According to an online survey conducted in October 2020 among users of subscription music streaming services, the most used service was Amazon Prime Music with *** respondents. Amazon Prime Music was followed by Spotify and Apple Music.

Increasing adoption of streaming services

Music streaming services have become increasingly adopted by Japanese consumers in recent years, as the entry of several foreign companies into the Japanese market in the mid-***** has spurred on the competition between service providers. Apple Music, Google Play Music, and Amazon Prime Music were all released in 2015. During the same year, LINE Corporation, the operator of Japan’s most widely used instant messenger, started to offer LINE Music, and AWA Co. Ltd., an internet company that is part of the media business of CyberAgent, Inc., released its AWA streaming service. Spotify then followed in 2016 and YouTube Music in 2018. As a result of these developments, the subscription-based streaming sales revenue of online music has shown strong growth rates in recent years.

Music spending of Japanese consumers

Survey data show that subscription-based music streaming services have become one of the most commonly used methods of listening to music among Japanese consumers. At the same time, many people use YouTube and other freely available sources in order to listen to songs. While the Japanese music market is one of the largest in the world, the willingness to spend money on music is not distributed equally throughout the population. As one survey shows, the share of people who spend money on music is considerably higher among people in their *** than among older age cohorts. A breakdown of average consumer expenditures on music shows that CDs and other physical goods constitute the largest categories when it comes to individual expenditures. One reason for this can be found in marketing strategies that are related to Japan’s idol culture, which tend to sell CDs with included tickets that allow people to vote in contests or to interact with their favorite artists at events.

Spotify was downloaded more than *** million times in Japan in 2024, which made it the leading music app in terms of downloads during that year. It was followed by Amazon Music and Karaoke Manekineko. Major music apps in Japan Music streaming sales continue to grow year by year in Japan. The landscape of music apps in the Japanese market experienced significant development in 2015, marked by the introduction of services by major players such as Apple Music and Amazon Music. In addition to these international entries, Japan saw the emergence of LINE Music in 2015, launched by LINE Corporation, which, prior to a merger in 2023, also operated the LINE messenger app, the most used social media platform in Japan. LINE Music leverages its strengths by offering features that make use of the LINE platform, such as setting songs as ringtones or sharing favorites as BGM on user profiles, solidifying its position as one of Japan's top music apps. Spotify in the Japan market Spotify boasts a global active user base of several hundred million users. Since its 2016 launch in Japan, it quickly became the nation's top music app. Its standout feature is personalized recommendations, crafting playlists based on user preferences and listening habits. The more you listen to music on Spotify, the more Spotify suggests music that matches your tastes through algorithm-based suggestions. Spotify also offers a Singalong feature, allowing users to adjust vocal volume and sing along to songs with synced lyrics, reminiscent of karaoke, a beloved pastime in Japan. Additionally, Spotify has emerged as the most used podcast platform in Japan, further solidifying its position as a comprehensive audio entertainment destination.

The subscription-based audio streaming sales in Japan reached a value of **** billion Japanese yen in 2024. Subscription-based audio streaming continued to be largest music streaming segment. Japan was slow to embrace streamingJapan was comparatively slow to embrace music streaming and is now in a process of catching up to other markets. The Japanese music industry has for many years relied heavily on CD sales, which were considered to be more profitable than streaming due to a strong demand and high margins. CDs in Japan are often sold with added value for collectors and fans, such as special tickets that enable buyers to directly meet their favorite artists or to support them in popularity contests. Another reason for the slow start of music streaming can be found in the fragmented nature of the Japanese music industry, which necessitates numerous negotiations with different record labels. This resulted in many consumers being dissatisfied with music services due to a lack of favorite artists and songs. As a consequence, the Japanese music streaming market saw different services come and go. One such example is Groovy, a music streaming app made by Japanese gaming company DeNA, which ended in March 2014 after only one year of operation. Impact of new market entriesThe emerging Japanese music streaming market quickly gained steam around 2015, when several big players entered the competition all at once. Apple Music, Google Play Music, Prime Music, LINE Music, and AWA, a joint venture between CyberAgent and Avex Group Holdings, all started their operations in 2015. Spotify followed in 2016 after prolonged negotiations with Japanese record labels. Consequently, subscription-based music streams increased in importance and size, and today account for the lion's share of digital music sales in Japan.

