Audio Codec Market Size - By Application (Desktop & Laptop, Mobile Phone & Tablet, Televisions, Home Audio Systems, Gaming Consoles, Infotainment Systems, Wearable Devices, IoT Devices, Medical Devices), By Component, By Function & Forecast, 2024 - 2032

Audio Codec Market Size - By Application (Desktop & Laptop, Mobile Phone & Tablet, Televisions, Home Audio Systems, Gaming Consoles, Infotainment Systems, Wearable Devices, IoT Devices, Medical Devices), By Component, By Function & Forecast, 2024 - 2032

Audio codec market size is anticipated to grow at over 5.5% CAGR from 2024 to 2032, driven by the rapid expansion of the consumer electronics sector. The increasing availability of smartphones, tablets, laptops, and smart home devices, all of which require high-quality audio features, has led to the strong demand for advanced audio codecs. According to a recent study by the GSMA in 2023, approximately 54% of the world's population, equating to around 4.3 billion individuals, are smartphone owners.

Of late, the proliferation of streaming music, podcasts, and audiobooks has increased the need for efficient audio compression technology. Cars are getting sophisticated infotainment systems that rely on high-performance audio codecs to deliver sound quality for music, navigation, and communication functions. Increasing availability of electric vehicles has also accelerated the installation of advanced audio systems. Adoption of VR and AR technologies, which require seamless audiovisual integration, will further support the market expansion.

The audio codec industry is classified into component, function, application, and region.

Based on component, the market share from the hardware segment is anticipated to grow significantly through 2032, due to the increasing demand for high-quality, real-time audio processing capabilities in various consumer and professional devices. Hardware-based audio codecs offer better performance, lower latency, and enhance power consumption over their software counterparts. This is making them important in applications where audio quality and power consumption are important, such as smartphones, gaming consoles, and portable audio devices.

Audio codec industry from the wearable devices application segment is poised to witness decent growth rate during 2024-2032 backed by the increasing consumer demand for smart and portable gadgets that deliver high-quality audio experiences. Wearable devices, such as smartwatches, and wireless earbuds rely heavily on efficient audio codecs to ensure clear, high-fidelity sound while maintaining compact size and battery efficiency. With the growing popularity of health and fitness products, more people are using wearables for activities like running and gymnastics, where high-quality audio is important for music and communication.

North America audio codec industry size will record notable expansion between 2024 and 2032 attributed to strong technological infrastructure and high consumer demand for advanced audio solutions across various applications. The increasing adoption of smart home devices, such as voice-activated assistants and home entertainment systems is increasing the need for high-quality audio codecs to maximize sound performance. Increasing investments in car infotainment systems and advanced audio features integrated into electric vehicles are also driving the regional market growth.