Audiobook Market

Market Overview

The global audiobook market size was valued at USD 5,095.69 million in 2022 and is expected to reach USD 5,897 million in 2023. It is projected to reach USD 42,268.26 million by 2031, growing at a CAGR of 26.5% during the forecast period (2023–2031). An audiobook is a recorded version of a book, typically in audio format, that enables listeners to listen to a narrator recite the book's text instead of reading it themselves. In recent years, audiobooks have gained substantial popularity and developed into a thriving industry. There are several factors that are contributing to the expansion of the audiobook market such as these books provide a convenient method for individuals to consume books while multitasking. Listeners can appreciate books while commuting, exercising, or performing household chores without having to sit down and read. In today's fast-paced society, few people have the leisure to sit down and read a physical book. They are able to make fruitful use of their downtime thanks to audiobooks. However, audiobooks are available on a variety of platforms and devices, including smartphones, tablets, and smart speakers. This accessibility facilitates the discovery and listening of audiobooks.

Market Dynamics

Drivers:

Digitalization and Accessibility:

The widespread adoption of digital devices such as smartphones, tablets, and e-readers has facilitated the accessibility of audiobooks to a larger audience. These devices are now ubiquitous, enabling consumers to carry their audiobook libraries wherever they go.

Convenience and ease:
Audiobooks are digital files that can be downloaded or streamed, unlike corporeal books, which must be carried around. This factor is especially appealing to consumers who can access their favored titles with just a few clicks, regardless of whether they are at home, commuting, or traveling. This accessibility has broadened the audience for audiobooks worldwide.

Changing Lifestyles:

Modern lifestyles are frequently hectic, and individuals are constantly searching for methods to maximize their time. Individuals can listen to audiobooks while engaging in other activities, such as commuting, exercising, or performing domestic chores. Those who seek to maximize their available time value this adaptability greatly.

Subscription Models:

For a fixed monthly fee, audiobook subscription services such as Audible and Scribd provide subscribers with access to extensive audiobook libraries. This model encourages users to investigate and consume more audiobooks because they have access to a variety of titles without having to make individual purchases.
Customer Loyalty and Retention are fostered by subscription services. After committing to a subscription, users are more likely to continue using the service, discover new audiobooks, and become loyal customers.

Restraints:

Limited Market Penetration in Developing Regions:

While audiobooks have acquired popularity in many developed nations, their adoption in developing regions is still limited due to factors such as lower smartphone penetration and limited access to high-quality audio content.

Licensing and Copyright Difficulties:

Obtaining the rights to produce and disseminate audiobooks can be difficult and costly. Popular titles may be unavailable in audiobook format due to copyright and licensing restrictions.

Opportunities:

Diverse Content Offerings:

The expansion of nonfiction audiobooks can appeal to a diverse audience interested in topics such as history, science, biography, and self-improvement. Audiobooks can be utilized in schools and universities as valuable educational resources. Textbooks, language-learning resources, and academic resources can all be included in educational audiobooks. The self-help genre is especially popular as an audiobook. Personal development, mental health, and wellness-related titles can continue to flourish and meet the rising demand for self-improvement content.

2. Improved Technology

Enhanced voice recognition technology can improve the user experience by enabling voice commands for audiobook playback, navigation, and content search. AI-driven narration can provide customizable audiobook experiences, allowing listeners to select various voices, pacing, and even language preferences. This could minimize production costs associated with human narrator hiring.

3. Educational Library Adoption:

Collaboration with libraries can make audiobooks more accessible to a wider audience, including those without the financial means to purchase them. As part of their digital collections, libraries can lend audiobooks to patrons just as they would physical books. Audiobooks can be incorporated into curricula to promote literacy and accommodate various learning styles in educational institutions. Students with reading disabilities and those acquiring English as a second language may find them useful.

Regional Analysis

North America accounted for the largest market share in 2022 in the audiobook market. The growth is attributed to its early adoption of technology to improve the audiobook user experience. This may include enhanced app interfaces, voice recognition, and AI-driven narration. Moreover, numerous well-established audiobook providers and publishers are present in North America, which contributes to their market dominance. These businesses provide an extensive selection of audiobook titles, attracting a large user base.

Additionally, numerous smartphone users in North America can effortlessly access and listen to audiobooks on their mobile devices. The convenience of mobile has probably contributed to the expansion of the regional market.

