Streaming apps have become the preferred mode for consuming music during the past decade. The popularity of platforms such as Spotify, Amazon Music, and Apple Music is still consistently increasing. According to the numbers presented by StockApps.com, the music streaming industry is set to bring in $26.61 billion in revenue in 2022.
According to the data available at Statista, the music streaming industry is expected to earn $26.61 billion this year. In 2021, the annual revenue stood at $23.29. Thus, the yearly revenue is set to grow by 13.83% year-on-year. This growth is impressive, but the numbers suggest that the growth rate might slow down in the future. Next year, the industry will earn $29.55 billion in revenue – an annual increase of 11%. The yearly rate of growth would further drop to 8.6% in 2024.
When we consider the annual growth rate (CAGR) from 2022 to 2026, the industry is set to grow by 8.10%. At this rate, the annual revenues will go up to $36.34 billion in 2026. In 2017, the music streaming industry brought in only $10.59 billion. Comparing the revenue in 2017 with the expected figure in 2026 shows a 243% growth. Thus, the music streaming industry is expected to more than triple itself in the span of a decade.
However, there is still a lot of scope for growth left in the industry. As per the data, the penetration rate of music streaming is estimated to be only 9.4% in 2022. The penetration is expected to grow to 12.2% in 2026.
The United States is the most significant market for the music streaming industry. According to the numbers, the US alone will bring in $9.8 billion in revenue in 2022 – accounting for 37% of the entire 2022 figure.
China is in the distant second spot, with $2.5 billion in revenue expected in 2022. China’s figure amount for only 9.4% of the entire revenue.
The United Kingdom completes the top three with $1.8 billion in revenue. Japan ($1.5 billion) and Germany ($1.4 billion) make the rest of the list of the five biggest markets in the music streaming industry.
Vyom Chaudhary, an editor at StockApps.com, commented: “It is evident that the majority of the music streaming user-base is based in developed countries. One can expect the industry to continue growing as music streaming increases its penetration in upcoming markets.”
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