NORTH AMERICA CREATOR ECONOMY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The North America Creator Economy market size was valued at US$ 17.79 billion in 2023 and is expected to reach US$ 142.91 billion by 2030, grow at a compound annual growth rate (CAGR) of 34.7% from 2023 to 2030. The creator economy refers to the class of entrepreneurs, artists, influencers, bloggers, musicians, podcaster, and independent publishers who monetize their content online across social media platforms, blogs, streaming sites, and ecommerce marketplaces. The growth in this market is driven by factors like rising internet penetration, growth of social media, and increasing monetization opportunities for individual creators.

The North America Creator Economy Market is segmented by content type, creator type, revenue stream, and platform. By content type, the video segment accounted for the largest market share in 2022. Video content like Youtube videos, TikTok videos, Instagram reels, and Facebook/Snapchat stories are becoming increasingly popular among creators as well as consumers. Short-form entertaining videos have emerged as the most consumed type of online content.

North America is expected to be the largest market for North America Creator Economy Market during the forecast period, accounting for over 45.6% of the market share in 2022. The growth of the market in North America is attributed to high internet penetration, presence of major creators, and increasing usage of social media platforms in the region.

North America Creator Economy Market Drivers:

• Proliferation of Social Media Platforms: The rapid proliferation of social media platforms like Facebook, Instagram, TikTok, Snapchat, YouTube etc. has been a major driver for the growth of the creator economy in North America. These platforms provide easy avenues for creators to build an audience, distribute content and get discovered. They also offer built-in monetization features like advertisement revenue sharing, subscriptions, tipping etc. Social media has changed the dynamics between creators and fans by allowing direct engagement. The increasing social media penetration across all demographics will continue to boost the creator industry.
• Smartphone Penetration and Mobile Internet: Widespread smartphone adoption and rising mobile internet access has also catalyzed the growth of the creator economy market in North America. Over 90% of Americans own a smartphone in 2022, which has made content creation and consumption on-the-go easier than ever. Video sites like YouTube and TikTok are primarily accessed via smartphones The rollout of 5G networks will further improve video streaming and access. Mobile devices have removed geographical barriers, allowing creators from small towns to build a global fanbase. This democratization will drive more people to start creating.
• Direct Access to Followers: Social media has changed audience dynamics by allowing creators direct access to followers without gatekeepers. This has shifted power to individual creators who can craft unique brand identities, community experiences and personalize interactions at scale. Direct access also allows creators to be more responsive to audience needs and tastes. For fans, it provides a sense of intimacy, authenticity and engagement with creators. This creator-fan connection will be a strong retention driver.
• Passion Economy and Supplementary Income: The creator industry has opened up opportunities for people to turn their talent and passion into a business. Many creators initially start creating online content as a side hobby or to supplement their regular income from a main job. The prospect of additional revenue however incentivizes them to invest more time and effort into producing quality content. Success stories and role models also inspire more people to attempt turning content creation into their full-time profession. The passion economy will ensure a steady talent pipeline.

North America Creator Economy Market Opportunities:

• Emergence of Specialized Platforms: The growth of specialized platforms tailored to specific creator niches presents a significant growth opportunity. Platforms like Patreon (patronage), Substack (newsletters), Teachable (online courses), Etsy (handmade products) cater to specific monetization models. Similarly niche platforms focused on podcasting, photography, adult content etc. enable creators to find the right audience. Creators will increasingly leverage multiple platforms to diversify revenue streams. Specialized platforms also invest heavily in creators through promotion, tools and monetary incentives.
• Virtual and Augmented Reality: Virtual reality (VR) and augmented reality (AR) content creation presents an emerging opportunity for creators in North America. VR headsets are still in early adoption, but usage is rising driven by gaming and entertainment. As devices get cheaper and more mainstream, it will enable creators to pioneer new immersive, interactive content formats and stories which were not possible before. Musicians can hold virtual concerts, artists can create 3D spaces, travel creators can take viewers on first-person tours and so on. The scope for innovation is immense.
• Non-Fungible Tokens (NFTs): NFTs have presented a new avenue for creators to monetize digital art, collectibles and experiences. The NFT market surpassed $40 billion in 2021, indicating strong traction. Visual artists who can mint limited edition NFTs of artwork now have a way to sell directly to collectors and fans. Musicians are selling albums and singles as NFTs. Beyond art, NFTs can also represent backstage access, exclusive content etc. As adoption increases, more mainstream creators will look to leverage NFTs.
• Developing Countries: Emerging economies with young demographics but lower ad monetization offer strong growth potential. Countries like India, Brazil, Indonesia are witnessing increasing smartphone adoption and youths are consuming as well as creating online content. Local language creators who can culturally resonate have a first-mover advantage here. Large platforms are building creator incentive programs focused on these markets. As income levels rise over time, monetization avenues will also improve.

