Audio Codec Market Driven by Streaming Media Growth, IoT Devices, and High-Quality Audio Needs in Consumer Electronics

The Audio Codec Market benefits from rising adoption in streaming platforms, and IoT devices, delivering efficient audio compression and high-quality sound.

AUSTIN, TX, UNITED STATES, November 25, 2024 /EINPresswire.com/ -- Market Scope and Overview

The Audio Codec Market¹ is poised for steady growth as industries increasingly leverage advancements in audio compression technology to meet consumer and professional demands for superior sound quality.

According to a report by SNS Insider, the global Audio Codec Market was valued at USD 6.8 billion in 2023 and is projected to reach USD 10.9 billion by 2032, growing at a CAGR of 5.5% during the forecast period from 2024 to 2032.

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Some of the Major Key Players in the Market are:

• Qualcomm (AptX HD, aptX Adaptive)
• Apple (ALAC, AAC)
• Texas Instruments (TLV320AIC3204, TLV320AIC3101)
• Cirrus Logic (CS47L35, CS47L24)
• Realtek (RT5631, ALC5621)
• Analog Devices (ADAU1761, ADAU1978)
• NXP Semiconductors (SAK-TC277TP, SAIC-40100)
• Broadcom (BCM43455, BCM43438)
• Amlogic (S905X3, S912)
• Wolfson Microelectronics (WM8960, WM8994)

Market Drivers for Audio Codec Growth

The growing demand for high-fidelity audio experiences in consumer electronics, such as smartphones, laptops, wireless earbuds, and smart speakers, is a primary driver of market expansion. Audio codecs enable efficient compression and decompression of audio data, ensuring optimal sound quality while minimizing file size—a critical feature in today’s compact, portable devices.

The proliferation of streaming services like Spotify, Apple Music, and Netflix has further fueled demand for advanced audio codecs capable of delivering crystal-clear sound across various bandwidths. As streaming content consumption rises globally, audio codec technology continues to evolve, supporting higher bitrates and enhanced compression techniques.

The adoption of smart home systems and IoT-enabled devices has created significant demand for audio codecs that integrate seamlessly with voice assistants and home automation technologies. These codecs efficiently process voice commands while maintaining audio clarity, supporting the smart home ecosystem.

In professional audio applications such as broadcasting, music production, and video conferencing, audio codecs play a crucial role in achieving superior sound fidelity. The rise of hybrid work models has also driven demand for codecs that enhance voice clarity in conferencing systems, enabling smooth communication.

Segment Analysis

By Component Type

• Hardware: The hardware segment dominated the market in 2023, accounting for approximately 62% of total revenue. Hardware-based audio codecs are widely used in devices like headphones, microphones, and audio interfaces due to their reliability, low power consumption, and ability to handle real-time processing.

• Software: Software-based audio codecs, while growing in adoption, cater primarily to applications requiring flexibility and scalability, such as cloud-based streaming services. These codecs are increasingly integrated into digital audio workstations (DAWs) and virtual sound systems to support advanced audio manipulation.

By Function

• Without Digital Signal Processing (DSP): This segment held a dominant market share in 2023, contributing 77% of global revenue. Non-DSP audio codecs are commonly used in cost-sensitive applications that prioritize basic audio functionality over complex processing.

• With DSP: DSP-enabled audio codecs are gaining traction in applications requiring enhanced audio features like noise cancellation, surround sound, and adaptive audio processing. The growing use of DSP in premium headphones and high-end audio equipment is expected to drive this segment's growth during the forecast period.

Key Segments:

By Component Type
• Hardware Codecs
• Software Codecs

By Function
• With DSP
• Without DSP

By Application
• Automobile
• Television Sets
• Smartphones and tablets
• Desktop and laptops
• Headphone, Headsets and Wearable devices
• Music & Media Devices and Home Theatres
• Gaming consoles
• Others

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Regional Analysis

North America led the audio codec market in 2023, accounting for 35% of global revenue. The region's dominance stems from early adoption of advanced technologies, a thriving consumer electronics industry, and substantial investments in research and development. Major players in the United States and Canada are consistently innovating to enhance codec performance.

APAC is projected to witness the highest CAGR during the forecast period, driven by increasing smartphone penetration, rapid industrialization, and the expansion of the entertainment and media industries. Countries like China, India, and South Korea are emerging as major hubs for audio codec production and consumption, fueled by a burgeoning middle class and rising demand for high-quality audio solutions.

Europe's audio codec market is growing steadily, supported by the region's focus on high-end audio technologies and professional audio applications. Key contributors include Germany, the United Kingdom, and France, with a strong presence of premium audio brands and robust demand in the automotive and entertainment sectors.

Recent Developments

• Qualcomm: In 2023, Qualcomm unveiled its next-generation audio codec technology, focusing on ultra-low latency and improved power efficiency. These advancements cater to wireless audio devices like earbuds and gaming headsets, addressing consumer demand for seamless audio experiences.

• Dolby Laboratories: Dolby Laboratories introduced an updated version of its codec suite for immersive audio in cinematic and home entertainment applications. The new codecs support enhanced surround sound and adaptive streaming capabilities.

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Table of Contents:

1. Introduction
2. Executive Summary
3. Research Methodology
4. Market Dynamics
5. Statistical Insights and Trends Reporting
6. Competitive Landscape
7. Audio Codec Market Segmentation, By Component Type
8. Audio Codec Market Segmentation, By Function
9. Audio Codec Market Segmentation, By Application
10. Regional Analysis
11. Company Profiles
12. Use Cases and Best Practices
13. Conclusion

About Us

S&S Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.

Our staff is dedicated to giving our clients reliable information, and with expertise working in the majority of industrial sectors, we're proud to be recognized as one of the world's top market research firms. We can quickly design and implement pertinent research programs, including surveys and focus groups, and we have the resources and competence to deal with clients in practically any company sector.

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SNS Insider | Strategy and Stats
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¹ https://www.snsinsider.com/reports/audio-codec-market-4753