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Global sales of vinyl records will break through the one billion US dollar mark (£820 million) for the first time this century, a report said.

The LP’s remarkable revival will continue this year, with more than 90% of revenues coming from sales of new and second-hand discs, according to Deloitte.

It will be the seventh year on the bounce that sales of 12-inch records have recorded double-digit growth, pushing their share of the physical music market to 18%.

Paul Lee, Deloitte’s head of technology, media and telecoms (TMT) research, said vinyl’s resurgence more than 40 years after its peak was a phenomenon.

“The ubiquity of music streaming services means that music has never been more accessible, portable and readily available for the consumer.

“Yet, despite that, consumers are choosing to buy something tangible and nostalgic and at a price point that provides record companies with significant revenues.”

Around 40 million new vinyl records are expected to be sold this year, pulling in 800 million to 900 million dollars (£657 million to £739 million) in sales.

The report said that 10% of global revenues will also come from the sale of new turntables and accessories.

“Vinyl has a future in music, and an attractive one from a financial as well as an aesthetic perspective, but it is not, and is unlikely ever to be, its major growth or profit engine,” Mr Lee added.

“Music’s future, both from a revenue and consumption perspective, is all about digital, and this is where the brunt of the industry’s focus should be.”

More than 3.2 million LPs were sold last year, according to separate figures published by the British Phonographic Industry last week, a rise of 53% on 2015 and the highest annual total since 1991.

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