The electronic music industry has reached a landmark valuation of $12.9 billion, according to the newly released IMS Business Report 2025, unveiled at the opening of IMS Ibiza on April 23rd. This marks a 6% year-on-year growth, following a 9% increase in the previous year, signaling a continued, albeit slightly slower, upward trend in the global scene’s economic impact.
Now in its 11th edition and authored by Mark Mulligan of MIDiA Research, the report offers what it calls a “definitive snapshot of the global electronic music economy.” While streaming revenue growth is beginning to mature and the post-Covid live boom is leveling out, the report paints a picture of an industry thriving through innovation, evolving tastes, and a new generation of fans.
A Genre Rising Against the Odds
Despite an overall slowing in global music industry growth, electronic music has increased its cultural and economic share. Mulligan attributes this resilience to the rise of dynamic new subgenres such as Afro-house and amapiano, as well as a revival of drum & bass, jungle, and UK garage — all fueled by young creators redefining the genre’s identity.
“Electronic music finds itself at the start of a brave new era of cultural resonance,” Mulligan said, noting that this generation of artists is building something uniquely its own.
Streaming Soars — But Artists Feel the Squeeze
The report highlights a significant increase in global streaming subscribers — up 12% to 818 million, with most of the growth coming from the Global South. However, artists aren’t necessarily benefitting equally. Platforms like Spotify (which leads with 32% market share) have introduced streaming royalty thresholds that have hurt self-releasing artists, limiting payouts for tracks with fewer than 1,000 streams.
While independent labels have grown to claim 30% of the market, the consolidation of major labels and their distribution networks means a portion of that market share still indirectly benefits the majors. As Mulligan warned, the same pressures hitting independent artists are set to affect smaller electronic labels in 2025, potentially sparking widespread discontent.
Live Sector Hits Record Highs — But Faces Tough Realities
The live music market has doubled in value compared to pre-pandemic levels, but much of this growth is attributed to skyrocketing ticket prices, not increased attendance. While top-tier acts and mega tours are thriving, small and mid-sized venues and festivals are struggling with rising costs and financially strapped audiences.
“In Ibiza and among the top 100 global tours, the number of tickets sold was actually down in 2024,” Mulligan noted. “But higher ticket prices ensured revenues were still up.”
He also pointed to a spending clash between live music and physical formats like vinyl, which have become collector’s items and status symbols for superfans. With ticket prices reaching unsustainable levels, physical sales may continue to feel the squeeze.
Global Reach, Local Impact
Listenership for electronic music surged in 2024, particularly in markets like Mexico (+60%), Brazil, and India. Across platforms like Spotify, TikTok, and YouTube, the report tracked 566 million new fans engaging with electronic content. TikTok views of electronic music posts rose by 45%, surpassing indie music content with 13 billion views.
Still, Mulligan warns that the concept of “global music trends” is becoming obsolete. As streaming spreads, regionalization is growing, with audiences in non-Western markets favoring local talent over global hits. This duality — where music both localizes and crosses borders — is reshaping the industry’s landscape.
The AI Revolution Is Coming Fast
Perhaps the most forward-looking section of the IMS Report focuses on artificial intelligence, which is rapidly embedding itself in music creation, curation, and business operations. Around 60 million people used music creation apps in 2024, with 10% of consumers using generative AI to create tracks or lyrics.
But AI’s impact won’t stop at creativity. According to Mulligan, AI is set to automate A&R, manage royalties, optimize catalogues, and redefine how labels maintain their sonic identity. While it may flood streaming platforms with “best-fit” algorithmic tracks, it also presents tools to empower artists — if they can adapt.
“AI will find its way into all aspects of the music business,” Mulligan emphasized. “But unless streaming services create lanes for AI-generated content, real music fans may start looking elsewhere.”
As IMS Ibiza continues at Cala Llonga this week under the theme of Intergenerational Exchange, the electronic music industry stands at a powerful crossroads. Between record-breaking global engagement, AI-fueled innovation, and the urgent financial challenges faced by smaller players, the IMS Business Report 2025 makes one thing clear: electronic music’s future is as complex as it is promising.
The full IMS Business Report is available to read now on IMS’s official website.
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