by The Background Music Market is estimated to be valued at US$ 1.47 Billion or Mn in 2022 and is expected to exhibit a CAGR Of 6.3% over the forecast period 2018-2026, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Background music refers to music that is played in commercial and public spaces such as elevators, public transportation stations, stores, shopping malls, and medical facilities. It helps create ambience, covers awkward silences, and improves the mood of customers and patrons. Background music services offer a library of licensed music tracks across various genres that can be customized and streamed to suit various business environments and needs.
Market Dynamics:
Growing demand from commercial establishments: The growing number of commercial establishments such as retail stores, cafes, restaurants, hotels, and spas is driving the demand for background music services. Background music enhances customer experience and engagement while also masking other distracting noise. Increasing adoption among SMEs and large enterprises: Previously, background music services were primarily adopted by large enterprises and international chains due to high setup and licensing costs. However, growing affordability of cloud-based solutions is enabling growing adoption among small and medium businesses. Cloud-based solutions offer pay-as-you-go pricing models with no upfront hardware or long-term contract requirements. This is stimulating the growth of background music market.
Segment Analysis
The background music market is dominated by the commercial segment which accounts for over 60% of the total market share. Commercial places like retail stores, restaurants, hotels etc. are increasingly using background music services to enhance customer experience. Background music tailored for commercial places help in improving sales, reducing stress and creating a positive vibe for customers and employees.
PEST Analysis
Political: The background music market is not directly impacted by political policies. However, any law related to copyright issues and royalty collection can influence this market.
Economic: A stable economic environment with growing businesses is favorable for the background music market. During recessionary periods, spending on non-essential services like background music may reduce.
Social: Changing lifestyle and work culture has increased the demand for enhancing ambience with suitable music. Rising health consciousness also drives the need to relieve stress through feel-good background scores.
Technological: Advancements in digital music services and platforms have made large music libraries accessible on-demand. Streamed background music services are easier to customize and manage compared to physical formats.
Key Takeaways
The global Background Music Market size was valued at US$ 1.35 billion in 2017. It is expected to witness high growth, exhibiting a CAGR of 6.3% over the forecast period 2018-2026, due to increasing need for enhanced customer experiences in commercial establishments. North America dominated the market, accounting for over 30% share in 2017. Wide presence of restaurants, retail stores, and commercial infrastructure drive the demand. Key players operating in the background music market are PlayNetwork, Inc., TouchTunes Music Corporation, Sirius XM Holdings, Inc., Almotech Media Solutions, Imagesound, Easy on Hold, Soundnet Limited (Soundjack), Xenox Music & Media B.V., Qsic Pty Ltd., Express Melody, OpenEar Music, Auracle Sound, Cloud Cover Music, and Mood Media Corporation.
Regional analysis
North America is the largest and fastest growing regional market for background music. The widespread presence of restaurants, retail stores, and other commercial verticals provide a large customer base. The US accounted for majority share driven by early adoption of streaming services and technological advancements. Europe is another major market led by UK, Germany, and France. The Asia Pacific region is expected to witness highest growth during the forecast period led by developing countries like India and China. Growth initiatives like digitalization of commercial areas and emerging convenience stores will support market expansion in Asia Pacific.
Key players
Key players operating in the background music market are PlayNetwork, Inc., TouchTunes Music Corporation, Sirius XM Holdings, Inc., Almotech Media Solutions, Imagesound, Easy on Hold, Soundnet Limited (Soundjack), Xenox Music & Media B.V., Qsic Pty Ltd., Express Melody, OpenEar Music, Auracle Sound, Cloud Cover Music, and Mood Media Corporation. The market is consolidated in nature with top players accounting for over 60% share. Companies are focused on expanding music libraries, strengthening digital infrastructure for streamed services, and targeting high growth markets.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
