Enjoy complimentary customisation on priority with our Enterprise License!
The global audio driver IC (integrated circuit) market size is forecast to increase by USD 4.89 billion at a CAGR of 19.94% between 2024 and 2028. Market growth hinges on several factors, notably the rising penetration of smart devices, which are increasingly integrated into vehicles for enhanced connectivity and functionality. Additionally, the demand for audio amplifiers offering superior sound quality drives market expansion, as consumers seek immersive in-car entertainment experiences. The high popularity of luxury vehicles also plays a significant role, as these vehicles often come equipped with advanced audio systems and features. The convergence of these trends underscores the importance of innovation and quality in the automotive audio amplifier market, as manufacturers strive to meet the evolving demands of tech-savvy consumers and the luxury vehicle segment.
Get Exclusive Sample Copy of this Report
The relays market is witnessing significant growth due to the increasing demand for smart home gadgets, entertainment setups, and help tools for drivers that require reliable sound processing abilities. This demand is driving the growth of the audio IC market and benefiting the professional audio industry. To meet consumer expectations, there is a focus on device miniaturization and energy-efficient audio devices. The development of audio integrated circuits is crucial for achieving high-quality sound and efficient amplification in various applications. These circuits also include advanced input/output circuitry for seamless integration with portable multimedia devices, high-definition audio systems, and smart speakers. The market is also influenced by the increasing demand for Bluetooth and wireless connectivity in automotive applications, virtual reality, and augmented reality, driving the need for reliable and efficient relay solutions.
The increasing penetration of smart devices is notably driving the market growth.
The growing penetration of smart devices such as smartphones, tablets, laptops, smart TVs, streaming media players, and other multimedia devices is expected to drive the demand for supporting accessories such as the ICs. Bluetooth headphones are widely preferred wearable connected devices that work in sync with smartphones.
Moreover, the developing regions such as APAC, MEA, and South America are observing significant growth in the penetration of smart devices. Economic growth, increasing literacy rate, and rising purchasing power are boosting the demand for smartphones and other devices. China and India are the largest markets for smartphones in APAC and are experiencing rapid growth. Africa has shown a noteworthy increase in the demand for smartphones. The advances in cellular technology, such as 3G and 4G, have also fueled the adoption of smart devices. The augmented sales of smart devices are expected to drive the growth of the market during the forecast period.
Significant Market Trends
The popularity of wireless streaming of audio content is the key trend in the market.
The emergence of wireless technology was one of the technological advances in the 21st century. These short-range radio waves help in sharing data such as pictures, music, documents, and videos. It is also used in various ICs to transfer signals, which help in sharing sound from a smart device to a wireless headphone. In addition, the abandonment of the headphone jack by smartphone manufacturers such as Apple Inc. is expected to drive the market during the forecast period. This is likely to increase the requirement for the ICs rather than conventional wired headphones.
Moreover, the cord-free feature of these ICs is convenient for users. It offers mobility and a hands-free experience to continue doing any other task without hassles. Noise filtering, long-distance operations, multitasking, high-quality audio, and reliability are some of the key features of the ICs that will drive the growth of the market during the forecast period.
Major Market Challenge
Increasing competition among vendors is the major challenge impeding marketing growth.
The market has the presence of several global and regional vendors. Previously, the market was dominated by North American companies such as Microchip Technology, Synaptic, and Cypress Semiconductor, but the increasing number of entrants, especially from APAC, has intensified the competition further. Companies such as Analog Devices, and Infineon Technologies are competing with the already established vendors. As the need for strong technological know-how does not hold high significance as a criterion to enter the market, the number of vendors entering the market is expected to increase during the forecast period.
However, this will intensify the competition among the vendors, resulting in price wars. The vendors in the market will try to provide audio driver ICs at competitive prices, leading to the declining ASP of the market. This will adversely affect the revenue generation for the vendors, which, in turn, will result in a declining market growth rate during the forecast period.
The market share growth of the consumer electronics segment will be significant during the forecast period. The huge rise in consumer electronics is due to the high demand for smart appliances that provide voice assistance, Wi-Fi and Bluetooth connectivity, and faster networks. As a result, technical improvements and a growing interest in smart appliances are expected to boost the demand for audio amplifiers, which, in turn, will fuel the consumer electronics segment in the market during the forecast period.
