Audio CODEC Market

Global Audio CODEC Market Size (2023 to 2028)

The global audio CODEC market size is expected to be worth USD 7.01 Billion in 2023. It is expected to grow at a CAGR of 7.20% during the forecast period and reach a value of USD 9.92 Billion by 2028.

An audio codec is a program or a device that uses an algorithm to decode and encode digital-analog signals. It is used to minimize the number of bits in an audio file while retaining accuracy and consistency, as well as saving space. Audio codecs are made up of two parts: hardware and software. An audio codec's hardware component is responsible for converting analog to digital and digital to analog signals, while the software component is responsible for compressing and decompressing digital audio signals.

Lossless codecs compress and decompress files without sacrificing quality, whereas lossy codecs do so while discarding some data to facilitate transmission. Artificial intelligence and machine learning are increasingly being used in automobiles, computers, smartphones, tablets, smartwatches, and other electronic devices, as is the use of IoT-enabled devices. Manufacturers are developing high-quality, flexible, small-size, and cost-effective audio codecs to meet evolving client expectations.

The rapid rise of the global audio codec market is related to the quickly expanding demand for smartphones, tablets, and other mobile devices. The expansion of the worldwide audio codec market is being aided by the rising population and increasing disposable income of the people, as well as the availability of low-cost mobile devices. Technology advancements and increased internet penetration are two aspects that are positively impacting the global audio codec industry.

In terms of component size optimization in audio codec devices, the market's major manufacturers are constantly in conflict. The use of optical media goods is gradually reducing as a result of technological improvements, which hinders the global audio codec market's growth.

Impact of COVID-19 on the Audio CODEC Market:

The emergence of COVID-19 hampered the growth of the audio CODEC market in 2020, and it is expected to develop slowly through the end of 2021. The primary cause of this drop in growth rate is the implementation of partial or complete lockdowns in several nations throughout the world. Companies, on the other hand, are committed to serving their clients while adhering to the rules and regulations established by governments in their various regions.

REPORT COVERAGE:

This research report on the global audio CODEC market has been segmented and sub-segmented into the following categories.

Audio CODEC Market – By Component:

• Hardware
• Software

The software category is predicted to grow at a profitable rate during the projection period because of an increase in the usage of software-embedded devices, which take up less space, are easy to upgrade, and are also cost-effective.

Audio CODEC Market – By Function:

• Without DSP
• With DSP

In terms of revenue, the segment without DSP dominated the market in 2020, and this trend is likely to continue during the forecast period.

Audio CODEC Market – By Application:

• Mobile Phones & Tablets
• Laptops & Computers
• Television
• Home devices
• Wearable devices
• Automotive
• Others

Wearables such as smartwatches and wireless headphones are becoming increasingly popular due to their compact size, low cost, and ease of use. Furthermore, the integration of these devices with IoT and machine intelligence has enabled individuals to buy them for communication and entertainment.

Audio CODEC Market – By Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

APAC will have rapid expansion over the projection period, which can be due to the region's rapid technological advancements. Over the projection years of 2022 - 2027, the Asia-Pacific audio codec market is expected to grow at a CAGR of 6.09 percent. Furthermore, the market's expansion is aided by the existence of a large number of important competitors and increased demand for IoT-based products. Due to the region's diverse production capabilities, China is expected to have the greatest market share over the forecast period. Xiaomi, Lenovo, oppo, and other significant manufacturers demand audio codec products for smartphones, laptops, and PCs. Furthermore, audio codec devices are required by Chinese vehicle firms for music systems and communication, which is growing in popularity. Japan is expected to expand the fastest throughout the projection period, as it has emerged as the largest producer of smartphones, laptops, TVs, and a variety of other applications, as well as the largest consumer of audio codec systems. Thailand is a major user of audio codecs, particularly in the area of communication devices. In this regard, the country's smartphone market delivered 4.3 million devices in the second quarter of 2020, representing a 21.2 percent growth.

In terms of revenue share, North America was the second-largest region in the market. The United States and Canada are important growth engines in this region's market. The presence of mobile firms such as Apple, Google, and Microsoft in the United States is a crucial element assisting the market's growth in this region. Furthermore, the growing number of smartphone users in the United States has boosted the industry in this region. The Western European market will grow faster than the Eastern European market during the forecast period, owing to the presence of key players in the region.

LEADING COMPANY:

Dolby Labs is the leading company in the global audio codec market.

KEY MARKET PLAYERS:

Analog Devices (US), Cirrus Logic (US), Qualcomm (US), DSP Group (US), Realtek (Taiwan), STMicroelectronics (Switzerland), Sony (Japan), ROHM Semiconductor (Japan), Asahi Kasei Microdevices (Japan) and Technicolor (France) are some of the major players in the global audio codec market.

RECENT HAPPENINGS IN THE MARKET:

• Dolby Laboratories has partnered up with engineer Derek 'MixedByAli' Ali and his Los Angeles-based music-tech business EngineEars to deliver Dolby Atmos training programs and resources to the platform. Kendrick Lamar, Roddy Ricch, SZA, Summer Walker, and the late Nipsey Hussle have all contributed to Ali's discography.
• DSP Group, an Israeli-founded voice and wireless chipset solutions supplier, has been bought by Synaptics, a US electronic hardware company, according to an agreement signed and confirmed by both company's boards of directors in August 2021. The contract sum was estimated to be around $600 million.
• Realtek Semiconductor, a Taiwan-based networking chip vendor, expects its shipping growth momentum to continue into the first half of 2022 after achieving strong revenue and profit gains in the third quarter of 2021.    
• Crypto Quantique has joined the STMicroelectronics Partner Program, enabling its QuarkLink global IoT security management platform to work with the STM32 microcontroller family and STSAFE secure components.