Trends in the recorded music industry worldwide, 2023–2031

The expansion of globalization, aided by new information and communication technologies in today's modern world, has led to the ever greater spread of the music industry across the world. This has both brought people's musical tastes in every corner of the world closer together and provided the ground for greater familiarity with new types of music genres. So much so that it can be claimed that music has brought about a connection among cultures and people's lifestyles around the world; something also referred to as the linking of the local with the global.

and has led to the ever greater spread of the music industry across the world. This has both brought people's musical tastes in every corner of the world closer together and provided the ground for greater familiarity with new types of music genres. So much so that it can be claimed that music has brought about a connection among cultures and people's lifestyles around the world; something also referred to as the linking of the local with the global.

What is recorded music?

"Recorded music" includes streaming formats, physical and digital albums, and singles sales. Recorded music refers to audio content that has been recorded and stored in a format and can be played at a desired time.

Profile of the recorded music situation in 2023

The global recorded music market, with 10.2 percent growth in 2023 for the ninth consecutive year, brought the music industry's revenue to 28.6 billion dollars. The world's top 10 music markets this year were, in order, the United States, Japan, the United Kingdom, Germany, China, France, South Korea, Canada, Brazil, and Australia, and among these countries the fastest growth rates belonged to China (with 25.9 percent growth), then Brazil (with 13.4 percent growth) and Canada (with 12.2 percent growth). On the other hand, more than two-thirds of recorded music revenue this year came from streaming services (67.3 percent). Physical format with 17.8 percent, performance rights with 9.5 percent, downloads and other non-streaming digital methods with 3.2 percent, and synchronization with 2.2 percent ranked next in recorded music revenue (Figure 1).

Figure 1. Global recorded music revenue in different segments in 2023

For a more precise explanation of the subject, looking at the global revenue trend of the recorded music industry by these five mentioned segments is necessary. This is shown in chart (figure) 2 in the form of global recorded music revenue in the years 1999 to 2023. As you can see, until 2016 the physical format always had the highest revenue, albeit with a declining trend (this segment's revenue in 1999 was equal to 22.2 billion dollars and in 2016 equal to 4.9 billion dollars), but from 2017 onward, with an increasing trend, streaming services have replaced this segment. In 2023, streaming services' revenue, by a very large margin over the other three segments, was equal to 19.3 billion dollars.

Chart 2. Global recorded music industry revenue in different segments: 2023-1999 (billion US dollars)

Record companies: linking regional markets with the global market

Today, anywhere in the world, music fans and enthusiasts can enjoy a diversity of genres, whether from their own local culture or from other countries. In this regard, record companies play an important role in identifying and transmitting local music markets to every corner of the world. For example, evidence has shown that the K-POP music genre in South Korea has found many fans around the world, and as we will see in the continuation of this report, 6 artists in this style were among the best-selling and most popular of 2023. In addition, these companies, by providing an experienced and skilled network of global specialists, help artists' works sell more. Evidence has shown that these companies invest 7.1 billion dollars annually in artists and repertoires.

The recorded music market in different regions of the world

The recorded music market in 2023 saw growth in all regions of the world — the United States and Canada, Europe, Latin America, Asia, Australasia, the Middle East and North Africa, and sub-Saharan Africa. Among these regions, the five regions of Latin America, sub-Saharan Africa, Asia, Australasia, and the Middle East and North Africa had double-digit growth. Also, the highest revenue from the music industry belonged to the United States and Canada (7.4 percent growth), while these two regions accounted for 40.9 percent of the global market. On the other hand, sub-Saharan Africa had the fastest growth rate among the other regions (the only region with growth above 20 percent). Finally, it must be acknowledged that Europe, as the second region of the recorded music industry in the world, experienced 8.9 percent growth compared with the previous year. The three countries of the United Kingdom, Germany, and France, with 8.1, 7, and 4.4 percent growth respectively, had a large share in this region's growth. You can see further details of recorded music industry revenues in different regions of the world in Figure 3.

Figure 3. Global distribution of recorded music industry revenue in 2023

Best-selling and most popular artists in 2023

Based on music consumption across all formats (streaming services, digital albums, physical, and singles) and all countries in 2023, Taylor Swift was the most popular and best-selling artist. After her were the group Seventeen and Stray Kids. The 10 best-selling artists and their places of origin can be seen in Table 1.

The world's top 10 albums in 2023

IFPI, based on two criteria: first) digital singles in 2023 and second) all formats, has ranked the world's top 10 albums according to Table 2. As you can see, first rank in the digital format belongs to the album Flowers by Miley Cyrus with 2.7 billion dollars, and first rank across all formats belongs to the album FML by the group Seventeen.

 

Table 2. The world's top 10 albums in 2023

 

Outlook for recorded music revenue in 2031

Up to this point we have described the current trends of the recorded music industry. But what prediction can be made about the outlook for its growth and future trend? MIDiA research has predicted that by 2031 recorded music sales will reach 100 billion dollars. 75 percent of this revenue will be through music streaming platforms. Subscribers to music streaming services will cross the one billion mark by 2027. According to this study's forecast, in 2031 the United States of America, because of the high amount of average revenue per user (ARPU), will still have the largest recorded music market, followed by China, because subscribers to music streaming services in this country have high growth.

Figure 4. Outlook for recorded music industry growth in 2031

Closing remarks

The present report has examined the current trend and future outlook of the recorded music industry in the world. As was observed, global recorded music revenue has been growing for the ninth consecutive year and in 2023 was equal to 28.6 billion dollars. Forecasts for the next 8 years also indicate 100 billion dollars in sales for this industry. One reason for high sales goes back to the high number of subscribers to music streaming services. The emergence of young artists, especially from South Korea, and their growing popularity around the world, is another reason. The emergence of this phenomenon can be a sign of the importance of music in linking local culture and global culture. In many global competitions, music is even used to show the connection of different countries to one another. With all these explanations, one must wait to see how far the forecasts materialize. Might sudden events and developments produce an unexpected trend?

 

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