Get a glance at the market contribution of various segments View PDF Sample
The consumer electronics segment was valued at USD 1.07 billion in 2018. Audio amplifiers are used in consumer electronic devices such as headphone drivers, televisions, mobile phones, and home theater systems to theatrical and concert reinforcement systems. As a result of technological advancements and the increasing discretionary spending capacity of the working population, smart appliances are becoming increasingly popular.
A 2-channel audio IC is majorly designed for high-performance home theater systems and car audio amplifiers, which require a compact solution. This device consolidates two channels into a single IC. A 2-channel audio IC device provides the flexibility and convenience of building popular stereo amplifiers and multi-channel designs in a 2.1, 5.1, or 6-channel configuration. The 2-channel audio IC comes in various classes, such as Class D and Class AB, and the advantage of Class D over Class AB is that the performance improvement comes directly from silicon improvement. These factors will positively impact the growth of the 2-channel audio IC segment of the market during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Significant investments in infrastructure and industrialization have created a high demand for passenger cars and commercial vehicles (CVs) in APAC. It is expected that India, China, Japan, and Indonesia will account for most of the share in new vehicle purchases worldwide during the forecast period. Improvements in the economic condition of countries such as China and India have resulted in increased disposable income of people.
Consequently, the sales of cars have increased in these countries. China is a prominent automobile market and accounts for high-volume sales of passenger cars and CVs. The high demand for automobiles in China can be attributed to factors such as the rising disposable income of people and the increasing number of affluent younger millennials. These factors are also contributing to the significant adoption of luxury cars. This creates significant demand for premium audio systems with multichannel amplifiers. The shift in consumer preference from mileage to aesthetics and advanced features is also expected to drive the adoption of premium audio systems with amplifiers in the region during the forecast period.
Players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Synaptics Inc. - The company focuses on the development, marketing, and sale of human-experience semiconductor solutions for electronic devices and products. The company offers audio driver ICs such as STA311B, STA321MP.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
Analog Integrated Circuit (IC) Market: Analog Integrated Circuit (IC) Market Analysis APAC,North America,Europe,South America,Middle East and Africa - US,China,Japan,India,Germany - Size and Forecast
Embedded Systems Power Amplifier Market: Embedded Systems Power Amplifier Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, South Korea, Germany - Size and Forecast
Mixed-signal Integrated Circuits (IC) Market: Mixed-signal Integrated Circuits (IC) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, South Korea, India, Germany - Size and Forecast
The market is closely tied to the advancement of audio features and digital signal processors (DSPs) in complex sound systems. Design considerations include managing power consumption and manufacturing costs for audio integrated circuits (ICs) and amplifiers. Maxim Integrated and other firms are driving innovation in the audio IC market, shaping the future of audio tech. These developments benefit various sectors, including the media and communications sector and smart homes, where audio plays a crucial role in user experience. Wireless and smart infrastructure rely on efficient audio processors and DSPs for seamless operation. Additionally, advancements in VR technology, computers, tablets, home entertainment systems, and IoT devices drive the demand for high-quality audio solutions. Companies like ROHM Semiconductor, ICEpower, and Intersil are pivotal in meeting these channel requirements, whether for stereo systems, surround sound setups, or mono channel ICs, particularly in automotive industries.
Industry Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.94% |
Market growth 2024-2028 |
USD 4.89 billion |
Market structure |
USD Fragmented |
YoY growth 2023-2024(%) |
16.12 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, Germany, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ams OSRAM AG, Analog Devices Inc., Asahi Kasei Microdevices Corp., Bang and Olufsen Group, Cirrus Logic Inc., ESS Technology Inc., Infineon Technologies AG, Monolithic Power Systems Inc., NXP Semiconductors NV, ON Semiconductor Corp., Princeton Technology Corp., Qualcomm Inc., Realtek Semiconductor Corp., Renesas Electronics Corp., ROHM Co. Ltd., Silicon Laboratories Inc., STMicroelectronics International N.V., Synaptics Inc., Texas Instruments Inc., and Toshiba Corp. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
To get detailed analysis Buy Now Full Report PDF
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.