Music producers, recording studios and staff contributed £121 million to the UK's national income in 2016 with total export revenue from the sector adding up to £24m in the same year.
These figures have been released as part of the Measuring Music report, which was published today by music industry trade body UK Music.
The topline figures from the report indicate that the recorded music industry enjoyed nearly six per cent growth between 2015 and 2016, with the wider UK music business contributing £4.4 billion to the country's economy in 2016. The industry generated £2.5bn (+13%) in export revenue.
Musicians, composers, songwriters and lyricists contributed £2bn to the UK's economy, while recorded music and the live music industry contributed £640m (+5%) and £1bn (+14%) respectively.
Elsewhere in the report, music producers, recording studios and staff accounted for 11,300 of 142,208 total jobs in the wider music business, a 19 per cent increase on the previous year.
UK Music chief executive Michael Dugher said: “The headline figures in this year’s Measuring Music report are undoubtedly excellent news.
“The number of new jobs created in the UK rose at a faster pace than the rest of the employment market and our export figures shot up across the board. The outlook for the music business is better than it has been in years.
“But we urgently need to address the ‘value gap’ on the new and exciting platforms that many people now use to listen to music. Unlike subscription services, those platforms often offer little adequate reward to the investors and creators of the music that drives so much of their traffic."
UK Music chairman Andy Heath added: “Live music continues to thrive with a 14% rise on the previous 12 months and the recorded sector has turned around with a 5% rise in 2016.
“But we face some crucial battles in the coming months. We have a fight on our hands when it comes to closing the value gap between what some organisations currently pay for music and what represents a fair deal for our work and creativity.
“We need to make a strong and persuasive case to convince everyone to fairly value the huge range of music we create.
“We must ensure that we do all we can to continue driving that growth across all sectors of our brilliant business, which continues to provide the world’s best and most successful music.”
Culture Secretary Karen Bradley said: "It's fantastic to see our world-leading music industry continues to grow and be a global success story.
"These positive figures are not just down to the musicians and artists on stage but also the army of hugely talented professionals working behind the scenes.
"We want to build on this success by helping artists do business across the world and are working with industry to nurture the next generation of British talent."
UK Music is the umbrella body for the music industry and represents artists, musicians, songwriters, composers, record labels, music managers, music publishers, producers, music licensing organizations and the live music industry."
You can download the Measuring Music 2017 report methodology here.