Audio IC and Audio Amplifier Market Size, Trends and Growth Analysis by 2027

The audio integrated circuit (IC) and audio amplifier sector is anticipated to achieve a market value of US$ 22,525.7 million by the year 2028, rising from US$ 13,424.5 million in 2021. This growth represents a compound annual growth rate (CAGR) of 7.7% from 2021 to 2028.

The increasing adoption of consumer electronics and smart appliances is a significant driver of this market expansion, fueled by the emergence of new energy-efficient audio devices designed for both commercial and residential applications. Technological advancements, coupled with a rise in disposable income among the working population, are also expected to enhance the growth of the audio IC and audio amplifier market. Continuous innovations in semiconductor technology, a growing demand for high-performance home theater systems, and the integration of the Internet of Things (IoT) are key factors that are encouraging the uptake of consumer electronic devices, thereby contributing to market growth.

For instance, the introduction of gallium nitride (GaN) power transistors has allowed manufacturers to produce high-performance home theater systems at reduced costs. Many modern smart appliances are equipped with voice assistance, as well as Wi-Fi and Bluetooth connectivity, which significantly boosts their appeal among consumers. Furthermore, the increasing preference for smart homes featuring advanced entertainment systems, the rising demand for smart speakers with display capabilities, and a growing inclination towards multifunctional devices, all combined with the rising per capita income, are pivotal in driving the sales of AI-enabled smart speakers. This trend is further propelling the growth of the audio IC and audio amplifier market.

Moreover, ongoing technological advancements in home audio systems and the surging popularity of high-performance home theaters are critical factors enhancing the demand for smart electronic products. The growing adoption of smart and wireless infrastructure, alongside an increasing demand for high-fidelity (Hi-Fi) audio systems in commercial settings, is another element contributing to the rising need for audio ICs and amplifiers.

The COVID-19 pandemic has significantly impacted economic growth and disrupted supply chains across various nations. Industries such as energy, aviation, food and beverages, chemicals, retail and e-commerce, as well as travel and tourism, have experienced considerable setbacks. The reduction in raw material supply from manufacturers in North America, Europe, and the Asia Pacific region, due to production cutbacks and trade restrictions, has hindered the growth of the audio IC and audio amplifier market. Additionally, market players have encountered challenges in fulfilling demand due to the suspension of business operations in recent months, a decline in the production of various components, and supply chain constraints. However, since 2021, the market has begun to recover, with both demand and supply sides resuming their operations.

The audio IC and audio amplifier market is categorized based on audio IC type, audio amplifier class, and geographical regions. In terms of audio IC type, the market is divided into A/D converter ICs, processor ICs, amplifier ICs, D/A converter ICs, and others. Regarding audio amplifier class, the market is segmented into Class A/B, Class D, Class G, and Class H. Geographically, the global audio IC and audio amplifier market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa (MEA), and South America (SAM). As of 2020, the Asia Pacific region held a substantial share of the global market.

Several prominent players in the audio IC and audio amplifier market include IC Audio GmbH, icepower A/S, Infineon Technologies AG, Maxim Integrated, NXP Semiconductors N.V., Renesas Electronics Corporation, Semiconductor Components Industries, LLC, STMicroelectronics, Texas Instruments Incorporated, and Toshiba Corporation.

The overall size of the audio IC and audio amplifier market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the audio IC and audio amplifier market across all segments. Additionally, numerous primary interviews were conducted with industry participants to validate the data and gain deeper analytical insights into the subject. Participants included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants like valuation experts, research analysts, and key opinion leaders specializing in the audio IC and audio amplifier market.