Global music industry reaches $47.1bn as streaming services change tack

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% in 2025, reaching $47.1 billion in consumer spend, according to Futuresource Consulting’s latest research. Streaming continues to dominate, accounting for 86% 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," says 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%, 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% 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,” says 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.” 

To learn more about Futuresource’s Global Music Industry Market Outlook, get in touch with Chloe at chloe.douthwaite@futuresource-hq.com or visit here.