Cloud Music Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the time frame of the forecast, the global cloud music services market is expected to register a CAGR of about 13%.

Key Highlights

• Cloud storage has entirely transformed the music industry and how digital music is consumed. Due to its expanding penetration and coverage, the mobile phone has primarily replaced the computer as the primary device for delivering cloud-based music services. The IFPI World Music Report 2022 states that music streaming contributed 65% to the expansion of the global music market.
• The Car Spatial Audio with Dolby Atmos experience was made possible by a partnership between Mercedes-Benz, Apple Music, and Universal Music Group.According to a survey, 76% of car drivers preferred realistic spatial sound. This is the first time Apple will offer its services on a non-Apple device.
• Deezer, the France-based music streaming app, plans to join forces with German broadcaster RTL to expand its services in the country. RTL offers streaming services for TV series, movies, live TV, and sports, and this partnership will allow users to access Deezer’s personalized soundtrack feature Flow and curated playlists.
• The COVID-19 virus caused a new wave of digital platforms to grow, which helped the cloud music service market grow.Individuals used AI-powered music creation tools to make their music. These applications developed the demand for more storage, and consumers adopted on-demand music services.
• The majority of streaming providers need to develop a profitable business strategy. National regulations might also be necessary to enhance this sector's growth. In China, for example, local law and the country's closed-off digital market prevent international streaming players from reaching those viewers. Such marketplaces will lessen competition between music streaming services, ultimately resulting in less demand for the cloud music sector.

Cloud Music Services Market Trends

Increasing Penetration of Smartphones and Tablets drives the Market for Cloud Music Services

The global mobile user base is expected to reach 5.86 billion by 2025, and Asia Pacific will be the most significant contributor, adding 3.16 million users to this global figure. These new users will result in more music streaming subscriptions. The world is moving forward in the IoT era with smart televisions and smart homes, and music streaming firms partner with various vendors to expand their service offerings.

• December 2022: UK-based music-video app "Roxi" partners with Samsung. With this deal, every Samsung Smart TV manufactured since 2018 will have the Roxi music-video app installed. Along with this, the app will also be provided with Amazon's Fire TV, Google TV, and the premium range of Android TV.
• August 2022: Spotify collaborated with Samsung to offer new features like group listening, seamless listening, and more to Samsung's Android smartphone portfolio. Furthermore, with the advanced features of Spotify and Google Assistant, the Galaxy watches will also be able to play music, pause podcasts, or raise or lower the volume using simple voice commands.

North American Region Is Expected To Hold Major Market Share

One of the key geographical markets for cloud music services is North America. North America has an advantage over other regions because it was a pioneer in adopting music services. Also, there are many cloud music service providers in the area. Among these are Pandora Plus and Premium, Apple Music, Amazon Music Unlimited, Google and YouTube Music, and iHeartRadio All Access and Plus. Spotify and Apple Music fuel the subscription streaming for over 80% of US users.

• The popularity of Apple Music continued to increase in the USA. By the end of February 2022, Apple Music had 28 million paid subscribers, compared to Spotify's 26 million.
• Spotify, on the other hand, claimed to have 207 million active users through February 2022. It also showed that in its North America region, which includes Canada but not Mexico, there were 28.8 million premium subscribers and 62.1 million monthly active listeners.

Cloud Music Services Industry Overview

The cloud music services market is highly competitive and consists of several major players. In terms of market share, a few significant players currently dominate the market. These major players with high rankings in the market are focusing on expanding their customer base across foreign countries.

In May 2022, Amazon Music launches its services in Argentina. The service is already available in Colombia and Chile, and adding Argentina will expand its reach in Latin America. The streaming app will also feature locally curated playlists and stations.

In August 2022, a German media company, RTL Deutschland, joined forces with Deezer to launch the music streaming app RTL+ Musik. Subscribers can now enjoy over 90 million tracks, 5,000 curated playlists, and other key music streaming features.

In July 2022, Spotify, for the first time, announced the expansion of video podcasts in six non-English-speaking countries like Germany, France, Italy, Spain, Brazil, and Mexico. These markets have strong communities of podcast creators who are experts in the newest technologies and ideas for making content. This move was planned to bring new innovation and gain popularity among users around the world.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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