The global electronic music industry has hit a significant milestone, with the latest IMS Business Report revealing that its value has reached a staggering $12.9 billion. This represents a 6% increase from the previous year, showcasing a steady growth trajectory for the sector. The report, considered a definitive snapshot of the industry, paints a vibrant picture of the international electronic music scene, which continues to evolve and thrive.
Authored by Mark Mulligan of MIDiA Research, the 2025 IMS Business Report was released on the first day of IMS Ibiza 2025. Mulligan highlighted the resilience and cultural impact of electronic music, attributing its growth to the emergence of new genres like Afro house, a resurgence of styles such as drum & bass, and the influence of a new generation of fans and creators reshaping the landscape.
The report delves into the dynamics of the recorded music market, noting a maturing streaming landscape and fluctuations in physical sales. Major labels, while still dominant, are facing challenges from the independent sector, which continues to gain market share. Self-releasing artists, however, are grappling with streaming royalty thresholds that impact their earnings from digital service providers.
Subscriber numbers across all music platforms are on the rise, with a 12% increase globally, driven largely by markets in the Global South. Spotify remains a key player in the market, commanding a significant share of subscribers worldwide. The report also sheds light on the live music sector, which has seen a financial boom post-Covid, although primarily fueled by higher ticket prices rather than increased sales volume.
Mulligan emphasized the interconnected nature of revenue streams in the music industry, highlighting the relationship between physical media consumption, such as vinyl, and live music attendance. Rising ticket prices have contributed to the overall revenue growth in the live sector, but there are concerns about the sustainability of this trend as consumers face economic constraints.
Electronic music’s listenership is expanding globally, with notable increases in key markets like the UK, Germany, Mexico, Brazil, and India. Emerging genres like Afro-house and amapiano are gaining popularity, driven by a new wave of artists injecting fresh energy into the scene. The report also underscores the importance of regional trends in an increasingly globalized music landscape.
AI’s growing presence in music creation is a significant topic in the report, with millions of users engaging with music creation apps and generative AI tools. Mulligan predicts that AI will revolutionize the music business by automating various processes, from A&R to royalty management, and enhancing fan music discovery experiences.
The IMS Business Report offers a comprehensive analysis of the electronic music industry’s current state and future prospects. As the industry continues to evolve, bridging generational gaps and fostering collaboration between industry veterans and emerging talents are crucial themes at events like IMS Ibiza, where industry pioneers and rising stars converge to exchange ideas and insights.