Fact.MR projects the global background music market to register a CAGR of 6.4% through 2031, with an anticipated valuation of over US$ 1.2 Bn by the end of the forecast period. Increased emphasis on indulging consumer sensory experiences is majorly spurring demand across key public and private settings.
As per Fact.MR’s report, the market registered an expansion of over 5% CAGR from 2016 to 2020, reaching a value of nearly US$ 650 Mn. Prospects temporarily dimmed in the first half, as the COVID-19 pandemic induced closure of public spaces. As the restrictions eased, demand resurfaced as restaurants, gyms and other public places resumed operations.
Demand for background music is primarily driven by the efforts of restaurants in combining the music with their brand theme, thereby offering a unique experience to consumers. Foodservice outlets consider appropriate use of background music to hold potential in increasing the consumers’ stay, which in turn has been linked to growth in the average money spent by consumers. Co-working spaces continue to remain at the forefront of the growing demand for background music in corporate spaces.
Key Takeaways from the Market Study
- By end use application, music streaming services to make major use, expanding at 5% CAGR
- More than 3 out of 5 background music services to be deployed across cafes & restaurants
- U.S to emerge as a lucrative market, accounting for over 50% background music demand
- India experiencing substantial uptake, poised to register 2/5th of global background music demand
- Emergence of coffee joints to propel demand in Germany, registering a CAGR of 8%
- China, Japan and South Korea likely to emerge as highly opportunistic markets
- Global background music market demand to expand nearly 2x by 2031
“Emphasis on providing conducive ambience is prompting outdoor settings, including restaurants, cafes and gyms, to invest in good quality background music solutions, inclining growth,” says the Fact.MR analyst.
Market Competition
Prominent background music providers are focusing on adopting various strategies to expand product offerings and strengthen geographic presence. With the advancement in technology, new players are expected to enter the market.
- In January 2021, Vector Capital announced the acquisition of Mood Media, the world’s leading in-store media Solutions Company dedicated to elevating the Customer Experience.
- The acquisition focuses on three key areas- deepening our client and channel relationships, expanding ongoing investments in the Company’s global technology platform and delivery capabilities, and bolstering our product offerings through innovation.