Europe Audio Codec Market Size, Share & Industry Analysis Report By Function, By Component Type, By Application, By Country and Growth Forecast, 2025 - 2032

The Europe Audio Codec Market is expected to witness market growth of 5.5% CAGR during the forecast period (2025-2032).

The Germany market dominated the Europe Audio Codec Market by country in 2024, and is expected to continue to be a dominant market till 2032; thereby, achieving a market value of USD 443.4 million by 2032. The UK market is exhibiting a CAGR of 4.3% during 2025-2032. Additionally, the France market is expected to experience a CAGR of 6.4% during 2025-2032. The Germany and UK led the Europe Audio Codec Market by Country with a market share of 19.8% and 15.9% in 2024.



The market for European audio codecs is steadily growing in Germany, France, the UK, Italy, Spain, and the Nordics. The switch from SBC to Bluetooth LE Audio and the LC3 codec, which came out in 2020, has made earbuds, hearing aids, and IoT devices sound better and use less power. ETSI support and EHIMA advocacy have led to inclusive design, while governments want DAB+ radio to use HE-AAC v2 to modernize broadcasting. Chipmakers like Infineon and Nordic Semiconductor are making it easy for people to use LE Audio by putting it into their chipsets. Furthermore, information and communication sector is one of the major users of audio codec and the growth of this sector is increasing in Europe, Fo example, as per the Eurostat, the European information and communication services sector accounted for 6.7% of the business economy's value added in the EU in 2021. This growth of information and communication services sector is increasing the demand for the audio codec within the region.

One of the most important trends is the rise in the use of LE Audio with hearing aids, which makes it available on a wide range of devices. Auracast™ is being used in public places like German cinemas, French museums, and UK airports. This lets people share audio streams. There is also a lot of emphasis on saving energy, especially in green markets like Sweden and the Netherlands. OEMs don't compete on proprietary codecs anymore. Instead, they focus on open standards, OTA updates, and making sure everything works together. This puts Europe at the top of the list when it comes to audio technology that is easy to use and good for the environment.

Function Outlook

Based on Function, the market is segmented into Without DSP and With DSP. With a compound annual growth rate (CAGR) of 4.5% over the projection period, the Without DSP Market, dominate the UK Audio Codec Market by Function in 2024 and would be a prominent market until 2032. From 2025 to 2032 The With DSP market is expected to witness a CAGR of 3.8% during 2025-2032.

Component Type Outlook

Based on Component Type, the market is segmented into Hardware Codecs and Software Codecs. The Hardware Codecs market segment dominated the Germany Audio Codec Market by Component Type is expected to grow at a CAGR of 3.6 % during the forecast period thereby continuing its dominance until 2032.

Country Outlook

Germany has one of the biggest audio codec markets in Europe, thanks to its strong consumer electronics and automotive industries. The need for efficient audio processing is growing because more people are using smartphones and smart home and wearable devices. Some important trends are the growing use of software codecs in streaming and hardware codecs in car entertainment systems. The use of Bluetooth LE Audio's LC3 codec is also growing. There are both global leaders in the market, like Analog Devices, Qualcomm, and Fraunhofer, and domestic semiconductor companies, like Rohm and STMicroelectronics. OEMs and chipmakers need to work closely together, especially in the automotive industry, to help the market grow in the future.

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.

Market Report Segmentation

By Function

• Without DSP
• With DSP

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 Country

• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe