It also found contemporary music made up 49 per cent of ticket sales in Western Australia, compared with festivals at 13 per cent, musical theatre at 9 per cent and classical music and opera at 5 per cent.
The billion dollar figure did not take into account any cash sales, but it was double what industry group WA Music (WAM) chief executive Mike Harris had anticipated.
'It's still pretty good in WA'
Until now the sector has largely relied on anecdotal evidence when fighting for funding.
WAM president Al Taylor said the new research allowed the group to mount a stronger argument for private sponsorship and government funding, to put music on a more even playing field with the likes of theatre and ballet.
Perth-based singer, songwriter and member of the four-piece Little Lord Street Band, James Rogers, believed the local music scene was healthy despite a decline in arts funding around the country.
Arts Minister John Day said it was important for the State Government to take a balanced approach to arts funding.
"There are those art forms that have been around for, in some cases, hundreds of years and they're a very important part of our heritage," Mr Day said.
