Audio DSP Market Expected to Reach $23.43 Billion By 2027

According to a recent report published by Allied Market Research, titled, “Audio DSP Market By Type and End Use: Opportunity Analysis and Industry Forecast, 2020–2027”, the global audio DSP market size was valued at $11.06 billion in 2019, and is projected to reach $23.43 billion by 2027, registering a CAGR of 9.3% from 2020 to 2027.

Audio signals are either in analog or digital format, when these signals are processed digitally, it is called audio signal processing. Major consumer electronic devices such as smartphones, laptops, and TVs are equipped with audio hardware, which allows audio recording for storage and playback. This audio can be edited, manipulated, and processed by using digital sound processor, owing to flexibility and fidelity of this system.

The audio digital signal processor (DSP) market is currently in its growth stage and is expected to register substantial growth in the future, owing to high investments in R&D activities by market players and increase in focus toward Internet of Things (IoT). Other factors that drive the market growth include increase in demand for automobile & electronics and development of smart devices.

Emerging technologies, such as artificial intelligence (AI) and quantum computing, require compound semiconductors to achieve full commercialization. UK has a rich heritage of microprocessor design, with companies such as ARM, Imagination Technologies, and new start-up companies, such as Bristol-based GraphCore, designing AI processors, which creates lucrative opportunities for the audio DSP market growth.

North America is the second largest region, in terms of revenue generation, in the global audio DSP market. The consumer electronics industry is well-established in North America, which has led to increase in adoption of audio digital signal processor. In addition, rapid growth in sales of smart home products supplements the market growth. Moreover, increase in disposable income of population and widespread use of digital sound processor in automotive, consumer electronics, and commercial industries drives the audio DSP market share globally.

COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners, globally.

Demand from the wireless communication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies such as 5G, IoT, AI, and intelligent edge computing for future optimization.

According to the audio DSP market trends, governments in key markets have prioritized safety and security technologies pertaining to current threat environment experienced globally. However, the manufacturing sector witnessed severe loss, thereby no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumer electronics markets are in a very week state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Hence, the audio DSP market analysis is facing major obstacles from the emergence of COVID-19 pandemic.

The pandemic has led toimpact on production process of several industries including semiconductor and electronics. Trade barriers are further constraining demand and supply outlook. As governments of different countries have already announced total lockdown and temporary shutdown of industries, overall production process is adversely affected.

Key Findings of the Study: 

•  By type, the integrated segment generated the highest revenue in theaudio DSP market forecast in 2019.
•  By end use, the smartphone segment generated the highest revenue in the audio DSP market forecast in 2019.
•  By region, the Asia-Pacific segment generated the highest revenue in the fingerprint sensor market forecast in 2019.

The key players profiled in the audio DSP industry include Texas Instrument, Altera Corporation, NXP Semiconductors, Broadcom Corporation, Analog Devices, Renesas Electronics, Xilinx Incorporated, Toshiba Corporation, LSI Corporation and CEVA Incorporated. These key players adopt several strategies such as new product launch &development, acquisition, partnership &collaboration, and business expansion to increase their footprint in theglobal marketduring the forecast period.