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Global surge in music streaming applications to boost music market by 2020, says Technavio

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Music: Key market research findings

  • Growing adoption of smartphones and increased penetration of internet
  • Globalization of music streaming services

Technavio has released a new market research report on the global music market, which is expected to grow at a CAGR of 5% by 2020. With an increase in the number of streaming services, the availability of freemium music services, and the integration of music streaming applications with social media platform, the number of digital music subscriptions has grown significantly. For instance, the collaboration of Spotify, a digital music service, and Facebook enables Spotify users to access their accounts through Facebook and share playlists within their network. The Americas dominate the global music market, owing to the presence of numerous music-publishing houses, artists, bands, and a number of digital music service providers.

The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.

“The growing adoption of smartphones and tablets along with the increasing penetration of high-speed Internet is expanding the market for digital music. These smart devices are prominently used for streaming and downloading music. Several mobile apps have enabled the creation of virtual playlists that can be accessed anywhere. Moreover, the popup and display ads hosted on mobile apps provided by digital music providers are also generating substantial revenues, thereby supporting the growth of global music market,” says Soumya Mutsuddi, Lead Analyst, Media & Entertainment, Technavio Research.

Global mobile app download market 2014-2019 ($ billions)

Source: Technavio, 2016

Music streaming service is becoming increasingly globalized as connectivity has propelled opportunities for the market with changes in technology infrastructure. Mobile devices and increased connections have enabled vendors to provide music anywhere. Currently, a small percentage of the population is generating a significant quantum of revenue for the streaming music market, the growth is broadening with emerging countries entering and accelerating market growth.

The leading vendors in the global music market include BMG, Kobalt Music, Sony/ATV Music, Universal Music, and Warner Music. This market has high growth prospects during the forecast period. The revenue growth is expected to be driven by an increase in the number of subscription services and concerts. The global music market is highly competitive because of the presence of a number of major players. Technological innovations by leading vendors play a significant role in driving market growth. The rising penetration of mobile devices such as smartphones and tablets and the availability of cheaper Internet services are enabling users to download music directly to such devices.

A more detailed analysis is available in the Technavio report, Global Music Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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