Electronic music industry growth post-pandemic

"The pent-up demand experienced in 2022 is also reflective of a new generation coming through who are proving to be passionate, loyal, and keen to experience everything possible"
24 April 2024

Independent labels gain market share, now at 31%.

The dance music sector is on a robust growth trajectory post-pandemic, with a 17% revenue surge in 2023, reaching a total industry valuation of $11.8 billion.

Presented at IMS Ibiza, the annual IMS Business Report 2024 by MIDiA Research sheds light on the industry’s current state and future trends, authored by Mark Mulligan.

The annual study of the electronic music industry by Mark Mulligan and MIDiA Research for IMS Ibiza 2024 | APRIL 24 – 26 2024 | MONDRIAN IBIZA & HYDE IBIZA | Carrer de Sa Talaia, Cala Llonga

Mark Mulligan (MD & Analyst, MIDiA Research) shares: “2022 was an unusual year, in that it reflected the post-pandemic bounce back effect for live. There was a risk that 2023 would struggle to live up to those inflated expectations, but instead the electronic music industry grew strongly once again, with impressive growth across virtually all of its constituent parts. What is more, electronic music culture grew its fan bases faster than other leading genres, in part due to the rapid rise of African music and fans, illustrating the growing cultural footprint of electronic music culture and its vibrant global scenes.”

Key highlights:

– Festivals and clubs remain primary revenue sources, accounting for nearly half of total income.
– Music hardware and software contribute significantly, comprising about a quarter of total revenue.
– Independent labels strengthen their market share, now at 31% for the fourth consecutive quarter.
– The recorded music market sees a 10% growth in 2023, led by streaming and expanded licensing rights.
– Electronic music’s global footprint expands rapidly, with emerging markets like Mexico, India, and Brazil making significant contributions.
– South Africa emerges as a prominent hub for electronic music enthusiasts.

Despite initial concerns, 2023 proved to be another resilient year for the electronic music industry post-pandemic.

IMS Co-Founder Ben Turner says “The new IMS Business Report reflects how deeply electronic music is now integrated into mainstream culture – from festivals to films, finance to fashion – with the genre now ever-present in society. We had shifted from segregated stages or one-off moments to an always-on culture that is hard to get away from! It’s testament to the industry that the valuation is now showing continual growth post-pandemic. The pent-up demand experienced in 2022 is also reflective of a new generation coming through who are proving to be passionate, loyal, and keen to experience everything possible. We are pleased to see the IMS Business Report also grow in stature and impact with all eyes on the genre like never before.” 

IMS, founded in 2007, champions ethical growth in electronic music. IMS Ibiza hosts an annual summit with the IMS Business Report presentation and the iconic IMS Dalt Vila closing celebration.

MIDiA Research provides insights into digital entertainment, aiding diverse sectors.

The IMS Business Report highlights electronic music’s adaptability, promising growth and innovation.

internationalmusicsummit.com