Global recorded music revenues have surged to an impressive $31.7 billion in 2025, marking the 11th consecutive year of growth according to the International Federation of the Phonographic Industry (IFPI). This represents a substantial 6.4% increase from the previous year, highlighting the robust health of the music industry worldwide.
Streaming Continues to Dominate Music Consumption
Streaming services now account for almost 70% of global music income, with total revenues exceeding $22 billion. Paid subscription streaming, in particular, grew by 8.8% and now represents 52.4% of total revenues. This underscores the ongoing shift towards digital consumption, as listeners increasingly favour on-demand access over traditional ownership models.
Physical Formats Show Remarkable Resilience
Despite the digital revolution, physical formats experienced an 8% growth in earnings. Vinyl sales, in a notable trend, rose by 13.7%, continuing their remarkable 19-year streak of consecutive growth. This revival reflects a persistent consumer appetite for tangible music products, often driven by collectors and audiophiles seeking high-quality sound and nostalgic experiences.
Regional Market Insights and Growth Leaders
The United Kingdom maintains its position as the third largest music market globally, trailing only the United States and Japan. Meanwhile, Latin America emerged as the fastest-growing region in 2025, with a striking 17.1% increase in revenues. This growth signals expanding opportunities in emerging markets, where digital infrastructure and music streaming adoption are rapidly advancing.
AI Innovation and Streaming Fraud Challenges
The IFPI report identifies artificial intelligence as a significant opportunity for innovation within the music industry, potentially revolutionising creation, distribution, and personalisation. However, it also warns of an escalating threat from streaming fraud, which undermines revenue integrity and artist compensation. The federation calls for a strong, coordinated industry-wide response to combat these fraudulent activities and protect legitimate earnings.
Overall, the 2025 data paints a picture of a dynamic and evolving music landscape, where digital dominance coexists with a resilient physical market, and new technologies both promise innovation and present fresh challenges.
