Dance music is one of the world’s largest genres, boasting numerous subgenres and diverse songs. The global dance music market is expected to expand at a compound annual growth rate (CAGR) of 7.5% during the forecast period.
This article will examine the factors driving this industry’s growth and provide key statistics regarding market size, trends and drivers.
1. Global market size
Dance music is a multibillion dollar industry. However, according to this year’s IMS Business Report, it has declined 20% from its pre-pandemic high.
According to the IMS report, electronic dance music revenue has declined from more than $6 billion in 2018 to an estimated $3.4 billion in 2021. This includes earnings from software and hardware sales, streaming music services, DJs’ and artists’ earnings as well as club and festival attendance.
In addition to the overall decline in electronic dance music, this year’s IMS Report observes a record drop in DJ earnings and numerous clubs closing their doors. However, livestreams – particularly YouTube ones hosted by David Guetta or Billboard – have become a lifeline for many dance brands and artists.
These livestreams have also helped raise funds for various pandemic-related causes, such as the World Health Organization’s Covid-19 response fund and UNICEF. These types of initiatives help maintain the industry’s sustainability.
Marketing success requires marketers to identify the appropriate channels and outlets that appeal to their target audiences. A thorough market analysis can be invaluable in this highly competitive environment, helping determine the most successful strategies.
A market analysis report on dance music provides an overview of the global landscape, key trends and emerging opportunities. It also offers predictions as to how this sector may develop over the coming years.
Moreover, the report covers various aspects such as segmentation by product type, application, key players and regions. Furthermore, it includes a comprehensive competitive analysis of the leading competitors in the market which offers insights into how they are competing with one another and their strategies.
This report analyzes the size of the dance music market, its key players and growth prospects from 2017-2022. It includes a market share and forecast by product type, application, region as well as key players. Furthermore, it provides an overview of competition landscape along with profiles of some leading companies within this sector.
2. Market segmentation
The dance music market is highly fragmented, due to the large number of players present. Furthermore, entry to this space can be costly and difficult for small and medium enterprises (SMEs). Despite these obstacles, this industry continues to thrive and will likely keep growing over the forecasted period.
The market is largely segmented by product type (audio, software, hardware), applications (clubs, DJs & live acts) and region. North America dominates this space followed by Asia-Pacific and Europe due to the strong demand for electronic dance music that appeals to both teens and adults.
The market’s growth can be attributed to several factors, including an increasing number of festivals and music events around the world. These events attract a large audience which benefits businesses in the music industry. Furthermore, research has found that EDM music has been linked to better mental health outcomes – beneficial for both artists and listeners. However, one significant challenge facing this sector is keeping up with rapidly transforming digital landscape and finding new ways to engage customers.
3. Market forecasts to 2022
The global electronic dance music market is expected to experience a compound annual growth rate (CAGR) of 7.5% from 2018-2022, driven mainly by increased demand for EDM from clubs, DJs and live acts as well as other applications.
Dub music is predicted to dominate the market during this period. This genre of percussion-heavy electronic music has gained widespread appeal among millennials. Additionally, hip hop and disco music are expected to experience significant expansion during the forecast period.
North America is expected to hold the largest market share of more than 29.0% in 2022 and experience a healthy compound annual growth rate (CAGR) throughout the forecast period. This growth can be attributed to increasing demand for electronic dance music across North America due to an array of festivals that draw large crowds.
Europe is expected to experience a growth rate of more than 8.1% during the forecast period. This can be attributed to an increased focus on entertainment in the region, an abundance of events and festivals, as well as high tourism expenditure.
Asia Pacific is expected to experience a growth rate of 6.1% during the forecast period, driven mainly by an increasing demand for electronic dance music in the region – particularly from China and India.
By 2022, the global dance music market is predicted to reach USD 6 billion. This growth in revenue can primarily be attributed to an increasing demand for EDM in Asia due to a growing population and expanding spending power. Furthermore, EDM’s increasing popularity can be linked to the growing travel and tourism industry.
4. Market drivers
Electronic dance music (EDM) is an electronic genre often played at clubs, festivals and raves. DJs mix tracks together to create a seamless sequence for listeners, providing them with an unified experience. The market for EDM has seen tremendous growth over the last several years.
The success of this music genre can be attributed to its ability to lift people’s spirits. The rhythmic beat creates a happy feeling, which in turn leads to an increase in dopamine levels – helping combat depression.
Furthermore, the growing use of social media has greatly contributed to the expansion of the EDM industry. Through these platforms, DJs can reach a broader audience and achieve widespread recognition.
Furthermore, the increasing demand for music and entertainment among young consumers has resulted in an uptick in the demand for sound systems and lighting equipment in nightclubs. This factor is anticipated to drive the market over the forecast period.
DJs are increasingly joining forces with video game companies to promote their music through virtual environments. By tapping into this new frontier, they can attract a wider audience and provide fans with an even more captivating experience.
Gaming is set to continue growing in popularity and become a lucrative avenue for DJs worldwide. With global games revenues projected to surpass recorded music revenues by 2020, labels must investigate how they can monetize this space.
The global dance music market is predicted to expand rapidly over the coming years due to an increasing appetite for musical entertainment around the world. Furthermore, DJs and live acts are expected to experience increased popularity, further fuelling this sector’s growth prospects.
5. Market restraints
Dance music has achieved global acclaim, yet some market barriers still stand in its way. One such obstacle is the high cost of electronic music production software; this can put many aspiring artists out of financial reach and prevent them from launching their careers. Additionally, some people may experience negative consequences from overexposure to electronic music. This could cause anxiety and panic among others. Another obstacle was the COVID-19 pandemic which hit the world in 2015. The pandemic caused strict lockdown regulations and a ban on public gatherings, which adversely impacted the industry. On the other hand, this created an opportunity for new players in the market by providing them with a platform to craft creative strategies to expand their operations while circumventing market limitations.