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The audio streaming market allows users to listen to music, podcasts, and radio stations via the internet instead of downloading files to a device. Audio streaming provides users the advantage of instantly accessing an extensive library of content from anywhere without using data storage. It has become the preferred way to consume digital music content due to the variety of offerings available and ease of use.
The Global Audio Streaming Market is estimated to be valued at US$ 38.27 Billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period from 2023 to 2030.
Audio streaming services have transformed how people listen to music. As mobile data speeds increase with the deployment of 4G networks, audio streaming has become more accessible. Faster networks allow for higher quality streaming even over cellular networks. Audio streaming provides unlimited access to libraries containing millions of songs without using any data storage on devices. Record labels and artists have also embraced streaming as it has expanded the audience base and ways for fans to engage with music. The convenience and wide variety of content available have increased the popularity of audio streaming among users of all ages.
Key Takeaways
Key players operating in the audio streaming market are Apple Inc., Deezer, Alphabet Inc., Guvera Ltd., Hungama.com Pvt. Ltd., Microsoft Corp., Pandora Media Inc., Rhapsody International Inc., Saavn, LLC, Slacker Inc., and Spotify. Spotify is currently the largest audio streaming platform with over 180 million users including 100 million paid subscribers. Apple Music is the second largest with over 60 million subscribers.
The growing popularity of streaming podcasts and online radio has led to higher demand for audio streaming services. Podcast listenership doubled between 2018 to 2020. Streaming makes it possible to listen to content anywhere which has boosted audio streaming usage. With rising disposable incomes in emerging markets, the audience for paid streaming subscriptions is growing rapidly.
Audio streaming services are expanding their global footprint by partnering with telecom operators and launching in new international markets. Spotify launched in 80 new countries in 2022 taking its total coverage to 192 markets worldwide. Regional services like Joox and Gaana are also gaining subscribers across Asia by providing localized content in local languages. The global expansion will help drive further growth in Audio streaming market revenues.
Market Key Trends
One of the major trends driving the audio streaming market is the growing popularity of curated playlists. Platforms have invested in enhancing their music recommendation and playlist creation capabilities using AI and big data. Personalized playlists that evolve according to a user’s taste are keeping listeners more engaged on services. Interactive features like time-synced lyrics, concert updates and social sharing are also expanding the appeal of audio streaming services. Innovation in high-quality streaming technologies will help capture more consumers as data speeds and bandwidth availability improves worldwide. Subscription plans offering audio streaming bundled with video and e-books are helping platforms boost their subscriber counts as well.
Porter’s Analysis
Threat of new entrants: New players find it difficult to enter this market due to high initial investments and established players.
Bargaining power of buyers: Buyers have high bargaining power due to availability of several options.
Bargaining power of suppliers: Suppliers of audio content have moderate power due to availability of alternates.
Threat of new substitutes: Threat from new substitutes like video and podcast streaming is moderate as audio remains preferred format for music.
Competitive rivalry: Intense competition exists among major players due to their large customer base and content libraries.
Geographical regions
North America accounts for the largest share in terms of value due to high smartphone and internet penetration rates. Developed markets in Europe are also major revenue generators.
Asia Pacific region is expected to be the fastest growing geographical region during the forecast period supported by increasing disposable incomes in developing countries like India and China. Rapid adoption of digital platforms will supplement the regional growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
