PUBLISHER: Verified Market Research | PRODUCT CODE: 1733748
PUBLISHER: Verified Market Research | PRODUCT CODE: 1733748
Background Music Market size was valued at USD 1.53 Billion in 2024 and is projected to reach USD 2.28 Billion by 2032, growing at a CAGR of 5.07% from 2026 to 2032.
Background music, or piped music in British English, is the practice of utilizing music to subtly influence an environment. Unlike foreground music, which demands your attention (such as a concert or a favorite song on the radio), background music serves as a support. It exists to generate a specific ambiance or mood without becoming the main focus.
Imagine entering a tranquil spa. The soothing instrumental music in the background is not intended to be the focal point of the program. Instead, it helps you relax and de-stress. This is a typical example of background music at work. The music itself may be hardly audible, yet it subtly improves your experience. Similarly, a modern apparel store may play energetic pop music to energize customers, whereas a restaurant may play romantic ballads to create a more personal atmosphere.
Background music extends beyond physical spaces. Consider the dramatic music in films and television shows that elicit strong emotions. Alternatively, carefully picked music in video games creates the tone for the adventure. In each of these scenarios, the music plays in the background, quietly altering how you perceive the experience.
The key market dynamics that are shaping the global background music market include:
Key Market Drivers:
Growing Retail Sector and Increased Focus on Customer Experience: The retail industry's growth and emphasis on improving customer experience are propelling the background music business. According to a National Retail Federation report, retail sales in the United States are expected to increase by 6.5% to 8.2% in 2021, reaching more than $4.33 trillion. This increase in retail areas opens up additional potential for background music applications to improve shopping experiences.
Rising Number of Restaurants and Cafes: The growing number of food service operations globally is driving up the need for background music systems. According to the National Restaurant Association, restaurant revenues are predicted to increase to $899 billion in 2022, up from $864 billion in 2019. This expansion in the restaurant industry coincides with a greater demand for background music to create ambiance and improve eating experiences.
Expansion of Fitness and Wellness Centers: The worldwide fitness business is growing, which is helping to expand the background music market. According to the International Health, Racquet, and Sportsclub Association (IHRSA), the global health club business generated $96.7 billion in sales in 2019, with over 184 million members globally. As more fitness centers open and old ones expand, the need for background music systems to stimulate and invigorate gym-goers grows.
Key Challenges:
Competition from Consumer Streaming Services: Popular music streaming services such as Spotify and Pandora are easily accessible to both businesses and consumers. These services give extensive libraries and personalization options, tempting organizations to avoid specialist background music providers.
Staying Relevant: Keeping music collections current and appealing to a varied customer is essential. Background music providers must constantly filter and update their services to meet changing customer tastes and keep up with music trends.
Fragmentation and Compliance: The market is fragmented, with multiple companies competing for attention. This can make it difficult for businesses to identify the appropriate vendor. Furthermore, background music licensing can be complex, and suppliers must ensure compliance with copyright laws and licensing fees in multiple regions.
Integration with Technology: Background music must connect seamlessly with digital signage and interactive displays to provide a unified and engaging consumer experience. Providers must invest in technologies that can respond to these changing trends.
Key Trends:
Personalization and AI-powered Playlists: Gone are the days of generic background music. Businesses are increasingly using AI-powered solutions to build playlists based on real-time data such as time of day, customer demographics, and even weather patterns. This enables a more dynamic and individualized experience that resonates with the audience.
Cloud-based Solutions for Scalability and Convenience: Cloud platforms are becoming the standard for background music. This provides firms with various benefits. Cloud-based systems enable centralized control of music selection and scheduling across several locations. Easy content management keeps playlists fresh without requiring actual updates at each site. Furthermore, cloud solutions are typically less expensive and require less maintenance than traditional on-premise systems.
Rise of Emerging Markets: The background music market is expanding rapidly in regions such as Asia-Pacific and South America. This is owing to the thriving hospitality and retail sectors in these places, where businesses understand the importance of providing a great customer experience through music. Background music suppliers are working on catering to these areas by creating customized music packages that reflect local tastes and preferences.
Focus on Customer Wellbeing: With increasing knowledge of music's psychological impact, there is more importance on using background music to improve customer well-being. This includes adding environmental sounds or peaceful music in specific areas to promote relaxation, as well as playing more lively music in gyms to boost motivation.
Here is a more detailed regional analysis of the global background music market:
North America:
North America currently dominates the background music market. The strong growth of the restaurant market in North America is increasing demand for background music systems. According to the National Restaurant Association, the restaurant business in the United States is expected to generate $898 billion in sales by 2022, with over 1 million restaurant outlets nationwide. This vast network of food service locations necessitates background music to create an atmosphere and improve eating experiences.
The region is home to numerous well-established enterprises and big retail chains, all of which prioritize improving the consumer experience. These firms understand the importance of background music in creating a pleasant environment, influencing consumer behavior, and creating a strong brand identity.
As a result, they are ready to invest in advanced background music solutions. This emphasis on customer experience has resulted in widespread acceptance of background music services in a variety of industries, including retail, hotel, and business settings, giving North America a larger market share than other areas.
Asia Pacific:
The Asia Pacific region is experiencing the most rapid growth in the background music business. The growing popularity of digital music streaming services in the Asia Pacific area makes background music more accessible to businesses. Statista estimates that the number of music streaming subscribers in the Asia Pacific region will reach 443.5 million by 2025, with a market volume of US$7.5 billion. The increased acceptance of digital streaming platforms makes it easier to establish background music systems in a variety of industries, hence driving market growth.
Significant economic growth in the region has resulted in a thriving retail and hospitality industry, with businesses increasingly understanding the importance of background music in drawing customers and improving their brand image.
Rapid urbanization and rising disposable incomes in the Asia Pacific are also leading to a more consumer-driven industry, with individuals spending more time and money in restaurants, cafes, and shopping malls, driving up demand for background music solutions.
The Global Background Music Market is Segmented on the basis of Delivery Mode, End-User, Deployment Mode, And Geography.
Based on Delivery Mode, the market is bifurcated into Streaming Services, Digital Downloads, and Physical Media. Streaming services are the dominant section of the background music market. Their extensive music libraries, quick access, and frequent updates make them an ideal and cost-effective alternative for organizations. Digital downloads, while still used, are becoming less popular because of constraints in playlist creation and continuing licensing requirements. Physical media, such as CDs, is the least popular section since it is difficult to manage and lacks the flexibility of streaming services.
Based on End-User, the market is segmented into Retail Stores, Restaurants and Bars, Hotels and Hospitality, Healthcare Facilities, and Corporate Offices. Retailers presently dominate the background music market. Music has a significant impact on customer behavior in retail environments, and large chains frequently have established background music solutions in place. Healthcare facilities are projected to be the fastest-growing segment. As the emphasis on patient experience develops, healthcare facilities are realizing the power of music to create a peaceful and happy environment.
Based on Deployment Mode, the market is segmented into Cloud-Based Solutions and On-Premise Solutions. Cloud-based solutions are the fastest-growing area of the background music market. Their advantages, such as centralized control, fast updates, and scalability, make them highly appealing to organizations. On-premise solutions, while still in use, are losing popularity due to the requirement for actual hardware upkeep and the limits of managing music across different locations.
The "Global Background Music Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market Audio Network, Epidemic Sound, Shutterstock Music, Artlist, PremiumBeat, Soundstripe, Pond5, and Amazon Music for Business. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.
Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.