Music - Nordics | Statista Market Forecast

The Music market in the Nordics is projected to experience significant growth in the coming years.
According to projections, the total revenue in this market is expected to reach US$135.30m in 2022.
This indicates a promising future for the Nordics' music industry.
Furthermore, it is anticipated that the Music market will continue to expand steadily, with an annual growth rate of 10.71% from 2022 to 2027 (CAGR 2022-2027).
This growth trajectory is predicted to result in a market volume of US$233.10m by 2027, reflecting the increasing popularity and demand for music-related services in the Nordics.
Within the Music market, various revenue streams contribute to its overall success.
In-app purchases (IAP) are expected to generate a revenue of US$40.14m in 2022, showcasing the willingness of consumers to invest in additional music-related features and content.
Paid app revenue is another significant source of income within the Music market, projected to reach US$2.50m in 2022.
This indicates that consumers in the Nordics are willing to pay for premium music applications that offer enhanced features and experiences.
Additionally, advertising revenue plays a substantial role in the Music market, projected to reach US$92.61m in 2022.
This revenue stream demonstrates the value of targeted advertisements within music platforms, as advertisers recognize the potential reach and engagement of music enthusiasts in the Nordics.
Another crucial aspect of the Music market is the number of downloads.
It is projected that there will be approximately 19.82m downloads downloads in 2022.
This high number of downloads indicates the strong interest and engagement of users in the Nordics with music-related applications and services.
Furthermore, the average revenue per download is expected to be US$6.83, highlighting the monetization potential within the Music market.
This figure suggests that each download has the potential to generate a significant amount of revenue for music providers and app developers in the Nordics.
When compared globally, it is interesting to note that United States generates the highest revenue in the Music market, projected to reach US$4.48bn in 2022.
This showcases the dominance of the US music industry and its significant contribution to the global music market.
Overall, the projected revenue and growth rates in the Music market indicate a promising future for the Nordics' music industry.
With diverse revenue streams, high download numbers, and a strong average revenue per download, the Nordics are positioned to thrive in this market segment.

Definition:

The Music market contains apps that enable users to listen to a wide variety of music and audio files. The most popular apps are Spotify and Pandora, music streaming services whose advanced recommender systems help users to discover new artists based on their current tastes and create unique music playlists. Meanwhile, through cutting-edge technology, the Shazam app is able to identify any piece of music, even in noisy environments. Apps that support the composition, performance, and/or recording of music also fall into this category.

Additional Information:

We consider three different sources of revenue:

Revenue from in-app purchases (IAP) that comes from the purchase of features, upgrades, and subscriptions within an app
Paid app revenue from the one-time purchase of an app
Advertising revenue obtained from showing ads within an app

Our statistics include the revenue earned by developers and also the revenue earned by stores through commissions.

Apps that can be downloaded from major app stores such as Apple, Inc.'s App Store and the Google Play store, or in the case of China, from stores such as Huawei AppGallery and Tencent Appstore.
Apps that are run on iPhones and Android phones.

Apps exclusively offered by Microsoft Store and Amazon Appstore for Android.
Custom-made apps not available from any official app store.
B2B/C2C app sales of any kind.
Subscription revenues outside of in-app purchases (for example, Netflix and Spotify use their own payment systems outside of their apps).

Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, 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/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

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 case market dynamics change.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.

The app market has been affected by volatility in the first years after the global COVID-19 pandemic. After accelerating in 2021, consumer spending decreased to 167 billion U.S. dollars in 2022. In 2023, annual app spending was back on track, generating 171 billion U.S. dollars. After experiencing a dip in 2022, app consumer spending per user climbed back to surpass five U.S. dollars in the second quarter of 2023.