Audio Codec Market by Component (Hardware, Software) by Application (Desktop and Laptop, Mobile Phone and Tablet, Music & Media Device and Home Theatre, Television and Gaming Console, Headphone, Headset, and Wearable Devices, Automotive Infotainment) by End-user- Growth, Future Prospects, And Competitive Analysis, 2017 -2025

Audio Codec Market Analysis

An audio codec is a piece of hardware or software that encodes or decodes audio. An audio codec is a software-based mechanism for compressing and decompressing digital data streams. The goal of this operation is to reduce the number of bits in an audio file while maintaining its accuracy and quality. It also contributes to a reduction in the need for storage space and transmission bandwidth. Audio codec integrated circuits are used in mobile phones, tablets, vehicles, home theatre systems, PCs, and gaming systems (ICs). The audio codec market was worth US$ 6.2 billion in 2020, and it is expected to be worth US$ 9.0 billion by 2027. Over the forecast period, the market is expected to grow at a CAGR of 5.4%.

The smartphone market has grown significantly in recent years, and this trend is expected to continue in the near future. Audio codecs are one of the most important components used in the manufacture of mobile devices. Audio codecs have an impact on customers who listen to music with headphones, earbuds, or bluetooth speakers. Furthermore, Audio Codecs are widely used to improve audio quality in a variety of applications, including television systems. The demand for televisions is increasing rapidly and significantly. Manufacturers are focusing on adding features to current televisions such as Wi-Fi connectivity, internet access, and cameras with facial recognition technology and recording options. As a result, demand for such cutting-edge equipment is expected to rise. As a result, the Audio codec industry will grow in lockstep with the demand and supply for television sets.

Interesting Facts of Audio Codec Market.

• The growing number of smartphones is one of the key drivers of the global audio codec market's expansion
• The main factors driving market expansion are an increase in population per capita income, an increase in demand for consumer electronics, and the introduction of IoT-enabled products
• During the forecast period, the audio codec software market is expected to grow at the fastest CAGR
• The audio codec market for headphones, and wearable devices will grow at the fastest CAGR in 2020
• Asia Pacific led the market in 2020 and is predicted to remain dominant throughout the forecast period
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COVID-19 Impact

The release of COVID-19 in 2020 slowed the rate of growth in the audio codec market, and the market is expected to grow modestly until the end of 2021. The implementation of partial or total lockdowns in various countries around the world is the primary cause of this slowing of growth. Companies, on the other hand, are dedicated to providing excellent service to their customers while adhering to the rules and regulations established by their respective governments.

Software Segment to Show Exponential Growth Rate

With the increasing global adoption of software embedded devices that offer upgrade flexibility, take up less space, and are more cost effective. Companies such as Qualcomm and Realtek are developing software capabilities to provide cutting-edge data solutions to technologically advanced clients in order to gain a significant market share.

Global Audio Codec Market is Likely to be Ruled by Asia Pacific

Asia Pacific led the market in 2020, and this trend is expected to continue throughout the forecast period. Asia Pacific has emerged as an important manufacturing region for audio codec-enabled consumer devices. China, India, and Japan, to name a few, are major mobile phone manufacturing countries in the region. According to the India Brand Equity Foundation, India will be the world's third-largest smartphone market by 2020. This is expected to help the region's market grow.

Global Audio Codec Market Key Players:

Analog Devices, Cirrus Logic, Maxim Integrated, Qualcomm, Realtek Semiconductor, STMicroelectronics, Texas Instruments, DSP Group, Dolby Laboratories, and Technicolor are among the leading companies. For example: In August 2018, Qualcomm announced the release of "Qualcomm aptX Adaptive," a next-generation audio codec that enables dynamic next-gen premium wireless audio experiences. Depending on the material and connectivity, this audio codec combines the characteristics of low-latency aptX, aptX, or aptX HD.