The Global Audio Codec Market size is expected to reach USD 10.42 billion by 2032, rising at a market growth of 6.2% CAGR during the forecast period.
Key Highlights:
- The North America market dominated Global Audio Codec Market in 2024, accounting for a 34.47% revenue share in 2024.
- The U.S. market is projected to maintain its leadership in North America, reaching a market size of USD 2.36 billion by 2032.
- Among the Function, the Without DSP dominated the global market, contributing a revenue share of 76.46% in 2024.
- In terms of Component Type, Hardware Codecs segment are expected to lead the global market, with a projected revenue share of 60.64% by 2032.
- The Smartphones and Tablets emerged as the leading Application in 2024, capturing a 29.51% revenue share, and is projected to retain its dominance during the forecast period.
The global audio codec market has undergone significant change. From its telephony-based origins to advanced, AI-enhanced technologies. Digital voice transmission was made possible by early codecs like ITU-T G.711. Still, more sophisticated options like AMR and AMR-WB were introduced in the 1990s, improving mobile voice quality over GSM and UMTS networks. Opus, a flexible, royalty-free codec ideal for VoIP, streaming, and conferencing, was created in 2012 in response to the growth of internet communication. With Enhanced Voice Services (EVS), which improves voice clarity over 4G and 5G networks and supports full-band audio up to 20 kHz, this trend continued. Neural network-based codecs, such as SoundStream and TF-Codec, are at the forefront of innovation today because they use deep learning to provide high-fidelity audio at lower bitrates.
The main market trends are the increasing use of wideband/full-band codecs in consumer electronics and telecommunications; the growing trend toward open, royalty-free codecs like Opus due to their affordability and flexibility; and the introduction of AI-driven neural codecs, which promise improved quality and compression. Through standardization, hardware integration, and research and development into neural audio technologies, major players like Qualcomm, Ericsson, and Fraunhofer are propelling innovation. Legacy systems, open-source projects, and new AI solutions are competing more fiercely as businesses try to satisfy consumer demands for HD audio and economic data use across an expanding range of gadgets and apps.
COVID 19 Impact Analysis
The COVID-19 pandemic had a big effect on the global audio codec market, changing both supply and demand in both hardware and software. Because of lockdowns, remote work, online education, telehealth, and digital entertainment became very popular. This made the need for clear and reliable audio solutions in video conferencing, streaming, and voice-over-IP applications grow even more. Because of this need, more people started using advanced codecs like Opus, AMR-WB, AMR-WB+, and Enhanced Voice Services (EVS) on communication platforms, smartphones, and audio peripherals. In conclusion, COVID-19 pandemic had a negative impact on the market.
Function Outlook
Based on Function, the market is segmented into Without DSP and With DSP. This segment benefits from growing demand for advanced audio features, such as noise suppression, voice enhancement, and real-time audio signal processing. Devices like smartphones, smart speakers, and automotive infotainment systems increasingly require integrated DSP capabilities, supporting the notable presence of this segment within the market.
Component Type Outlook
Based on Component Type, the market is segmented into Hardware Codecs and Software Codecs. The software codecs segment garnered a remarkable revenue share in the market in 2024. Growing demand for flexible, upgradable, and cost-effective audio solutions in mobile applications, streaming platforms, and cloud-based services has driven the adoption of software-based codecs, especially where hardware constraints are minimal.
Regional Outlook
Region-wise the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. The North America region witnessed the maximum revenue share in the market in 2024. The demand for high-quality, low-power audio across regions is fuelling the rapid expansion of the global audio codec market. FCC rules are speeding up the adoption of Bluetooth LE Audio and LC3 in North America, particularly in smartphones and devices that work with hearing aids. With chipsets that support LE Audio, companies like Qualcomm are in the lead, and public spaces are testing AuracastTM. European nations like Germany, France, and the UK are concentrating on energy-efficient, inclusive audio solutions. With the help of ETSI standards and hearing-aid accessibility initiatives, LE Audio and HE-AAC v2 are being used in consumer electronics and public broadcasting.
