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.
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.
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.
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.Driving and Restraining Factors
Drivers- Growth in Demand for High-Quality Audio in Communication and Media Devices
- Expansion of 4G and 5G Telecommunications Networks
- Rising Adoption of Streaming Services and On-Demand Media Consumption
- Technological Advancements in AI-Driven and Neural Network-Based Codecs
- High Complexity in Licensing and Intellectual Property (IP) Management
- Dependency on Semiconductor Supply Chains
- Limited Consumer Awareness and Perceived Value of Audio Codecs
- Integration of Audio Codecs in Emerging IoT and Smart Device Ecosystems
- Growing Demand for Spatial Audio and Immersive Sound Experiences
- Expansion of Cloud-Based Audio Processing and Edge Computing
- Balancing Compression Efficiency with Audio Quality Across Diverse Applications
- Achieving Cross-Platform and Cross-Device Compatibility
- Managing Power Consumption and Processing Overhead in Mobile and Embedded Devices
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® 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.
Market Report Segmentation
By Function- Without DSP
- With DSP
- Hardware Codecs
- Software Codecs
- Smartphones & Tablets
- Headphone, Head Sets & Wearable devices
- Automobile
- Television Sets
- Desktop & Laptops
- Music & Media Devices & Home Theatres
- Gaming Consoles
- Other Application
- 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
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 8. Value Chain Analysis of Audio Codec Market
Chapter 11. Global Audio Codec Market by Function
Chapter 12. Global Audio Codec Market by Component Type
Chapter 13. Global Audio Codec Market by Application
Chapter 14. Global Audio Codec Market by Region
Chapter 15. Company Profiles
Companies Mentioned
- 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.
