June 20, 2024

The Global Audio Streaming Market is gaining popularity through increased smartphone penetration

Market Overview:
The audio streaming market allows users to listen to music, podcasts and other audio content online without having to download the files to a device. It provides instant streaming of music, radio and podcasts on demand from large online libraries through websites and mobile apps. Audio streaming services enable users to access millions of songs instantly from anywhere using their smartphone, computer or other connected device. The key advantages of audio streaming include – vast libraries of songs, personalized recommendations, no downloading required and ability to create customized playlists.
The audio streaming market is driven by the growing popularity of streaming services among millennial population and rapid increase in smartphone users around the world. Audio streaming facilitates an on-demand and ad-free music experience for users at affordable monthly subscription fees.

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.

Key Takeaways
Key players: 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. Apple Music and Spotify together command over 60% of the global market share.

Growing demand: Rapid proliferation of smartphones and easy access to high-speed internet has boosted the adoption of audio streaming services. Busy lifestyles and need for instant entertainment on mobile devices is fueling the demand for on-demand music streaming. Audio streaming services provide an affordable and personalized music experience for customers worldwide.

Global expansion: Leading audio streaming players are expanding their international footprint and investing in market development of developing nations. Growth in subscription revenues is prompting services to enhance catalog size and audio quality in non-English markets. partnerships with local telecom operators are also helping global services penetrate new customer segments.

Market key trends
Penetration of affordable data plans and rising internet usage: Falling data prices and availability of affordable broadband and mobile data plans are driving the audio streaming market. Growing Internet penetration in developing nations is facilitating market entry of global streaming services.

Shift from downloads to streaming: Paid music downloads have declined sharply with streaming emerging as the dominant mode of music consumption. Streaming services offer larger catalogs, personalized playlists and consume less data versus downloading individual songs.
Porter’s Analysis

Threat of new entrants: New players need huge capital investment and technological expertise to enter this competitive market.

Bargaining power of buyers: Buyers have high bargaining power due to availability of many substitutes and options.

Bargaining power of suppliers: Major suppliers like music labels and artists have moderate bargaining power due to availability of alternative distribution channels.

Threat of new substitutes: Substitutes like on-demand music, podcasts, radio pose high threat.

Competitive rivalry: Market is highly competitive with global tech giants competing on technology, features and pricing.

Geographical Regions

North America accounts for the largest share in the audio streaming market in terms of value. Presence of leading players and high smartphone and internet penetration is driving the audio streaming adoption in the region.

Asia Pacific is poised to be the fastest growing region during the forecast period supported by increased smartphone usage and affordable data plans in countries like India and China. Growing disposable incomes and rising awareness about audio streaming services is fueling the market expansion.

*Note:

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