Asia Pacific's top codec innovation markets include China, Japan, South Korea, and India. Due to robust OEM activity from companies like Sony, Samsung, and Xiaomi, with the help of digital infrastructure programs, LE Audio and high-resolution codecs like LDAC and aptX Lossless are frequently used. Through improvements in public broadcasting and smart city projects, adoption is increasing throughout LAMEA, which includes Brazil, the United Arab Emirates, and South Africa. Reach expansion is being aided by OTA updates and reasonably priced LE Audio-enabled devices, particularly in remote and cost-sensitive areas.
Recent Strategies Deployed in the Market
- May-2025: Cirrus Logic, Inc. partnered with Compal Electronics to develop AI-powered audio enhancement for laptops, addressing mechanical rattle and distortion. This innovation integrates advanced audio processing into codec systems, improving sound quality and manufacturing consistency without compromising loudness or performance.
- Jan-2025-: Cirrus Logic partnered with Intel to launch a reference design using Intel Core Ultra processors, featuring Cirrus Logic's audio codec and amplifier chips. The collaboration enhances audio quality, reduces power consumption, and offers flexible designs for mainstream to premium PCs.
- Nov-2023: Qualcomm introduced its S7 and S7 Pro Gen 1 Sound Platforms to enhance audio experiences in earbuds and headphones. These platforms prioritize sound quality, low latency, and immersive audio, aligning with rising consumer demand for premium audio and driving codec market growth.
- May-2022: Analog Devices, Inc. and Merging Technologies partnered to integrate AES67 Audio-over-IP solutions into SHARC(R) SoCs, enabling scalable, high-performance audio streaming for ProAV products. This collaboration supports broader adoption of IP-based audio processing, enhancing the audio codec ecosystem and market.
- Nov-2021: Analog Devices, Inc. and 7 Sensing Software partnered to integrate its advanced audio algorithms into ADI's low-power audio codec chips, enhancing wireless earbuds with noise reduction, hearing augmentation, and clear voice calling-boosting performance, efficiency, and integration in the audio codec market.
List of Key Companies Profiled
- Analog Devices, Inc.
- Barix AG
- Cirrus Logic, Inc.
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- Rohm Co., Ltd.
- Sony Corporation
- STMicroelectronics N.V.
- Synopsys, Inc.
- Texas Instruments, Inc.
- Dolby Laboratories Inc.
Global Audio Codec Market Report Segmentation
By Function
By Component Type
- Hardware Codecs
- Software Codecs
By Application
- Smartphones & Tablets
- Headphone, Head Sets & Wearable devices
- Automobile
- Television Sets
- Desktop & Laptops
- Music & Media Devices & Home Theatres
- Gaming Consoles
- Other Application
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
- 1.1 Market Definition
- 1.2 Objectives
- 1.3 Market Scope
- 1.4 Segmentation
- 1.4.1 Global Audio Codec Market, by Function
- 1.4.2 Global Audio Codec Market, by Component Type
- 1.4.3 Global Audio Codec Market, by Application
- 1.4.4 Global Audio Codec Market, by Geography
- 1.5 Methodology for the research
Chapter 2. Market at a Glance
Chapter 3. Market Overview
- 3.1 Introduction
- 3.1.1 Overview
- 3.1.1.1 Market Composition and Scenario
- 3.2 Key Factors Impacting the Market
- 3.2.1 Market Drivers
- 3.2.2 Market Restraints
- 3.2.3 Market Opportunities
