Digital Audio Workstation (DAW) Market Size, Share & COVID-19 Impact Analysis, By Component (Software and Services), By OS Compatibility (Apple OS, Windows, Android, and Linux), By Deployment (On-premise and Cloud), By End-user (Commercial and Individual), and Regional Forecast, 2022-2029

The global digital audio workstation market size was valued at USD 2.49 billion in 2021 and is projected to grow from USD 2.70 billion in 2022 to USD 4.95 billion by 2029, at a CAGR of 9.0% during the forecast period. Based on our analysis, the global market exhibited an average growth of 8.3% in 2020 as compared to 2019.

In the scope, we have considered Digital Audio Workstation (DAW) solutions provided by key players such as Logic Pro, Pro Tools, Nuage, Adobe Audition, and Ableton Live.

Digital audio workstation is a digital system designed to create, edit, and record digital audio files. The software includes filters, virtual mixtures, graphic timelines, and organization tools that are mostly found in media-editing programs. DAWs allow Musical Instrument Digital Interface (MIDI) controls to tune parameters during live editing. Key players in the market are continuously enhancing their product portfolio to help musicians opt for services at ease. For instance,

• In February, 2022, Ableton launched Live 11.1, an enhanced version of its flagship music creation software, which will be available for the users. The major improvements include native support for Apple M1 computers, an envelope section, an updated shifter device, LFO, and glide functionality. Additionally, its new features include advancements in clip handling and others.

COVID-19 IMPACT

Emergence of OTT Platforms Led to the Surge in Adoption of Digital Audio Workstations

The disruption due to the COVID-19 pandemic has surged the demand for digital media. According to the Global Web Index (GWI), worldwide internet penetration was around 59% of the total population during the pandemic. In addition to the increasing streaming content, consumption of audiobooks, podcasts, and news showcased a significant rise among listeners. This created an opportunity for audio professionals who used DAWs to edit, mix, record, and master music to improve sound quality and add sound effects to digital audio files.

To cope up with the rapidly changing user preferences, industry players are constantly engaging in digitizing their instruments with new technologies such as AI, cloud, and others. Additionally, growing demand for high-definition audios and videos, rising demand for AI-driven music, and the adoption of cloud-based DAW are expected to drive the market during the forecast period. Furthermore, it is anticipated that audio streaming and radio consumption will continue to increase among listeners in the coming years. For instance, according to the Digital Market Outlook, the number of listeners in the music streaming segment in the world will be around 959 million as of 2026. Additionally, radio and podcast consumption in the country is also estimated to increase during this period.

LATEST TRENDS

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Rising Production of AI Driven Music to Boost Adoption of Digital Audio Workstation

Artificial intelligence in the music industry allows audio professionals to enhance their digital audio files. Using AI technology, music creators remove drums, vocals, and bass from any of their digital files to create high-quality performance music. The major intent behind using AI in the music industry is to flatten music into instrumental and functional sounds. According to the McKinsey report, it is anticipated that around 70% of the companies will opt for AI technology by 2030. Owing to the increasing adoption of AI driven music, companies have been already investing in the future of machine created or assisted music. For instance,

• In May 2022, Splice, a sample library and music making platform, launched an AI-powered music application CoSo, that uses artificial intelligence (AI) technology to create music in a short span of time. It makes use of a collection of eight looping layers of different elements.

With increasing technological advancements in music generation, the adoption of digital audio workstation among audio professionals is expected to propel the market in the coming years.

DRIVING FACTORS

Growing Popularity of Podcast among Listeners to Drive Market

Rising audio media consumption via podcasts among listeners is significantly increasing on a daily basis. DAW offers enhanced tools, which enable users to edit and record their podcasts. Owing to this, podcasters use DAW to edit all the “ahs” and “ums” out of the podcast they create, trim it to perfection, add a slight compressor, and reverb to create an enhanced version of their digital audio files. For instance,

• According to Hootsuite, 39.6% of internet users listen to music streaming services via the internet every week as of January 2022. Similarly, 20.3% opted for audio books as their preference. Additionally, there have been increased adoption of cloud-based DAW, rise in demand for high-definition video and audio, rise in demand for sound bars and home theater systems. Thus, these reasons are likely to drive the growth rate of the DAW market.

