Musical Instruments Market

Market CAGR for Musical Instruments is being driven by the growing popularity of live performances and concerts and increasing technological advancements. The increasing allure of live performances and concerts can be attributed to various factors, including social interaction, entertainment value, and the opportunity for a closer connection between artists and fans. Attending live music events provides a unique and immersive experience that cannot be replicated through recordings alone. Moreover, such events foster social interaction and community engagement as individuals gather to share their passion for music and connect with others who share similar interests.

These dynamics are expected to fuel the demand for musical instruments on a global scale. For example, according to U.K. Music, which represents the U.K.'s prominent music industry, the number of music tourists in the U.K. reached 12.6 million in 2019. In India, advertising revenue is projected to reach Rs. 394 billion (US$ 5.42 billion) by 2024, with traditional media comprising 58% of the sector's revenues in 2022.

According to the Ficci EY Media and Entertainment report 2023, music streaming in India garnered an audience of approximately 208 million in 2022, with the paid subscriber base estimated to be around 4-5 million. Additionally, about 1 million music streams were played every three minutes in FY23, totaling 460 million streams per day, as reported by Redseer Strategy Consultants. Spotify emerged as the leader in India’s music and audio streaming market in FY23, capturing a 26% share, up from just 11% in FY20.

The ongoing advancements in musical device technology have sparked significant transformations and innovations within the music industry. Breakthroughs in Digital Signal Processing (DSP) and the integration of smart technology have propelled the evolution of digital instruments capable of reproducing an extensive array of sounds and tones. Within the instrument segment, synthesizers, virtual instruments, and electric drum kits are predominant. Additionally, musicians can now manipulate and enhance their instrument's sound through a diverse range of electronic effects and pedals, offering an expansive spectrum of creative possibilities. This surge in technological innovation is bolstering market growth.

For instance, in July 2023, Artiphon, Inc., a leading designer of smart instruments, unveiled 'CHORDA,' an innovative smart musical apparatus encompassing a synthesizer, smart MIDI controller, and looper capable of adapting to various tunes and chords. As a result, it is anticipated that throughout the projection period, demand for the Musical Instruments Market will increase due to the growing popularity of Live Performances and Concerts and Increasing Technological Advancements. Thus, driving the Musical Instruments Market revenue.

The rise in disposable income among consumers positively affects the Global Musical Instruments Market Industry. As individuals experience improved financial stability, they are more likely to invest in musical instruments for personal enjoyment or professional aspirations. This trend is particularly evident in emerging markets, where a growing middle class seeks to explore musical hobbies. The anticipated growth in market value to 5.14 USD Billion by 2035 reflects this shift in consumer behavior. Increased disposable income not only facilitates instrument purchases but also encourages participation in music-related activities, further driving the industry's expansion.

The Global Musical Instruments Market Industry is characterized by various trends and projections that highlight its dynamic nature. The market is expected to reach a value of 3.01 USD Billion in 2024, with a projected growth trajectory leading to 5.14 USD Billion by 2035. The anticipated CAGR of 4.99% from 2025 to 2035 indicates a steady increase in consumer interest and investment in musical instruments. These trends suggest a robust market environment, driven by factors such as technological advancements, cultural influences, and the growing popularity of music education. The industry's future appears promising, with numerous opportunities for growth and innovation.

The rise of online music platforms plays a pivotal role in shaping the Global Musical Instruments Market Industry. With the increasing accessibility of music streaming services and online tutorials, aspiring musicians are more inclined to purchase instruments to create and share their music. This trend is further supported by the growing number of content creators who utilize musical instruments in their productions. As a result, the market is projected to grow at a CAGR of 4.99% from 2025 to 2035, indicating a sustained interest in music creation and performance. The synergy between online platforms and instrument sales highlights a promising future for the industry.

The Global Musical Instruments Market Industry experiences a notable increase in demand for music education, driven by a growing recognition of the cognitive and social benefits associated with learning musical instruments. Educational institutions worldwide are integrating music programs into their curricula, fostering a culture of musical engagement. This trend is reflected in the projected market value of 3.01 USD Billion in 2024, as more students seek to learn instruments such as pianos, guitars, and violins. The emphasis on music education not only enhances individual creativity but also contributes to the overall growth of the industry, indicating a robust future for musical instrument sales.

Cultural influences and globalization significantly impact the Global Musical Instruments Market Industry, as diverse musical styles and genres become more accessible worldwide. The blending of traditional and contemporary music fosters a demand for various instruments, from ethnic percussion to modern electric guitars. This cultural exchange encourages musicians to explore different sounds and techniques, leading to increased instrument sales. The market's growth is indicative of a broader appreciation for music across cultures, suggesting that the industry will continue to thrive as global connectivity enhances the sharing of musical traditions and innovations.

Technological innovations significantly influence the Global Musical Instruments Market Industry, as manufacturers increasingly incorporate advanced features into their products. Digital instruments, such as synthesizers and electronic drums, are gaining popularity due to their versatility and ease of use. Furthermore, the integration of software applications allows musicians to enhance their performances and recordings. This trend is expected to propel the market value to 5.14 USD Billion by 2035, as consumers seek instruments that offer both traditional craftsmanship and modern capabilities. The ongoing evolution of technology in musical instruments suggests a dynamic landscape that appeals to a diverse range of musicians.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of North America's Musical Instruments market can be attributed to several key factors. In North America, there is a notable increase in parental emphasis on encouraging their children to learn musical instruments. This trend is further fueled by the influence of talented musicians and successful singers who often showcase their skills in live concerts and the music industry, thereby stimulating growth in the music instrument retail sector.

Moreover, the growing consumer interest in various music genres is prompting Americans to explore and purchase instruments specific to those genres. According to the Global Music Report 2023, the combined data from Canada and the United States indicates a 5% revenue growth in the North American music market during 2022. This marks a return to a more typical growth rate, following the exceptional 21.8% post-pandemic growth observed in 2021. Streaming music is experiencing increasing popularity in Canada, with more individuals adopting it as their primary music source.

In 2022, streaming music saw a 13.4% increase compared to 2021, and annual on-demand audio streaming of music surpassed 100 billion for the first time. However, the pace of growth was slower compared to previous years, as streaming in Canada grew by 28.6% between 2020 and 2021.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: MUSICAL INSTRUMENTS MARKET SHARE BY REGION 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's Musical Instruments Market accounts for the second-largest market share as the increasing prevalence of live musical performances and concerts is a significant driver behind the market's expansion. Audiences are no longer solely focused on recorded music or new releases; they are increasingly drawn to live concerts. This shift is fueled by advancements in audio technology and the widespread use of social media platforms like Facebook, Instagram, and YouTube, which have propelled numerous musicians to international acclaim.

According to IMPALA, the European music sector alone supports 2 million jobs, contributes €81.9 billion in gross value added to GDP, and exports €9.7 billion worth of goods and services to countries outside the EU27 and the UK. Europe accounts for nearly a third of total recorded music revenues worldwide, with performing rights revenues experiencing an 11% increase to reach a total of $1.4 billion in 2022 – representing 18.7% of total European revenues. Europe continues to lead in performance rights revenues, contributing over 56% of the world’s performance rights income in 2022.

Further, the German Musical Instruments Market held the largest market share, and the UK Musical Instruments Market was the fastest-growing market in the European region.

The Asia-Pacific Musical Instruments Market is expected to grow at the fastest CAGR from 2024 to 2032. The demand for specific instruments is largely influenced by the preferences of the population in particular regions. Moreover, cultural and socioeconomic factors across different geographies are expected to have an impact on the sales of specific instruments. With adolescents increasingly embracing music as either a hobby or a potential career path, the market for various instruments is anticipated to expand. Additionally, the growing popularity of music reality shows, live bands, and concerts is expected to drive demand for modern, high-tech, and costly instruments.

In terms of revenue, the music industry generated Rs 12,000 crore in 2022. Recorded music revenues from labels surpassed Rs 2,500 crore, while music publishing revenues are estimated to be around Rs 884 crore in 2022-23. Furthermore, digital platforms contributed to 47 percent of the total revenue generated by music. Notably, Indian songs secured seven spots on the top 10 YouTube Global Charts for 2022. Moreover, China’s Musical Instruments Market held the largest market share, and the Indian Musical Instruments Market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Musical Instruments market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Musical Instruments industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Musical Instruments industry to benefit clients and increase the market sector. In recent years, the Musical Instruments industry has offered some of the most significant advantages to the global music community. Major players in the Musical Instruments Market, including Steinway Inc., HOSHINO GAKKI Co. Ltd., Gibson Brands Inc., Kawai Musical Instruments Manufacturing Co. Ltd., Fender Musical Instruments Corp., Yamaha Corp., Korg Inc., C. F. Martin & Co. Inc., CASIO COMPUTER CO.

LTD., Roland Corp are attempting to increase market demand by investing in research and development operations.

Gibson Brands, a renowned guitar brand with over a century of heritage, has been a pivotal force in shaping the musical landscape across various genres. Established in 1894 and headquartered in Nashville, TN, Gibson Brands boasts a rich legacy of superior craftsmanship, esteemed music partnerships, and continuous product advancement, setting it apart in the musical instrument industry. The company's extensive portfolio encompasses leading brands such as Epiphone, Kramer, Steinberger, MESA/Boogie, and the Gibson Pro Audio division, KRK Systems, in addition to its flagship Gibson line, recognized as the top guitar brand worldwide.

Committed to excellence in quality, innovation, and sound, Gibson Brands is dedicated to ensuring that future generations of music enthusiasts continue to enjoy the unparalleled musical experiences shaped by its products. For more information, visit Gibson.com and connect with us on Twitter, Facebook, and Instagram.

Fender Musical Instruments Corporation stands as the leading manufacturer globally of guitars, basses, amplifiers, and associated equipment. Since its inception in 1946, Fender has left an indelible mark on the music industry, influencing and shaping various genres, including rock ‘n’ roll, country, jazz, rhythm and blues, and more. Fender instruments and amplifiers have been embraced by individuals ranging from novices and enthusiasts to the most revered artists and performers worldwide. The iconic Fender models, such as the Telecaster and Stratocaster guitars, along with the Precision and Jazz bass guitars, are widely recognized as timeless design classics.