The 24-year-old British singer has 19 million people listening to him on the service every month and has his songs added to around 38 million playlists, according to Spotify, reported Aceshowbiz.
"Chuffed to hear that 'Thinking Out Loud' has had half a billion plays on Spotify," Sheeran responded to the news in a statement.
"Being the first artist to hit that milestone is amazing. Thanks to all the people who use this as a wedding song, soundtrack to a date, and as a way to woo someone into a Netflix-and-chill situation."
Spotify has created a graphic called the Sheerio Index showing which countries have the most people listening to Sheeran.
Denmark has the most Sheeran listeners in the world, followed by Norway, Singapore, Sweden and his homeland, the UK.