According to a report from technology research and advisory company Technavio, the global radio market size is estimated to grow by $8.48 billion from 2024-2028, at a 3% compound annual growth rate.
Driving this growth, Technavio says, is access to the latest music and live updates, with a trend towards online radio services, even as the industry continues to be challenged by the availability of music streaming services.
Technavio’s report shows that broadcast radio accounted for $20.69 billion globally, representing roughly half of the business, in 2018, and showed a gradual increase during the forecast period. Online mobile and satellite radio share the other half of the global radio business pie.
“The broadcast radio segment is estimated to witness significant growth during the forecast period,” the report says. “In the realm of radio communications, traditional broadcasting continues to hold a substantial market share. Broadcast radio’s appeal lies in its accessibility, as no additional devices are required to tune in. This factor significantly reduces the associated costs for consumers.”
Technavio attributes the estimated growth to broadcast radio’s “widespread availability and ease of use. In response to technological advancements, many smartphone manufacturers have integrated broadcast radio chips into their devices, allowing users to stream radio directly on their smartphones. As technology evolves, integrations like those seen in smartphones further expand the reach and accessibility of this radio platform.”
The report notes that online radio streaming “is a popular way to access radio content, with many vendors offering their services over the internet. Some radio channels have merged with streaming portals, providing listeners with the flexibility to choose between live radio and on-demand music, [with] vendors like Pandora and Apple Music offer[ing] both services. The growing internet penetration and mobile internet availability are driving the demand for internet radio, positively impacting the global radio market during the forecast period.”
The study acknowledges that music streaming services “have emerged as significant competitors in the radio industry. With growing popularity and competitive pricing, an increasing number of listeners are opting for online music streaming instead of traditional radio. The proliferation of mobile internet penetration allows listeners to access and download music on their mobile devices, offering convenience and flexibility. Music streaming platforms provide an extensive range of music genres and tracks, posing a challenge to the global radio market in the forecast period.”