Los Angeles - Music delivered to mobile phones via operators' networks will grow to represent almost 30% of global recorded music retail value by 2011, when it is forecast to generate $11 billion, according to a report released on Tuesday by market research firm Understanding & Solutions.

Currently, the firm estimates that mobile music represents around 13% of global recorded music retail value.

"Alongside online, mobile music is essential to the future of the music industry," said Understanding & Solutions consultant David Sidebottom.

"Japan, closely followed by the USA, has the most efficient mobile music landscape: both countries have a concentrated operator base and a large pool of potential subscribers, providing economies of scale for the music companies."

Most new handsets feature music functionality, but interfaces and software still need improvement, the firm said.

"In the fragmented European market, some operators have become less aggressive, as they can't make money directly from selling full track downloads, but this will pave the way for 'off-portal' and third party service providers," added Sidebottom.

"Looking to emerging markets, mobile could become the number one platform for music, where packaged CDs haven't gained traction due to piracy and lack of hardware ownership. Both China and India are showing large revenue gains."

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