Snapshot img

Music Streaming Market Size 2025-2029

The music streaming market size is forecast to increase by USD 53.49 billion, at a CAGR of 19% between 2024 and 2029. Increasing preference for music streaming services will drive the music streaming market.

Major Market Trends & Insights

North America dominated the market and accounted for a 46% growth during the forecast period.
By Type - Free segment was valued at USD 16.80 billion in 2023
By End-user - Individual users segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 282.20 billion
Market Future Opportunities: USD 53.49 billion 
CAGR : 19%
North America: Largest market in 2023

Market Summary

The market is experiencing significant growth as more consumers opt for on-demand access to music, eschewing traditional ownership models. This shift is driving the introduction of differentiated services, with core technologies like lossless audio and personalized recommendations becoming increasingly important. Service types, such as free ad-supported and subscription-based models, cater to various user preferences. Key companies, including Spotify, Apple Music, and Amazon Music, continue to innovate and expand their offerings, while regulations, such as copyright laws and data privacy concerns, pose challenges.
According to recent reports, subscription music streaming now accounts for over 50% of the global music industry's revenue, with this trend expected to continue into the forecast period. Related markets such as podcasting and audiobooks are also experiencing similar growth trajectories.

What will be the Size of the Music Streaming Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Music Streaming Market Segmented and what are the key trends of market segmentation?

The music streaming industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Free
  Paid


End-user

  Individual users
  Commercial users


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The free segment is estimated to witness significant growth during the forecast period.

In the dynamic the market, data analytics dashboards play a pivotal role in tracking user behavior and engagement. Social features integration, such as sharing and following artists, foster community building and user retention. Two significant trends are the adoption of DRM licensing models and mobile application development for seamless access. User interface design and recommendation algorithms enhance the user experience, while audio compression algorithms and dynamic adaptive streaming optimize bandwidth utilization. Content delivery networks and audio transcoding pipelines ensure efficient delivery and processing of music content. Payment gateway integration and artist profile management streamline revenue generation and artist relations.

Metadata tagging standards and API integration strategies facilitate data exchange between platforms and third-party services. Network bandwidth utilization, user experience metrics, and playback latency metrics are essential performance indicators. Playlist management systems, streaming server infrastructure, and user authentication protocols ensure a smooth user experience. Lossless audio codecs, scalable architecture design, and customer churn prediction systems address the evolving demands of music streaming consumers. Advanced audio signal processing, advertising revenue models, and digital rights management systems cater to content creators and rights holders. Subscription management systems, personalization engines, and adaptive bitrate streaming optimize user experience and revenue generation. Buffering optimization techniques and royalty distribution systems maintain a balance between user satisfaction and financial sustainability.

Music library indexing and search functionality enable users to easily discover and access their preferred content. The free music streaming segment is expected to grow by 15%, while the premium segment is projected to expand by 20% during the forecast period.

Request Free Sample

The Free segment was valued at USD 16.80 billion in 2019 and showed a gradual increase during the forecast period.

