May 21, 2024
Ict

Audio Streaming Market is Anticipated to Witness High Growth Owing to Increasing Smartphone Penetration

The audio streaming market has witnessed significant growth in recent years. Audio streaming involves listening to streaming audio content from online music services through Wi-Fi or a mobile network. The market provides access to a vast library of songs, podcasts, and other audio content. Listeners can stream any song on demand without having to download files to their devices. The services allow creating personalized playlists and receiving recommendations. Audio streaming has replaced the need for locally storing music files on devices.

Global Audio Streaming Market is estimated to be valued at US$ 38.27 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period from 2023 to 2030.

Rising smartphone penetration has been a significant driver of growth in the audio streaming industry. As smartphones come pre-loaded with audio streaming apps and high-speed networks allow seamless streaming, more people are adopting streaming as a primary source of music consumption.

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.

Key opportunities in the market include various freemium models adopted by players to attract more listeners. Additionally, the integration of audio streaming services with other smart devices beyond smartphones provides an opportunity to expand the audience base.

Globally, audio streaming services are expanding to various regions through partnerships with local telcos, OEMs, and content providers. Localization of content and payment options improves user experience and accelerates adoption in new international markets.

Market Drivers
Increasing smartphone penetration: Most smartphones are shipped with pre-loaded audio streaming apps. The widespread availability of high-speed mobile networks has made audio streaming accessible anywhere, driving significant growth.

Rise of customized playlists: Audio streaming services analyze user preferences to provide personalized playlist and recommendations based on their tastes. This personalized experience has increased user engagement and time spent on platforms.

Market Restraints
Piracy and lack of localized content: In developing markets, piracy continues to be a challenge as people access pirated content instead of paying for subscriptions. Additionally, lack of localized content and payment options deters growth in some regions.

Network connectivity issues: Reliance on mobile networks makes audio streaming susceptible to interruptions caused by network coverage and speed issues. This inconsistent experience impacts user satisfaction negatively.

Segment Analysis
The audio streaming market can be segmented based on content type, platform, revenue model, and end user. Based on content type, the music streaming sub segment currently dominates the market due to rising popularity of music streaming subscription services like Spotify, Apple Music, among others. Music streaming allows users to access millions of songs on-demand for a low monthly subscription fee. Based on end user, the individual user sub segment leads the market as rising disposable incomes and penetration of smartphones have made music streaming accessible to masses.

Global Analysis
In terms of regions, North America currently captures the largest share in the audio streaming market owing to rapid adoption of digital platforms and presence of key players like Spotify and Pandora in the region. However, Asia Pacific is expected to grow at the fastest pace during the forecast period due to increasing popularity of music streaming services in developing countries like India and China due to inexpensive data plans and rising penetration of smartphones. Countries like Japan and South Korea also contribute significantly to the regional market growth.

*Note:

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