Global music streaming revenue expected to reach $13.05 billion by 2023

Spotify (SPOT) is a market leader in the global music streaming business, and the company is expected to grow at a much faster rate than global growth estimates.

According to market research company Statista, global music streaming sales are expected to grow from $10.46 billion in 2018 to $11.11 billion in 2019, $11.69 billion in 2020, $12.20 billion in 2021, $12.65 billion in 2022, and $13.05 billion in 2023.

How SPOT Could Capitalize on the Growing Music Streaming Market

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Spotify reported Premium subscription sales of ~$5.3 billion in 2018—close to 48% of its total music streaming sales.

While the global music streaming business is expected to grow 6.2% in 2019, 5.2% in 2020, and 4.4% in 2021, analysts expect Spotify’s sales to rise 27% in 2019, 24% in 2020, and 22% in 2021.

US music streaming market rose 30% in 2018

According to a report from the Recording Industry Association of America, music streaming revenue in the United States rose 30% year-over-year from $5.7 billion in 2017 to $7.4 billion in 2018. Spotify generates ~30% of its subscription revenue in North America. However, Spotify also contends with competition from tech giants, such as YouTube (GOOG) (GOOGL), Apple, and Amazon (AMZN), and niche players, such as Pandora (P), in the space.

Spotify’s international expansion should hold it in good stead, helping it drive revenue and fight off competition from companies with much larger resources.