Global music streaming subscription market powers ahead at 10.8% CAGR
According to a new market study published by Growth Market Reports on the music streaming services market, it was valued at US$18.32bn (eds: €16.15bn) in 2020 and is expected to expand at a growth rate of 10.8% through 2028.
The statistics are revealed in the report entitled “Global Music Streaming Subscription Service Market By Product Types (Audio Streaming and Video Streaming), Service Types (Live Streaming and On-demand Streaming), And End Users (Residential and Commercial), and Regions: Size, Share, Trends and Opportunity Analysis, 2020-2028”
According to the report, 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.
In terms of product types, 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 the 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 utilises 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.
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.
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.
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 high adoption of digital music in the US, availability of resources for offering advanced music streaming experience to the end-users, and 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.
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, and Gaana etc. Asia Pacific holds a substantial share of the market during the forecast period, due to 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.
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 service in North America.
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