RESTRAINING FACTORS

Availability of Free Software to Hinder Digital Audio Workstation Market Growth

Key players of the market offer their DAW software through both subscription and perpetual license offerings. Although there are certain enterprises providing their solutions free of cost. Owing to this, a few users tend to opt for open source solutions instead of availing the subscriptions provided by the companies. Some free software available in the market are:

• Audacity is the original free DAW. It is an open source multi-track editor that helps users to edit and record audio files on various operating systems. The application supports numerous plugins and provides real-time preview that shows sound effects.


• BandLab’s DAW Cakewalk is an open source DAW software for Windows that assists users to work with unlimited audio tracks and MIDI sequencer. It enables users to quickly add drum sound to your music.

Thus, increasing availability of free DAW solutions is expected to hinder the growth of the market.

SEGMENTATION

By Component Analysis

Surging Implementation of Intelligent Tools to Fuel Digital Audio Workstation Software Demand

Based on component, the market is segmented into software and services.

The software segment holds the biggest revenue share, and it is expected to grow at the highest CAGR during the forecast period, owing to its massive solution portfolio such as audio recording and editing solutions, MIDI editing, mixing, mastering, and others. Organizations are engaging in enhancing their software solutions with advanced technologies to cope with the rapidly changing user preferences. This factor is likely to drive the market growth. However, the services segment is likely to gain significant growth during the forecast period.

By Deployment Analysis

Expansive Rise in Adoption of Cloud-based DAW Solutions to Fuel the Digital Audio Workstation Market

Based on deployment, the market is bifurcated into cloud and on-premise.

Cloud is expected to gain significant segment share during the forecast period. The accelerating use of cloud-based solutions is likely to fuel the product demand. Its enhanced scalability, easy integration, and reduced cost increase the popularity of cloud-based digital audio workstation solutions among users over on-premises deployment. The introduction of innovative technologies such as artificial intelligence, augmented reality, virtual reality, and cloud computing services plays a vital role for the market growth.

By OS Compatibility Analysis

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Rising Emphasis on Customer Holding to Navigate Market Development

Based on OS compatibility, the market is categorized into Apple OS, Windows, Android, and Linux.

The Windows segment is anticipated to attain largest revenue share in the OS compatibility segment due to the impressively rising customer base. This is primarily due to its user-friendly interface. The adoption of DAW is assisting the music creators in the industry to acquire, develop, and maintain customers proficiently.

Whereas, the Apple OS segment is expected to grow at a significant CAGR during the forecast period, owing to its huge customer base and demand for high definition video & audio across the globe.

By End-user Analysis

Increasing Focus on Customer Retention to Drive Market Development

Based on end-user, the market is categorized into commercial and individual.

The commercial segment held the major digital audio workstation market share in 2021 of around 62.4% and it is predicted to be the fastest growing segment in the coming years. Also, the increasing number of ongoing live concerts and several DJ professionals across the world fuels the demand for DAW solutions.

However, the individual segment is expected to grow at the stagnant CAGR during the forecast period.

REGIONAL INSIGHTS

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Geographically, the market is divided into five key regions such as North America, South America Europe, Middle East & Africa, and Asia Pacific. They are further classified into countries.

The North America market is expected to attain largest revenue share during the forecast period. The region is witnessing presence of important businesses across all industries and expansively adopting digital audio workstation software. The U.S. will exhibit rapid growth owing to the growing demand for DAW tools offering tailor made music, which plays a crucial role in increasing the audio media consumption across the country. The country is investing highly in advancing its music production solutions by integrating traditional solutions into technologies such as artificial intelligence and more to produce professionally crafted music for users.

