Artificial Intelligence and Machine Learning Gaining Momentum. The global music streaming market is expected to grow from $24.09 billion in 2021 to $27.24 billion in 2022 at a compound annual growth rate (CAGR) of 13.08%. The music streaming market is expected to grow to $45.31 billion in 2026 at a compound annual growth rate (CAGR) of 13.57%.
North America was the largest region in the music streaming market in 2021. The regions covered in the music streaming market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The increasing adoption of smart devices is expected to propel the growth of the music streaming market. Smart devices such as smartphones, and smart speakers have changed the way of listening to music. They include smart features like the ability to set alarms, play music on voice command, control smart devices in-home, and stream live music, as they are powered by a virtual assistant.
For instance, according to statistics from Amazon Alexa 2020, nearly 53.6 million Amazon Echo speakers (smart speakers) were sold in 2020 which increase to 65 million in 2021. Therefore, the increasing adoption of smart devices will drive the growth of the music streaming market.
Artificial intelligence and machine learning in music streaming devices are the key trends in the music streaming market. Technologies like artificial intelligence and Machine learning enhance the music streaming experience by increasing storage and improving the search recommendations, improving the overall experience.
For instance, in January 2022, Gaana, an India-based music streaming app introduced a new product feature using artificial intelligence to enhance the music listening experience for its listeners. The app will modify music preferences using artificial intelligence to suit a person's particular occasion or daily mood.
In May 2022, SoundCloud, a Sweden-based music streaming platform, announced the acquisition of Musiio, for an undisclosed amount. Through this acquisition, SoundCloud aims to strengthen its capabilities in AI and identify upcoming music trends and talent by leveraging its vast data. Musiio is a Singapore-based music technology start-up that uses AI for music streaming and automatically tag and identify songs.
The music streaming market consists of sales of music streaming services by entities (organizations, sole traders, and partnerships) that are used to feed audio content directly into the device, personal computers (PC), or mobile devices, without the need of downloading files from the internet. It is offered through a web-based or application-based service. Users can also download music for offline listening and upload their soundtrack to the cloud using these services.
The main types of services provided by music streaming are on-demand streaming and live streaming. The on-demand streaming are the service in which a consumer requests the music according to his convenience. In on-demand streaming, music can be rewind, fast-forwarded, or paused as per the consumer demands.
Music streaming offers audio and video content through application-based platform or web-based platform. Music streaming services are provided by revenue channels such as non-subscription and subscription and are used for individual use or commercial use.