According to a new report published by Allied Market Research, titled, Audio IC Market By IC Type and Application: Global Opportunity Analysis and Industry Forecast, 2020-2027”, the global Audio IC market size was valued at $27.72 billion in 2019, and is projected to reach $45.57 billion by 2027, registering a CAGR of 7.09%. Asia-Pacific region is expected to be the leading contributor to the global audio IC market during the forecast period, followed by North America and Europe.
Audio IC is an electronic device, which is used in audio processors, MEMS microphones, audio amplifiers, and subsystems. Various types of audio ICs include audio amplifiers, audio converters, audio DSPs, and audio processors. Audio amplifiers are used in sound systems such as home audio systems, musical instruments systems, loudspeakers, and sound reinforcement.
The purpose of an amplifier is to increase vibrations to the maximum extent of signals without affecting frequency or any wavelength, and help improve efficiency of a system. In addition, a digital sound processor (DSP) is a specialized microprocessor chip widely used in audio signal processing, telecommunications, digital image processing, radar, sonar and speech recognition systems, and consumer electronic devices such as mobile phones, disk drives, and high-definition television (HDTV) products.
The global audio IC market is anticipated to witness significant growth during period forecast period. Increase in adoption of consumer electronics devices and development of new energy efficient audio devices with enhanced user experience drives the Audio IC market growth. In addition, rise in penetration of wireless and smart infrastructure and surge in demand for Hi-Fi audio in commercial events fuel growth of the market. However, increase in demand for audio SoCs and technical faults and issues associated with integration of audio devices is a major restraint for the global audio IC industry. Furthermore, rise in demand for on-board media entertainment systems and development of VR technology is expected to create opportunities for the global market.
The global audio IC market is segmented on the basis of IC type, application, and region. By IC type, the market is segmented into audio amplifier, audio DSP, audio codecs, and microphone IC. The application segment is divided into computer & tablets, phones, headphones, home entertainment systems, automotive, smart home & IoT devices, and wearables. Region wise, the audio IC market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is expected to develop at the highest growth rate during the forecast period. This is attributed to rise in adoption of consumer electronics, rise in disposable income of consumers across developing countries in the region, and extensive technological advancements. In Asia-Pacific, China and India remain significant participants in the global audio IC market analysis, owing to surge in manufacturing capacity of consumer electronics in these countries. In addition, North America holds the second largest share in the global market, and is expected to witness significant growth during the forecast period, owing to presence of significant number of market players in the region.
COVID-19 Impact Analysis
The COVID-19 has severely impacted the global electronics and semiconductor sector, owing to which production facilities as well as new projects have stalled, which have significant demand in various industries. Operations of production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease; thereby, leading to slowdown in growth of the market in 2020.
Key Findings of the Study
- The audio amplifier segment is projected to be the major IC type over the forecast period followed by audio DSP.
- Asia-Pacific and North America collectively accounted for more than 68.60% of the audio IC market share in 2019.
- Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
- China was the major shareholder in the Asia-Pacific audio IC market, accounting for approximately 41.80% share in 2019.
The key players profiled in the report include Analog Devices, Inc., Cirrus Logic, NXP Semiconductors, STMicroelectronics, Maxim Integrated, ROHM CO., LTD., Texas Instruments, ON Semiconductors, Toshiba Corporation, and Infineon. These players have adopted various strategies such as product launch, acquisition, collaboration, and partnership to expand their foothold in the industry.