Background Music Market

Background Music Market Outlook

The background music market is crossed an impressive valuation of nearly US$ 650 Mn in 2020, registering a Y-o-Y expansion of 6.4%. The market is poised to reflect an identical CAGR, topping US$ 1.2 Bn by 2031.

Key manufacturers in the market for background music are consistently offering high quality equipment and services. For this purpose, they are making use of advanced technologies, including wireless connectivity, automation and other significant advancements.

Key Points Covered in Background Music Industry Survey:

• Market Estimates and Forecasts (2017-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• COVID-19 Impact on the background music  and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Background Music from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider, over the last 5 years, global market for background music expanded at above 5% CAGR, being valued at over US$ 650 Mn.

The market for background music is expected to remain highly fragmented with the presence of a large number of stakeholders. Frontrunners have adopted strategies to grow inorganically, acquiring regional players and forging partnerships and joint ventures.

Businesses have identified the marketing aspect of background music in increasing business productivity by building stronger consumer relationships. In addition to this, rapid urbanization combined with increasing modern infrastructures is projected to offer significant growth opportunities.  All these factors create an ideal environment for the market for background music globally, registering a CAGR of 6.4% through 2031. 

How is Sensory Marketing Yielding Opportunities for Stakeholders?

As competition in the retail market intensifies, brands are focused on offering consumers a profound experience that enhances satisfaction and boosts loyalty. Sensory marketing is one key technique that is increasingly being used to stimulate consumers’ senses for creating a distinct consumer experience.

Background music is an integral part of sensory marketing which can be leveraged to create a unique and uplifting consumer experience to bolster sales and enhance customer satisfaction. Customer experience is gradually gaining importance in industries, with multiple studies linking an increase in revenue with better consumer experiences. 

The COVID-19 pandemic has compelled brands to revisit their marketing strategies. Background music providers are capitalizing on consumer sensory experiences, particularly of hearing, by introducing ambient sound distribution speakers, which has inclined several brand sales to 70% of total revenue. 

How is the Hospitality Industry Aiding Demand for Background Music?

Background music plays a vital role in the hospitality industry, providing a medium to draw consumer attention. Online services are offering consumers the convenience to order food from the comfort of their homes, a trend that has caused a substantial reduction in the number of consumers visiting restaurants.

To tackle this challenge, restaurants are offering comprehensive menus, in-house entertainment, superior services, and other value-added services to draw in customers with background music systems playing an integral part in adding value to the consumer experience.

In addition to creating an immersive experience, fine-tuning playlists can potentially boost sales by influencing human behavior, with studies linking an increase in sales and consumption of alcoholic drinks when subjecting consumers to up-tempo background music.

Why is Sonic Branding in Background Music Becoming Popular?

Sonic branding is another trend that is taking over the market. If a characteristic sound is added, it could practically double the profit. Audio branding statistics by Made Music Studio show that consumers are 46% more likely to choose brands over the competition if they associate a recognizable tune with it.

Background music is increasingly being incorporated in hotels for creating a pleasant ambience in line with their brand identity. The right choice of music for luxury hotels is very important. If the customers don’t like the sound background of a hotel, they will subconsciously perceive the brand as overvalued, negatively influencing their opinion.

Which Region Offers the Largest Opportunities for the Players in the background music industry?

The United States is the largest revenue contributor to the global market. A multitude of factors, notably growing investment in commercial businesses, including cafeterias and restaurants, clubs, shopping malls, and gift shops is driving the adoption of a range of background music systems and software.

According to the Allegra World Coffee Portal, there are over  35,616 coffee shops in the United States, representing a market value of over US$ 46 Bn. This increase in the number of cafes and restaurants is fueling the demand for background music across the region.

Moreover, growth is attributed to the presence of a considerable number of well-established players in this region. For instance, SONIC, a drive-in, a fast-food restaurant chain with 3,500+ locations in over 45 American states with an experience of more than 60 years, has delivered unique guest experiences centered on a menu of made-to-order American classics and fun, speedy, and personalized service from SONIC’s signature Carhops.

Country-Wise Analysis

What is the Demand Outlook for Background Music in Germany?

Germany is projected to be the most lucrative market for background music across Europe.  During the forecast period (2021-2031), the market in Germany is expected to record a CAGR of 8%. 

Germany is the largest country in terms of coffee consumption. The country witnesses a strong demand for freshly brewed coffee owing to the increasing awareness and knowledge about the product and the rise in the number of coffee bars, small resident brands, small roasters, and baristas. Considering these factors, the market is projected to increase the demand for background music. 

What are the Growth Opportunities for Background Music in India?

The diverse and authentic Indian restaurants are highly popular amongst tourists. Background music providers are engaged in entering emerging markets with their unique music offerings in the Indian Subcontinent. A market share of around 40% is projected for the Indian market.

Malls in the country are value-added elements to enhance customer engagement, including background music, to create an aura of leisure and entertainment. This increased focus of shopping malls to offer splendid cultural and leisure experiences to their customers is driving the region’s market growth.

Category-Wise Analysis

How is Music Streaming Propelling Background Music Demand?

The music streaming segment is picking up pace in the product type segment of the background music market during the forecast period. A CAGR of around 5% is anticipated until 2031.

As per a revelation by the International Health, Racquet & Sports Club Association (IHRSA), the revenue generated by the health clubs adds growth to the thriving business of gyms and health clubs, which will also create innumerable opportunities for the background music market growth. 

Moreover, the importance of music to eliminate fatigue among gym enthusiasts during training sessions is leading to the increased adoption of background music systems.

How are Cafes and Restaurants Leveraging Background Music Services?

Cafes & restaurants remain primary end users in the leisure & hospitality sector. This is expected to witness significant growth with background music becoming a staple. Over 3/5th of overall demand is poised to be generated in this sector.

Various organizations have discovered that pleasant music in the surrounding has helped employees in giving the best work performance and this factor is working as a driver for the global market for background music.

Competitive Landscape

The background music landscape is likely to remain consolidated, with prominent market players focusing on expanding their presence through acquisitions and mergers which gives them access to additional resources such as copyright management capabilities and extensive music database.

In January 2021, Vector Capital announced the acquisition of Mood Media, the world’s leading in-store Media Solutions Company dedicated to elevating the customer experience.

The acquisition focuses on three key areas- deepening our client and channel relationships, expanding ongoing investments in the Company’s global technology platform and delivery capabilities, and bolstering our product offerings through innovation.

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Market Segments Covered	U.S. Canada Germany U.K. France Spain Italy Russia China Japan South Korea India Australia Brazil Mexico Argentina GCC South Africa
Key Market Segments Covered	End-Use Application Key Regions
Key Companies Profiled	Brandtrack Mood Media Kasimu Cloud Cover Music Open Ear Music Qsic Pty Ltd. Easy on Hold Jukeboxy Sunflower Music Company NSM Music Ltd. Xenox Music Media Soundtrack your Brand SoundMachine Heartbeats International Express Melody Almotech Custom Channels CSI Music Service Almotech TouchTunes StorePlay USEN Holding Corporation Inc.
Customization & Pricing	Available upon Request

Key Segments Covered

• End Use Application

  • Background Music Equipment for Retail Stores
  • Background Music Equipment for Leisure & Hospitality Settings
  • Background Music Equipment for Public Organizations
  • Background Music Equipment for Cafes & Restaurants
  • Background Music Equipment for Other End Users (Music Streaming)