Audio IC (integrated circuit) is an electrical component that serves as an audio processor, MEMS microphone, audio amplifier, and subsystems. Audio amplifiers, audio converters, audio digital signal processors, and audio processors are some of the various types of audio ICs. Audio amplifiers are utilized in various sound systems, including home audio systems, musical instrument systems, loudspeakers, and sound reinforcement. An amplifier's purpose is to improve a system's performance by amplifying signal vibrations to their maximum extent without altering their frequency or wavelength. A digital sound processor (DSP) is a specialized microprocessor chip used extensively in audio signal processing, telecommunications, digital image processing, radar, sonar, and speech recognition systems, as well as in consumer electronic devices such as mobile phones, disc drives, and high-definition television (HDTV) products.
The global audio IC market will increase quickly during the forecast period. The growth of the audio IC market is propelled by factors such as the increasing use of consumer electronics devices and the development of new energy-efficient audio devices with enhanced user experience. In addition, the increasing penetration of wireless and intelligent infrastructure and the spike in demand for HiFi audio at commercial events will fuel market expansion throughout the projection period. Nonetheless, the rising demand for Audio SoC and the technological defects and difficulties associated with integrating audio devices are significant restraints for the global audio IC market.
There is a growth in demand for innovative and energy-efficient electronic products, such as high-quality speakers with audio ICs that improve sound quality. According to the American trade journal Music Trades, the sales volume of instrument amplifiers in 2019 was USD 153.93 million. In addition, as disposable incomes rise in developing nations, the market for consumer electronics is expanding rapidly. This has resulted in the expansion of global audio IC manufacturers offering unique products in various countries. In August of 2019, HARMAN, a division of Samsung Electronics, introduced Infinity by HARMAN, a new lifestyle audio brand, in India. Consequently, these increased expenditures are projected to support the market during the forecast period.
Moreover, the global demand for electronic components in Internet of Things (IoT) devices is growing. According to studies conducted by the United Nations Conference on Trade and Development (UNCTAD), the value of international trade in information and communications technology (ICT) goods increased to USD 2.1 trillion in 2017 due to the demand for electronic components used in the Internet of Things devices. As a result, the increasing demand for consumer electronics is one of the primary factors propelling the global audio IC market.
A technologically advanced audio system has been developed due to the explosive growth of the music and film industries. This business observes wireless technology dependability and connection and cabling savings. To reduce the shipping, storage, and installation costs associated with extensive audio systems, there is also an increase in demand for smaller, lighter, and more powerful components. In November 2020, for example, Noveto Systems, an Israeli technology company, devised a futuristic audio technology that permits wireless music listening without headphones. The method utilized the 3D sensor module of a speaker to monitor and pinpoint the position of the ear to transfer sound via ultrasonic waves. It is projected that these improvements will considerably contribute to the rise of the global audio IC market.
Augmented reality (AR) is a technology that enables real-time interaction, the merging of the real and virtual worlds, and accurate 3D registration of virtual and natural objects. Virtual reality (VR) simulates an environment using computer technology. The audio IC market is driven by the development and spread of AR/VR devices and the requirement for audio ICs to provide optimal sound quality for an immersive AR/VR headset experience. For example, Class-D amplifiers are increasingly used to create surround sound in AR/VR headsets. Moreover, there is a growth in expenditures on AR/VR technology, presenting an exciting opportunity for the use of audio ICs. According to Digi-AR/VR Capital's Analytics Platform, global AR/VR technology spending was approximately USD 4.1 billion in 2019.
Asia-Pacific will command the regional market with the highest revenue share growing with a CAGR of 8.3% during the forecast period. Countries such as China, Japan, India, and South Korea are experiencing substantial growth in the speaker amplifier market. This is the result of a growth in the adoption of consumer electronics devices, a rise in the disposable income of consumers in these nations, and significant technological innovation.
The audio IC market in Asia-Pacific is expanding due to rising investments in automotive and consumer electronics. Moreover, providers of vehicle audio speakers and automobile amplifiers in Asia-Pacific are regularly expanding their production facilities, contributing to the market's expansion. Harman Kardon, for example, completed the Suzhou facility II in 2018. It is a 14,000-square-meter structure that will allow Harman to double its present production capacity. Additionally, Samsung, Toshiba, Panasonic, and LG Electronics have regional headquarters. This component considerably boosts the need for audio ICs.
North America will have the second-largest market share of USD 16,736 million with a CAGR of 6.5% during the forecast period. In the United States and Canada, audio IC investments continue to rise at an accelerated rate. North America maintained the largest market share for audio ICs, as this area is home to market leaders and supports significant investments in consumer electronics. High levels of competitiveness in the U.S. audio IC market have driven market-related activities such as R&D, mergers, and product launches. This element has principally propelled the North American audio IC sector. Technics, a sub-brand of Panasonic Consumer Electronics Company, a division of Panasonic Corporation of North America, launched the Reference Class integrated amplifier SU-R1000 in September 2020.