The audio streaming market allows users to listen to music and podcasts over the internet. Some of the popular audio streaming services include Apple Music, Spotify, Amazon Music, and YouTube Music. Audio streaming provides users with on-demand access to a huge catalog of songs without the need to store music files on the device. It offers features like customized playlists and recommendations based on the user's listening history and preferences. The growing penetration of smartphones and availability of high-speed internet have boosted the adoption 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. Audio streaming services by these companies have millions of daily active users worldwide.

The demand for audio streaming is growing rapidly due to changing music consumption patterns among young consumers. Factors like increasing internet penetration and availability of affordable data plans are also fueling the consumption of music and podcasts on streaming platforms.

Several audio streaming companies are focusing on expanding their global footprint by entering new markets. They are investing in developing customized experiences for non-English speaking countries. Partnerships with local telcos and media companies help the players strengthen their presence internationally.

Market Drivers

The increasing penetration of smartphones is a key driver propelling the audio streaming market. According to estimates, over 95% of the global population uses smartphones. This widespread adoption of smartphones provides consumers easy and constant access to streaming services. Audio streaming applications optimized for mobile devices along with affordable data plans have made music streaming convenient on the go. The time spent on in-app audio and video streaming grows significantly each year, indicating rising popularity of digital content.

Impact of geopolitical situation on the growth of audio streaming market

The global audio streaming market growth is facing challenges owing to the volatility in geopolitical relations across many parts of the world. The ongoing conflict between Russia and Ukraine has disrupted economic activities and supply chains in Eastern Europe. This has negatively impacted the consumption patterns and discretionary spending on audio streaming subscriptions in the region. Furthermore, the rising geopolitical tensions between the US and China are leading many companies to shift their manufacturing units to other Asian nations. This may create short-term supply issues for audio streaming device manufacturers and marginally impact their revenue growth. However, audio streaming providers are also pursuing strategies like strategic partnerships and expanding their presence in politically stable nations to mitigate such risks. Offering customized localization of content as per local tastes and preferences would help them tap into new subscriber base and offset slowed growth amid geopolitical conflicts.

Geographical regions with high concentration of audio streaming market value

North America accounts for the largest share of the global audio streaming market value currently. The region has seen widespread adoption of smartphones and other smart connected devices that support audio streaming apps. The US alone contributes over 50% of the North American audio streaming revenue led by high digital media consumption habits of Americans. Western European countries like the UK, Germany, and France are also major revenue generators for industry players given high penetration of music streaming services. Asia Pacific is emerging as another high growth regional market with countries like India and China showing rising subscriptions for online music platforms. Localized content offerings and affordable data plans are fueling market uptake in Asia.

Fastest growing geographical region in audio streaming market

The Asia Pacific region is poised to witness the fastest growth in the global audio streaming market over the coming years. Countries like India and Indonesia are expected to lead this surge due to growing internet and smartphone adoption, affordable data plans, and increasing acceptance of digital music platforms among young populations. Audio streaming companies are widening their content libraries in local Asian languages and collaborating with telecom operators to give more users access to online music on affordable terms. These initiatives coupled with rising disposable incomes will help augment audio streaming subscriptions across Southeast Asia and drive the regional market ahead of other global territories during the forecast period.