by Background music is widely used by commercial spaces like retail stores, restaurants, and cafes to set the right mood and atmosphere for customers. It helps in elevating customer experience, boosting sales, and increasing average spending times. Common applications of background music include playlists for elevators, lobbies, waiting areas, and retail spaces. With the surge in the number of smart homes, fitness trackers, and wireless audio devices, the demand for convenient music access on-the-go is rising.
The global background music market is estimated to be valued at US$ 1722.38 Mn in 2023 and is expected to exhibit a CAGR of 37% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
With the proliferation of internet-connected devices, music streaming apps have gained immense popularity as they provide convenient and inexpensive access to unlimited songs. As per recent reports, the global music streaming revenue surpassed the CD sales revenue in 2016. Major players like Spotify, Apple Music, YouTube Music, and Amazon Music have made it possible to listen to personalized playlists anywhere, anytime. This has prompted commercial spaces to leverage music streaming services for background music instead of maintaining physical music libraries or hiring live performers. Moreover, advanced smart home devices with audio output and voice control functions are fueling the utilization of music streaming apps for ambient tunes. However, concerns around copyright issues and licensing costs associated with commercial use of music may hinder the market growth.
SWOT Analysis
Strength: The background music market provides an engaging listening experience for customers in commercial establishments. It can help increase spending and dwell time at venues. Background music also helps improve employee productivity and reduce stress as it create a positive ambience. It allows businesses to control and curate the audio environment within their premises.
Weakness: Selecting the right music type and volume level that appeals to all customers can be challenging. Playing music that some find irritating or offensive may negatively impact customer experience. Background music can be a distraction for certain tasks requiring high concentration. The upfront costs of equipment and licensing fees also adds to operating expenses.
Opportunity: As retail and hospitality businesses reopen post pandemic, there is an opportunity to enhance customer experience through strategic use of background music. Live streaming and virtual events also provide new potential areas of application. Advances in music curation technology allow for more personalized playlists customized to location demographics. Incorporating music tailored for various in-store zones or departments can optimize its impact.
Threats: Availability of free music streaming services reduces incentives for commercial users to pay licensing fees. The spread of smart speakers allows customers to override in-store music with their own choices, diminishing its effect. Tightening regulations around royalties and copyright could increase compliance burdens and costs.
Key Takeaways
The Global Background Music Market Size is expected to witness high growth over the forecast period of 2024 to 2031 driven by reopening of commercial spaces post pandemic. The market size is projected to reach US$ 1722.38 Mn in 2024 registering a CAGR of 37%.
Regional analysis: North America currently dominates the background music market owing to widespread commercial applications across retail, hospitality and public venues in countries like the US and Canada. Asia Pacific is expected to be the fastest growing region aided by rapid development of organized retail, restaurants and tourism sector across large economies like China and India.
Key players: Key players operating in the background music market are AECOM, Dinclix Ground Works, Hyperloop India, Hyperloop One, Inc., Hyperloop Transportation Technology, Space Exploration Technologies Crop., Tesla, Inc., TransPod Inc., Uwashington Hyperloop, and VicHyper. They are focusing on expanding music libraries, strengthening licensing agreements and developing new in-store audio solutions to capitalize on emerging opportunities.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
