February 28, 2024

Growing user uptake of music streaming to drive the growth of Audio Streaming Market

 


The audio streaming market deals in providing digital music services to users via the internet. Some key advantages of audio streaming include vast music libraries, personalized playlists, access on multiple devices, and ad-free listening on premium subscriptions. With increasing penetration of smartphones and availability of high-speed internet, people are transitioning from music downloads to streaming services due to ease of use and portability.

The global Audio Streaming Market is estimated to be valued at US$ 38.27 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends in the audio streaming market is the growing adoption of on-demand streaming services. On-demand audio streaming allows users to choose and play any song on their playlist at their convenience without any interruptions. Streaming services such as Apple Music, Spotify, and Amazon Music are focusing on improving personalized recommendations and curated playlists to enhance the user experience of on-demand streaming. Furthermore, integration of audio streaming platforms with smart speakers and voice assistants is another trend gaining traction in the market. Players are partnering with smart device manufacturers to offer seamless music playback through voice commands.

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, Slacker Inc., and Spotify. Major players are focusing on strategic partnerships and mergers & acquisitions to expand their customer base and content library in international markets.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the market is highly fragmented with presence of global as well as local players. However, new entrants require huge capital investments and technology to compete in this market.

Bargaining power of buyers: The bargaining power of buyers is high due to availability of alternate audio streaming platforms and inexpensive service plans offered by various players. Buyers can easily switch between different providers.

Bargaining power of suppliers: The bargaining power of suppliers is low as there are numerous content providers and music labels in this market. Switching costs are also low for suppliers.

Threat of new substitutes: The threat of substitutes is low as there are limited alternatives available for online music streaming. However, offline audio formats like CDs and radio pose a minor threat.

Competitive rivalry: The competitive rivalry is high due to presence of global tech giants as well as growing local players. Companies compete based on variety of content, pricing, promotions, and customer experience.

Key Takeaways

The global Audio Streaming Market is expected to witness high growth, exhibiting CAGR of 14% over the forecast period, due to increasing popularity of music streaming subscriptions among millennial population. Rapid proliferation of smartphones and high-speed internet has further fueled the market growth.

The Asia Pacific region is projected to dominate the audio streaming market during the forecast period. Countries like India and China are emerging as lucrative markets owing growing youth population, rising disposable income, and increasing adoption of digital platforms for music consumption. North America will remain the second largest market driven by continuous technology advancements.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it