Audio CODEC Market Report by Function (With DSP, Without DSP), Component (Hardware, Software), End Use (Computer, Phones, Tablets, Over-Ear Headphones, TWS, Home Entertainment, Commercial, Automotive, Portable, Smart Home, IoT, Wearable, AR/VR), and Regio

The global audio CODEC market size reached USD 6.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.3 Billion by 2033, exhibiting a growth rate (CAGR) of 3.26% during 2025-2033. The growing advancement of technology, along with the increasing trend towards customizable and integrated audio solutions, is propelling the market growth.

Audio coder-decoder (CODEC) is an integrated circuit (IC) and computer-based application that compresses and decomposes data stream and digital acoustic signals. Its software-based system implements a range of algorithms that are used for encoding, decoding, and compressing data. It also exhibits the capability of both analog-to-digital converter (ADC) and digital-to-analog converter (DAC). Audio CODEC aids in reducing the audio file size without affecting the data quality and storing high-quality audio signals while utilizing minimum storage space. Along with this, it has easy multichannel interfacing properties, enables low noise distortion, and eliminates the bandwidth required to transmit acoustic signals. Based on these properties, audio CODEC finds extensive applications in automotive infotainment systems, soundbars, home theaters, and consumer electronic devices to offer an immersive experience.

Audio CODEC Market Trends:

The increasing proliferation of internet users, the rising need for various consumer electronics, such as computers, phones, and tablets, and the emergence of the Internet of Things (IoT)-enabled communication devices are primarily driving the Audio CODEC market growth. In line with this, the extensive utilization of several wearable smartwatches, miniaturized electronic devices, wireless headphones, and headsets for entertainment purposes, especially during the COVID-19 pandemic, is supplementing the product demand across the globe. Additionally, the ongoing construction of smart homes equipped with home theaters to watch over-the-top (OTT) series and stream high-definition (HD) music has intensified the widespread adoption of audio CODEC across the residential sector, which is acting as another growth-inducing factor. Moreover, the shifting consumer inclination toward premium automobiles with advanced features has augmented the incorporation of audio CODEC in wireless infotainment systems, which, in turn, is supporting the market growth. Apart from this, the growing demand for virtual reality (VR) integrated gaming consoles with high-quality audio and the continual launch of multiple product variants with enhanced features by key players are creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global audio CODEC market report, along with forecasts at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on function, component, and end use.

Breakup by Function:

• With DSP
• Without DSP

Breakup by Component:

• Hardware
• Software

Breakup by End Use:

• Computer
• Phones
• Tablets
• Over-Ear Headphones
• TWS
• Home Entertainment
• Commercial
• Automotive
• Portable
• Smart Home
• IoT
• Wearable
• AR/VR

Breakup by Region:

• North America
• United States
• Canada
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Others
• Latin America
• Brazil
• Mexico
• Others
• Middle East and Africa

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being Analog Devices Inc., Barix, Cirrus Logic Inc., DSP Group Inc., Qualcomm Inc., Realtek Semiconductor Corp., Rohm Co. Ltd, STMicroelectronics and Texas Instruments Inc.

Key Questions Answered in This Report

1.What was the size of the global audio CODEC market in 2024?

2.What is the expected growth rate of the global audio CODEC market during 2025-2033?

3.What are the key factors driving the global audio CODEC market?

4.What has been the impact of COVID-19 on the global audio CODEC market?

5.What is the breakup of the global audio CODEC market based on the function?

6.What is the breakup of the global audio CODEC market based on the component?

7.What is the breakup of the global audio CODEC market based on the end use?

8.What are the key regions in the global audio CODEC market?

9.Who are the key players/companies in the global audio CODEC market?