In-Store Background Music Market Size, Share, Growth and Industry Analysis, By Type (Music Streaming, AV System Equipment), By Application (Retail Stores, Cafes & Restaurants, Leisure & Hospitality, Public Organizations, Others), Regional Insights and Forecast From 2026 To 2035

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IN-STORE BACKGROUND MUSIC MARKET OVERVIEW

The global in-store background music market size is estimated at USD 1.66 Billion in 2026, set to expand to USD 2.55 Billion by 2035, growing at a CAGR of 4.92% during the forecast from 2026 to 2035.

Background music is a musical performance in which the music is not intended to be the listener's primary focus, but rather its content, personality, and volume are chosen to influence a person's behavioral and emotional responses, such as relaxation, entertainment, and concentration. Background music is usually played in places where there is no audience, including empty corridors and dressing rooms. In addition, virtual worlds and MMORPGs use background music.  Background music is often played at a low volume thanks to several small speakers. Today, it is even used in various environments such as airports and doctors. Different types of background music music genres are played.

The availability of affordable music subscription services and increasing demand is driving the growth of the global background music market. Rapid adoption of background music in retail stores is also a major factor boosting the growth of the market. The global growth of background music is driven by the growing demand for affordable music subscription services and various types of online music.

KEY FINDINGS

COVID-19 IMPACT

Stringent Government Regulations And Shrinking Supply Chains Hindered Market Growth

The COVID-19 pandemic has been unprecedented and staggering, with the 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.

The outbreak of COVID-19 has affected several industries worldwide. Governments around the world have imposed strict lockdown measures and social distancing norms to limit the rapid spread of the pandemic. In the early stages of the pandemic, production facilities around the world were shut down. In addition, the post-pandemic economic crisis may significantly delay the commercial deployment of the consumer electronics industry. Small and medium-sized companies are the backbone of technology providers, and their revenues have fallen sharply in 2020 following the pandemic. Therefore, market participants faced many challenges when disruptions were identified in the supply chain. However, the situation will improve in the second half of 2022 when more accessories come online.

LATEST TRENDS

Growth Of Music Subscription Services Will Fuel Market Growth

The growth of music subscription services is fueling the global growth of the background music market. The music industry's revenue has steadily increased over the past three years, with subscription-based music streaming channels generating substantial revenue. These music streaming channels include paid subscription services, streaming radio services, and ad-supported streaming services.

• According to the U.S. Small Business Administration, nearly 33% of retailers report that consistent auditory branding increases in-store customer dwell time by over 20%, driving higher acceptance of digital background music systems.

• According to the International Federation of the Phonographic Industry (IFPI), more than 70% of commercial music usage worldwide has shifted to licensed digital catalogs, leading retail chains to invest in in-store background music platforms with catalog sizes exceeding 50,000 tracks.

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IN-STORE BACKGROUND MUSIC MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Music Streaming, AV System Equipment.

Music Streaming is anticipated to be the leading segment.

By Application

Based on application, the market can be divided into Cafes & Restaurants, Leisure & Hospitality, Public Organizations, Others.

Cafes & Restaurants will be dominating segment.

DRIVING FACTORS

Global Market For Background Music In Retail to Drive the Market Growth

Background music demand in retail is a key driver for the growth of the global background music market. It has been proven that the right tempo and rhythm of the background music affects the environment and increases the time spent shopping. Soft and slow music has a relaxing effect on shoppers, making them browse the shops longer. Therefore, background music plays an important role in creating a positive shopping experience, which is a major selling point for background music subscriptions worldwide. Retail includes retail stores, showrooms and department stores. Background music plays an important role in influencing the purchasing decisions of customers. Different types of background music are used depending on the type of socket. For example, Abercrombie and Fitch use loud music to define their brand, which sells lively casual clothing to the younger generation. Barnes and Noble use slow and relaxing music.

The global In-Store BGM market is experiencing phenomenal growth. This development is due to many variables. One of the critical variables in the development of the commercial background music market is the reliable interest of various end-user applications such as bistros and dining, public relations, leisure and hospitality, retail and reverse end-uses.

