What Has Been the Growth Trajectory for the Audio Codec Market in Recent Years?
The audio codec market has seen considerable growth due to a variety of factors.
•There has been a consistent expansion in the audio codec market size in the past few years. The market is projected to escalate from a value of $9.56 billion in 2024 to $9.96 billion in 2025, reflecting a compound annual growth rate (CAGR) of 4.2%.
The surge observed in the historic period can be linked to factors like rising use of smartphones and portable devices, advancements in digital media, growing popularity of internet streaming and multimedia consumption, digital audio broadcasting, and incorporation in consumer electronics.
How Does the Forecast Look for the Audio Codec Market?
The audio codec market is expected to maintain its strong growth trajectory in upcoming years.
• Significant expansion is anticipated in the audio codec market in the coming years, with its worth projected to reach $12.79 billion by 2029, growing at a compound annual growth rate (CAGR) of 6.5%.
The growth during this period may be credited to the proliferation of 5g and Internet of Things (IoT), the integration of augmented and virtual reality (AR/VR), automotive audio systems, edge computing, along with the potential for customization and adaptability. Predominant trends for this forecast period involve software and app expansion, low-delay codecs, AI-enabled audio codecs, enhanced control over audio quality, and adaptable bitrate streaming.
What Are The Leading Drivers Of Growth In The Audio Codec Market?
The anticipated surge in smartphone usage is poised to boost the development of the audio codec market. Smartphones, which encompass the functionalities of a cell phone and a computer, have emerged as the principal gadgets for media streaming. This has instigated a need for codecs that can deliver high-fidelity sound while keeping the file size at a minimum. Apps that provide VoIP and video calling services on smartphones require audio codecs for precise voice transmission. As an example, data from Uswitch Limited, a financial conduct authority based in the UK, stated that mobile connections in the UK increased by 3.8% (roughly 2.6 million) since 2022 to reach 71.8 million in February 2023. It is projected that the UK population will increase to 68.3 million by 2025, and approximately 95% (or nearly 65 million people) of them will possess a smartphone. This growing adoption of smartphones is thus catalyzing the expansion of the audio codec market.
How Are The Segments Defined Within The Global Audio Codec Market?
The audio codec market covered in this report is segmented –
1) By Component: Hardware, Software
2) By Function: With Dedicated Digital Signal Processor (DSP), Without Dedicated Digital Signal Processor (DSP)
3) By Application: Desktop And Laptop, Mobile Phone And Tablet, Music And Media Device And Home Theatre, Television And Gaming Console, Headphone, Headset, And Wearable Devices, Automotive Infotainment
Subsegments:
1) By Hardware: Integrated Circuits (ICs), Digital-To-Analog Converters (DACs), Analog-To-Digital Converters (ADCs), Microcontrollers, Audio Processors
2) By Software: Audio Processing Software, Codec Libraries, Firmware, Application Software
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How Are New Trends Expected To Influence The Growth Of The Audio Codec Market?
Prominent firms in the audio codec market are prioritizing product innovation, specifically in the field of true-lossless audio codecs, in order to improve the quality of the sound and efficiency of the stream. A true-lossless audio codec is a form of audio compression technology that can flawlessly rebuild the original audio data without any quality loss. For example, in October 2024, Honeywell, an American technology corporation, introduced the Honeywell Aviator Hi-Fi speaker. This innovative audio device merges sophisticated technology with a luxurious design, aiming to appeal to both audiophiles and fashion-forward consumers. The high-quality audio device comes with a True-Lossless Audio Codec that provides extraordinary sound clarity and delivers a robust output of 240 watts. It sports Bluetooth V5.3 connectivity with a range of up to 30 meters and supports smooth streaming. The device also offers USB Type-C and Lightning ports for superior audio transmission. Additionally, it enables users to effortlessly shift between different audio inputs and provides ambient lighting for an elevated auditory experience.
Who Are the Key Players in the Audio Codec Market?
Major companies operating in the audio codec market include:
• Apple Inc.
• AT&T Inc.
• Qualcomm Incorporated
• Texas Instruments Incorporated
• STMicroelectronics N.V.
• NXP Semiconductors N.V.
• Analog Devices Inc.
• Renesas Electronics Corporation
• ON Semiconductor Corporation
• ROHM Co. Ltd.
• Realtek Semiconductor Corp.
• Microsemi Corporation
• Cirrus Logic Inc.
• Dolby Laboratories Inc.
• Xilinx Inc.
• Harmonic Inc.
• Nordic Semiconductor ASA
• DSP Group Inc.
• Toshiba Electronic Devices & Storage Corporation
• AKM Semiconductor Inc.
• CML Microcircuits
• Audio-Technica Corp.
• VisualOn Inc.
• Savitech Corp.
• Tieline Technology
What Is The Most Dominant Region In The Audio Codec Market?
Asia-Pacific was the largest region in the audio codec market in 2024. North America is expected to be the fastest-growing region in the audio codec market report during the forecast period. The regions covered in the audio codec market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
