"Digital audio content is gaining popularity owing to the rise in the number of Internet downloads and proliferation of music-related applications. This is leading to an increase in the number of artists and music producers creating music albums which in turn increases the demand for music production software," states the Technavio report.
Music production software and digital audio workstation (DAW) software applications are used for music composition, digital recording, creating electronic music and other musical applications. Technavio’s market research analysts have predicted that the music production software market will witness considerable growth during the period 2018-2022. Considering the sales of various music software based on types including editing, mixing, and recording across several end-user industries including professional and casual, Technavio's analysts have estimated that this market will register a revenue of more than USD 6.26 billion by 2022 - or three times the business volume registered in 2017.
Technavio’s market research analysts have identified the growing demand for digital audio content across the globe as one of the key factors impelling the market’s growth during the predicted period. Digital content has been gaining prominence and acceptance with consumers. Due to the rapid rise in the number of Internet downloads and proliferation of music-related applications, the global digital audio content market is valued at USD 12.43 billion by the research firm.
"The rapid increase in online streaming through licensed services will also augment the demand for digital audio content in the forthcoming years. Consequently, with the increasing number of users demanding digital audio content, the requirement for music production software will also increase considerably during the predicted period," the researchers say.
"The music production software market is moderately fragmented owing to the presence of several music recording software service providers leveraging advanced technologies including Artificial Intelligence (AI). This has helped several start-ups in receiving funds for carrying out research and developments in this domain," Technavio adds.
Technavio highlights the growth in the use of AI to compose music as one of the key emerging trends in the global music production software market. "AI has made inroads in the music industry. AI is used for composing music and is expected to be a potential game-changing technology for upcoming musicians. Several start-ups are receiving funds for developments in this domain. For instance, in 2016, Melodrive, a Berlin-based start-up, received funding to develop AI algorithms to compose music."
“AI is not only gaining traction among start-ups in the music industry but also from tech giants such as Google and Sony, which are working on projects, including Magenta and Flow Machine, that use AI to compose music. Vendors in the music production software market are focusing on making the software more user-friendly. They have reduced the price and provide trial versions with full application features for end-users, which augurs well for the growth of the market,” says a senior analyst at Technavio.
The report offers a competitive landscape analysis of various companies including the market leaders in the segment, such as Ableton, Adobe, Apple, Avid, and MAGIX. The report also details market growth based on geographic regions - Americas, APAC and EMEA. The Americas led the market in 2017 with a market share of more than 42%, followed by EMEA and APAC respectively. The market share of the Americas is influenced by the high popularity of concerts and live events in the region. In addition, music as a career choice is common in this region, which is contributing to the growth of the music production software market.
"Our industry research analysts have estimated that countries in the Americas were the highest revenue contributors to the growth of music creation software throughout the predicted period. Owing to the high popularity of concerts and live events in the advanced economies including the US, the region is expected to continue contributing significantly to the market growth resulting in the continuous rise in the music mixing software market size," they state.
Technavio believes that the editing segment will account for the highest growth in the market. Additionally, the report also provides predictions of the contribution from different music production software types to the growth of the music production market size, information on factors that will accelerate the growth of the music production software market during the next five years, and precise estimation of the global music production software market size.
Market research analysts at Technavio have also considered how the performance of other related markets in the vertical will impact the size of this market till 2022. Some of the markets most likely to influence the growth of the music production software market over the coming years are the music production equipment market and the musical instruments market.