Music market in India and scope for related category companies.

India’s music market is one of the fastest-growing in the world, driven by its rich cultural diversity, a young population, increasing internet penetration, and the rapid adoption of streaming services. Here’s an overview of the music market in India and the scope for music-related companies:

Current Market Overview

1. Market Size and Growth:

• The Indian music industry was valued at approximately ₹2,000 crore ($250 million) in 2023 and is expected to grow at a CAGR of 15%-17% over the next five years.
• It is primarily driven by digital music consumption and increasing smartphone penetration.

2. Streaming Dominance:

• Digital streaming platforms like Spotify, JioSaavn, Gaana, Apple Music, and YouTube dominate the industry. YouTube alone accounts for a large portion of music consumption in India.
• Over 85% of music revenue in India comes from streaming.

3. Bollywood-Centric:

• Bollywood music is the dominant segment, but regional and independent music are rapidly gaining popularity due to vernacular content consumption.

4. Regional and Independent Artists:

• Regional music (e.g., Punjabi, Tamil, Telugu, Kannada, and Bhojpuri) has a growing audience.
• Independent artists are leveraging platforms like Instagram, Spotify, and YouTube to reach audiences globally.

5. Concerts and Live Events:

• Live music events and festivals (like NH7 Weekender, Sunburn, and Ziro Festival) are becoming increasingly popular, contributing to the industry’s growth.

Scope for Music-Related Companies

1. Music Streaming Platforms:

• New entrants can target niche genres or regional languages to cater to underserved markets.
• Offering AI-driven personalized playlists and unique user experiences can help in market differentiation.

2. Artist Management and Development:

• Companies that manage and promote independent and regional artists have huge potential.
• Services like production, promotion, brand collaborations, and tour management are in demand.

3. Music Production and Distribution:

• High-quality music production houses specializing in regional or independent music are likely to thrive.
• Distribution companies can focus on enabling artists to access global platforms.

4. Live Events and Experiences:

• Organizing music festivals, concerts, and tours in tier-2 and tier-3 cities where demand is growing.
• Virtual and hybrid concerts can also cater to a tech-savvy audience.

5. Music EdTech Platforms:

• Platforms teaching music (vocals, instruments, or production) have immense potential, especially in vernacular languages.
• Online masterclasses and tutorials by well-known musicians can attract learners.

6. Music Technology and Tools:

• AI-based tools for music composition, mixing, and mastering.
• Developing apps for karaoke, music editing, or learning instruments.

7. Licensing and Copyright Management:

• Companies offering copyright protection, licensing services, and royalty management for artists have a growing market, especially with increasing awareness among independent creators.

8. Music for Content Creation:

• Companies that produce royalty-free music or custom music for YouTube creators, podcasts, and advertisers can tap into a booming content creation industry.

9. Health and Wellness Music:

• Music therapy apps and platforms focused on relaxation, meditation, and well-being are gaining traction.

10. Regional Music Platforms:

• Hyperlocal streaming platforms or music services tailored to specific states or regions can capitalize on the regional music boom.

Challenges

Monetization: Many users still prefer free streaming services, making it challenging for companies to generate high subscription revenue.

Piracy: Copyright infringement and piracy remain issues in the Indian market.

Competition: Established platforms dominate, leaving limited room for newcomers without innovation.
Future Trends

Rise of Non-Bollywood Genres: Folk, indie, and devotional music will see increased consumption.

Short-Form Content: Platforms like Instagram Reels and YouTube Shorts will continue to drive music discovery.

Global Collaboration: Indian artists collaborating with international musicians can open global markets.

AI in Music: AI-driven music creation and curation will shape the future of the industry.
Conclusion

The Indian music market offers immense opportunities for music-related companies, especially those that innovate in technology, cater to regional tastes, or support independent artists. Companies focusing on creating accessible, personalized, and high-quality experiences are well-positioned to succeed.

Set-up a new company or expand your business in India.

Consult Samstar Consultants. Visit www.samstarconsultants.com.