The popularity of music streaming globally is highlighted by the crossing of an important milestone in 2021. According to data presented by Trading Platforms, revenue from music streaming globally will exceed $20B for the first time in 2021 and will reach over 900M users by 2025.
Music Streaming Industry To Cross $20B Revenue Mark in 2021
The music streaming industry is relatively new but proved to be a paradigm shifter when it emerged as a legitimate force to change the music industry. Suddenly, access to music became easier and more affordable than ever before. Music streaming was impactful for listeners and for artists who saw services such as Spotify help solve the growing threat of piracy that was plaguing the music industry at that time.
In 2021 the music streaming industry is projected to pass the $20B revenue mark globally for the first time. 2020 was a big year for the industry as it experienced nearly 30% growth as a direct result of the COVID-19 pandemic. In 2021 it is expected to grow a further 16.7% and reach $23.05B. From 2021-2025 revenue from music streaming is expected to grow at a compound annual growth rate (CAGR) of 9.69% reaching $33.37B by 2025.
Users To Reach 900M by 2025; Penetration Rate To Breach 10% in 2023
The number of music streaming users globally increased dramatically in 2020 when it crossed the important milestone of 500M users globally. In 2021 it is expected to add another 15% to its user base and reach 630.5M users. From 2021-2025, music streaming users globally are expected to grow at a CAGR of 9.5%, reaching 906.4M by the end of the forecast period.
The global penetration rate remains modest at just 8.4% in 2021 but the top 5 penetration rates among countries of the world all recorded penetration rates above 24%. The global penetration rate is projected to reach double digits for the first time in 2023 when it is expected to record a penetration rate of just above 10%.
Rex Pascual, editor at Trading Platforms, commented:
“Despite services like Spotify and Apple Music reaching household name status in developed markets like the US and the UK, there is still plenty of opportunities left when it comes to the music streaming industry. As of 2021, the global penetration rate is still in the single digits, which shows that many markets remain unsaturated. Expect this to change very soon as data shows penetration rates will breach the 10% mark by 2023.”