With a compound annual growth rate (CAGR) of 5.5%, the Audio Codec Market is expected to increase from USD 5.9 billion in 2020 to USD 7.8 billion in 2025. The growing demand for Internet of Things (IoT) enabled products and the shift in customer preferences towards smart gadgets and electronics are the main drivers of market growth. The market is also anticipated to rise as a result of the expanding trend of using voice assistants in a variety of applications, including wearable technology, cars, and smart homes. The use of sophisticated audio codecs is also being driven by the demand for high-quality audio in mobile devices with little power consumption. Due to the growing use of electronics and smart gadgets, notably in China and India, the Asia Pacific area is anticipated to experience tremendous growth.
Software Audio Codec, by Component Type, is expected to grow at the highest CAGR during the forecast period
The segment for software audio codecs is anticipated to experience the largest CAGR growth during the projection period. Due to their comfort, cost-effectiveness, and simplicity of fragmentation for encoding and decoding, software audio codec devices are experiencing an increase in demand, which can be ascribed to this growth. Video conferencing, streaming, and gaming are just a few of the many applications that make use of software audio codecs. They are simple to integrate into software platforms and enable high-quality audio compression and decompression. In the upcoming years, the market for software audio codecs is anticipated to experience considerable expansion due to the growing trend towards digitization and the rising demand for audio and video content.
Others Application, is expected to grow at the largest market share during the forecast period
Throughout the anticipated period, the “Others” application category is anticipated to rule the audio codec market. This category comprises a variety of programmes, including IP telephony, software platforms, broadcasting, audio creation, and recording. The demand for software platforms is rising quickly along with the demand for updated and software-enabled devices. Additionally, the need for audio codec devices for various audio-related applications is fueled by the need for high-quality audio recording and production in entertainment channels like radio, music, movies, and TV shows. The demand for audio codecs is also increasing as Internet telephony is increasingly being used in a variety of sectors, including government, healthcare, and education. All of these elements play a part in the “Others” application segment’s domination of the audio codec market.
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Italy, by Country, is expected to grow at the highest CAGR during the forecast period
Italy is anticipated to have the highest Compound Annual Growth Rate (CAGR) in the audio codec market during the forecast period based on the information supplied. The country’s significant presence in R&D facilities, world-class manufacturing firms, and cutting-edge supply chain networks that serve the worldwide market are credited with the expansion. The demand for high-quality audio codecs is anticipated to rise in Italy, which is known for its luxury and consumer goods.
Key Players in the Audio Codec Market include Cirrus Logic (US), Qualcomm (US) and Realtek Semiconductor (Taiwan). Cirrus Logic is a well-known player for providing innovative and customized audio codec solutions and products in the Audio Market.