7 July 24 news, market research organization omdia released the latest global music retail market forecast report, showing that the field will usher in the tenth consecutive year of growth, marking that the downward trend since the beginning of the 21st century has been completely reversed. It is predicted that global music retail sales will continue to rise and will reach US$43.9 billion by the end of 2024, then exceed the US$50 billion mark in 2027, and will further increase to US$53.4 billion by 2028.
Picture source omdia
omdia’s analysis pointed out that the main driving force for this round of growth comes from the booming development of subscription services, especially streaming media platforms represented by Spotify, Apple Music and YouTube Music. Subscription revenue from these platforms is expected to grow from US$24.3 billion in 2023 to US$26.8 billion in 2024, an increase of 10.4%, and exceed US$34.4 billion in 2028, with a compound annual growth rate of 7.2%.
In addition, the growth of advertising revenue cannot be ignored. Omdia predicts that over the next five years, advertising revenue will grow at a compound annual growth rate of 5.7%, exceeding the 2% compound annual growth rate of physical sales, although physical sales will still be the second largest source of revenue. Total audio and video advertising revenue is expected to grow from US$4.9 billion in 2023 to US$5.3 billion in 2024, and reach US$6.5 billion in 2028.
The Chinese market deserves particular attention. Omdia is particularly optimistic about the prospects of the Chinese music market, predicting that its sales will double in the next five years, and is expected to grow from US$1.97 billion in 2023 to US$2.4 billion in 2024, an increase of 22.1%. With the significant increase in compound annual growth rate, China is expected to surpass Germany in 2026 and become the fourth largest music market in the world; in 2027, it is expected to surpass the United Kingdom and rank third; as early as 2029, China may even It has become the largest music market in Asia and the second largest in the world. Simon Dyson, senior principal analyst at
omdia, said: “Our latest data should be exciting for music companies. By the end of 2028, global music retail sales will have achieved 14 consecutive years of growth, which marks that the industry has fully recovered and entered a sustained period. A new stage of growth.”
Source: Global Network
