The audio streaming market allows listeners to stream music, podcasts, and talk radio among other audio content from the internet. Streaming has become a popular alternative to purchasing and owning digital music files due to features like large libraries, personalized recommendations, and offline listening. Subscription services have also made it affordable to access virtually unlimited music. Major providers in this space focus on delivering customized listening experiences based on user preferences and activity to keep people engaged with their platform.
The global audio streaming market is estimated to be valued at US$ 38.27 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period of 2023 to 2030.
Rising smartphone and internet penetration have enabled ubiquitous access to audio streaming services. Smartphone apps make it convenient to listen anywhere, while high-speed internet allows for seamless streaming on various connected devices. Audio provides an engaging entertainment medium that many enjoy as a background activity during daily chores or commutes. Its growing popularity is a key driver of market expansion.
Key players operating in the audio streaming market include Apple Inc., Deezer, Alphabet Inc., Guvera Ltd., Hungama.com Pvt. Ltd., Microsoft Corp., Pandora Media Inc., Rhapsody International Inc., Saavn, LLC, and Spotify. Spotify is currently the largest platform by total users, while Apple Music has seen strong growth in paid subscribers in recent years.
The audio streaming industry provides immense opportunities for growth through partnerships with automakers, electronics companies, and other media platforms. Integrating streaming services directly into devices enhances accessibility, while bundled subscription offerings through partnerships make audio more affordable.
Major players are expanding their operations globally through licensing deals and customized catalogues to cater to local tastes in music and podcasts. The untapped market potential in developing regions will spur further investments and consolidations to gain ground in high growth territories.
Rising disposable incomes in developing economies have bolstered the spending ability of consumers on paid streaming subscriptions and premium tiers. This acts as a key driver for revenue growth. Increasing smartphone and internet penetration worldwide also presents a massive untapped user base that can be monetized.
Piracy remains a bigchallenge as many people continue accessing unlicensed or illegally downloaded content. This hampers the paying customer base for streaming platforms. High mobile data costs also restrict onboarding users in price-sensitive markets. Additionally, industry fragmentation and licensing issues pose obstacles to global expansion for some services.
The audio streaming market can be segmented based on type into music streaming, podcast streaming, and others. Among these, music streaming sub-segment dominates the market as it allows users to play millions of songs on-demand for a low subscription fee. Factors like large catalogs of songs and playlists catering to different genres and moods have helped music streaming services gain wider acceptance among users.
Regionally, North America is expected to continue dominating the audio streaming market during the forecast period. High proliferation of smartphones and widespread adoption of streaming services by users in U.S. and Canada are main growth drivers for the region. Asia Pacific is poised to witness the fastest growth during 2023-2030. Increasing young population with rising disposable incomes, availability of affordable data plans, and growth of entertainment streaming platforms are anticipated to propel the audio streaming market growth in Asia Pacific region countries like China, India, and Japan. Europe currentlycaptures a significant revenue share due to presence of key players like Spotify and Deezer. However, Asia Pacific is likely to emerge as the most lucrative market due to ongoing digital transformations in the region.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it