Request Free Sample

Regional Analysis

North America is estimated to contribute 46% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the ma

The online streaming services market is experiencing explosive growth, projected to reach $232.88 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 26.01%. This surge is fueled by several key drivers. The increasing affordability and accessibility of high-speed internet are crucial, enabling broader adoption of streaming services across diverse demographics. The rising popularity of on-demand content, coupled with a preference for personalized viewing experiences, further fuels market expansion. Additionally, the continuous influx of high-quality original content from major players like Netflix, Disney+, and Amazon Prime Video, along with the emergence of niche streaming platforms catering to specific interests, contributes significantly to market growth. Technological advancements, such as improved video compression and streaming capabilities, also play a vital role in enhancing user experience and driving adoption. However, the market faces certain restraints. Increased competition among streaming platforms is leading to price wars and potentially squeezing profit margins. Concerns regarding data privacy and security, as well as the prevalence of piracy, also pose challenges to sustained growth. Furthermore, regional variations in internet penetration and consumer preferences necessitate tailored strategies for market penetration. Segmentation reveals a dynamic interplay between revenue models (subscription, advertising, and rental) and content types (online video and music streaming). The dominance of subscription-based models is evident, although advertising revenue is also a significant contributor. North America, specifically the US, currently holds a substantial market share, with significant growth anticipated in APAC (especially China and Japan) and Europe (Germany and the UK) driven by increasing internet and smartphone penetration. Key players such as Netflix, Disney, Amazon, and Spotify are actively shaping market dynamics through innovative content strategies and technological investments, constantly striving for competitive advantage. The forecast period from 2025 to 2033 anticipates continued market expansion driven by the factors outlined above.

A survey that was conducted among users of unlimited music streaming services in Japan in August 2023 showed that *** out of the ***** respondents used Spotify, which amounted to a share of about ** percent. Spotify was the most most commonly used service, ahead of Apple Music and Amazon Music Prime.

Digital Music Content Market Outlook

In 2023, the global digital music content market size was valued at approximately $21.6 billion, with projections estimating this figure to reach $48.4 billion by 2032, growing at a robust CAGR of 9.1% over the forecast period. This significant growth is driven by increasing internet penetration, advancements in streaming technologies, and the rising popularity of smart devices. The shift from physical to digital media has revolutionized how music is consumed, leading to an unprecedented boom in digital music services across various platforms.

The primary factor contributing to the growth of the digital music content market is the widespread adoption of streaming services. Platforms like Spotify, Apple Music, and Amazon Music have transformed the music industry by offering vast libraries of songs accessible on-demand. These services are continually improving user experience through personalized playlists, high-quality audio, and exclusive content. Additionally, the convenience of cloud storage and offline listening options has further bolstered the appeal of digital music streaming.

Another growth driver is the increasing use of smart devices such as smartphones, tablets, and smart speakers. The proliferation of these devices has made it easier for consumers to access and enjoy digital music content anytime and anywhere. Moreover, the integration of music streaming apps with social media platforms has fostered a culture of music sharing and discovery, thereby expanding the user base. Furthermore, the rise of high-speed internet and the deployment of 5G networks are expected to enhance streaming quality and reduce buffering times, encouraging more users to switch to digital music services.

The evolution of revenue models in the digital music industry has also contributed to market expansion. Subscription-based models offer ad-free, high-quality streaming experiences, driving considerable revenue growth. Meanwhile, ad-supported models provide free access to music with occasional advertisements, attracting budget-conscious users and generating substantial ad revenue. The flexibility of pay-per-download options caters to users who prefer owning specific tracks or albums. This diversification in revenue models has allowed companies to target a broader audience and maximize their market share.

From a regional perspective, North America currently leads the digital music content market, followed by Europe and Asia Pacific. The region's dominance can be attributed to high smartphone penetration, advanced network infrastructure, and a tech-savvy population. However, the Asia Pacific region is expected to witness the highest growth rate over the forecast period, driven by the expanding middle class, increasing internet access, and a burgeoning digital ecosystem. Countries like China, India, and Japan are poised to be significant contributors to this growth, with local streaming services gaining popularity and global players making inroads into the market.

Type Analysis

The digital music content market is segmented into audio and video types. The audio segment holds a significant share of the market, primarily driven by the popularity of music streaming services. Audio content is more accessible and convenient for on-the-go listening, making it the preferred choice for many users. The rise of podcasts and audiobooks has also contributed to the growth of this segment. Services like Spotify and Apple Music have expanded their offerings to include a wide range of audio content, appealing to a diverse audience.