Asia-Pacific is expected to grow at the fastest CAGR over the forecast period. The growth of the audiobook market in Asia-Pacific is driven by the availability of audiobooks in a variety of regional languages. This increases accessibility and appeals to a variety of order. The use of audiobooks in acting schools, both for regional language instruction and English, is assisting students in enhancing their performances. This educational use of audiobooks contributes to the expansion of the market.

Segmental Analysis

The global audiobook market has been categorized into genre, preferred devices, distribution channel, and target audience

Genre

On the basis of genre, the global audiobook market has been segmented into fiction and non-fiction

The non-fiction segment holds a higher CAGR and is presumed to grow during the forecast period. The growth is attributed to the growing popularity among parents to offer their kids screen-free time regarding educational and recreational materials. Additionally, a surge in other genre materials that include; history, skill development, and biographies among others is also one of the factors fuelling the market growth. Moreover, the surge in casual listeners who prefer short audio materials also leads to the development of the market. Thus, to avoid this, major vendors prefer to launch a series of audiobooks that contain five or six editions.

Preferred Device

Based on preferred device, the global audiobook market has been categorized into Smartphones, Laptops and Tablet, personal digital assistants

Smartphones hold a dominant position in the adoption of the audiobook market and are expected to witness growth during the forecast period. The growth is attributed to the ease of accessing smartphones at remote locations which enables consumers to listen to or surf a variety of genres. Furthermore, the surge in adoption of smartphones among all age group to carry out various activities are also one of the factors fuelling the market growth. Also, Smartphones are the most preferred listening device compared to other devices by people on account of their easy carrying and lightweight capabilities also leads to the development of the market.

Moreover, the digital assistant segment is the fastest-growing segment in the audiobook market and is presumed to grow during the forecast period on account of easy accessibility to devices. For instance, According to The Consumer Technology Association, approximately 33% of Americans have at least one personal digital assistant device in their house, which shows two-fold in figures over the past years.

Distribution Channel

On the basis of distribution channel, the global audiobook market has been segmented into one-time download and subscription based.

One-time download holds higher CAGR and is expected to witness growth during the forecast period. The growth is attributed to surge in preference of consumers for single high-quality audio books. Additionally, surge in offering of discounts by the enterprises to cater the attraction of consumers is also one of the factors fuelling the market growth. For instance, in June 2017, Google, Inc. has offered some of the its audio book titles with an additional discount of 40 to 50% with additional feature of Family Library to cater the attraction of family members in the package.

Subscription based channel is the fastest-growing segment and is presumed to witness growth during the forecast period on account of surge in Streaming-Books-On-Demand (SBOD) products. Furthermore, growing consumers’ preferences to buy more subscription bases models over single time download models is also one of the factors enhancing the market growth. Additionally, low cost of subscription-based models over single-time download also leads to the development of market.

Target Audience

On the basis of target audience, the global audiobook market has been segmented into kids and adults

Adult segment holds a dominant position in the adoption of audiobooks and is expected to witness growth during the forecast period. The growth is attributed to broad offering of audiobooks that includes; offering of relaxation and brain stimulation models among others. Furthermore, surge in car entertainment system which enables consumers to listen to various audiobooks while driving or multitasking escalate the market growth. For instance, According to a consumer behavior survey conducted by the Audio Publishers Association (APA), approximately 53% of consumers prefer the audio book while relaxing at home. Thus, in the light of above trends, it is likely to witness users also make subscription on large numbers thereby increasing market growth.

Impact of covid-19

The impact of COVID-19 has a devastating effect across all industry vertical globally. However, the market of audiobooks has witnessed surge in growth on account of impose of stringent regulations by the government that includes; stay at home orders, shut down of business and cross borders operations, physical libraries and universities among others. This enables consumers and books enthusiasts to prefer audiobooks which enables consumers to listen to their favourite books while multitasking. Thus, to tap this emerging market many vendors has launched audiobooks amid pandemic COVID-19 to enhance its business operations. For instance, Audible Inc., has launched free audiobooks collection to increase its customer's engagement.

Recent Developments

1. In May 2023, Amazon acquired the audio content discovery engine Snackable AI to bolster its podcasting initiatives.
2. In February 2022, Amazon launched Kindle Vella, a new service that allows authors to publish serialized stories in bite-sized episodes that readers can access on their Kindle devices or apps
3. In May 2021, Amazon announced that it would acquire MGM Studios, one of the oldest and most iconic Hollywood studios, for USD 8.45 billion.
4. In December 2021, Amazon launched Alexa Together, a new service that allows users to stay connected with their aging loved ones through voice technology