The background music market of the store has notable interesting routes from the accommodation area. The in-store background music market continues to be affected by the development of reception in various commercial biological systems in both the established and creative industries.

Growing Demand From The Restaurant Industry to Fuel the Growth Of The Market

Growing demand from the restaurant industry is expected to drive the In-store background music market growth during the estimated period. The background music market is vital in the hospitality industry as it acts as a means to attract the attention of customers. In addition, online services offer consumers the opportunity to order food from the comfort of their homes, which significantly reduces the number of consumers visiting restaurants. To solve this problem, restaurants offer extensive menus, in-house entertainment, excellent services and other value-added services to attract customers. Therefore, background music marketing systems add value to the consumer experience. Additionally, tweaking playlists can potentially increase sales by influencing people's behavior; sales and consumption of alcoholic beverages also increase when consumers are exposed to an upbeat background music market.

• According to Eurostat, retail stores across the EU recorded a 6% rise in in-person shoppers in the latest reporting year, encouraging stores to use curated background music to improve customer engagement and influence buying decisions.

• According to the U.S. National Restaurant Association, more than 1 million restaurants operate nationwide, with 48% using ambient music solutions to enhance customer experience, supporting market demand for in-store background music systems.

RESTRAINING FACTORS

Low Profit Margins To Hinder Market Growth

Low profit margins of BGM vendors are a major challenge for the growth of the global background music market. The background music industry is very competitive, and many vendors offer homogeneous services at very low costs with few differences. Most of the revenue earned by sellers goes to the artists, content producers, publishers and record labels, leaving them (background music providers) with very little revenue. This small profit margin makes it difficult for sellers to stay in the market, which proves to be a challenge for the market.

• According to ASCAP, businesses face over 20,000 annual copyright violation notices globally related to improper music usage, causing many small retailers to hesitate in adopting in-store music systems due to compliance concerns.

• According to SME Chamber of India, nearly 42% of small retail businesses classify subscription-based audio systems as a cost burden, limiting adoption of advanced background music platforms among smaller store formats.

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IN-STORE BACKGROUND MUSIC MARKET REGIONAL INSIGHTS

North America to Hold the Significant Growth Due To Rising Subscription Services

North America will grow at the highest annual growth rate during the forecast period. The growing consumption of background music in the U.S. across various end-use sectors is driving the expansion of the region in North America. More and more music subscription services are also helping to support the North American background music sector. In addition, several banks in the region are expected to accelerate the adoption of background music technology in the near future. However, creating inorganic methods to add artificial intelligence to background music providers is likely to accelerate the expansion of the industry. North America dominates with the largest In-store background music market share during the forecast period. The growth in the North America region is driven by the increase in background music consumption across various end-use industries in the U.S.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios. Key industry players in the antacid tablet market have a significant impact on market dynamics. These companies are at the forefront of research and development, consistently introducing innovative formulations and product variations. Their focus on convenience and effectiveness sets industry standards and influences market growth.

• Auracle Sound: According to company-reported operational statistics aligned with industry association benchmarks, Auracle Sound provides background music solutions to more than 4,000 retail outlets globally, offering curated playlists exceeding 60 genre categories.

• Cloud Cover Music: According to data referenced by the U.S. Chamber of Commerce, Cloud Cover Music supports over 20,000 commercial locations across North America, delivering licensed music libraries containing more than 120,000 tracks for in-store environments.

List of Top In-Store Background Music Companies

• Auracle Sound (U.K.)
• Cloud Cover Music (U.S.)
• SiriusXM for Business (U.K.)
• NSM Music. (U.K.)
• Express Melody (Singapore)
• SoundMachine (U.S.)
• Brandtrack (U.S.)
• Open Ear Music (U.S.)
• Sunflower Music (U.K.)
• Imagesound (U.K.)
• Jukeboxy (U.S.)
• Mood Media (U.S.)
• Usen Corporation (Japan)
• Custom Channels (U.S.)

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.