Audio Streaming Market is Estimated to Witness High Growth Owing to Increasing Adoption of Smart Devices

The audio streaming market has witnessed significant growth in recent years, owing to the increasing adoption of smartphones, tablets, smartwatches, and other smart devices. Audio streaming enables users to listen to music, podcasts, and audio books on-demand without having to download files. Artists and content creators are also increasingly embracing audio streaming platforms as they offer better monetization opportunities compared to digital downloads. Key players in the audio streaming industry including Apple Inc., Spotify and Pandora have built strong content catalogs spanning various genres and languages, further driving the popularity of audio streaming services globally.

The 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 2023 to 2030.

Key Takeaways

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. These players have made significant investments in enhancing their content libraries and platform capabilities to attract more subscribers.

The availability of affordable data plans and rising smartphone penetration across emerging markets offer significant growth opportunities for audio streaming players. According to reports, India and Southeast Asian countries are expected to drive the next phase of growth in subscribers.

Audio streaming platforms are also embracing new technologies such as artificial intelligence, machine learning and virtual/augmented reality to enhance content discovery and deliver personalized listening experiences. Platforms are creating interactive audio content leveraging these technologies to engage users more deeply.

Market drivers

One of the key drivers for the audio streaming market is the rising popularity of music streaming subscriptions among younger demographics globally. Affordable subscription plans coupled with large music libraries have helped platforms gain strong footholds in new markets. The pay-for-access model also benefits artists and record labels, creating a win-win ecosystem. The growth in subscription revenues is projected to continue driving investments in exclusive content and platform enhancements.

Current challenges in the Audio Streaming Market:

The audio streaming market faces numerous challenges currently. Online piracy remains a significant problem, as many users still access music without paying for streaming subscriptions. This eats into the revenue of legitimate streaming platforms. Data usage and billing complexities have also deterred some potential subscribers in price-sensitive markets. Platform fragmentation is another challenge, as users have to maintain separate subscriptions or library across various services. However, continuous improvements in technology and partnerships between competitors will help address these issues going forward.

SWOT Analysis

Strength: Audio streaming provides access to an extensive music library on-demand. This vast catalog is a big attraction for music lovers.

Weakness: Free ad-supported tiers dilute revenue potential of paid subscriptions. Dependence on internet connectivity can impact user experience.

Opportunity: Emerging markets in Asia and Africa offer solid growth opportunities. Personalized listening experiences through AI/ML will boost user engagement and time spent on platforms.

Threats: Piracy continues to undermine the paid user base of legitimate services. Stiff competition from tech giants make customer acquisition challenging.

Geographical Regions

North America accounts for the largest share of the global audio streaming market currently, both in terms of value and volume. This is attributed to factors like high mobile/internet penetration, widespread acceptance of digital payment methods, and presence of major industry players in the region.

The Asia Pacific region is expected to witness the fastest growth during the forecast period from 2023 to 2030. Rapid increase in the number of smartphone users combined with cheap data plans are propelling the audio streaming adoption in countries like India and Indonesia. Live audio platforms are also gaining popularity among digital natives in the region.

*Note:

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