North America Creator Economy Market Trends:

• Rise of Short Video Formats: Short video formats like TikTok and YouTube Shorts have become hugely popular among creators and viewers alike owing to their fun, casual vibe and bite-sized consumption. Short clips also lend well to viral trends while not demanding too much time investment for creators. This has lowered the barriers for amateur creators to gain a following and encouraged more mainstream brands and celebrities to also experiment with short-form content. The integration of short videos across other platforms like Instagram, Facebook and Snapchat has further boosted consumption.
• Live Streaming: Live streaming has emerged as an engaging trend enabling real-time connections between creators and audiences. Platforms like Twitch, Instagram and TikTok have invested heavily into building live capabilities. Viewership boomed further during the pandemic. Beyond just chatting, livestreams can also be leveraged for events, announcements, meetings, Q&As, shopping etc. The interactivity helps build stronger community bonding and a human touch. Casual behind-the-scenes streams also foster authenticity.
• Rising Popularity of Podcasts: Podcasts have witnessed explosive growth as both established media and indie creators leverage it to produce audio content. The casual broadcast format appeals to audiences who can listen while doing other tasks. Apple Podcasts alone hit 2 million podcasts in 2021. Topic variety ranges from niche interests like true crime, spirituality to current affairs and comedy talk shows. Podcasting presents a relatively easy, low-cost way for amateurs to build an audience and potentially turn commercial. Ad rates are also higher than for online videos.
• eSports and Gaming Creators: Live streaming of eSports tournaments and professional video game playing on sites like Twitch has birthed a new category of gaming creators and influencers. Top streamers like Ninja, Shroud and Pokimane have cultivated huge loyal fanbases consisting mostly of teen and millennial males. Brand sponsorships and subscriptions provide revenue to support full-time careers in gaming content creation and competitions. The eSports industry is projected to reach $2.5 billion by 2027, highlighting its strong growth.

North America Creator Economy Market Restraints:

• Income Instability and Burnout: The creator industry lacks stability with the earning potential differing significantly across creators. Only a fraction of creators are able to gain massive popularity and convert it into sustainable income. Many struggle to make a decent living after account for platform commissions, taxes and production costs. Managing consistent high output also leads to creative burnout. The pressure to continuously produce content to make money weighs on mental health. Most followings can also be fickle. These challenges can discourage long-term sustainability.
• Copyright Issues and Demonitization: Copyright strikes and demonetization issues are persistent problems faced by creators on major platforms like YouTube and Facebook. Use of even small snippets of copyrighted material like songs, news clips etc. without permission can lead to videos being taken down or having ads disabled - hampering income. Gaming live streamers also have to be wary of broadcasting licensed music in the background. The copyright risks and unstable revenue can restrict creativity and participation.
• Oversaturation of Content: The low barriers to entry have resulted in oversaturation where both platforms and audiences are inundated with content choices. On YouTube alone, 500 hours of new video content is uploaded every minute. Rising above the noise to gain visibility and be discovered by target audiences is extremely competitive. Maintaining relevance with consistently high-quality content output is challenging when battling for share of voice and attention. Standing out requires substantial effort.

Recent Developments

New product launches

• In September 2022, Meta launched Reels on Facebook, allowing creators to cross-post short videos between Instagram and Facebook. This expanded the reach for creators' content.
• In June 2022, YouTube launched YouTube Shorts Fund, a $100 million fund to reward popular short-form video creators over 2023. This helped attract more creators to the platform.
• In March 2022, TikTok launched TikTok Pulse, a new contextual advertising solution for brand campaigns aimed to connect advertisers with creators.

Acquisition and partnerships

• In October 2022, Meta acquired Captivate to make short, entertaining videos for its News Feed and Reels. This allowed for more video content.
• In September 2022, Amazon Music partnered with Twitch allowing gaming creators to add licensed music tracks to live streams.
• In August 2022, Spotify acquired Chartable, a podcast analytics platform providing data to creators. This improved podcast monetization.

Figure 1. North America Creator Economy Market Share (%), by Type, 2023

Top companies in North America Creator Economy Market

• Meta Platforms, Inc.
• Bytedance Ltd.
• Alphabet Inc.
• com, Inc.
• Apple Inc.
• Snap Inc.
• Twitter, Inc.
• Microsoft Corporation
• Spotify Technology S.A.
• Shopify Inc.
• Etsy, Inc.
• Fiverr International Ltd.
• Upwork Inc.
• Patreon, Inc.
• OnlyFans
• Teespring
• Squarespace, Inc.
• Bandcamp
• Substack
• Pinterest

Definition: The North America creator economy market refers to the industry of independent content creators, artists, influencers, bloggers, musicians, and publishers who leverage social media, streaming, and ecommerce platforms to monetize their original content like videos, blogs, music, podcasts, and more across North America. It includes both creators who rely on this as their primary income source as well as those who do it as a side hobby or passion.

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