Music Streaming Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Music Streaming Market is projected to expand significantly, growing from USD 52.51 Billion in 2025 to USD 117.77 Billion by 2031, reflecting a compound annual growth rate of 14.41%. This industry involves the digital distribution of audio over the internet, enabling users to listen in real time without needing to download files. The primary factors driving this growth include the widespread adoption of smartphones, the increasing availability of affordable broadband internet, and consumer preference for convenient access to vast music libraries. These infrastructural and behavioral changes provide a solid foundation for the continued development of digital audio services in both established and emerging markets.

According to the IFPI Global Music Report 2025, streaming revenues exceeded 20.4 billion US dollars in 2024, accounting for 69 percent of total global recorded music income. This sector was supported by an increase in paid subscription accounts, which totaled 752 million users worldwide. Despite this positive trajectory, the market faces substantial challenges regarding copyright infringement and compensation issues arising from the unauthorized use of licensed content by generative artificial intelligence systems. These legal complexities present a major obstacle to market stability and the fair distribution of value to rights holders.

Market Drivers

The rising adoption of paid subscription and freemium models acts as the main financial engine driving the market. Platforms are effectively converting ad-supported users into premium subscribers by providing better audio quality, offline capabilities, and ad-free listening, capitalizing on the transition from content ownership to access-based consumption. This tiered monetization approach stabilizes revenue against advertising fluctuations and enables providers to scale quickly in price-sensitive emerging economies. For instance, Spotify’s 'Third Quarter 2024 Earnings' report noted a 12% year-over-year increase in premium subscribers, reaching 252 million globally. Additionally, in mature markets like the United States, user retention remains strong, with the Recording Industry Association of America (RIAA) reporting a record 99 million paid subscriptions in 2024.

Simultaneously, the expansion of podcast and non-music audio libraries is fundamentally changing user engagement and platform value. Streaming services are developing into comprehensive audio ecosystems by integrating spoken-word content to increase time spent on the platform and distinguish themselves in a competitive market. This diversification helps lower music licensing costs while attracting a wider audience interested in news, storytelling, and education, thereby reducing churn. The success of this strategy is evident in user behavior; according to Radio Ink in November 2024, over 250 million users streamed video podcasts on Spotify, demonstrating the significant appeal of multi-format digital audio experiences.

Market Challenges

The unauthorized use of licensed content by generative artificial intelligence systems presents a legal complexity that undermines the stability of the global music streaming market. When AI models are trained on copyrighted audio without obtaining proper licenses, they bypass established payment structures and devalue proprietary catalogs. This circumvention enables AI-generated material to flood streaming platforms, diluting royalty pools and competing directly with human-created music for listener attention and revenue. The resulting uncertainty regarding copyright enforcement deters investment in new talent and disrupts the financial predictability necessary for rights holders to sustain production.

Data from GEMA and SACEM in 2024 indicates that approximately 71 percent of music creators surveyed believe the unregulated use of generative AI threatens their income and future livelihood. This widespread concern highlights the tangible impact of remuneration gaps on the supply side of the industry. As creators face the risk of revenue displacement, the market experiences friction that jeopardizes the continuous flow of high-quality content required to maintain subscriber retention and overall ecosystem growth.

Market Trends

User engagement strategies are being reshaped by the adoption of AI-driven hyper-personalization and contextual recommendations, as platforms shift from static playlists to real-time, generative content curation. Streaming services are increasingly using large language models to develop features such as dynamic AI DJs and prompt-based playlist generation, which customize listening sessions based on specific user moods, activities, and times of day. This technological advancement improves content discovery and boosts monetization by driving higher user retention and encouraging upgrades to premium tiers. As reported by Nasdaq in July 2025, the rollout of AI playlist features to new markets helped contribute to a 4% average year-over-year revenue per user (ARPU) growth in the first quarter of 2025.

Concurrently, the rise of niche and localized regional music repertoires is decentralizing the global streaming landscape, signaling a shift away from Anglo-centric content dominance. Emerging markets are seeing a boom in domestic content consumption as platforms enhance local discovery algorithms and support regional artist ecosystems, effectively capturing audiences in high-growth areas that prefer culturally relevant audio. This trend is fostering a two-speed market where international expansion exceeds domestic saturation in mature economies. According to Music Business Worldwide in January 2025, on-demand audio streaming growth in non-US regions reached 17.3% year-over-year, more than double the 6.4% growth rate observed in the United States.

Key Players Profiled in the Music Streaming Market

• Spotify USA Inc.
• Apple Inc.
• Google LLC
• Amazon.com Services LLC
• Tencent Music Entertainment Group
• SoundCloud Limited
• Deezer S.A.
• Block, Inc.
• Pandora Media, LLC
• Xandrie S.A.

Report Scope

In this report, the Global Music Streaming Market has been segmented into the following categories:

Music Streaming Market, by Service:

• On-Demand Streaming
• Live Streaming

Music Streaming Market, by Content:

• Audio
• Video

Music Streaming Market, by Platform:

• Application based
• Web based

Music Streaming Market, by Application:

• Individual
• Commercial

Music Streaming Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Music Streaming Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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