The background music market involves music services that are used in commercial spaces like shops, restaurants, hotels etc. to provide a pleasant ambience. Background music solutions offer customizable music playlists that can be tailored according to the target demographic and business type. Background music finds applications across various industries like retail, hospitality, retail, healthcare, and others where music is utilized to create a soothing atmosphere. Background music services are available both as a software as well as a hardware solution. The software solutions include streaming and downloadable music platforms while hardware solutions comprise audio equipment like speakers, music systems etc. that enable background music playback.
The global background music market is estimated to be valued at US$ 1495.12 Mn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
As mentioned in the heading, the surging demand for enhanced customer experience is expected to drive the background music market during the forecast period. Background music helps in positively influencing customer behavior and boosting purchases. It has been proven through various case studies that customers tend to spend more time and money in shops and retail outlets that play soft background music as compared to places with no music. Background music also helps in masking other ambient noises and creates a pleasant, relaxing environment for customers. This improves the overall shopping experience and encourages repeat visits and higher customer loyalty. The retail industry has particularly adopted background music solutions on a large scale to attract more customers by enhancing their in-store experience. Another major driver for this market is the ability of background music to uplift the moods of customers and employees. Pleasant background tunes can reduce stress and induce positive emotions and feelings of well-being. This results in relaxed, energized and happier customers as well as staff members.
Segment Analysis
The background music market can be segmented into streaming and non-streaming. The streaming segment is currently dominating the market as it accounts for around 65% share due to increasing digitalization and the rising popularity of music streaming platforms. Consumers prefer streaming music over other non-streaming options owing to benefits like unlimited access to music library, customized play lists as per mood and ambient, and cost effectiveness in the long run.
PEST Analysis
Political: The background music market is subjected to copyright laws. Favorable regulations to protect IP rights of music creators promote the legal use of music in businesses.
Economic: Growth in commercial sectors like retail, hospitality, and public places fuels the demand for ambient background music solutions. Rising income levels increase consumers spending on entertainment and shopping experiences.
Social: Younger demographic is majorly driving the digital music consumption trends. Their preference for personalized on-demand music while shopping or in cafes influences businesses to focus on streaming solutions.
Technological: Rapid advancements in telecom networks, stable internet connectivity, and proliferation of smart devices enable seamless access and usage of music streaming apps in different commercial verticals.
Key Takeaways
The Global Background Music Market Size is expected to witness high growth during the forecast period. Regionally, North America leads currently with over 30% share due to high digital infrastructure and changing consumer listening preferences towards on-demand streaming. Increasing digitization of businesses in Asia Pacific makes it the fastest growing regional market.
Key players operating in the background music market are PlayNetwork, Inc., TouchTunes Music Corporation, Sirius XM Holdings, Inc., Almotech Media Solutions, Imagesound, Easy on Hold, Soundnet Limited, Xenox Music & Media B.V., Qsic Pty Ltd., Express Melody, OpenEar Music, Auracle Sound, Cloud Cover Music, and Mood Media Corporation. Key players focus on expanding their music libraries and tailoring streaming solutions for various business verticals to strengthen market presence. They also compete in terms acquisition and partnerships to enhance content portfolio.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it