Audio codec Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2020 - 2030

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Audio codec Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2020 - 2030

Status : July, 2021 | Semiconductor & Electronics

Report Digest


Introduction:

Audio codec refers to a computer based application software used in the compression and decompression of digital audio data streams from live stream media or an already existing file. It consists of a system of implemented alogrithms for coding and decoding of audio streams. A wide range of audio codecs are available nowadays such as MP3, AAC, WAV, AIFF, WMA, Opus etc. This technological invention has helped in reducing the size of an audio file without sacrificing the sound quality. Audio codecs not only minimizes storage space but also the requirements of bandwith for audio signal transmission.

Audio codecs are useful in automobiles, smart phones, laptops, gamings, desktops, home theatres etc. Investors from across the world are showing their interest  to invest in this market due to rising demands for mobiles, tablets and laptops by the young generation along with high usage of wearable devices, headsets and headphones

The  market for audio codec is predicted to flourish  and witness remarkable progress through 2030. It is anticipated to experience considerable growth with a steady CAGR rate throughout the world.

Key Growth Factors:

Growing use of  wireless headsets, smart phones, laptops, gaming applications, smart watches and other IoT enabled devices  is improving the progress of this market resulting in high market growth.

Lifestyles changes and increasing disposable incomes  are contributing to expansions in this market as people with luxurious lifestyle prefer advanced and upgraded versions of music, voice quality, good storage space and quality communication.

Audio Codec Market

Rising demands from infotainment services  and adoption of on demand video services are creating immense growth opportunities for manufacturers in this market.

The wide applications of audio codecs such as high fidelity audio signals, outstanding voice quality, reduction in storage space, minimization of bandwidth requirements, high sustainability etc are estimated to fuel the further growth.

Key Restraints:

Lack of expertise in handling audio codec technology can significantly poise a challenge to the growing demands for audio codec systems in the market.

There is a need to optimise the component size in audio codec systems. These continuous optimizations  are expected to hamper the market progress globally.

The gradual decrease in the adoption of optical media products due to rising technological innovations is creating hurdles for the manufacturers in this market.

COVID-19 Impact:

The impact of Covid-19 pandemic on audio codec market is not much. The pandemic imposed a lot of restrictions on the manufacturers operating in this market. It had put a temporary brake in the production and distribution of audio codecs in the initial phase leading to reduced sales and profit margins. However, the market leaders have managed  to cope with the ongoing crisis by adopting numerous tactics to hold their position back in the market. They are trying hard to overcome their losses.

Online platform is used as a weapon by the marketers  to continue business operations and deal with their customers  as it is considered as a safest choice in the pandemic. This tactic is leading to rising sales of audio codec systems. The market is predicted to maintain considerable growth in the pandemic owing to shift in customer base for IoT enables services, wireless entertainment as well as communication devices like smart phones.

Region-Wise Forecast:

The market for audio codecs is witnessing expansions in China making it the largest share holder in this market throughout the world. It is predicted  that Asia Pacific will rule the global market leaving all other regions far behind. The presence of large manufacturing companies like  Lenovo, Oppo, Xiomi etc is surging the progress of this market in China. In addition, the growing addiction of youth towards wireless headphones, headsets, wearable devices, smart watches etc is providing several opportunities to the manufacturers to expand their reach and global presence. Further, the dependence of automotive companies to include audio codecs for advanced music systems and communications is increasing the growth in India and Japan.    

In addition to Asia Pacific,  U.S. and Mexico are making investments in this market owing to rising applications of audio codecs in television systems for enhanced audio experience. North America is forecasted to rise at a high CAGR rate and hold the second largest position in the market. Presence of largest mobile companies such as Apple, Google and Microsoft is estimated to facilitate the progress of this market. In Canada, the gaming applications are including these audio codec systems for HD sound quality purposes for creating an attraction among the users.

