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Background Music Market

Background Music Market

Rising Trend of Sensory Marketing to Generate Lucrative Growth Opportunities for the Global Background Music Market during 2021-2031

Background Music Market
FACT3068MR
  • Aug-2021
  • List of Tables : 52
  • List of Figures : 185
  • 170 Pages
  • Consumer Goods

Market Snapshot

According to Fact.MR, 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

Know More Details About the Report

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. 

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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.

An Adaptive Approach to Modern-day Research Needs

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.

An Adaptive Approach to Modern-day Research Needs

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.

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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)

Background Music Market- Scope of Report

A recent study by Fact.MR on the background music market offers a 10-year forecast for 2021 to 2031. The study analyzes crucial trends that are currently determining the growth of the market. The report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders as well as emerging players.

The study also provides the dynamics responsible for influencing the future status of the Background Music market over the forecast period. A detailed assessment of value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the background music market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Report Summary

The study offers a comprehensive analysis of diverse features, including production capacities, demand, product developments, revenue generation, and sales of background music equipment across the globe.

A comprehensive estimate on the market has been provided through an optimistic as well as a conservative scenario, taking into account the sales of Background Music during the forecast period. Price point comparison by region with the global average price is also considered in the study.

Key Questions Answered in Report

  • Which are the most lucrative background music markets?
  • Which factors will impact the growth of background music?
  • How will changing trends impact the strategies of market players?
  • How can market players capture the low-hanging opportunities across regions?
  • Which companies are leading the background music industry?
  • What are the winning strategies of stakeholders in the market?

Analysis on Market Size Evaluation

The market has been analyzed for each segment in terms of volume (‘000 Units) and value (US$ Mn).

Estimates at global and regional levels for background music equipment are available in terms of “US$ Mn” for value and in “‘000 Units” for volume. A Y-o-Y growth contrast on prominent market segments, along with market attractiveness evaluation, has been incorporated in the report.

Furthermore, absolute dollar opportunity analysis of all the segments adds prominence to the report. Absolute dollar opportunity plays a crucial role in assessing the level of opportunity that a manufacturer/distributor can look to achieve, along with identifying potential resources, considering the sales and distribution perspective in the global background music market.

Inspected Assessment on Regional Segments

Key sections have been elaborated in the report, which has helped deliver projections on regional markets. These chapters include regional macros (political, economic, and business environment outlook), which are expected to have a momentous influence on the growth of the background music during the forecast period.

Country-specific valuation on demand for background music equipment has been offered for each region, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value & volume for emerging countries has also been included in the report.

In-depth Analysis on Competition Analysis

The report sheds light on leading manufacturers in the market, along with their detailed profiles. Essential and up-to-date data related to market performers who are principally engaged in offering background music equipment has been brought with the help of a detailed dashboard view. Market share analysis and comparison of prominent players provided in the report permit report readers to take preemptive steps in advancing their businesses.

Company profiles have been included in the report, which includes essentials such as product portfolios and key strategies, along with an all-inclusive SWOT analysis on each player.

Company presence is mapped and presented through a matrix for all the prominent players, thus providing readers with actionable insights, which helps in thoughtfully presenting the market status, and predicting the competition level in the background music domain.

Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the background music industry, and reach conclusions on the future growth parameters. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases.

Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the research report as a primary resource.

- FAQs -

According to Fact.MR, sales of background music services totaled US$ 650 Mn in 2020

From 2016 to 2020, demand for background music expanded at over 5% CAGR

Fact.MR anticipates that the global demand for background music will expand nearly 2x to reach US$ 1.2 Bn by 2031

A flourishing hospitality sector is augmenting demand for cafes, restaurants and other public places, stimulating background music popularity

Emphasis on sonic branding by offering customized music streaming services is expected to widen growth prospects in the future

According to Fact.MR’s report, background music services account for 50% of total demand in North America

Rising popularity of coffee bars and cafeterias is prompting increased investment in Germany, poised to expand at 8% CAGR

India is expected to generate around 40% of overall background music services demand

Restaurants & cafes are expected to remain primary end users, contributing over 60% of total demand

Music streaming services are expected to grow at around 5% CAGR, comprising a significant stakeholder of background music services

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Is the market research conducted by Fact.MR?

Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.

What research methodology is followed by Fact.MR?

Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.

What are the sources of secondary research?

Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.

Who are the respondents for primary research?

Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.

Is a sample of this report available for evaluation?

Yes, you can request a sample, and it will be sent to you through an email.