Cloud Music Streaming Market

Music Streaming Market Outlook

The global cloud music streaming market was valued at around US$ 10 Billion in 2020, and is expected to reach a valuation of US$ 30 Billion by 2031, accelerating at a CAGR of 12%.

Demand for cloud music streaming for individual use is higher and is projected to rise at a CAGR of 10% across the assessment period of 2021 to 2031.

Revenue Analysis of Cloud Music Streaming from 2016 to 2020 Compared to Market Outlook for 2021 to 2031

As per Fact.MR, a market research and competitive intelligence provider, the global market for cloud music streaming was valued at US$ 10 Bn in 2020.

Cloud has revolutionized the music industry and the way digital music is being consumed. Owing to its growing penetration and coverage, mobile phones have become the device of choice for availing cloud music services.

According to the IFPI Global Music Report 2018, total streaming revenue grew by 41.1% and became the single largest revenue source. In 2017, there were 176 Mn users of paid subscription accounts globally, with 64 Mn having been added during the same year.

In 2017, revenue generated from paid streaming also increased, reaching US$ 1.49 Bn as compared to US$ 995 Mn in 2016. Consistent growth of services such as Apple Music, Spotify, and Amazon's streaming services are positively impacting the growth of paid subscriptions.

Record companies providing customers with a customized music experience and growing demand for cloud music streaming in cars and cloud enabled stereo systems will be driving market growth over the coming years.

Emergence of 5G, rising sales of cloud music streaming subscriptions, and top cloud music streaming applications are few other factors expected to drive market expansion at 12% CAGR from 2021 to 2031.

What are the Key Factors Driving Market Growth for Cloud Music Streaming?

Cloud music streaming is primarily used to increase access to music by overcoming limitations imposed by device storing capacity or lack of ownership. Streaming, subscription, and other cloud services provide listeners with service agreements to rent music out for a certain fee or under certain conditions.

Increasing integration of analytics in the music industry is expected to be one of the latest trends in the cloud music streaming industry. Backing from curators, editors, and data analytics systems enables record companies to provide customers with a customized music experience.

What are the Restraints being Encountered by Cloud Music Streaming Service Providers?

Issues related to high Internet costs are expected to limit the growth of the global market for cloud music streaming. Also, increasing concerns related to bandwidth and fast streaming requirement are expected to create challenges for the growth of the market to a certain extent over the coming years.

Which Region Offers Huge Opportunity for Cloud Music Streaming?

North America leads with more than 40% share in the global market for cloud music streaming. North America has also been a pioneer in the adoption of music services, which provides the region with an edge over other regions.

Presence of key market players such as

• Amazon.com Inc.
• Apple Inc.
• Google LLC
• Pandora Media Inc.

 is one of the primary factors driving the market in the region.

Moreover, fixed broadband speeds and coverage, high penetration of connected devices, and growing demand for cloud music and on-demand streaming services also supplement the development of these services in the region.

Rising demand for cloud music streaming subscriptions in Japan and increasing sales of cloud music streaming in Canada are supporting the growth of cloud music streaming services across these countries.

Country-wise Analysis

What is the Cloud Music Streaming Demand Outlook for the U.S.?

The U.S. market for cloud music streaming was valued at over US$ 3 Bn in 2020. The U.S. is expected to show promising growth due to high penetration of the Internet and increase in adoption of smartphones, coupled with rise in the number of netizens.

According to the IFPI Global Music Report 2018, streaming in the United States was up 49.8% and paid subscription audio streaming revenue grew 59.6%. Paid music streaming has been aiding overall market growth of the U.S. music industry.

Spotify and Apple Music are responsible for around 80% of subscription streaming among subscribers in the United States.

Presence of cloud music streaming service providers in the U.S., high disposable income, and elevated demand & consumption of music are expected to boost market growth in the country.

What are the Growth Opportunities for Cloud Music Streaming Service Providers across China?

By 2031, China is expected to have a market value of roughly US$ 8 Bn. Shift in consumer Internet consumption patterns from traditional phones to smartphones is one of the significant factors driving demand for cloud music in China.

