The global music industry has seen a remarkable decade-long streak of growth, driven primarily by paid subscription streaming services and bolstered by the integration of artificial intelligence technologies. According to IFPI's Global Music Report 2025, total trade revenues climbed to US$29.6 billion in 2024, marking a 4.8% increase from the previous year. Subscription streaming led the charge with a 9.5% surge, while physical formats faced challenges amidst vinyl's continued popularity. Furthermore, regional growth was evident across all continents, with Middle East & North Africa, Sub-Saharan Africa, and Latin America experiencing double-digit gains.

While embracing AI presents opportunities for enhancing creativity and fan experiences, concerns persist regarding unauthorized use of copyrighted music for training generative AI models. Policymakers are urged to safeguard human artistry while leveraging AI's potential to support innovation within the music ecosystem.

Streaming Dominates Revenue Streams Across All Regions

Subscription-based streaming platforms emerged as the primary catalyst for the global music industry's financial success. Generating over two-thirds of total revenue, these services demonstrated robust expansion last year, particularly in emerging markets like Latin America and MENA.

In an era defined by digital transformation, subscription streaming remains at the forefront of the music industry’s economic engine. Revenues soared past the US$20 billion threshold for the first time, accounting for nearly 70% of overall recorded music income. This monumental achievement underscores the profound impact of digital distribution channels on consumer behavior and industry profitability. Notably, the number of paid subscribers surged globally, reaching 752 million users—an increase of 10.6%. Such figures highlight not only the growing demand for high-quality audio content but also the effectiveness of record companies’ strategies in nurturing artist careers and fostering engaging experiences for fans worldwide. Ad-supported streaming, although contributing less significantly, still managed a modest rise of 1.2%, further diversifying the revenue landscape.

Meanwhile, physical formats struggled amidst shifting consumer preferences, yet vinyl records defied trends with an impressive 4.6% growth rate. Performance rights also experienced steady progress, generating US$2.9 billion in 2024—a testament to the enduring value of live performances and public broadcasts. Despite these achievements, challenges remain as physical sales declined by -3.1%, reflecting broader industry transitions toward digital-first models. As such, the interplay between traditional and modern revenue streams continues to shape the evolving dynamics of the global music market. By maintaining a balance between preserving legacy formats and embracing innovative technologies, the industry ensures sustained growth and adaptability in an ever-changing environment.

Regional Success Stories Highlight Diverse Market Trends

All regions contributed positively to the global music industry's growth, showcasing unique strengths and opportunities. MENA, Sub-Saharan Africa, and Latin America achieved significant double-digit increases, underscoring their rising importance in the international market.

The geographical diversity of the music industry's growth is exemplified through varied performances across different regions. In North America, representing 40.3% of global revenues, a moderate 2.1% increase highlighted steady progression rather than explosive growth. Conversely, Europe excelled with an 8.3% boost, becoming the second-largest region thanks to strong performances from key markets such as the UK, Germany, and France. Asia, despite slower growth at 1.3%, retained its position as the largest physical market, emphasizing the region's preference for tangible formats alongside digital consumption. Latin America stood out with a remarkable 22.5% jump, driven predominantly by streaming services which accounted for 87.8% of local revenues. Brazil and Mexico spearheaded this momentum, demonstrating how tailored approaches can unlock immense potential even in previously underserved areas.

Australasia and MENA followed suit with respective gains of 6.4% and 22.8%, illustrating the universal appeal of music irrespective of cultural or economic boundaries. Sub-Saharan Africa's 22.6% leap brought total revenues above US$100 million for the first time, solidifying South Africa's dominance within the region. These regional narratives collectively paint a vibrant picture of a resilient and dynamic industry capable of thriving under diverse conditions. Through strategic investments and localized initiatives, each area contributes uniquely to the global tapestry of musical expression and commercial success. As technology continues to evolve, so too will the ways in which these regions interact with and influence one another, ensuring ongoing prosperity for years to come.