Digital Music - GCC

GCC

Highlights

In the GCC, revenue in the Digital Music market market is projected to reach US$261.60m in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 5.64%, leading to a projected market volume of US$344.30m by 2029.
The largest market within this market is Music Streaming, which is expected to have a market volume of US$220.20m in 2024.
Comparatively, the majority of revenue in the global context will be generated the United States, estimated at US$19.08bn in 2024.
Within the Digital Music market market, the number of users in the GCC is expected to reach 23.6m users by 2029.
User penetration in the region will be 35.2% in 2024 and is projected to increase to 37.0% by 2029.
The GCC region is witnessing a surge in digital music streaming services, driven by increased internet penetration and a youthful, tech-savvy population eager for diverse content.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in GCC is experiencing significant growth and development.

Customer preferences: Customers in the GCC region are increasingly turning to digital music platforms for their music consumption. The convenience and accessibility offered by these platforms, such as streaming services and online stores, have made them popular choices among consumers. Additionally, the wide variety of music genres and artists available on these platforms cater to the diverse tastes of customers in the region.

Trends in the market: One of the key trends in the Digital Music market in GCC is the shift from physical music formats, such as CDs, to digital formats. This trend is driven by the increasing adoption of smartphones and other mobile devices, which provide users with the ability to access and download music on the go. Streaming services are also gaining popularity, as they offer users the option to listen to music without the need for downloads or storage space on their devices. Another trend in the market is the rising popularity of local and regional music. GCC countries have a rich cultural heritage, and customers in the region are increasingly seeking out music that reflects their own traditions and identities. This has led to a surge in the availability and promotion of local and regional music on digital platforms, catering to the preferences of customers in the GCC region.

Local special circumstances: The Digital Music market in the GCC region is influenced by certain local special circumstances. One such circumstance is the strong presence of local music labels and artists. These labels and artists play a significant role in promoting and distributing music in the region, and their partnerships with digital platforms have contributed to the growth of the market. Additionally, the region's large expatriate population has also had an impact on the market, as it has led to the availability of a wide range of international music on digital platforms.

Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the development of the Digital Music market in the GCC region. The region's strong economic growth and high disposable incomes have increased the purchasing power of consumers, enabling them to spend more on digital music. Additionally, the rapid urbanization and technological advancements in the region have created a favorable environment for the growth of the market. The GCC governments' initiatives to support digital transformation and promote the creative industries have also played a role in fostering the development of the Digital Music market in the region. Overall, the Digital Music market in the GCC region is witnessing significant growth and development due to the preferences of customers for convenience and accessibility, as well as the availability of local and regional music. The shift from physical to digital formats, the rising popularity of streaming services, and the presence of local music labels and artists are key trends in the market. The strong macroeconomic factors, such as economic growth, high disposable incomes, and government support, are driving the growth of the market in the GCC region.

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.