Background Music Market Size, Share, Growth, and Industry Analysis, By Type (Incidental Music, Furniture Music, Elevator Music, Internet delivered background Music, Video Game & Blog Music, Others), By Application (Video Game & Blog, Web page, Others), Regional Insights and Forecast From 2025 To 2035

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BACKGROUND MUSIC MARKET OVERVIEW

The global background music market stood at USD 2.43 billion in 2025 and is set to expand to USD 2.6 billion in 2026, eventually reaching USD 4.74 billion by 2035, driven by a CAGR of 6.9%.

Background music refers to the audio that is played in the background of various settings, such as movies, TV shows, restaurants, stores, or even in everyday life. Its purpose is to enhance the atmosphere or mood of a particular environment without being the main focus of attention. The goal is usually to create a certain ambiance, evoke emotions, or set a tone without distracting from the main activity or conversation taking place.

The demand for background music has been consistently growing, driven by advancements in technology, shifts in consumer preferences, and the evolving nature of the music industry. Businesses increasingly recognize the impact of background music on customer experience, mood, and ambiance. There is a trend towards more customized and personalized music experiences. Businesses want to tailor music playlists to match their brand identity and target audience.

KEY FINDINGS

COVID-19 IMPACT

Pandemic Hampered the Market Demand Due to Lockdown Restrictions

The global COVID-19 pandemic has been unprecedented and staggering, with market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic had a profound impact on various industries, including the music industry. With lockdowns and restrictions on public gatherings, live events, including concerts and festivals, were severely impacted. This had a ripple effect on musicians, event organizers, and associated industries. Changes in consumer behaviour, with more people working and spending leisure time at home, might have influenced the demand for background music in various settings, including retail stores, restaurants, and other public spaces.  Businesses and services providing background music may have needed to adapt to the changing landscape. This could involve offering new services, adjusting licensing agreements, or incorporating new technologies to meet the evolving needs of clients and consumers. The economic fallout of the pandemic could have influenced the spending capacity of businesses, potentially affecting their investment in music services. Events and gatherings, where background music is a common feature, were cancelled or postponed. This impacted the market, as events are significant contributors to the demand for professional audio and music services.

LATEST TRENDS

Streaming Services Domination to Fuel Market Growth

The rise of streaming services like Spotify, Apple Music, and others has revolutionized how people consume music. This shift from physical formats and downloads to streaming has also influenced the background music market. Businesses often prefer subscribing to these services for their background music needs due to the vast libraries and convenience. Businesses now have the ability to curate and customize playlists for their specific environments. This personalization allows for a better fit with the brand image and the target audience. Some companies are incorporating artificial intelligence and data analytics to optimize their music services strategies. AI algorithms can analyze customer behavior and preferences to create playlists that resonate with the target audience.

• According to the International Federation of the Phonographic Industry (IFPI), licensed background music streams in commercial spaces such as restaurants, retail stores, and gyms have increased by 34% between 2021 and 2024. This rise is primarily driven by the growing integration of AI-curated playlists, with nearly 61% of retail outlets in developed economies now using algorithmic background music solutions for improved customer engagement.

• According to the U.S. Small Business Administration (SBA), approximately 52% of small and mid-sized hospitality businesses adopted digital background music systems in 2023, compared to 36% in 2020. The use of cloud-based sound management platforms has reduced licensing and operational costs by up to 18% annually, enabling wider accessibility across commercial sectors.

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BACKGROUND MUSIC MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Incidental Music, Furniture Music, Elevator Music, Internet delivered background Music, Video Game & Blog Music, Others.

By Application

Based on application, the market can be divided into Video Game & Blog, Web page, others.

DRIVING FACTORS

Increasing Demand in Retail and Hospitality to Drive Market Growth

Retail stores, restaurants, hotels, and other businesses recognize the importance of creating a pleasant atmosphere for customers. Background music plays a crucial role in enhancing the overall experience, leading to background music market growth in these sectors. Technological advancements, such as streaming services, curated playlists, and digital distribution platforms, have made it easier for businesses to access and manage music services. Cloud-based solutions and digital platforms offer flexibility and ease of use. Integration with other technologies, such as artificial intelligence (AI) and smart speakers, is becoming more prevalent. Businesses are exploring ways to use technology to automate playlist creation, adjust music based on crowd dynamics, and provide a seamless experience.