- 3.2.4 Market Challenges
- 3.3 Porter Five Forces Analysis
Chapter 4. Audio Codec Market - Trends
Chapter 5. State of Competition - Audio Codec Market
Chapter 6. PLC (Product Life Cycle) - Audio Codec Market
Chapter 7. Market Consolidation Analysis for Global Audio Codec Market
Chapter 8. Value Chain Analysis of Audio Codec Market
- 8.1 Research & Development (R&D)
- 8.2 Design & Engineering
- 8.3 Semiconductor Fabrication
- 8.4 IP Licensing & Standardization
- 8.5 Testing & Quality Assurance
- 8.6 Integration by OEMs
- 8.7 Marketing & Sales
- 8.8 Distribution & Logistics
- 8.9 End-User Applications
- 8.10. After-Sales Support & Firmware Updates
Chapter 9. Key Customer Criteria - Audio Codec Market
Chapter 10. Strategies Deployed in Audio Codec Market
Chapter 11. Global Audio Codec Market by Function
- 11.1 Global Without DSP Market by Region
- 11.2 Global With DSP Market by Region
Chapter 12. Global Audio Codec Market by Component Type
- 12.1 Global Hardware Codecs Market by Region
- 12.2 Global Software Codecs Market by Region
Chapter 13. Global Audio Codec Market by Application
- 13.1 Global Smartphones & Tablets Market by Region
- 13.2 Global Headphone, Head Sets & Wearable devices Market by Region
- 13.3 Global Automobile Market by Region
- 13.4 Global Television Sets Market by Region
- 13.5 Global Desktop & Laptops Market by Region
- 13.6 Global Music & Media Devices & Home Theatres Market by Region
- 13.7 Global Gaming Consoles Market by Region
- 13.8 Global Other Application Market by Region
Chapter 14. Global Audio Codec Market by Region
- 14.1 North America Audio Codec Market
- 14.2 Key Impacting Factors
- 14.2.1 Market Drivers
- 14.2.2 Market Restraints
- 14.2.3 Market Opportunities
- 14.2.4 Market Challenges
- 14.2.5 North America Audio Codec Market Trends
- 14.2.6 State of Competition North America Audio Codec Market
- 14.2.7 North America Audio Codec Market by Function
- 14.2.7.1 North America Without DSP Market by Region
- 14.2.7.2 North America With DSP Market by Region
- 14.2.8 North America Audio Codec Market by Component Type
- 14.2.8.1 North America Hardware Codecs Market by Country
- 14.2.8.2 North America Software Codecs Market by Country
- 14.2.9 North America Audio Codec Market by Application
- 14.2.9.1 North America Smartphones & Tablets Market by Country
- 14.2.9.2 North America Headphone, Head Sets & Wearable devices Market by Country
- 14.2.9.3 North America Automobile Market by Country
- 14.2.9.4 North America Television Sets Market by Country
- 14.2.9.5 North America Desktop & Laptops Market by Country
- 14.2.9.6 North America Music & Media Devices & Home Theatres Market by Country
- 14.2.9.7 North America Gaming Consoles Market by Country
- 14.2.9.8 North America Other Application Market by Country
- 14.2.10 North America Audio Codec Market by Country
- 14.2.10.1 US Audio Codec Market
- 14.2.10.1.1 US Audio Codec Market by Function
- 14.2.10.1.2 US Audio Codec Market by Component Type
- 14.2.10.1.3 US Audio Codec Market by Application
- 14.2.10.2 Canada Audio Codec Market
- 14.2.10.2.1 Canada Audio Codec Market by Function
- 14.2.10.2.2 Canada Audio Codec Market by Component Type
- 14.2.10.2.3 Canada Audio Codec Market by Application
- 14.2.10.3 Mexico Audio Codec Market
- 14.2.10.3.1 Mexico Audio Codec Market by Function
- 14.2.10.3.2 Mexico Audio Codec Market by Component Type
- 14.2.10.3.3 Mexico Audio Codec Market by Application