Furthermore, the rising data traffic, internet penetration, changing lifestyles, addiction of wireless headphones and other music related devices is predicted to augment the market growth in Europe. Germany is estimated to grow at a steady CAGR through 2030.
Market Segmentation:

By Component:

  • Hardware (monocodec, stereo codec and multichannel codec)
  • Software  ( non-compression, lossy compression and lossless compression)

By Application:

  • Automobiles
  •  Mobile phones and tablets
  •  Desktops and laptops
  • Television and gaming
  • Headphones, headsets and wearable Devices
  • Home theatres
  • Others

By Region:

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa
  • Latin America

Competitive Landscape:

Audio codec market is highly fragmented with the presence of leading as well as new market players. The key focus of manufacturers in this market is to constantly bring improvisations in their offerings to gain customer attention. The leading manufacturers are incurring high expenses on the establishment of research and development institutes to bring innovations in their products and services. They are adopting strategies such as expansions,product upgradations, joint ventures, strategic alliances, partnership agreements etc to combat the rising competition and lead the market.

Some of the prominent manufacturers in this market are Cirrus Logic Incorporation, Texas Instruments Incorporation, Qualcomm Incorporation, Maxim Integrated Products, Realtek Semiconductor Corporation, Dolby Laboratories Incorporation, Analog Devices, Fraunhofer IISCompany, Technicolor SA,
Xiph Organisations, St microelectronics N.V. etc.

Among these key players, Cirrus Logic Corporation introduced low power voice capture development kit for Alexa Voice Service (AVS) featuring smart codec for voice control, echo cancellation and high quality noise suppresion to attract the customers globally for increasing their profitability. In addition, Qualcomm Corporation has launched aptX voice audio that uses bluetooth wireless technology to produce high definition and superior voice quality leading to improvement in its market presence and extented customer base.

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5-Point Growth Formula

The 5-point growth formula developed by TMR Research provides an insight to the stakeholders and CXOs about the current situation in the market. The growth formula makes the report a perfect companion for the stakeholders and CXOs.

The 5-point growth formula includes the following points:

  • Current and Future Threats
  • Accurate Trend Analysis
  • Regional Assessment
  • Industrial Analogy
  • COVID-19 Impact

Current and Future Threats

Along with studying the opportunities necessary for growth, threats are also an important aspect to look upon for the companies and stakeholders in a specific sector. TMR Research studies every negative aspect that will hinder the growth of a specific area of business and includes it in the report. The stakeholders and CXOs will have the benefit of assessing the threat and take the necessary steps to prevent the hindrance caused due to the threats.

Accurate Trend Analysis

Keeping up with the latest trends is crucial in any business or sector. While stakeholders are aware of the trends that are on the surface, TMR Researchers find trends that are deeply entrenched in the particular market or sector. The reports are constantly updated with the latest trends so that the stakeholders and CXOs can derive benefits from the trends and generate good revenues.

Regional Assessment

Demography forms an important part of the growth pattern of all the markets. Diving deep into the demographics enables maximum output from specific areas. The TMR Research team assesses every region and picks out the vital points that have a large impact on the growth of a market.

Industrial Analogy

The analysts at TMR Research conduct an all-round analysis on the competitive landscape of the market. The observations recorded by the analysts are added to the reports so that every stakeholder gets a glimpse of the competitive scenario and frame their business plans according to the situation.

COVID-19 Impact

The COVID-19 outbreak has changed the growth projections of numerous sectors and businesses. The analysts at TMR Research have conducted a conscientious survey on the markets after the pandemic struck. The analysts have put forth their brilliant and well-researched opinions in the report. The opinions will help the stakeholders to plan their strategy accordingly.

The reports offer answers to the top 7 questions that revolve around the growth of the market

  • What are the diverse growth parameters influencing the market?
  • Which regions will contribute largely to the growth of the market
  • What are the recent innovations and technological advancements in the market?
  • What are the emerging trends across the market?
  • How has COVID-19 affected the market?
  • What will be the post-pandemic scenario of the market?
  • What are the major threats that will dent the growth prospects of the market?