The market in North America is in an advanced phase, as key players in the market are focusing on developing technologically advanced DAW solutions to provide services across the globe.

Europe perceived notable CAGR during the forecast period due to the increasing rate of audio consumption in the country. With flourishing nations, such as Germany, the U.K., France, Italy, and others, the market's growth latency is expansive in the region. Germany is likely to dominate, and the U.K. is predicted to display further advanced potential. The growth is owing to increasing adoption of cloud services and rising demand for AI-generated music to develop high-quality digital audio files effectively.

Asia Pacific has substantially thrusted the implementation of advanced technologies, podcasts, audiobooks listeners, and more. The expansively increasing customer base for audio content in the region is likely to surge the demand for DAW tools.

Likewise, the bolstering industrial competitiveness and digitalization in South America may drive market growth. The Middle East & Africa is estimated to attain sturdy growth owing to considerable investment in the solution. For instance,

• According to Forbes, in 2021, Saudi Arabia invested USD 64 billion in the entertainment industry to aid in turning the country into a top tier destination for the industry, which is expected to create lucrative opportunities for the market.

KEY INDUSTRY PLAYERS

Tactical Attainment to Enhance Market Expansion of Key Players

The key players are investing in offering inventive digital audio workstation solutions across all commercial divisions. Prime market players are engaging in replacing their traditional solutions with advanced technologies to provide users with their requirements and attract new customers as well.

Also, through collaborations, the companies are gaining proficiency and expanding their global footprint by reaching a huge customer base. Through strategic acquisitions, the important players are focusing on enhancing and expanding existing product portfolio, which is expected to uplift the position of vendors and drive the growth in the market.

March 2022 - Social music creation platform BandLab has launched SongStarter designed in collaboration with Google. It is an artificial intelligence enhanced tool that generates melodies, unique beats, and chord progressions based on user recommendations.

March 2022 - Avid Technology, Inc. extended its collaboration with Adistec Corp. Through this collaboration, the company enhanced its distribution partner logistics, finance, and other business processes in the local markets. With the expansion, the company aims to extend the benefit of this agreement to the company’s U.S. market for video and audio content production technologies.

List of the Key Companies Profiled:

• Apple Inc. (U.S.)


• Avid Technology, Inc. (U.S.)


• Yamaha Corporation (Japan)


• Adobe (U.S.)


• Ableton (Germany)


• Bitwig GmbH (Germany)


• BandLab Technologies (Singapore)


• Dirac Research AB (Sweden)


• PreSonus Audio Electronics, Inc. (U.S.)


• Native Instruments GmbH (Germany)

KEY INDUSTRY DEVELOPMENTS:

• April 2022 – Imagine Marketing Limited announced a partnership with Dirac for enhancing digital audio solutions to integrate in boAt’s next-generation audio range. With this partnership, boAt’s signature sound will use Dirac’s digital audio advancements to create an iconic headphone product for users.


• April 2022 – Native Instruments and iZotope announced Soundwide as their new parent company. With this, Soundwide aims to develop an integrated product portfolio and drive the development of new audio platform technologies with the goal of improving productivity and performance for audio developers across the globe.


• March 2022 – Apple has enhanced its Logic Pro X, a DAW solution. This update contains stability improvements and bug fixes. It enables dynamic head tracking with spatial audio monitoring on AirPods Pro, AirPods Max, Beats Fit Pro, and AirPods.


• March 2022 - Steinberg released its upgraded version of Cubase 12 with new features, which include a simple sign-in, finessed workflow, and Apple silicon support.


• October 2021 - Harrison Consoles and iCON Pro Audio have partnered to jointly provide high performance professional audio products to the recording and music industries.

REPORT COVERAGE

An Infographic Representation of Digital Audio Workstation Market

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The market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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