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The global audio driver IC (integrated circuit) market size is estimated to grow by USD 3,128.31 million between 2022 and 2027 at a CAGR of 15.86%. The growth of the market depends on several factors, including increasing penetration of smart devices, audio amplifiers providing superior sound quality, and the high popularity of luxury vehicles.
This report extensively covers market segmentation by application (consumer electronics, telecommunication, and automotive), type (mono channel, 2-channel, 4-channel, and 6-channel), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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 audio driver ICs. Bluetooth headphones are widely preferred wearable connected devices that work in sync with smartphones.
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 Audio Driver IC 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 audio driver 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 audio driver ICs rather than conventional wired headphones.
The cord-free feature of audio driver 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 audio driver ICs that will drive the growth of the market during the forecast period.
Major Audio Driver IC 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.
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 audio driver ICs. 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 global audio driver IC market during the forecast period.
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The consumer electronics segment was valued at USD 952.45 million in 2017 and continued to grow until 2021. 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 global audio driver IC market during the forecast period.
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APAC is estimated to contribute 40% 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.
In 2020, the outbreak of COVID-19 severely impacted the growth of the audio driver integrated circuit market in APAC. However, the audio driver Integrated circuit (IC) market in APAC started to recover in 2021 due to the lifting of lockdowns and the initiation of large-scale vaccination drives. Moreover, new product launches and expansion strategies by major power IC manufacturing companies in the region are anticipated to boost the growth of the audio driver Integrated circuit (IC) market in APAC during the forecast period.
Vendors 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 operates under one segment. This segment focus 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 vendors, 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.
Global Audio Driver IC Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Audio Driver IC Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.86% |
Market growth 2023-2027 |
USD 3,128.31 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.8 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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., 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 NV, Synaptics Inc., Toshiba Corp., Infineon Technologies AG, and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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