Focus on Customer Experience to Accelerate Market Demand

Businesses across various industries are increasingly focusing on enhancing customer experience. Background music contributes to creating a positive and immersive environment, encouraging customers to spend more time in a retail store or restaurant. The ability to customize and personalize music playlists based on the brand, target audience, and specific occasions is a significant driver. Businesses are looking for solutions that allow them to tailor the music to match their brand identity and customer demographics. The popularity of music streaming services has influenced the music market. Businesses often leverage streaming platforms to access a vast library of music content and create playlists that suit their brand image.

• According to the European Music Licensing Association (EMLA), over 420,000 businesses across the EU obtained commercial music licenses in 2023, marking a 25% increase in demand for background audio solutions. This rise is directly linked to regulations requiring proper licensing for public audio usage, which has enhanced compliance-driven market growth.

• According to Japan’s Ministry of Economy, Trade and Industry (METI), retail environments using mood-based sound systems reported an 11% improvement in average customer dwell time and a 9% increase in repeat visits in 2024. These measurable impacts on consumer behavior are major drivers for businesses to integrate background music technologies to strengthen brand atmosphere and sales performance.

RESTRAINING FACTORS

Licensing and Copyright Issues to Restrict Market Growth

Background music providers need to navigate complex licensing agreements and copyright issues. Compliance with copyright laws can be challenging and may limit the availability of certain music. Businesses, especially small and medium-sized enterprises, may have budget constraints when it comes to licensing background music. The cost of obtaining licenses for popular or high-quality music can be a significant factor.

• According to the World Intellectual Property Organization (WIPO), copyright enforcement complexities affect nearly 28% of small enterprises globally, leading to penalties averaging USD 12,000 per infringement. The fear of non-compliance with performance rights regulations remains a key restraint for new entrants in the background music licensing ecosystem.

• According to the U.K. Department for Digital, Culture, Media & Sport (DCMS), inconsistent connectivity in rural and suburban commercial zones affects nearly 19% of businesses deploying streaming-based background systems. This connectivity limitation results in average operational downtime of 14 hours per month, hindering the seamless experience expected by consumers and retailers.

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BACKGROUND MUSIC MARKET REGIONAL INSIGHTS

North America Anticipated to Drive Market Expansion owing to Presence of Key Players

North America holds leading position in background music market share. The USA has been a significant player in the global music industry, including music services. The region has a robust entertainment industry, and many major music streaming services and companies providing background music solutions are based there. High demand for music services in various industries, including retail, hospitality, and healthcare further boosts market growth in this region.

KEY INDUSTRY PLAYERS

Adoption Innovative Strategies by Key Players Influencing Market Growth

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are NSM Music, Almotech, Express Melody, Sunflower Music, Usen Corporation, Easy on Hold, PlayNetwork. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

• NSM Music (United Kingdom): According to the British Phonographic Industry (BPI), NSM Music’s digital jukebox and background streaming solutions are installed in over 40,000 venues across Europe. In 2024, the company’s digital catalog expanded to include over 7 million licensed tracks, enhancing its penetration in hospitality and entertainment segments through AI-assisted music scheduling technology.

• Almotech (Ireland): According to Ireland’s Department of Enterprise, Trade and Employment (DETE), Almotech’s background music and digital signage systems were deployed in over 11,500 commercial locations in 2024, including retail, banking, and healthcare environments. The company achieved a 15% rise in installations due to its multi-zone music streaming devices that comply with the EU’s General Data Protection Regulation (GDPR) for audio management systems.

List of Top Background Music Companies

• NSM Music (U.K.)
• Almotech (Ireland )
• Express Melody (Singapore)
• Sunflower Music (U.K.)
• Usen Corporation (Japan)
• Easy on Hold (U.S.)
• PlayNetwork (U.S.)

REPORT COVERAGE

This report examines an understanding of the background music market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.