Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 0.9 % over the past five years, to reach an estimated $6.6bn in 2026.
Trends and Insights
Online platforms hit a high note as music retailers race to hybrid models
- The proliferation of online shopping has dramatically influenced the performance of musical instrument and supplies stores. Many consumers prefer the convenience and variety offered by online platforms, reducing the foot traffic to physical stores. Online retailers, like Sweetwater, have been growing, reporting an acquisition of 2.5 million new customers in 2020, with these numbers holding steady through 2025, as reported by CEO Mike Clem.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
Premium-focused musicians and lagging hobbyists will push stores upmarket
- Premium sales are rising as serious players trade up to quality gear, even while overall consumer spending growth cools to a 2.1% CAGR. Higher per capita disposable income enables career musicians and committed hobbyists to prioritize top-tier instruments.
Biggest companies in the Musical Instrument & Supplies Stores in the US
| Company | Market Share (%)
2026 | Revenue ($m)
2026 | Profit ($m)
2026 | Profit Margin (%)
2026 |
|---|---|---|---|---|
Guitar Center, Inc. | 2,199.7 | 111.6 | 5.1 |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including New guitars, New other instruments and Used violins, drums, guitars and other instruments. New guitars is the largest segment of the Musical Instrument & Supplies Stores in the US.
Trends and Insights
Digital learning and youth demand lift guitar sales, while price competition squeezes profit
- Guitars are the largest revenue contributor because they are relatively affordable, versatile instruments with broad appeal beyond professional musicians. Their popularity drives initial big-ticket purchases and recurring sales of strings, straps, capos and other accessories, boosting transaction values and repeat visits.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
The Musical Instrument and Supplies Stores industry retails an extensive selection of musical instruments, sheet music and related supplies, such as microphones, amplifiers and audio systems. These products are usually sold directly to end consumers. Many industry operators also repair and rent these products and provide music instruction.
What's included in this industry?
Products and services covered in the Musical Instrument & Supplies Stores industry in the United States include New guitars, New other instruments, Used violins, drums, guitars and other instruments, New pianos, Electronic equipment and Services such as lessons and repairs.Companies
Companies covered in the Musical Instrument & Supplies Stores industry in the United States include Guitar Center, Inc.Purchase this report to view all 1 major companies in this industry.
Related Terms
Related terms covered in the Musical Instrument & Supplies Stores industry in the United States include sound reinforcement systems, sheet music, e-commerce and tablature.Industry Code
NAICS 45114 - Musical Instrument & Supplies Stores in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Hybrid retail models help music stores stay competitive as online platforms grow. Platforms like Sweetwater and Reverb expand fast by offering a huge selection and convenienc...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Rising leisure time and flexible work increase spending by amateurs and hobbyists. As more people treat music as a core hobby, they steadily buy beginner and mid-range instru...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2026
- Product innovation level
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Cities with richer music cultures support more music stores. Deep traditions of live performance, community ensembles and local scenes turn music-making into an everyday acti...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each state in 2026
- Number and share of revenue each state accounts for in 2026
- Number and share of wages each state accounts for in 2026
- Number and share of employees in each state in 2026
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Music stores face greater competition from big-box retailers and online marketplaces like Reverb than from other music retailers. Stores that are unable to compete on price o...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Guitar Center, the music industry's largest company, focuses almost exclusively on sales of guitars. Smaller music stores, by contrast, often cater to more classical instrume...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of Guitar Center, Inc.'s performance by revenue, market share and profit margin from 2020 through 2026
Detailed analysis
- Description and key data for Guitar Center, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Private associations give music stores tailored support. NAMM provides industry-specific education, sales training, trade shows and advocacy for music education, helping reta...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Stable, craftsmanship-driven inventory keeps purchase costs predictable. Music stores rely on high-quality, premium instruments and long-term supplier relationships, so inven...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Industry Multiples (2019-2024)
- Industry Tax Structure (2019-2024)
- Income Statement (2019-2024)
- Balance Sheet (2019-2024)
- Liquidity Ratios (2019-2024)
- Coverage Ratios (2019-2024)
- Leverage Ratios (2019-2024)
- Operating Ratios (2019-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Musical Instrument & Supplies Stores industry in the United States in 2026?
The market size of the Musical Instrument & Supplies Stores industry in the United States is $6.6bn in 2026.
How many businesses are there in the Musical Instrument & Supplies Stores industry in the United States in 2026?
There are 9,014 businesses in the Musical Instrument & Supplies Stores industry in the United States, which has declined at a CAGR of 1.6 % between 2021 and 2026.
How may import tariffs affect the Musical Instrument & Supplies Stores industry in the United States?
The Musical Instrument & Supplies Stores industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Musical Instrument & Supplies Stores industry in the United States?
The Musical Instrument & Supplies Stores industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Musical Instrument & Supplies Stores industry in the United States grown or declined over the past 5 years?
The market size of the Musical Instrument & Supplies Stores industry in the United States has been growing at a CAGR of 0.9 % between 2021 and 2026.
What is the forecast growth of the Musical Instrument & Supplies Stores industry in the United States over the next 5 years?
Over the next five years, the Musical Instrument & Supplies Stores industry in the United States is expected to grow.
What are the biggest companies in the Musical Instrument & Supplies Stores industry in the United States?
The biggest company operating in the Musical Instrument & Supplies Stores industry in the United States is Guitar Center, Inc.
What does the Musical Instrument & Supplies Stores industry in the United States include?
New guitars and New other instruments are part of the Musical Instrument & Supplies Stores industry in the United States.
Which companies have the highest market share in the Musical Instrument & Supplies Stores industry in the United States?
The company holding the most market share in the Musical Instrument & Supplies Stores industry in the United States is Guitar Center, Inc..
How competitive is the Musical Instrument & Supplies Stores industry in the United States?
The level of competition is moderate and increasing in the Musical Instrument & Supplies Stores industry in the United States.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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