Digital Music - EU-27

EU-27

Highlights

In the EU-27, revenue in the Digital Music market market is projected to reach US$6.92bn in 2024.
Revenue is expected to exhibit an annual growth rate (CAGR 2024-2029) of 3.81%, leading to a projected market volume of US$8.34bn by 2029.
The largest market within this market is Music Streaming, which is anticipated to have a market volume of US$5.76bn in 2024.
In a global context, the majority of revenue is expected to be generated the United States with an estimated US$19.08bn in 2024.
Within the Digital Music market market, the number of users in the EU-27 is expected to reach 188.8m users by 2029.
User penetration in the EU-27 will be 39.1% in 2024 and is projected to rise to 42.5% by 2029.
The EU-27 digital music market is increasingly prioritizing subscription services, reflecting a shift in consumer preferences towards on-demand audio accessibility and personalized experiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in EU-27 is experiencing significant growth and development.

Customer preferences: Customers in the EU-27 are increasingly turning to digital music platforms to consume and discover music. Streaming services have become particularly popular, allowing users to access a vast library of songs on-demand. This shift in consumer behavior can be attributed to several factors. Firstly, the convenience of streaming platforms allows users to access music anytime and anywhere, using their smartphones or other devices. Additionally, the affordability of streaming services compared to purchasing individual songs or albums has made them a more attractive option for consumers. Furthermore, the ability to create personalized playlists and discover new music through algorithms and recommendations has enhanced the overall user experience.

Trends in the market: One of the key trends in the Digital Music market in the EU-27 is the increasing dominance of streaming services. This trend is driven by the growing availability of high-speed internet and the widespread adoption of smartphones and other connected devices. As a result, traditional physical music formats such as CDs are declining in popularity. Another trend is the rise of local and regional music streaming platforms, offering a more tailored experience for users in specific countries or regions. These platforms often feature localized content, playlists, and recommendations, catering to the unique tastes and preferences of consumers in each market.

Local special circumstances: Each country within the EU-27 has its own unique music culture and preferences, leading to variations in the digital music market. For example, countries like Sweden and Norway have a strong tradition of music streaming, with homegrown platforms gaining significant market share. In contrast, countries with a strong local music scene, such as France and Italy, may have a higher demand for platforms that promote and support local artists. Additionally, language barriers can also influence the adoption of digital music platforms, with platforms that offer a wide range of international music and localized content being more popular in countries with diverse language preferences.

Underlying macroeconomic factors: The growing digital music market in the EU-27 can be attributed to several macroeconomic factors. Firstly, the increasing penetration of high-speed internet and the proliferation of smartphones and other connected devices have made it easier for consumers to access and consume digital music. Additionally, the rising disposable incomes in many EU countries have made digital music more affordable and accessible to a larger portion of the population. Furthermore, the shift towards digital music has also been driven by advancements in technology, such as improved audio quality and the development of user-friendly streaming platforms. Overall, the Digital Music market in the EU-27 is experiencing significant growth and development, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The dominance of streaming services, the rise of local platforms, and the influence of unique music cultures within each country are shaping the digital music landscape in the EU-27.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Music, Radio & Podcasts market, which comprises all revenues generated by traditional and digital radio advertising, consumer purchases of live music event tickets, all sales of tangible audio recording formats, paid digital downloads of professionally produced single tracks / compilations, ad-supported services, and subscription-based, on-demand streaming services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective market. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.