Music creator tools forecast Moving towards a hybrid future

The 20,000 Foot View:  Once upon a time, music software and hardware were distinct market segments, but now they are increasingly fusing into a network of hybrid creator tools ecosystems. Standalone hardware still has a vibrant future, but the real momentum lies with software, sounds, services and the hardware that supports them.

Key Insights

• The music            tools landscape maps to six            instruments; production, software and sounds;            label services; distribution; audience
• The key            drivers are: the creator renaissance;            potential; the computer music boom.            inhibitors are: complexity; streaming economics;            clutter
• Music software,            and hardware sales grew by            2020, to reach            billion
• Hardware accounted            the vast majority            of revenues            2020, but software, sounds and            grew faster            compared to           
• Total revenues            grow by            by 2028, reaching            with software, sounds and services            fastest            compared to            for hardware)
• The market            music production software, sounds and            was worth            billion in 2020,            plugins + VSTs being the            single segment, representing           
• Sounds revenue            worth            million in 2020 –                       growth from 2019 is second            to services. Revenues will more            double to            million by 2028  
• The music            sounds and services sector will            majority subscription by 2026, and                       of the total by 2028 
• The combined            making hardware segment grew by            2020 to reach            billion, following            decline of            in 2019
• Music production            was worth            billion in 2020,            by            from 2019, and will            by            by 2028 to reach           
• Synthesisers sales            go from            million in 2020                       million in 2028, an increase                      

Companies and brands mentioned in this report: Algonaut, Apple, Arcade, Arturia, Atlas, Auxy, Avid, AWAL, Bandcamp, BandLab, Battery, Beatport, Discord, Elektron, Endless, Etsy, Garageband, Kobalt, Landr, Loopcloud, Native Instruments, Music Maker JAM, Netflix, Output, Reddit, Reverb, Roland, Sony Music, Soundbetter, Soundcloud, Soundstorming, Soundtrap, Splice, Spotify, Teenage Engineering, TikTok, Voisey, YouTube, Zenbeats