Video content, although not as dominant as audio, is gaining traction with the rise of music videos, live performances, and other visual content. Platforms like YouTube and Vevo have capitalized on this trend, offering extensive libraries of music videos that attract millions of viewers. The integration of video streaming with social media platforms has further boosted engagement, as users share and interact with music videos in real-time. Video content provides a more immersive experience, catering to users who enjoy visual elements alongside their music.

The increasing production of high-quality music videos and the popularity of live streaming concerts have also driven the growth of the video segment. Artists and record labels invest heavily in visually appealing content to enhance their brand and reach a broader audience. The advent of virtual reality (VR) and augmented reality (AR) technologies is expected to further revolutionize this segment, offering immersive music experiences that

Mobile Streamed Music Market Outlook

The mobile streamed music market size was estimated at $23.5 billion globally in 2023, and it is projected to reach approximately $56.2 billion by 2032, exhibiting a robust CAGR of 10.1% throughout the forecast period. This notable growth can be attributed to the increasing penetration of smartphones, the proliferation of high-speed internet, and the growing preference for on-demand music streaming services among consumers worldwide.

One of the pivotal growth factors for the mobile streamed music market is the surge in the adoption of smartphones and other mobile devices. With the advent of affordable smartphones and the expansion of 4G and 5G networks, more consumers are now able to access high-quality music streaming services on-the-go. This has transformed the way music is consumed, shifting from traditional mediums like CDs and radio to digital platforms that offer convenience and a vast library of songs.

Additionally, the convenience and personalized experience offered by music streaming services have significantly contributed to market growth. Services such as Spotify, Apple Music, and Amazon Music provide tailored playlists, recommendations based on listening habits, and a wide array of genres and artists. These features, coupled with the ability to download music for offline listening, have enhanced user engagement and satisfaction, further driving the market’s expansion.

Another significant driver is the strategic partnerships and collaborations between telecom operators and music streaming service providers. These alliances often lead to bundled offers where consumers receive free or discounted access to music streaming services as part of their mobile data plans. This not only boosts the subscriber base for streaming platforms but also enhances customer loyalty for telecom operators, creating a synergistic growth environment for both industries.

The regional outlook for the mobile streamed music market indicates strong growth across various geographies. North America and Europe, being early adopters of advanced technologies, have shown substantial market penetration. However, the Asia Pacific region is expected to witness the highest growth rate due to the large population base, increasing internet penetration, and rising disposable incomes. Countries like China, India, and Japan are leading the charge, with a burgeoning middle class eager to consume digital content.

Service Type Analysis

The mobile streamed music market is segmented by service type into subscription-based and ad-supported services. Subscription-based services have gained substantial traction due to their ad-free experience, high-quality audio, and exclusive content offerings. These services typically operate on a monthly or yearly subscription model, providing users with unlimited access to a vast library of songs, albums, and playlists. The steady revenue stream from subscriptions allows companies to invest in enhancing user experience and expanding their music libraries, thereby driving market growth.

Ad-supported services, on the other hand, offer free access to music with intermittent advertisements. This model is particularly appealing to users who are unwilling or unable to pay for a subscription. Despite being free, ad-supported platforms generate significant revenue through advertising, attracting brands looking to reach a large and engaged audience. However, the challenge for ad-supported services lies in striking the right balance between user experience and ad frequency, as excessive ads can lead to user dissatisfaction and churn.

With the growing competition in the music streaming market, there has been a noticeable shift towards hybrid models that combine both subscription and ad-supported features. For instance, platforms may offer a freemium model where users can access basic features for free but need to subscribe to access premium features such as offline listening, high-definition audio, and exclusive content. This approach helps in converting free users to paid subscribers, thereby increasing the overall revenue for the streaming service.