- 14.2.10.4 Rest of North America Audio Codec Market
- 14.2.10.4.1 Rest of North America Audio Codec Market by Function
- 14.2.10.4.2 Rest of North America Audio Codec Market by Component Type
- 14.2.10.4.3 Rest of North America Audio Codec Market by Application
- 14.3 Europe Audio Codec Market
- 14.4 Key Impacting Factors
- 14.4.1 Market Drivers
- 14.4.2 Market Restraints
- 14.4.3 Market Opportunities
- 14.4.4 Market Challenges
- 14.4.5 Market Trends Europe Audio Codec Market
- 14.4.6 State of Competition Europe Audio Codec Market
- 14.4.7 Europe Audio Codec Market by Function
- 14.4.7.1 Europe Without DSP Market by Country
- 14.4.7.2 Europe With DSP Market by Country
- 14.4.8 Europe Audio Codec Market by Component Type
- 14.4.8.1 Europe Hardware Codecs Market by Country
- 14.4.8.2 Europe Software Codecs Market by Country
- 14.4.9 Europe Audio Codec Market by Application
- 14.4.9.1 Europe Smartphones & Tablets Market by Country
- 14.4.9.2 Europe Headphone, Head Sets & Wearable devices Market by Country
- 14.4.9.3 Europe Automobile Market by Country
- 14.4.9.4 Europe Television Sets Market by Country
- 14.4.9.5 Europe Desktop & Laptops Market by Country
- 14.4.9.6 Europe Music & Media Devices & Home Theatres Market by Country
- 14.4.9.7 Europe Gaming Consoles Market by Country
- 14.4.9.8 Europe Other Application Market by Country
- 14.4.10 Europe Audio Codec Market by Country
- 14.4.10.1 Germany Audio Codec Market
- 14.4.10.1.1 Germany Audio Codec Market by Function
- 14.4.10.1.2 Germany Audio Codec Market by Component Type
- 14.4.10.1.3 Germany Audio Codec Market by Application
- 14.4.10.2 UK Audio Codec Market
- 14.4.10.2.1 UK Audio Codec Market by Function
- 14.4.10.2.2 UK Audio Codec Market by Component Type
- 14.4.10.2.3 UK Audio Codec Market by Application
- 14.4.10.3 France Audio Codec Market
- 14.4.10.3.1 France Audio Codec Market by Function
- 14.4.10.3.2 France Audio Codec Market by Component Type
- 14.4.10.3.3 France Audio Codec Market by Application
- 14.4.10.4 Russia Audio Codec Market
- 14.4.10.4.1 Russia Audio Codec Market by Function
- 14.4.10.4.2 Russia Audio Codec Market by Component Type
- 14.4.10.4.3 Russia Audio Codec Market by Application
- 14.4.10.5 Spain Audio Codec Market
- 14.4.10.5.1 Spain Audio Codec Market by Function
- 14.4.10.5.2 Spain Audio Codec Market by Component Type
- 14.4.10.5.3 Spain Audio Codec Market by Application
- 14.4.10.6 Italy Audio Codec Market
- 14.4.10.6.1 Italy Audio Codec Market by Function
- 14.4.10.6.2 Italy Audio Codec Market by Component Type
- 14.4.10.6.3 Italy Audio Codec Market by Application
- 14.4.10.7 Rest of Europe Audio Codec Market
- 14.4.10.7.1 Rest of Europe Audio Codec Market by Function
- 14.4.10.7.2 Rest of Europe Audio Codec Market by Component Type
- 14.4.10.7.3 Rest of Europe Audio Codec Market by Application
- 14.5 Asia Pacific Audio Codec Market
- 14.6 Key impacting Factors
- 14.6.1 Market Drivers
- 14.6.2 Market Restraints
- 14.6.3 Market Opportunities
- 14.6.4 Market Challenges
- 14.6.5 Market Trends - Asia Pacific Audio Codec Market
- 14.6.6 State of Competition in the Asia Pacific Audio Codec Market
- 14.6.7 Asia Pacific Audio Codec Market by Function
- 14.6.7.1 Asia Pacific Without DSP Market by Country
- 14.6.7.2 Asia Pacific With DSP Market by Country
- 14.6.8 Asia Pacific Audio Codec Market by Component Type
- 14.6.8.1 Asia Pacific Hardware Codecs Market by Country
