IMS Business Report 2025: The Global Electronic Music Industry Hits a Record $12.9 Billion

The IMS Business Report 2025 has arrived, painting a picture of an electronic music scene at both a financial high and a cultural crossroads. With the global value of electronic music now reaching a record $12.9 billion, the sector is firmly entrenched as a central pillar of the music industry. This marks a 6% year-on-year increase, a slightly slower rate of growth compared to the previous year’s 9% rise - but still a significant gain in a complex landscape.

Unveiled on April 23rd, the first day of IMS Ibiza 2025, the 11th edition of the report, compiled by MIDiA Research’s Mark Mulligan, continues to provide essential insights into the state of global electronic music. Despite the slight dip in growth rate, Mulligan sees the sector as being on the cusp of an exciting new chapter.

While overall music industry revenue grew in 2024, the rate of expansion has been slower compared to the post-Covid boom of 2023, especially as streaming revenue matures and live music stabilises. But in the world of electronic music, things are different. The genre is still carving out a larger share of both financial success and cultural influence. Emerging subgenres like Afro House and Amapiano, alongside the revival of classic sounds such as jungle and Drum & Bass, are driving the next wave of innovation.

“Electronic music is starting a new era of cultural resonance,” Mulligan explained, pointing to the genre’s expanding global reach. “Genres like Afro House, a resurgent Drum & Bass, and younger generations remaking electronic music in their own image are propelling the scene forward in new ways.”

One of the most notable trends highlighted in the report is the growing dominance of streaming platforms, with subscriptions reaching 818 million globally in 2024 — a 12% increase. Notably, 80% of this growth came from markets in the Global South. Spotify leads the charge with a 32% market share and over 250 million subscribers. Despite this surge in user numbers, however, the financial benefits for artists remain uneven, with a notable slowdown in streaming royalties for smaller creators.

The report highlights the ongoing struggle for self-releasing artists, particularly in light of new royalty models. “The major labels are still king,” Mulligan noted, “but the indie sector continues to nibble away at their share.”

The live sector has seen a remarkable rebound post-pandemic, with revenue now double what it was before Covid hit. However, the growth is not driven by higher attendance but rather higher ticket prices. Major tours by globally recognised artists and large-scale venues are seeing substantial financial benefits, while smaller clubs and independent events are grappling with the economic fallout of rising costs and a squeezed consumer base.

“Live music revenues are higher than pre-pandemic, but much of this is down to price hikes,” Mulligan said. “The live business is riding a wave of demand, but we're starting to hit the ceiling on ticket prices. People only have so much disposable income, and we’re already seeing that in some key markets.” In Ibiza and across the top 100 global tours, ticket sales were slightly down in 2024, despite higher prices, indicating the challenges the sector faces in sustaining this growth.

Mulligan points out the connection between live music and physical media consumption, noting that vinyl - which has become a symbol of superfandom - is often closely tied to live music fans. “People want to own a piece of their experience,” Mulligan explains. But as live music ticket prices rise and fans have less money to spend, it’s clear that the same group of superfans is being asked to pay for both the records and the shows, creating a squeeze.

As ever, the IMS Business Report highlights how the electronic music world is growing in different ways across the globe. Listenership in key markets like the UK and Germany rose by 15%, while Mexico saw a staggering 60% increase in electronic music fans in 2024. Brazil, India, and other regions have also seen significant growth, with 566 million new fans across platforms like Spotify, YouTube, TikTok, and Facebook.

Genres like Afro House have made huge strides, moving from 24th to 4th in Beatport’s most-searched styles. Amapiano continues to rise, alongside the revival of Garage and Jungle. But the report also suggests a major shift is underway in how we understand global music trends. As Mulligan explains, the “global” nature of music is becoming less relevant as more fans prioritize local sounds.

“We are witnessing the rise of more regionalisation, even as music from non-Western markets makes a global impact,” Mulligan said. “Music is now far more tailored to its local audience. Hits may travel farther, but fans in places like Africa, Latin America, and Asia are more inclined to support music that reflects their own culture.”

AI is the next frontier in the music industry, and it’s making an impact across electronic music. According to the report, 60 million users engaged with music creation apps in 2024, and 10% of consumers reported using generative AI to compose music or lyrics. The rise of AI presents both opportunity and concern for the industry.

“AI will transform the music business, though not in the way many expect,” Mulligan said. “It will impact everything from A&R automation to improving royalty distribution and catalog management.” While there’s potential for AI to streamline production and make music creation more accessible, Mulligan warns of a flood of algorithm-driven “best fit” tracks that could threaten the authenticity of the music we hear.

“I think AI will become a tool to help producers who aren’t great at mixing or mastering, or to inspire new sounds. But we will also see a lot of music that’s made just to fit into playlists and algorithms. That’s when things will get interesting, and listeners may start pushing back.”

As the electronic music industry grapples with rapid growth, technological shifts, and evolving fan expectations, one thing is clear: it is moving into uncharted territory. From the growth of regional scenes and the rise of new genres, to the transformative potential of AI, electronic music is navigating a landscape in flux.

For fans and industry insiders alike, the next few years promise to be a thrilling ride. While the challenges are real, the potential for reinvention, innovation, and cultural impact has never been greater.