An emerging trend in the service type segment is the introduction of family and student plans. These plans are designed to cater to specific demographic groups, offering discounted rates for multiple users under a single subscription. Family plans allow multiple family members to enjoy music streaming services at a reduced collective cost, while student plans offer lower rates for students, making it affordable

According to a survey conducted in December 2019 among Japanese smartphone users who had music streaming apps installed on their devices, the most used music streaming apps on smartphones in Japan were Amazon Music and Spotify, with each being used by more than ** percent of respondents.

Snapshot img

Background Music Market Size 2025-2029

The background music market size is forecast to increase by USD 608 million at a CAGR of 9.3% between 2024 and 2029.

The market is witnessing significant growth, driven by the increasing demand for music in various sectors such as retail and hospitality. Digital content, including recorded music and podcasts, is increasingly being used for LED displays, visual content, and publishing. The proliferation of music subscription services, such as Apple Music and Spotify, is further fueling market growth. However, the market is characterized by low margins due to intense competition among labels and background music generators. E-commerce platforms are also leveraging background music to enhance user experience and boost sales. As the market continues to evolve, players in the background music industry must adapt to these trends and challenges to remain competitive.

What will be the Size of the Background Music Market During the Forecast Period?

Request Free Sample

The market encompasses the production and distribution of audio content for various industries, including hospitality, healthcare, restaurants, entertainment venues, and the retail sector. This market is driven by the growing importance of ambience and customer engagement in modern business environments. Ambient music, soft tunes, and recorded sound have become essential components of the consumer shopping experience, enhancing productivity, and fostering positive consumer relationships. In the hospitality industry, background music sets the mood and contributes to a memorable guest experience. In healthcare settings, calming music improves patient comfort and reduces stress. In retail environments, music can influence consumer behavior and boost sales.
The market offers value-added options, such as digital subscription-based music and digital broadcasts, providing businesses with flexibility and cost savings. These services cater to various industries, including recreation, commercials, films, marketing videos, and sleep quality applications. Modern infrastructures, such as TouchTunes and Beat Suite Music, enable businesses to easily access and manage their background music offerings. The market's growth is fueled by the increasing use of background music as a marketing aspect and the continuous evolution of technology to deliver more personalized and customizable music experiences.

How is this Background Music Industry segmented and which is the largest segment?

The background music industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product Type

  Music streaming
  AV system


End-user

  Hospitality
  Retail
  Commercial buildings
  Public infrastructure
  Others


Genre

  Ambient music
  Upbeat and energetic
  Classical or instrumental
  Others


Geography

  Europe

    Germany
    UK
    France
    Italy


  North America

    Canada
    US


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

By Product Type Insights

The music streaming segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing use of digital platforms and smart devices. Music streaming services, which offer features such as customizable playlists, song recommendations, and seamless connectivity, are becoming increasingly popular. Additionally, the expansion of podcast genres on these platforms is further fueling market growth. Another key trend is the adoption of 5G connections, which are in high demand due to their ability to support large data transfers and provide faster internet speeds. This growth is evident in various sectors including hospitality, healthcare, retail, corporate, recreation, and entertainment venues. Background music is used to enhance customer engagement, create a positive atmosphere, and improve business productivity.

Get a glance at the market report of share of various segments Request Free Sample

The music streaming segment was valued at USD 719.60 million in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

Europe is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe, as one of the leading retail economies globally, witnesses significant investment from retailers in physical retail markets, particularly in countries like the UK, France, Germany, and Turkey. Background Music (BGM) plays a pivotal role in attracting customers in these spaces. In the omnichannel retail strategy, stationary re

