028, expanding at a CAGR of 10.8% during the forecast period, 2021-2028. The music streaming subscription service market is projected to expand at a rapid pace globally, owing to urbanization a surge in the adoption of smart devices such as smartphones, and a rise in the popularity of digital platforms such as Spotify, Amazon Music, and Deezer.

Music streaming, or more specifically audio streaming, is a method of sending audio content directly to your device, without downloading files from the Internet. Streaming is an alternative to file downloading, a process whereby the end user gets the entire file for content before watching or listening to it. With streaming, an end user can use their media player to start playing digital video or digital audio content before the entire file has been played.

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The term “media streaming” can be applied to media content other than video and audio, such as live captions, tickers, and live text, all of which are considered “streaming text”. Streaming is widely used in video-on-demand and streaming television services. Other services broadcast music. The music streaming services companies like Spotify, Pandora, and Apple Music use this method to stream the songs that you can listen to on all types of devices.

Online music streaming is a way to stream sound or music without the need to download files from the Internet. Technically, servers like Spotify and Pandora send information (raw files) to individual music streaming devices immediately after compressing the raw file. The required audio file is delivered in small data packets so that the data is buffered on the computer and played immediately as long as a constant stream of packets is transmitted to your computer, you will hear the sound without interruption.

Streaming music subscriptions are extremely popular. Apple Music, available on Windows and Mac computers, is a streaming music subscription with over 40 million songs that one can stream to the computer. Amazon Music and YouTube Music offer similar subscriptions. All these paid programs offer free trials that allow a person to evaluate their services. Some services such as Spotify, Deezer, and Pandora offer free levels of ad-supported music with the option of premium paid levels.

The rapid growth of the music streaming industry and the rising urbanization population is helping the music streaming industry to grow worldwide. The growing popularity of digital platforms and the growing adoption of smart devices are expected to positively impact the growth of the industry during the forecast period. Music streaming services include platforms that allow users to listen to audio, and podcasts, and watch music videos.

Additionally, these platforms offer features like song recommendations, automatic playlist customization, and hassle-free accessibility on apps and browsers, which should also grab the attention of end users during the forecast period.

Music Streaming Subscription Service Market Dynamics

Rising demand for premium services and music streaming subscription services allows consumers to stream and listen to music by connecting to the Internet. Similar to an online music store, many of these premium services do not have advertisements or any other fee options. With the growing adoption of digital music and increasing digitization, music streaming services are expected to register significant growth in the market.

The advent of IoT-based technologies and smart devices such as Alexa and Siri are the latest trend in the market. Companies are offering free subscriptions for a certain duration with these devices. Vendors are introducing easy availability of music on online platforms, which reduces the need to download the song and offers high-quality audio and playlist customization on the cloud. These factors increased the subscription rate for music.

Scope of Music Streaming Subscription Service Market

Music Streaming Subscription Service Market Segment Insight

Product Types Segment Analysis

In terms of product types, the music streaming subscription service market is segmented into audio streaming and video streaming. Over the projected period, the audio streaming segment is expected to dominate the market. Increasing volume of audio music streaming service subscribers globally, complimented by the high prices associated with the subscription across all major audio music streaming applications such as Apple, Spotify, Amazon Music, etc., has been a major driving factor for the audio streaming segment.

The video streaming segment is expected to expand at a significant CAGR, due increase in recent years as the ads are shown while streaming video on channels such as YouTube and Voot generate more revenue than audio streaming also it allows viewing video online without being downloaded to a computer or host device.

The audio streaming segment is projected to expand at a rapid CAGR, which is expected to grow at a significant CAGR during the forecast period owing to audio streaming utilizes system buffering and a secure data streaming platform to enable end-users to listen to full audio files without interruption, which is expected to drive segment growth.

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Service Type Segment Analysis

In terms of service type, the music streaming subscription service market is segmented into on-demand and live streaming. The on-demand segment is expected to dominate the market during the forecast period, owing to the streaming video which has altered the way we watch videos on the internet, Amazon Web Services (AWS) offers two OTT video streaming solutions in the AWS Cloud to cost-effectively distribute media content to global viewers.

Over the forecast period, the demand for live streaming is expected to increase, due to development in live streaming service with a robust infrastructure and a good content delivery network (CDN) to achieve high-quality video.

End-Users Segment Analysis

In terms of end-users, the music streaming subscription service market is bifurcated into residential and commercial. Over the projected period, the commercial segment is expected to dominate the market.

Increasing development projects of commercial complexes, restaurants, gyms, health clubs, and malls, also due to growing digital music, and music keeps the employees happy and maintains their energy while doing their respective work is expected to boost the sale of music streaming subscription services in the commercial market.

Over the forecast period, the demand for the residential segment is expected to increase, due to factors such as growth in consumer electronics, high-speed internet services, high net disposable income, and internet penetration in developing countries, which are driving the growth of the music streaming subscription service market

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Regional Analysis

Based on regions, the global music streaming subscription service market is fragmented into North America, Europe, Latin America, and Middle East & Africa. North America accounted for a significant share of the market in 2020 and the market in regions such as Asia Pacific (APAC) and North America is anticipated to expand at a substantial CAGR during the forecast period.

North America is expected to dominate the global music streaming subscription service market in the forecast period, due to the high adoption of digital music in the U.S., the availability of resources for offering advanced music streaming experience to the end-users, and the high disposable income of the end-users, in the region.

The region has witnessed the adoption of advanced data services such as uninterrupted 4G and high-speed broadband connectivity as well. These factors are fuelling the growth of the music streaming market in North America. Moreover, the music streaming market has high potential in Latin America & Asia Pacific, and China owing to the increasing adoption of free music streaming applications such as JOOX, Saavn, Gaana, etc.

Asia Pacific holds a substantial share of the market during the forecast period, due to the rapid increase in commercial activities in the region and significant growth of the global market, due to changes in the industry, such as increased demand due to the region's growing middle-class population. 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.

Countries such as India and China have a large customer base, which is expected to boost the market in the country. Asia-Pacific is expected to show a promising growth rate due to a surge in penetration of the internet and an increase in the adoption of smartphones coupled with rising in the number of subscribers.

The market in Asia Pacific is expected to develop at a rapid rate over the forecast period, due to a huge population base, rising young population, and advancements in the technological infrastructure of market players.

Over the forecast period, several factors, such as the expanding industrial sector and increased investments in the hearing aid batteries infrastructure sector, are expected to boost the demand for music streaming subscription services in North America.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global music streaming subscription service market
• Historical, Current, and Projected Market Size in Terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on global music streaming subscription service market performance