Futuresource Consulting’s latest Global Music Industry Market Outlook reveals a market increasingly shaped by premiumisation, emerging regions and the enduring power of physical media.

The global recorded music market grew by 8.6 per cent in 2025, reaching $47.1 billion (€41.2bn) in consumer spend, according to Futuresource’s research. Streaming continues to dominate, accounting for 86 per cent of total consumer spend, while physical media delivered stronger-than-expected growth, driven by sustained demand for vinyl.

“Streaming remains the industry’s growth engine, but we’re seeing a change in tides where monetisation matters just as much as subscriber acquisition,” commented Dave Watkins, Director of Consumer Electronics and Entertainment, Futuresource Consulting.  “Services are focused on differentiating experiences, converting free users to paid subscribers and delivering more value through AI-powered discovery, premium audio and exclusive fan experiences.”

Paid subscriptions track upwards

Global paid music subscriptions reached 865 million in 2025, representing a net addition of 71.5 million subscribers year-on-year.

As subscriber penetration approaches maturity in many developed markets, services are increasingly turning to premium tiers, AI-powered personalisation, pricing strategies and emerging markets to drive revenue growth.

Opportunities arise in emerging markets

The report shows growth opportunities increasingly shifting towards developing regions. Latin America recorded annual revenue growth of 15 per cent, while APAC surpassed 400 million paid subscribers. Markets such as Brazil, Mexico, China and India are expected to play an increasingly important role in shaping the future of music consumption through the remainder of the decade.

Physical formats retain appeal

Meanwhile, physical music continues to defy expectations, as consumer spend on physical formats grew 7% during 2025. Vinyl remains a key value driver, with sales increasing by 10 per cent in retail value to $3.77 billion, supported by collector culture, exclusive editions and strong engagement from both established fans and younger audiences.

Industry intensifies AI focus

AI has quickly emerged as one of the most transformative forces across the music ecosystem. Streaming services are increasingly implementing AI to help streamline content discovery and personalisation.

Meanwhile, labels and rights holders continue to explore licensing partnerships and content management strategies.  At the same time, platforms are developing new approaches to identify and manage AI-generated music, with Deezer leading the way in tagging AI content and excluding full AI tracks from their algorithms.

The music market continues to spin 

“The global music market has undergone an unrecognisable transformation with the explosive rise of streaming and, more recently, AI. It’s these advancements that keep growth tracking upwards,” added Watkins. “Right now, streaming providers are looking at different growth avenues, and it’s working. We expect consumer spend to surpass $50 billion in 2026 and reach $60.2 billion by 2030. Subscription streaming will account for almost nine-in-every-ten dollars spent by consumers by the end of the forecast period.”

Other posts by :

1. Amazon Leo gains South Africa link
2. Eutelsat wants an extra 528 satellites
3. FCC approves orbital space mirrors
4. Analysts: “Unknown Unknowns for SpaceX”
5. Ligado’s bankruptcy clean-up continues
6. Arianespace to offer ‘rideshare’ launches
7. Space industry warns Europe must do more
8. Banks increase SpaceX forecasts
9. Orbex bankruptcy details released

Categories: Articles, Markets, Research

Tags: futuresource, Music