The latest market report published by Credence Research, Inc. “Global Audio Codec Market: Growth, Future Prospects, and Competitive Analysis, 2015 – 2027”. The market for audio codec is expected to grow from US$ 6.2 billion in 2020 to US$ 9.0 billion by 2027 with a CAGR of over 5.4% during the forecast period from 2021 to 2027.
Global Audio Codec Market, 2020 – 2027 (USD Million)
An audio codec is a single device that converts analogue audio impulses to digital signals and then back to analogue signals. Due to rising demand for energy-efficient audio systems, the audio codec market is expected to grow during the forecast period. Furthermore, the increasing use of cellphones promotes market growth. The arrival of IoT-enabled devices with artificial intelligence is expected to transform the sector. The audio codec market share is expected to grow significantly in the near future as a result of the aforementioned factors.
The audio codec sector is also expanding as a result of an increase in disposable income and the number of new product releases. However, the development of audio SoC (system on a chip) devices, as well as increased awareness of the harmful health and environmental effects of audio codec devices, are impeding the growth of the audio codec industry. Furthermore, the growing demand for on-board entertainment, the rapid development and acceptance of virtual reality (VR) technology, and the global rise in demand for gaming consoles all contribute to the industry’s allure.
Software Audio Codec to Witness Lucrative CAGR
The market for software audio codec solutions is expected to grow the fastest during the forecast period, as technology advances toward software because it is more convenient, less expensive, and easily fragmented for encoding and decoding.
Headphone, Headset, and Wearable Devices to Exhibit Rapid CAGR
Wearables like smart watches, wireless headphones, and smart bands are gaining popularity due to their small size, low cost, and ability to communicate with the user. Because of the convergence of IoT and ML, people can now purchase these devices for communication and pleasure.
North America to Remain Prominent Regional Market
North America was the market’s second-largest region. The United States and Canada are major growth engines in this region’s market. The presence of mobile companies such as Apple, Google, and Microsoft in the United States is a significant factor in the growth of the industry in this area. Furthermore, the growing number of smart phone users in the United States has benefited the industry. The United States had 241.0 million smart phone users in 2016, with a projected increase to 343.9 million by 2021. Because audio codecs are an essential component of smart phone devices, rising demand for audio codecs has resulted from rising demand for smart phones.
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 market leaders. To increase market penetration and strengthen their position in the industry, these major corporations have used a variety of strategies, including product portfolio expansion, mergers and acquisitions, agreements, regional development, and collaborations. For example, Cirrus Logic has developed a low-power voice capture development kit for Alexa Voice Service that includes the CS47L24 smart codec, the CS7250B digital MEMS microphone.
Global Audio Codec Market by Component, 2015 – 2027
Global Audio Codec Market by Application, 2015 – 2027
- Desktop and Laptop
- Mobile Phone and Tablet
- Music & Media Device and Home Theatre
- Television and Gaming Console
- Headphone, Headset, and Wearable Devices
- Automotive Infotainment
Global Audio Codec Market by End-user, 2015 – 2027
- Consumer Electronics and Wearable Devices
- Automotive and Transportation
- Building Automation
- IT and Telecom
- Energy and Utilities
- Aerospace and Defense
Global Audio Codec Market by Company
- Analog Devices
- Cirrus Logic
- Maxim Integrated
- Realtek Semiconductor
- Texas Instruments
- DSP Group
- Dolby Laboratories