"Rapid growth from digital albums and music streaming services such as Spotify powered a rebound in revenues in 2013," said Geoff Taylor, the chief executive of BPI, in a statement.
Digital revenues rose by over 10percent on the back of digital album sales and streaming. Streaming services such as Spotify and Deezer were the fastest growing sector, posting a 41 percent increase in revenues over the 12 month period.
(Read more: Bit Torrent: Not just for Internet pirates anymore)
However, the strong digital sales were set against a backdrop of declining physical sales. Revenues from the sale of CDalbums, singles and music singles fell by 6.5percent to £365.4 million.
And it seems Beyonce's shock release of her new album straight onto, and exclusively for, digital platforms was prescient. Revenues fromdownload albums grew nearly 20 percent in2013, partly boosted by sales from compilations and 'premium' or 'deluxe' album editions.
(Read more: Beyonce's new album: What it tells us about the music industry)
The figures highlighted the music industry's increased willingness to embrace the internet.
"The U.K.'s record labels have reimagined their business for a world of instant mobile, global access to music, driven by social media," said Taylor. "With digital increasingly becoming its key source of revenue, Britain's music industry is fit and ready to seize the global opportunities it offers."
Follow us on Twitter: