Digital Music - Saudi Arabia

Saudi Arabia

Highlights

In Saudi Arabia, revenue in the Digital Music market market is projected to reach US$159.90m in 2024.
Revenue in this market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.37%, leading to a projected market volume of US$198.10m by 2029.
The largest market within this market in Saudi Arabia is Music Streaming, which is anticipated to have a market volume of US$138.80m in 2024.
In a global context, the majority of revenue will be generated the United States, which is projected to reach US$19.08bn in 2024.
Within the Digital Music market market in Saudi Arabia, the number of users is expected to reach 12.4m users by 2029.
User penetration in Saudi Arabia will stand at 29.8% in 2024 and is anticipated to increase to 31.1% by 2029.
The usage share of Spotify in the Digital Music market market and the selected region in 2023 is estimated to be 36.0%.
In 2023, a share of 34.0% of users belongs to the 34.0% group.
Saudi Arabia's digital music market is witnessing a surge in local artists gaining prominence, reflecting a broader cultural shift towards embracing diverse musical expressions.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Music market in Saudi Arabia is experiencing significant growth and development due to several key factors.

Customer preferences: Saudi Arabia has a young and tech-savvy population, with a high percentage of smartphone users and internet penetration. This has led to a growing demand for digital music streaming services and platforms. Saudi consumers are increasingly turning to digital music platforms to access and discover new music, as well as to create personalized playlists. The convenience and accessibility of digital music services have made them popular among Saudi music enthusiasts.

Trends in the market: One of the major trends in the Saudi Arabian digital music market is the increasing popularity of streaming services. Streaming platforms such as Spotify, Anghami, and Deezer have gained a significant user base in the country. These platforms offer a vast library of music that can be accessed on-demand, providing users with a wide range of options to choose from. Additionally, the rise of smart speakers and connected devices has further fueled the growth of digital music streaming in Saudi Arabia. Another trend in the market is the emergence of local and regional music streaming platforms. These platforms cater specifically to the preferences and tastes of Saudi Arabian music listeners. They offer a curated selection of Arabic and Saudi music, providing users with a more personalized and culturally relevant music experience. This trend reflects the demand for localized content in the digital music market.

Local special circumstances: Saudi Arabia has a rich musical heritage, with traditional Arabic music playing an important role in the country's culture. The digital music market in Saudi Arabia has responded to this by offering a wide range of Arabic and Saudi music, catering to the preferences of local listeners. This focus on local content has contributed to the growth of the digital music market in the country. Furthermore, recent social and cultural reforms in Saudi Arabia have also had an impact on the digital music market. The lifting of the ban on public music performances and the opening of cinemas have created new opportunities for musicians and artists. This has led to an increased interest in music and entertainment among the Saudi population, driving the demand for digital music platforms.

Underlying macroeconomic factors: The Saudi Arabian economy has been diversifying away from oil, with a focus on developing the entertainment and tourism sectors. This has led to increased investments in the digital music industry, as well as the overall growth of the entertainment sector. The government's Vision 2030 plan, which aims to transform the country's economy and society, includes initiatives to support the development of the music and entertainment industries. These initiatives have created a favorable environment for the growth of the digital music market in Saudi Arabia. In conclusion, the Digital Music market in Saudi Arabia is experiencing rapid growth and development due to the preferences of the young and tech-savvy population, the popularity of streaming services, the emergence of local and regional platforms, the focus on local content, recent social and cultural reforms, and underlying macroeconomic factors such as diversification of the economy and government initiatives.

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.