The cloud music services market is expected to grow at a compound annual growth rate of 29.48% over the forecast period to reach a market size of US$19.158 billion in 2026 from US$3.140 billion in 2019.
Cloud Music service allows users to listen to a variety of music tracks on demand without actually purchasing them. It also provides a facility for users to store personal music libraries online by matching their tracks to songs listed on the cloud service provider. They utilize computer servers connected to the internet to let users access music and other information. There are two major types of music cloud services. The first is similar to a radio station. You create a profile with the service and build up a music library based on your preferences. The service then streams music over the Internet to you. If you have a slow or unreliable connection to the Internet you may not be able to use these services all the time. Some, like Pandora Radio, allow you to create stations based on a specific artist or song. You aren't guaranteed to hear that artist or song every time you use the service. Instead, you'll hear music that Pandora Radio matches against your preferences. As you listen, you approve or turn down songs that play on your stations and Pandora Radio adjusts the playlist to suit your tastes. With this model of music cloud service, you'll still encounter new music. Many services work like Pandora Radio, using various algorithms to match your preferences to music the services have been licensed from music studios.
Another approach to the radio station model gives you a little more control over what's in your library. Services like Spotify allow you to search for specific songs and add them to playlists. Whenever you connect to your account, you can listen to your playlists, change the play order of songs and add or delete music from your library. You might not discover as much new music this way, but you'll be able to control your listening experience. Because this model also depends on music licenses, your choices won't be unlimited. If a studio hasn't licensed particular music to the service, you won't find it in the database. The other major type of cloud service gives you the most freedom but may also require a lot of work. These services store your music remotely. You may have to upload your own music to the service, which can take a lot of time if you have a large library or a slow Internet connection. The service acts as an external hard drive. You can access the music through a special interface -- services like Amazon Cloud Player and Google Music have computer and smartphone apps that do the trick.
Amazon and Apple both have services that give you a few more options when you want to add music to your library. They allow you to buy music through their respective stores and they automatically add your purchases to your online library -- you don't have to upload the music yourself. Both services also give you incentives to buy through their respective stores by padding out your storage space if you buy directly through them.
The growth of the global cloud music service market is driven by the growing penetration of the cloud for digital music. Cloud-based music services are increasingly being adopted in mobile phones. According to a report published by IFPI Global Music Report 2018, in 2017 around 176 million users subscribed to cloud music services, and the total revenue streaming revenues grew by 41.1%. Popular streaming services such as Apple Music, Spotify, and others are contributing heavily to the growth of the global cloud music services market. The companies are trying the merger and acquisition strategy to gain the upper hand in the market. For instance, Apple acquired Shazam, a popular music app that was used by millions of people across the globe.
However, some restraints are expected to hinder the growth of the global cloud music services market. The issues related to high internet costs are expected to limit the growth of the global online music services market. Also, the increasing concerns related to bandwidth and the fast streaming requirement are expected to create challenges for the growth of the global cloud music services market over the forecast period.
The is considered to be the major driving factor for the cloud music services market. With the rise in the use of smartphones, the use of music cloud services is also increasing at a faster rate. It eradicates the issue of storing the songs on the mobile. It allows the user to listen to his favorite playlist whenever they want with the use of smartphones. An increasing number of smartphones has led to higher adoption of mobile cloud services which eventually has increased the mobile cloud services market. Moreover, with advanced technology related to mobile networks, the user can have high-speed internet access to playlists over the cloud and this is predicted to boost the cloud music service market.
To stream a song online, there should be a high-speed bandwidth of the network, and to have continuous streaming, there should be a strong network. Many of the developing countries lack strong network communication which can adversely affect the cloud music service market. Moreover, efforts made by telecommunication and government services to set up strong network communication may overcome the restraints in the coming years. Moreover, the privacy associated with the music library can be a major restraint for the market as it is not uncommon for users to share the id and password.
The COVID-19 pandemic is further expected to have a positive impact on the cloud music services market growth as due to the pandemic, all forms of entertainment moved online. With no allowance on movement as well as the closure of all entertainment hubs, people were forced to adapt to new forms of media, propelling the growth of streaming services.
The increasing demand for cloud music services has led to the entry of several new market players in the cloud music services market. The entry of these new players in a market where traditional players like Apple and Spotify already exist is expected to lead to further innovation in the cloud music services market. Moreover, to further increase their clientele as well as increase their market share in the upcoming years, many of these market players have taken various strategic actions like partnerships and the development of novel solutions, which is expected to keep the market competitive and constantly evolving.
|Market size value in 2019||US$3.140 billion|
|Market size value in 2026||US$19.158 billion|
|Growth Rate||CAGR of 29.48% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Apple, Inc., Spotify, Amazon, Pandora, Sound Cloud, KKBOX, Youtube, Deezer SA, Saavn LLC, Gaana.com|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud music services market?
A1. Cloud Music Services Market was valued at US$3.140 billion in 2019.
Q2. What will be the cloud music services market size by 2026?
A2. The cloud music services market is expected to reach a total market size of US$19.158 billion by 2026.
Q3. What are the growth prospects for the cloud music services market?
A3. The global cloud music services market is expected to grow at a CAGR of 29.48% during the forecast period.
Q4. What factors are anticipated to drive the cloud music services market growth?
A4. The global cloud music service market growth is driven by the growing penetration of the cloud for digital music.
Q5. Who are the major players in the cloud music services market?
A5. Prominent key market players in the cloud music services market include Apple, Inc., Spotify, Amazon, Pandora, Sound Cloud, KKBOX, Youtube, Deezer SA, Saavn LLC, Gaana.com, among others.