- 14.6.8.2 Asia Pacific Software Codecs Market by Country
- 14.6.9 Asia Pacific Audio Codec Market by Application
- 14.6.9.1 Asia Pacific Smartphones & Tablets Market by Country
- 14.6.9.2 Asia Pacific Headphone, Head Sets & Wearable devices Market by Country
- 14.6.9.3 Asia Pacific Automobile Market by Country
- 14.6.9.4 Asia Pacific Television Sets Market by Country
- 14.6.9.5 Asia Pacific Desktop & Laptops Market by Country
- 14.6.9.6 Asia Pacific Music & Media Devices & Home Theatres Market by Country
- 14.6.9.7 Asia Pacific Gaming Consoles Market by Country
- 14.6.9.8 Asia Pacific Other Application Market by Country
- 14.6.10 Asia Pacific Audio Codec Market by Country
- 14.6.10.1 China Audio Codec Market
- 14.6.10.1.1 China Audio Codec Market by Function
- 14.6.10.1.2 China Audio Codec Market by Component Type
- 14.6.10.1.3 China Audio Codec Market by Application
- 14.6.10.2 Japan Audio Codec Market
- 14.6.10.2.1 Japan Audio Codec Market by Function
- 14.6.10.2.2 Japan Audio Codec Market by Component Type
- 14.6.10.2.3 Japan Audio Codec Market by Application
- 14.6.10.3 India Audio Codec Market
- 14.6.10.3.1 India Audio Codec Market by Function
- 14.6.10.3.2 India Audio Codec Market by Component Type
- 14.6.10.3.3 India Audio Codec Market by Application
- 14.6.10.4 South Korea Audio Codec Market
- 14.6.10.4.1 South Korea Audio Codec Market by Function
- 14.6.10.4.2 South Korea Audio Codec Market by Component Type
- 14.6.10.4.3 South Korea Audio Codec Market by Application
- 14.6.10.5 Singapore Audio Codec Market
- 14.6.10.5.1 Singapore Audio Codec Market by Function
- 14.6.10.5.2 Singapore Audio Codec Market by Component Type
- 14.6.10.5.3 Singapore Audio Codec Market by Application
- 14.6.10.6 Malaysia Audio Codec Market
- 14.6.10.6.1 Malaysia Audio Codec Market by Function
- 14.6.10.6.2 Malaysia Audio Codec Market by Component Type
- 14.6.10.6.3 Malaysia Audio Codec Market by Application
- 14.6.10.7 Rest of Asia Pacific Audio Codec Market
- 14.6.10.7.1 Rest of Asia Pacific Audio Codec Market by Function
- 14.6.10.7.2 Rest of Asia Pacific Audio Codec Market by Component Type
- 14.6.10.7.3 Rest of Asia Pacific Audio Codec Market by Application
- 14.7 LAMEA Audio Codec Market
- 14.8 Key Impacting Factors
- 14.8.1 Market Drivers
- 14.8.2 Market Restraints
- 14.8.3 Market Opportunities
- 14.8.4 Market Challenges
- 14.8.5 Market Trends LAMEA Audio Codec Market
- 14.8.6 State of Competition - LAMEA Audio Codec Market
- 14.8.7 LAMEA Audio Codec Market by Function
- 14.8.7.1 LAMEA Without DSP Market by Country
- 14.8.7.2 LAMEA With DSP Market by Country
- 14.8.8 LAMEA Audio Codec Market by Component Type
- 14.8.8.1 LAMEA Hardware Codecs Market by Country
- 14.8.8.2 LAMEA Software Codecs Market by Country
- 14.8.9 LAMEA Audio Codec Market by Application
- 14.8.9.1 LAMEA Smartphones & Tablets Market by Country
- 14.8.9.2 LAMEA Headphone, Head Sets & Wearable devices Market by Country
- 14.8.9.3 LAMEA Automobile Market by Country
- 14.8.9.4 LAMEA Television Sets Market by Country
- 14.8.9.5 LAMEA Desktop & Laptops Market by Country
- 14.8.9.6 LAMEA Music & Media Devices & Home Theatres Market by Country
- 14.8.9.7 LAMEA Gaming Consoles Market by Country
- 14.8.9.8 LAMEA Other Application Market by Country
- 14.8.10 LAMEA Audio Codec Market by Country
- 14.8.10.1 Brazil Audio Codec Market
- 14.8.10.1.1 Brazil Audio Codec Market by Function
- 14.8.10.1.2 Brazil Audio Codec Market by Component Type
