Audio Codec is a device or a computer program that encodes or decodes an audio signal. A software-based Audio Codec implements an algorithm, which is designed to compress and decompress digital data streams. The purpose of this operation is minimizing the number of bits, of the given audio file, while retaining its accuracy and quality and helps in reducing the demand for storage space and bandwidth for transmission. Audio Codec ICs are used in portable media devices or consumer applications such as mobile phones, tablets, automotive, home theatre, PCs, and gaming systems.
Increasing number of smartphones is one of the major driving factors for growth of global audio codec market
Recent past has witnessed a substantial growth in the smartphone market and is expected to exhibit this high growth in the near future as well. According Consumers International Organization, the number of smartphone users in the world reached to 2.1 Billion in 2016 and is expected to be pegged at 2.9 Billion by 2019 end. Audio Codecs are one of the primary elements used in the manufacturing of mobiles. Audio Codecs affects listening experience of the consumers whether using headphones, earbuds or Bluetooth speakers. Thus, growth of smartphone market will also lead to increasing demand for Audio Codecs.
In addition to this, Audio Codecs is extensively used in various applications such as television systems for enhanced audio experience. Demand for televisions is increasing significantly and at a faster pace. Manufacturers are focusing on offering advanced televisions with functionality such as Wi-Fi enabled, internet connectivity, and also have cameras, which enables facial recognition technology and recording options. This is expected to aid in demand for such advanced products. Audio is one of the major components of television systems. Hence, as the demand and supply for television system changes, it will also affect the Audio Codec market. For instance, according to India Brand Equity Foundation, the television market in India is expected to grow to US$ 11.78 Billion in 2018, from US$ 9.23 Billion in 2016, which accounts for an increase of 12.97% in 2016–2018.
Global Audio Codec Market: Taxonomy
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Global Audio Codec Market: Regional Insight
The global audio codec market can be segmented into six regions namely North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa.
Asia Pacific held the dominant position in the market in 2017 and is expected to retain its dominance throughout the forecast period. Asia Pacific has emerged as a major manufacturing hub for the consumer electronics, which use audio codec. Some emerging economies such as China, India, and Japan are few of the major mobile phone manufacturing countries in the region. For instance, according to the India Brand Equity Foundation, India was world’s third-largest market for smartphones in 2017. This is expected to aid in growth of the market in the region.
Furthermore, North America held the second-largest position in the market, in terms of revenue share. The U.S. and Canada are major growth engines in the market in this region. High presence of mobile companies and in the U.S. such as Apple, Google, and Microsoft is a major factor aiding in growth of the market in this region. In addition to this, the increasing smart phone users in the United States have also accelerated the market in this region. According to Coherent Market Insights, in 2016, the smart phone users in the United States were 241.0 million and is projected to reach 343.9 million by 2021. Audio Codecs being an integral part of a smart phone device, the increase in demand for smart phones has led to rise in demand for Audio Codec.
Global Audio Codec Market: Key Players
Key players operating in the global audio codec market include Cirrus Logic, Inc., Qualcomm Inc., Realtek Semiconductor Corp., Analog Devices, Inc., Maxim Integrated Products, Inc., Stmicroelectronics N.V., Texas Instruments Inc., DSP Group, Inc., Dolby Laboratories, Inc., Technicolor SA
Global Audio Codec Market: Key Developments