The 2025 IMS Electronic Music Business Report: A Year in Review
It’s that time of year again for the definitive annual assessment of the global electronic music market: The IMS Electronic Music Business Report. Debuting at the annual IMS conference in Ibiza, this year’s report paints a vivid picture of a thriving industry, rich in creativity and innovation, while simultaneously highlighting some potential challenges that require our attention.
Revenue Growth: A Solid Performance
In 2025, the total revenue from the electronic music industry, which includes recordings, publishing, digital service providers (DSPs), festivals and clubs, creator tools, merchandise, sponsorships, and brand partnerships, surged by 7%, reaching an impressive $15.1 billion. Each segment showed growth, but some outperformed others. Notably, publishing, merchandise, and DSPs enjoyed particularly strong advances, underscoring the diverse avenues through which electronic music generates income.
Fandom on the Rise
At the heart of this revenue growth lies a burgeoning fandom. The report highlights that an additional 0.6 billion fans were added across major platforms such as Spotify, YouTube, Instagram, TikTok, and Facebook. In particular, Spotify saw a remarkable 11% increase in electronic music monthly listeners across key markets. Intriguingly, Germany, Australia, and the Netherlands showed a staggering fivefold increase in cumulative listeners compared to their total populations. Meanwhile, TikTok has become a powerhouse for electronic music, with creations skyrocketing by 50%, and SoundCloud DJ set uploads rising by 39%. This surge reflects not just a growing audience, but an increasingly engaged and interactive fanbase.
Subcultures and Unique Scenes
While the larger music industry has shifted its focus toward fandom, it’s essential to recognize that electronic music has always thrived on its rich tapestry of subcultures. This year, electronic music subgenres such as #SpeedGarage, #Garage, and #Techno have shown growth rates that are nearly double those of mainstream genres on TikTok. The unique blend of eclectic sounds and styles continues to influence the landscape, resonating with fans and creators alike.
The Global South Emerges
One of the standout trends this year is the rise of the Global South as a cultural juggernaut within electronic music. Afro house, for example, became the seventh most downloaded genre on Beatport and the second most searched-for genre on Splice in 2025, marking a significant rise from its previous position at tenth in 2023. The cultural influences flowing from the Global South are palpable, with burgeoning scenes on SoundCloud showcasing Indonesian breakbeat, Vinahouse from Vietnam, South Korean EDM, and Colombian guaracha. This transformation not only enriches the genre but also offers new opportunities for cultural exchange and collaboration.
Investments Fueling Growth
The positive trajectory of the electronic music industry has attracted considerable external interest, particularly from catalog acquirers looking to invest in this vibrant sector. A notable 18% of publicly announced catalog deals in 2025 were for electronic music artists, and the momentum appears to be steady, with 17 additional deals logged in just the first quarter of 2026. This influx of investment signifies a vote of confidence in the industry’s future.
Challenges on the Horizon
Despite the overwhelmingly positive trends, some challenges loom on the horizon—represented by amber lights rather than flashing red ones. The electronic music scene is currently witnessing a decrease in hit singles and has lost a small share of festival lineups. Interestingly, while Ibiza clubs reported increased revenue, they hosted fewer events, reflecting a broader trend in live music where higher ticket prices drive growth rather than sheer volume of sales. These challenges highlight the intense competition present in today’s cultural landscape, where standing out is increasingly difficult.
The 2025 report narrates the tale of a sector pulsating with life and creativity while also facing the realities of a competitive market. For those looking to delve deeper into these insights and trends, the full IMS Electronic Music Business Report 2025/26 can provide a treasure trove of information, capturing the multiple layers and dynamics that define the electronic music industry today.
