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Audio Codec Market Size

Report ID: GMI8987
Published Date: Apr 2024
Report Format: PDF

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Audio Codec Market Size

Audio Codec Market size was valued at USD 6.5 billion in 2023 and is estimated to register a CAGR of over 5.5% between 2024 and 2032. Advancements in audio compression and processing technologies propel the market by enabling higher efficiency in data transmission and storage, resulting in improved sound quality and reduced bandwidth requirements.

Audio Codec Market

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Enhanced codecs can deliver better compression ratios without compromising audio fidelity, catering to the increasing demand for high-quality audio experiences across various platforms including streaming services, gaming, telecommunications, and multimedia applications. For instance, in June 2022, Texas Instruments introduced Sitara AM62 processors, which expand edge Artificial Intelligence (AI) processing into next-generation applications, widening its history of delivering highly integrated processors.

Audio Codec Market Report Attributes
Report Attribute	Details
Base Year:	2023
Audio Codec Market Size in 2023:	USD 6.5 Billion
Forecast Period:	2024 - 2032
Forecast Period 2024 - 2032 CAGR:	5.5%
2032 Value Projection:	USD 10.5 Billion
Historical Data for:	2018 - 2023
No. of Pages:	200
Tables, Charts & Figures:	285
Segments covered:	Component, Function, Application, Region
Growth Drivers:	Increased demand for high-quality audio streaming services Advancements in audio compression and processing technologies Rising adoption of voice-controlled smart speakers and assistants Expansion of automotive infotainment systems incorporating audio codecs Growth of Virtual Reality (VR) and Augmented Reality (AR) applications
Pitfalls & Challenges:	Compatibility issues with diverse hardware and software platforms Threat of patent disputes hindering innovation and adoption

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The rising adoption of voice-controlled smart speakers and assistants is expected to fuel growth in the audio codec market due to increased demand for high-quality voice processing and recognition capabilities. Audio codecs play a crucial role in capturing, processing, and compressing voice data efficiently, ensuring optimal performance of these devices. As the market for smart home devices evolves, there is a growing need for advanced audio codecs to deliver seamless voice interactions and enhance user experiences.

Compatibility problems across various hardware and software platforms will provide a serious obstacle to the audio codec market growth. Differences in operating systems, application requirements, and device designs might make audio codec solutions difficult to integrate and interoperate seamlessly. This may result in more difficult implementations, longer development times, and more expensive production for manufacturers. Compatibility issues can also lead to limited functionality or subpar performance, which could negatively impact user experience and the uptake of audio codec solutions across various platforms and devices.

Authors: Suraj Gujar, Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

The market size of audio codec crossed USD 6.5 billion in 2023 and is set to grow at 5.5% CAGR between 2024 and 2032, led by advancements in audio compression and processing technologies.

The software codecs component segment is poised to witness 8% CAGR during 2024-2032, as they offer unparalleled adaptability, swiftly adjusting to changing industry standards and user needs.

Asia Pacific audio codec industry held a revenue share of 35% in 2023 and is set to grow rapidly by 2032, due to rapid urbanization and increasing disposable income.

Analog Devices, Knowles Corporation, Qualcomm, Realtek Semiconductor, Sony Semiconductor Solutions Corporation, STMicroelectronics, Texas Instruments Incorporated among others.