Podcasting and On-Demand Music Drive U.S. Internet Radio Market to New Heights

According to the latest market research study published by P&S Intelligence, the U.S. internet radio broadcasting market is witnessing robust growth, forecast to surge from $720.1 million in 2024 to an impressive $1,606.0 million by 2032, registering a strong CAGR of 10.7% during 2025–2032. This remarkable rise is fueled by increasing consumer preference for personalized and on-demand audio content, alongside the rapid advancement of digital infrastructure throughout the country. As internet penetration deepens and mobile device usage continues to soar, internet radio platforms are uniquely positioned to meet the evolving entertainment needs of modern audiences.

A significant driving force behind this expansion is the widespread use of smartphones and smart speakers, enabling consumers to access their favorite music, podcasts, and talk shows anywhere, anytime. Furthermore, advancements in artificial intelligence and machine learning are allowing service providers to offer highly personalized content recommendations, further enhancing user engagement. Regional dynamics also play a crucial role, with the South leading in market size and the West emerging as the fastest-growing area, showcasing the widespread and growing acceptance of internet radio across different U.S. demographics.

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Key Insights

• On-demand music streaming continues to be the largest service category, meeting the increasing consumer demand for personalized listening experiences and reflecting the shift from traditional radio formats to customizable music platforms.
• Podcasting services are expected to grow at the fastest pace, with a projected CAGR of 11.2% during the forecast period, driven by rising consumer interest in diverse, niche content that offers flexibility and mobility.
• Mobile devices, including smartphones and tablets, accounted for the largest share—45%—of device-based access to internet radio services in 2024, underlining the dominance of mobile platforms in daily content consumption.
• Smart speakers such as Amazon Echo and Google Home are anticipated to be the fastest-growing device category, as voice-controlled technologies become an integral part of connected homes and consumers increasingly embrace hands-free entertainment options.
• Subscription-based models are gaining popularity, supported by a growing number of consumers willing to pay for premium, ad-free content and enhanced user experiences, a trend that bodes well for revenue diversification.
• The South emerged as the largest regional market, accounting for 38% of the total revenue in 2024, fueled by a high concentration of urban populations and the broad appeal of diverse radio content offerings.
• The West region is set to expand at the fastest CAGR of 11.5% during 2025–2032, supported by high levels of technology adoption, the influence of innovation-driven metropolitan areas, and a tech-savvy population base.
• Technological advancements, such as the rollout of 5G networks and integration of AI for curated content, are revolutionizing the internet radio experience, offering higher-quality streaming with minimal lag and highly relevant programming.
• The competitive landscape is characterized by both global giants and emerging players, including major companies like Spotify AB, Apple Inc., iHeartRadio Inc., and Amazon.com Inc., each striving to expand their market share through differentiated offerings and strategic investments.
• Exclusive podcast content acquisitions, AI-driven ad targeting, and strategic collaborations with content creators are becoming key strategies for companies aiming to attract and retain audiences.
• Innovations in advertising formats, such as programmatic audio advertising and dynamic ad insertion in podcasts, are opening new revenue streams for service providers and creating more personalized brand experiences for listeners.
• Experts highlight that user experience enhancements, content diversification, and smart integration with other media ecosystems will remain pivotal to sustaining growth in the highly competitive U.S. internet radio broadcasting market.