- 14.8.10.1.3 Brazil Audio Codec Market by Application
- 14.8.10.2 Argentina Audio Codec Market
- 14.8.10.2.1 Argentina Audio Codec Market by Function
- 14.8.10.2.2 Argentina Audio Codec Market by Component Type
- 14.8.10.2.3 Argentina Audio Codec Market by Application
- 14.8.10.3 UAE Audio Codec Market
- 14.8.10.3.1 UAE Audio Codec Market by Function
- 14.8.10.3.2 UAE Audio Codec Market by Component Type
- 14.8.10.3.3 UAE Audio Codec Market by Application
- 14.8.10.4 Saudi Arabia Audio Codec Market
- 14.8.10.4.1 Saudi Arabia Audio Codec Market by Function
- 14.8.10.4.2 Saudi Arabia Audio Codec Market by Component Type
- 14.8.10.4.3 Saudi Arabia Audio Codec Market by Application
- 14.8.10.5 South Africa Audio Codec Market
- 14.8.10.5.1 South Africa Audio Codec Market by Function
- 14.8.10.5.2 South Africa Audio Codec Market by Component Type
- 14.8.10.5.3 South Africa Audio Codec Market by Application
- 14.8.10.6 Nigeria Audio Codec Market
- 14.8.10.6.1 Nigeria Audio Codec Market by Function
- 14.8.10.6.2 Nigeria Audio Codec Market by Component Type
- 14.8.10.6.3 Nigeria Audio Codec Market by Application
- 14.8.10.7 Rest of LAMEA Audio Codec Market
- 14.8.10.7.1 Rest of LAMEA Audio Codec Market by Function
- 14.8.10.7.2 Rest of LAMEA Audio Codec Market by Component Type
- 14.8.10.7.3 Rest of LAMEA Audio Codec Market by Application
Chapter 15. Company Profiles
- 15.1 Analog Devices, Inc.
- 15.1.1 Company Overview
- 15.1.2 Financial Analysis
- 15.1.3 Regional Analysis
- 15.1.4 Research & Development Expenses
- 15.1.5 Recent strategies and developments:
- 15.1.5.1 Partnerships, Collaborations, and Agreements:
- 15.1.6 SWOT Analysis
- 15.2 Barix AG
- 15.3 Cirrus Logic, Inc.
- 15.3.1 Company Overview
- 15.3.2 Financial Analysis
- 15.3.3 Segmental and Regional Analysis
- 15.3.4 Research & Development Expenses
- 15.3.5 Recent strategies and developments:
- 15.3.5.1 Partnerships, Collaborations, and Agreements:
- 15.3.6 SWOT Analysis
- 15.4 Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- 15.4.1 Company Overview
- 15.4.2 Financial Analysis
- 15.4.3 Segmental and Regional Analysis
- 15.4.4 Research & Development Expense
- 15.4.5 Recent strategies and developments:
- 15.4.5.1 Product Launches and Product Expansions:
- 15.4.6 SWOT Analysis
- 15.5 ROHM Co., Ltd.
- 15.5.1 Company Overview
- 15.5.2 Financial Analysis
- 15.5.3 Segmental and Regional Analysis
- 15.5.4 Research & Development Expense
- 15.5.5 SWOT Analysis
- 15.6 Sony Corporation
- 15.6.1 Company Overview
- 15.6.2 Financial Analysis
- 15.6.3 Segmental and Regional Analysis
- 15.6.4 Research & Development Expenses
- 15.6.5 SWOT Analysis
- 15.7 STMicroelectronics N.V.
- 15.7.1 Company Overview
- 15.7.2 Financial Analysis
- 15.7.3 Segmental and Regional Analysis
- 15.7.4 Research & Development Expense
- 15.7.5 SWOT Analysis
- 15.8 Synopsys, Inc.
- 15.8.1 Company Overview
- 15.8.2 Financial Analysis
- 15.8.3 Segmental and Regional Analysis
- 15.8.4 Research & Development Expenses
- 15.9 Texas Instruments, Inc.
- 15.9.1 Company Overview
- 15.9.2 Financial Analysis
- 15.9.3 Segmental and Regional Analysis
- 15.9.4 Research & Development Expense
- 15.9.5 SWOT Analysis
- 15.10. Dolby Laboratories, Inc.
- 15.10.1 Company Overview
- 15.10.2 Financial Analysis
- 15.10.3 Regional Analysis
- 15.10.4 Research & Development Expenses
- 15.10.5 SWOT Analysis
Chapter 16. Winning Imperatives of Audio Codec Market