It's not quite there yet, but digital music sales are continuing to grow and are eating into the percentage of CD sales in the U.S., according to a market research this week.

According to the Associated Press, the NPD Group said this week that digital music sales have risen to 35 percent of the the U.S. market this year, up from 30 percent in 2008.

While people are still purchasing physical CDs, which currently account for 65% of music sales, predictions are pointing toward the digital market coming close to the CD sales share by late next year.

"With digital music sales growing at 15 to 20% and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010," said Russ Crupnick, NPD Vice President of Entertainment Industry Analysis.

Leading the pack of the digital music marketshare is Apple and their iTunes music store, which sells more music than any other retailer, including those that sell physical CDs as well.

Reports state that iTunes accounts for 25 percent of music sales, up from 21 percent in 2008, while it dominates the pie of digital sales with 69 percent. Amazon.com's MP3 is a distant second, with 8 percent.