Top cloud music service providers as well as global companies are expanding their businesses across the region. Many local players provide the freemium model of streaming services to sustain the volume-driven market in the country and to retain existing customers as well as attract new ones.

Category-wise Insights

Will Increasing Penetration of Smartphones Drive Demand for Cloud Music Streaming?

With growing number of smartphones and tablets, music listeners’ behaviour is changing. Top listed companies in the global cloud music streaming market are entering into strategic partnerships with mobile manufacturers to expand their business scope.

Use of music cloud services is also increasing at a faster rate. It eradicates the issue of storing songs on a mobile. It allows users to listen to their favorite playlists whenever they want with the use of a smartphone. Increasing number of smartphones has led to higher adoption of mobile cloud services, which eventually has increased demand for mobile cloud services.

Moreover, with advanced technology related to mobile networks, users can enjoy high-speed Internet access to playlists over the cloud, and this is predicted to boost the over cloud music service market.

Rising demand for cloud music streaming in smartphones, tablets, and laptops, latest trends in cloud music streaming subscriptions, and significant mobile coverage claiming over one billion 4G subscriptions are some of the major factors influencing the global cloud music services market.

Why is the Popularity of Cloud Music Streaming for Individual Use Rising Rapidly?

Cloud music streaming for individual use accounts for a share of 50% in the market, as the emergence of online music streaming services has enabled users to access millions of songs easily.

In addition, changes in lifestyle of individuals, which involves listening to music during commuting & daily chores, is driving demand for cloud music streaming on wearable devices; this has led to the growth of the individual segment.

Since the introduction of music streaming services, users have been able to access millions of songs on demand easily. Many tech companies allow their employees to plug in earphones to listen to songs and work in isolation.

Furthermore, with improved accessibility of wireless networks and extensive use of mobile devices, downloads are increasingly being replaced in the digital music market. These factors are also expected to drive adoption of these platforms among an increasing number of individuals globally.

How Has COVID-19 Impacted Demand for Cloud Music Streaming?

The outbreak of the COVID-19 pandemic is further acting as a key driving force for the global cloud music streaming space. This is attributed to the fact that governments imposed stringent lockdowns to contain the spread of the virus.  Hence, people were forced to stay at home, which, in turn, increased adoption and usage of top cloud music streaming apps across the globe.

According to Tencent Music Entertainment, music streaming was majorly done using home appliances such as TVs more than smartphones during lockdowns. Moreover, an upsurge has been witnessed in the number of subscribers on various platforms such as Spotify, Tencent Music Entertainment, and Amazon Music.

All in all, the COVID-19 outbreak had a positive impact on the growth of the music streaming market.

Competitive Landscape

Top companies in the cloud music streaming market are acquiring start-ups working on cloud-based music services to strengthen their product capabilities.

• Spotify launched its service in 13 new markets in the Middle East and North Africa, with a fully Arabic user experience, offering music fans the best of international and local music, and a wealth of locally-curated playlists, such as Oriental Chill Vibes and Arabic EDM, among others.
• Amazon launched Amazon Prime Music, an ad-free music streaming service available exclusively for Prime members. The service includes features such as unlimited offline downloads and voice controlled search with Amazon’s personal assistant software - Alexa.

Cloud Music Streaming Industry Report Scope

Report Attributes	Details
Market size value in 2020	USD 10 Billion
Market forecast value in 2031	USD 30 Billion
Growth Rate	CAGR of 12% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania MEA
Key Market Segments Covered	Type Application End Use Region
Key Companies Profiled	Apple Inc. Amazon.com, Inc. Pandora Media, Inc. Spotify Google Inc. Microsoft Corp. Sound Cloud Tune-In Radio Rhapsody My Space Napster Samsung Music Hub Grooveshark Gaana.com Aspiro Last.fm Beats Electronics

Key Market Segments in Cloud Music Streaming Industry Research

• Type

  • Cloud Music Download
  • Cloud Music Streaming Subscription
  • Ad-based Cloud Music Streaming

• Application

  • Smartphones
  • Laptops
  • Tablets
  • Cars
  • Cloud Enabled Stereo Systems

• End Use

  • Individual Use
  • Commercial Use