Market Overview: The global Music Playback Platform market is projected to reach a staggering value of XXX million by 2033, expanding at a robust CAGR of XX% during the forecast period 2025-2033. The growing popularity of streaming services, advancements in audio technology, and increasing smartphone penetration are driving market growth. The dominance of companies like Spotify, Apple, and Alibaba is shaping the competitive landscape, while the increasing demand for rechargeable devices and the proliferation of free streaming services are emerging trends. Market Segmentation and Regional Analysis: The Music Playback Platform market is segmented by application (car, web, mobile, TV) and type (rechargeable, free). The mobile segment holds the largest market share, attributed to the widespread use of smartphones and the convenience of mobile streaming. The rechargeable segment is gaining traction due to environmental concerns and the increasing availability of portable devices. Regionally, North America and Europe are the largest markets, followed by Asia Pacific. China, India, and Japan are key growth drivers in the Asia Pacific region, owing to their large populations and rapidly growing digital infrastructure.

Digital Publishing and Content Streaming Market Outlook

As of 2023, the global digital publishing and content streaming market size was valued at approximately USD 200 billion and is expected to reach USD 650 billion by 2032, growing at a remarkable CAGR of 15% during the forecast period. The primary growth factors driving this market include the increasing penetration of high-speed internet, the proliferation of smart devices, and the rising demand for on-demand content. Additionally, the ongoing shift from traditional media to digital platforms has significantly contributed to the expansion of this market.

The rapid advancements in technology and the growing adoption of smartphones and tablets have facilitated the consumption of digital content across the globe. Consumers now have the ability to access their favorite content anytime and anywhere, which has led to a significant increase in the demand for digital publishing and content streaming services. Furthermore, the availability of high-speed internet and affordable data plans has made it easier for users to stream content seamlessly, thereby boosting market growth.

Another major growth factor is the increasing popularity of subscription-based models. Platforms like Netflix, Spotify, and Amazon Kindle have revolutionized the way content is consumed by offering a vast library of content for a fixed monthly fee. This model not only provides a steady revenue stream for service providers but also offers consumers a cost-effective way to access premium content. The success of these platforms has encouraged other companies to adopt similar models, further fueling market growth.

Content personalization is also playing a crucial role in the growth of the digital publishing and content streaming market. Advanced algorithms and AI-powered recommendations are increasingly being used to tailor content based on user preferences and behavior. This personalized approach enhances user experience and engagement, leading to higher customer retention rates. As technology continues to evolve, the ability to provide highly customized content is expected to become a key differentiator for service providers in this competitive market.

From a regional perspective, North America currently holds the largest market share due to the early adoption of advanced technologies and the presence of major market players. However, the Asia Pacific region is expected to witness the highest growth rate during the forecast period. The increasing internet penetration, rising disposable income, and growing demand for digital content in countries like China, India, and Japan are driving the market in this region. European markets are also experiencing steady growth, supported by favorable regulatory frameworks and high consumer demand for digital content.

Content Type Analysis

The digital publishing and content streaming market is segmented into various content types, including text, video, audio, and others. Each of these content types caters to different user preferences and consumption patterns. Text-based content, which includes e-books, articles, and online magazines, continues to hold significant market share due to the convenience and accessibility it offers. The rise of digital reading platforms like Amazon Kindle and Apple Books has made it easier for users to access a vast library of text-based content, contributing to the growth of this segment.

Video content is arguably the most dominant segment in the digital publishing and content streaming market. The proliferation of platforms like Netflix, YouTube, and Disney+ has revolutionized the way video content is consumed. These platforms offer a wide range of content, from movies and TV shows to user-generated content and live streaming events. The increasing demand for high-quality video content, coupled with advancements in video streaming technology, has significantly boosted the growth of this segment. Additionally, the rising popularity of short-form video content on platforms like TikTok and Instagram has further fueled market growth.

Audio content, including music streaming, podcasts, and audiobooks, is another rapidly growing segment. Services like Spotify, Apple Music, and Audible have made it easier for users to access a vast library of audio content. The convenience of listening to audio content on-the-go has made it a popular choice among consumers. The increasing popularity of podcasts and the growing trend of audiobook consumption are expected to further drive the growth of this segment. Furthermore, advancements in audio streaming techn