The growing popularity of smart devices, expansion of services to different markets by key players along with factors such as shift towards the online music platforms, demand for audio mix series, trends for advanced music streaming service and availability of premium music service packs are believed to benefit the expansion of the Middle East and Africa (MEA) music market. People of the region are spending more on the smart and connected devices, which further provides an easy access for the expansion of streaming music applications and helps listen to the latest music track released globally, along with other services that offer downloading and playing music, both on online and offline mode. The MEA music market, which accounted for USD 171.30 million in the year 2018, is slated to grow at a highest CAGR of 16.5% over the forecast period 2019-2027 and reach USD 670.03 million in 2027.
The Middle East and Africa (MEA) music market is primarily driven by nations such as Saudi Arabia, which is emerging as a leading music market in the Middle East owing to high penetration and high adoption rate of international music coupled with increasing inclination towards online music modes. Additionally, factors such as constant increase in the necessities, such as electrification, education, housing and industrialization, which has led to the development in several countries in the region, along with the increasing internet penetration observed in the region are some of the factors anticipated to promote the growth of the Middle East and Africa (MEA) music market.
Market Segmentation Synopsis
By Revenue Sources
The Middle East and Africa (MEA) music market is segmented on the basis of revenue sources into performance rights. add supported streams, physical media, downloads from digital platforms, subscription audio streams and others. Subscription audio streams segment is estimated to expand at a CAGR of 17.2% over the forecast period and is showcasing great potential for the future growth of the segment. Further, the subscription audio streams segment is estimated to achieve absolute $ opportunity of USD 188.92 million between the years 2018 and 2027. Additionally, the subscription audio streams segment had a market share of 36.63% in the year 2018 and is anticipated to reach a market share of 38.19% in the year 2027. CLICK TO DOWNLOAD SAMPLE REPORT
Market Drivers and Challenges
According to the GSM Association, smartphone adoption in Middle East and North Africa is anticipated to increase from 52% in 2018 to 74% in 2025 and that in Sub-Saharan Africa increased from 36% in 2018 to 66% in 2025.
The Middle East and Africa (MEA) music market is thriving on the back of growing adoption of smartphones and tablets and increasing government initiatives to promote music and arts. Smartphone applications help in providing easy access to the users for streaming music on their device. Furthermore, it allows the users to listen the music in both online and offline mode. Moreover, in countries such as Saudi Arabia, the government is helping in expanding public access to the services provided by music and entertainment industry. The region has also witnessed upsurge in the music concerts over the years and has helped in hosting several music concerns of the western artists for popular events. Such factors are anticipated to drive the growth of the Middle East and Africa (MEA) music market.
Growing concern for piracy of music, which affects the revenues of the market players, along with the concern for digital privacy for the streaming of music are some of the factors anticipated to have a negative impact on the growth of the Middle East and Africa (MEA) music market in the coming years.
Growing adoption of smartphones and tablets in the Middle East and Africa (MEA) region on the back of advancements in IT infrastructure are some of the major factors that are driving the growth of the market.
The market is anticipated to attain a CAGR of 16.5% over the forecast period, i.e. 2020-2027
The major players in the Middle East and Africa (MEA) music market are Spotify AB, Warner Music Inc., Universal Music MENA, 264 CRU and Sony Music Entertainment Middle East.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
The market is majorly segmented by revenue sources and by country.
The subscription audio streams segment is anticipated to hold the largest market share of 38.19% in the year 2027 in the Middle East and Africa (MEA) music market.
Concerns for piracy of music and the fear of digital privacy for the streaming of music are some of the major factors anticipated to act as a barrier towards the growth of the Middle East and Africa (MEA) music market.
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