IMS Business Report Claims Dance Music Industry is Valued at $11.8 Billion

Mark Mulligan, Managing Director & Analyst at MIDiA Research, presented the findings during the opening day of IMS Ibiza.

Data from the 2024 IMS Business Report suggests that the global dance music industry’s growth in 2022 was not a coincidence. Findings from the annual study of the dance music industry, compiled by MIDiA Research for IMS Ibiza, position the industry “firmly in its post-pandemic growth phase.” In 2023, revenue increased by 17%, resulting in a total industry valuation of $11.8 billion. This 17% surge builds on the industry’s significant 34% growth in 2022.

“2022 showcased the post-pandemic bounce-back for live,” noted Mark Mulligan, MIDiA Research’s Managing Director & Analyst. “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.”

In 2023, the live sector represented the industry’s largest growth sector, with festivals and clubs dominating revenues. These numbers accounted for nearly half of the industry total. Although live events maintained a strong presence as a growth sector, it wasn’t as strong as the previous year. However, its exceptional growth in 2022 was a direct result of the COVID-19 pandemic’s pause on live music programming.

Music hardware and software trailed behind live, comprising approximately a quarter of the $11.8 billion sum. Recorded music, music publishing, and “merch, sponsorship, agency fees, etc.” made up the remaining growth sectors of the industry.

The global recorded music sector of the dance industry, valued at $31.9 billion in 2022, experienced considerable growth last year, increasing by 10% for a valuation of $35.1 billion. While streaming also grew by 10%, it was outpaced by licensing and expanded rights. Additionally, independent labels increased their market share for the fourth consecutive quarter, reaching 31%, while self-releasing artists lost share, indicating the continued influence and prominence of non-major labels in the industry.

Meanwhile, global music publishing, which increased from $9.3 billion in 2021 to $10.9 billion in 2022, saw steady growth. The report’s tenth edition reveals a 10% sector revenue rise, pushing its valuation to $11.9 billion.

This year’s IMS Ibiza summit took place on April 24-26 at Mondrian Ibiza and Hyde Ibiza.