I think music is dying in that sense, it already is in a way. The devotion and time required to play at a high level is not something a lot of people will want to put into it going forward I think. So less people learning to actually play an instrument, therefore the demand for instruments will diminish. Instruments will be more and more computer based (we are already there) with "press a key get a song" type stuff. AI as mentioned above will play into this I am sure.
This is how future instruments will look: