Global Music Industry Sales Expected to Surpass $53 Billion by 2028 with China's Market Expansion

Omdia projects a steady growth in global music sales, with a ten-year streak of annual increases. The market is predicted to hit $53.4 billion by 2028, thanks to subscription services driving a 10.4% growth this year, reaching $26.8 billion. Physical sales, while declining, will remain significant. China's market is expected to outpace Germany and the UK, becoming the third largest in the world by 2028.

The global music industry is experiencing steady growth, with annual increases predicted to continue for the next ten years (1). This upward trend can be attributed to the surge in popularity of subscription services, which accounted for 11.2% growth in revenue and comprised nearly half (48.9%) of the global market in 2023 (1).

According to a recent report by Omdia, the global music sales market is expected to hit $53.4 billion by 2028, driven by a 10.4% growth rate this year (2). This growth trajectory is notable, as it marks the ninth consecutive year of growth for the industry (1).

Subscription services are not the only factor contributing to this growth. The number of paid subscriptions to music streaming services surpassed 500 million globally for the first time in 2023, and there are now over 667 million users of paid subscription accounts (1). Moreover, physical sales, while declining, remain significant and experienced a double-digit percentage increase (up by 13.4%) in 2023 (1).

China, in particular, is expected to be a major contributor to this growth. The Chinese music market is anticipated to outpace Germany and the UK, becoming the third largest in the world by 2028 (2). This surge in growth can be attributed to the increasing popularity of music streaming services and the growing disposable income of Chinese consumers (3).

The growth of the music industry is a testament to the work and investment of record companies. According to IFPI, record companies invested over $7.1 billion annually on artist and repertoire (A&R) and marketing in 2023 (1). This investment has led to growth across all formats and regions, with five of the world's seven regions posting double-digit percentage gains in 2023 (1).

In conclusion, the global music industry is experiencing steady growth, driven by the surge in popularity of subscription services and record companies' continued investment in artists and their careers. With projections of continued growth in the coming years, the future of the music industry looks bright.

References:

1. IFPI. (2024, March 21). Global recorded music revenues grew by 10.2% in 2023, driven largely by growth in paid streaming subscribers. Retrieved from https://www.ifpi.org/ifpi-global-music-report-global-recorded-music-revenues-grew-10-2-in-2023/
2. Omdia. (2024). Music Industry Trends: Growth and Opportunities 2024-2028. Retrieved from https://www.omdia.com/insight/music-industry-trends-growth-and-opportunities-2024-2028/932365
3. Billboard. (2023, December 13). China's Music Market: 2023 Year in Review. Retrieved from https://www.billboard.com/articles/business/global/chinas-music-market-year-in-review-2023/

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