Vinyl records: Key market research findings
- The US is the key revenue generating country in the market
- Vinyl LPs/Eps account for a majority share of the market revenue
- Key vendors – GZ Media, Optimal Media, United Record Pressing, Record Industry, and MPO
Technavio’s market research analysts predict the global market for vinyl records to account for a revenue almost $5 billion by 2020. The upsurge in the demand for vinyl records can be attributed to its increasing popularity as a cultural object and a collectible among music lovers. In the modern form, vinyl record is based on the LP format. It is designed for enriching the listening experience. The artistic and commercial success of vinyl record throws light upon the culturally valued way of crafting and receiving a musical performance that aspires to be more than mere entertainment. During 2015, the global vinyl records market was dominated by the US which occupied 52% stake in the overall market share. The projected increase in the demand from millennials will fuel further growth in the vinyl records market in the US during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the vinyl record segments based on the product.
“Vinyl records are being increasingly popularized as special editions/deluxe product in the market. The manufacturers are now coming up with tailor made art to colored versions and patterned vinyl record to induce different customer segments. Manufacturers are also receiving customization orders for variations. Limited editions has acquired more consumer attention as people see vinyl record as a luxury niche and maintain it as a collection,” says Brijesh Kumar Choubey, Lead Analyst, Consumer & Retail, Technavio Research.
The vinyl LP/EP segment was the largest segment in the global vinyl records market during 2015. This segment is projected to showcase significant growth during the forecast period and will single-handedly account for the majority share of the market’s revenue by 2020. EPs were introduced as singles through the vinyl format. LPs stand as the standard format for vinyl albums in today’s world. Currently, LPs can record over 20 minutes of playtime on each side with more tracks being available per purchase. These stand as the most preferred format for music lovers as consumers attain more music for their money.
The key vendors in the global vinyl records market include GZ Media, Optimal Media, United Record Pressing, Record Industry, and MPO. The competition is expected to intensify further during the forecast period, with the emergence of new technologies, start-ups, and the online trend. The growing popularity vinyl records among the youth and more celebrity releases in vinyl format will play a crucial role in the growth of the market in the coming years. However, the high adoption of digitization, especially the increasing preference for streaming services, is confining the overall market growth.
A more detailed analysis is available in the Technavio report, Download Global Vinyl Records Market Report