The global music streaming market to grow at a CAGR [compound annual growth rate] of 14.05% during the period 2017-2021, according to Research and Markets (www.researchandmarkets.com).
According to the research group, one of the major drivers for this market is High growth in mobile ad spending market. Mobile advertising is currently one of the most popular methods of advertising. The increased penetration of smartphones and tablets worldwide is one of the major driving forces for the growth of digital music.
Vendors also offer free downloading and streaming services for mobile devices. Mobile ad spending is one of the major sources of revenue for digital music service providers, which in turn supports the growth of the music streaming market. In 2016, the global mobile ad spending market was valued at $98.95 billion, and Research and Markets expects this to grow at a CAGR of 13.07% to reach $182.89 billion by 2021.
The latest trend gaining momentum in the market is rise of wearable technology. Wearable technology is one of the fastest-growing markets in the consumer electronics segment. With the growing popularity and availability of smartwatches such as Apple Watch, LG G Watch R, and Moto 360, a large number of music service providers are developing compatible applications for these devices.
For instance, Soundhound, Shazam, and Pandora Radio are some of the compatible music apps for Apple Watch, whereas Google Play supports Moto 360. As these apps enable direct access to the music service through the wearable device, users can access music at their convenience and even on the go
Research and Markets says that one of the major factors hindering the growth of this market is Intense competition and inconsistent user preferences. Competition among service providers in the global music streaming market is very intense, especially in the developing countries.
The markets in developing countries such as India are highly fragmented, with the presence of a number of global as well as domestic players. This leads to intense competition and, in turn, price wars among mobile app vendors. These price wars have significant negative impact on the growth of the market, as cost is one of the major differentiating factors for consumers in these countries, adds Research and Markets.