Why In-Store Music Matters More Than Ever
Imagine walking into a store or café, the lights softly glow, and the music fits the space so well you barely notice it until you realise you’ve lingered longer than planned. That’s not accidental. The global “in-store background music” market the curated playlists, ambient tracks or mood-setting tunes retailers, restaurants and hotels play to influence atmosphere isn’t just about filling silence. It’s increasingly seen as a strategic tool to shape brand identity, influence customer behaviour and extend dwell time.
According to industry data, that market reached about USD 1.64 billion in 2024. By 2025, it is expected to climb to USD 1.77 billion, a healthy annual growth rate of 7.6%.
But that’s just the beginning. Projections for the next few years paint a picture of steady ascent to as much as USD 2.34 billion by 2029 under a compound annual growth rate (CAGR) of roughly 7.2%.
So here’s the question many business leaders, investors and marketers are asking: what’s driving this momentum and what disruptions or opportunities lie ahead as we approach 2030 and beyond?
What’s Fuelling the Surge
Streaming, Cloud & Centralised Music Management
A major boost comes from the shift toward cloud-based and streaming audio solutions. Instead of installing local music hardware in every store, companies can centrally manage playlists update them in real time, tailor them to seasons, time of day, or promotions, and deploy them across dozens or hundreds of sites with a few clicks. That flexibility dramatically cuts costs, simplifies operations, and lets brands ensure consistency across locations.
Industry reports highlight that adoption of remote music-management platforms has become a fundamental driver of market growth.
Data, Analytics & Customer Experience Optimization
Companies now treat music not just as background noise but as a brand tool. Many in-store music services tie into data systems that monitor customer behavior, foot traffic, dwell time, or even regional preferences then adjust playlists accordingly. This trend helps retailers refine their atmosphere for maximal engagement, creating tailored “sonic branding” for different contexts and audiences.
Smart Audio, IoT and Tech-Driven Sound Systems
Advances in hardware and audio-visual systems have also contributed to growth. As retailers invest more in smart, IoT-enabled sound equipment, they gain better control over audio quality, synchronisation, and distribution. According to forecasts, demand for such intelligent audio setups will push the market further upward.
Expansion of Retail & Hospitality Sectors in Emerging Regions
While North America remains a major hub, the fastest growth is expected in regions such as Asia-Pacific. As retail, hospitality, and leisure industries expand in developing economies and as modern malls, cafés and global-style stores proliferate the demand for professional in-store music services is rising sharply.
What’s Changing: Industry Trends & Disruptions Ahead
Automation & AI: From Static Playlists to Dynamic Atmospheres
What was once a fixed playlist is evolving into an adaptive, intelligent background soundtrack. More providers are launching AI-driven playlist generators that automatically craft music suited to a store’s brand, vibe, or customer mood. For many businesses this removes the need for musical expertise while creating a bespoke atmosphere.
Beyond that, we’re seeing early signs of real-time playlist adjustment, informed by data analytics, customer flow, time of day, or even emotional cues. Some forward-looking reports mention upcoming “audio-visual experience platforms”, spatial audio techniques, and more immersive sound environments.
Content Licensing & Rights Complexity
As demand grows, licensing becomes thornier. Many establishments struggle with navigating copyright, public-performance licenses, and royalty compliance especially smaller retailers without dedicated legal teams. This has slowed adoption among some potential users.
Market Consolidation vs Niche Personalisation
The industry is a mix: a few large players dominate, but many specialised or boutique services are still active. This tension presents both opportunity and challenge large providers bring breadth and reliability, while smaller firms may offer niche, tailored musical experiences.
Cultural Sensitivity and Regional Specificity, More Than Trendy Extras
As the market grows globally, one-size-fits-all playlists will no longer work. Retailers expanding across cultures and countries must consider local musical tastes, languages, and brand perceptions. Localisation flavouring music to regional preferences will be increasingly important. That’s especially true in Asia-Pacific, where cultural and musical diversity is vast.
Who’s Leading, Key Players in the In-Store Music Market
As of recent industry analyses, the following companies stand out across streaming, custom playlists, licensing solutions and in-store audio systems:
- Soundtrack Your Brand (Sweden)
- Sirius Satellite Radio Inc.
- RadioSparx Inc.
- Epidemic Sound AB
- InStore Audio Network LLC
- Roqbot Inc.
- Imagesound Limited
- Qsic Pty Ltd.
- My Instore Radio Ltd.
- Easy On Hold LLC
- COHM Licensed Solutions Inc.
- SoundMachine Inc.
- Brandtrack Inc.
- Music Technologies International Inc.
- Auracle Sound Ltd.
- Startle Music Limited
- Custom Channels LLC
- Almotech Ltd.
- Pandora CloudCover
- Jukeboxy Music for Business Inc.
These firms vary in size, regional presence, service offer, and business model from subscription-based streaming platforms to licensing agents to hardware providers. As competition intensifies, some will likely expand, merge, or pivot toward newer technologies (AI-curated playlists, integrated AV solutions, etc.).
What That Means for Retailers, Investors and Decision-Makers
- Retailers should think of music not as background filler but as a strategic tool: properly curated audio can enhance brand identity, influence mood, extend visit length and even impact sales.
- Investors and service providers: there’s room for growth, especially in emerging markets (Asia-Pacific, parts of Europe, developing economies) and in differentiated services (localisation, AI-driven curation, integrated AV).
- Operators of small to medium stores: licensing complexity remains a barrier. There’s opportunity for affordable, compliant, “plug-and-play” solutions tailored to smaller venues.
- Regulators & policymakers: with growth rising, especially in cross-border retail and hospitality expansion, copyright enforcement and licensing clarity will become more important globally.
Where It Could Head 2029 and Beyond
By 2029, we’re likely to see a much more mature and segmented in-store music industry. Streaming and cloud-based solutions will dominate, but a new layer of differentiated services will emerge AI-managed mood music, hyper-localised content for regional tastes, integration with lighting & digital signage, and real-time adjustments triggered by customer traffic or even emotional cues. Retailers who treat audio as part of their brand strategy will have an edge.
At the same time, licensing, compliance, and balancing uniform brand audio with local cultural authenticity will remain key challenges especially for global brands expanding across diverse markets.
If you’re in retail, hospitality or hospitality-adjacent sectors: now is a good moment to re-think your sound environment. The right soundtrack might not just make your store feel better it could help your bottom line.
Final Reflection
It may seem trivial: just a few background songs in a store. But in-store background music, as this industry shows, is becoming a strategic business lever shaping experience, brand perception, and even revenue. As the market grows toward 2029 and beyond, we’re entering an era where soundscapes matter as much as lighting or layout.
The real challenge for businesses will be balancing technology and human sensibility using data, AI, and playlists to influence mood without stripping away authenticity.
If you’re in retail, hospitality or any business with physical spaces: ask yourself when was the last time you evaluated what your store sounds like? Because the next wave of in-store audio won’t just play songs. It will play strategy.
