Europe's music market is booming: 470 million euros growth in 2024!

Europe's music market is booming: 470 million euros growth in 2024!

The music industry in the European Union grew significantly in 2024 and can look back on impressive growth of 470 million euros. This means that the EU is responsible for more than double the growth figures compared to the USA and even exceeds the cumulative development of the USA, China and Brazil. This reports Billboard insightful.

In the entire market for music recordings, the EU generated 5.7 billion euros, which corresponds to 20.7 percent of the global market. This makes the European market the second largest in the world after the United States. The figures show that the music landscape in the EU is very dynamic, with countries such as Sweden, Hungary and Romania recording the highest growth rates.

Streaming as a growth engine

The main driver of this growth? These are undoubtedly the streaming services that generate the majority of sales at 77.4 percent. Many platforms such as Spotify and Deezer have increased their prices for premium subscriptions, which has given an additional boost to this sector. What is particularly noteworthy is that the EU, with a streaming penetration rate of 25 percent, still lags behind the USA (52 percent) and the United Kingdom (45 percent).

Despite this catch-up, the physical market remains important in some countries, such as France and Germany. In France, the physical market is the second largest in the EU, just after Germany. This combination of strong streaming and the continued existence of physical media shows the diversity of music preferences in Europe.

Diversity and local artists in focus

Another exciting detail from the IFPI report is the dominance of local artists, who occupy an average of 50.9 percent of the places in the top 10 EU countries. Especially in countries like Finland, Hungary and Italy, the top 10 are even made up entirely of national artists. The Irish artist Hozier stormed the European charts with his hit “Too Sweet” and was mentioned in nine different annual charts.

However, the EU's growth rate, which is 9.1 percent, is not homogeneously distributed. Sweden emerges with an impressive growth rate of 30.2 percent, followed by Romania at 26.9 percent and Hungary, which has reached 23.9 percent. In contrast, more mature markets such as France (+7.5%), Germany (+4.1%) and the United Kingdom (+4.9%) showed more moderate growth.

A look at the global market

If we look beyond European borders, global music industry revenues of $29.6 billion in 2024 also show a 4.8 percent increase compared to last year, according to the SNEP Report. Streaming services are seen as the main driver of this development, with subscribers increasing by 10.6 percent and revenue exceeding $20 billion, accounting for 69 percent of global revenue.

A global comparison shows that all regions recorded sales growth, with double-digit increases in certain markets such as Latin America and MENA. The Asia-Pacific region is considered the fastest growing market, while North America remains the largest market.

Overall, the industry can look back on an exciting year, characterized not only by creative growth but also by technological progress. It remains to be seen what new trends will emerge in 2025, particularly in relation to streaming services and the increasing use of artificial intelligence in music production.

At a time when the music industry is becoming technologically advanced, the need for legal clarity is becoming increasingly clear. The EU's AI Act could play a crucial role here by ensuring transparency for artificial intelligence developers and thus providing clear guidance to the industry.

Overall, the music market remains exciting, and artists and companies must constantly adapt in order to keep up with global competition in the future. It will be exciting to see what developments await us in the coming year!

In summary, the music scene in Europe and worldwide continues to thrive thanks to innovative approaches and loyal fans willing to pay for their favorite music.

For more detailed information about the music industry globe and market, you can visit the comprehensive report Mordor Intelligence read up.