Data Converter Market Size, Share, Growth, and Industry Analysis, Segmentation By Type (Analog-to-Digital Converters and Digital-to-Analog Converters), By Application (Communications, Automotive, Consumer Electronics, Industrial, Medical, Test and Measurement and Others) and Regional Forecast to 2032

Updated On: 06 May 2024

DATA CONVERTER MARKET REPORT OVERVIEW

global data converter market size was USD 3504 million in 2020 and market is projected to touch USD 4723.4 million by 2026 at CAGR 5.1% during the forecast period.

A software or tool that converts data from one format or structure to another is called a data converter. When working with several software programs, databases, file formats, or communication protocols that employ various data representations, this conversion may be required. When it comes to guaranteeing compatibility and smooth communication across various systems, data converters are essential. The rising need for data converters across a range of applications, including test and measurement, automotive, consumer electronics, industrial, and communications, is responsible for the market's expansion.

COVID-19 Impact: COVID-19 had a High Effect Internationally on Supply-Demand and De-accelerated the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

LATEST TRENDS

Rising Initiatives for Digital Transformation and Integration with Digital Signal Processing is a Lightning Trend Enriching the Market Growth

Large volumes of data must be gathered and processed from a range of sources, including as industrial equipment, sensors, and Internet of Things devices, as part of digital transformation projects. For all of this data to be precisely and effectively captured and digitized, data converters are essential. Data converters facilitate real-time data transmission by enabling the flow of information across devices, networks, and cloud-based systems.

Real-time signal processing, including filtering, modulation, and error correction, can be carried out by the data converter itself thanks to integrated DSP. By processing signals of interest selectively and altering clock rates and voltage levels in response to workload, integrated DSP may improve power usage and help the data converter save more energy. DSP-enabled data converters may also pre-process data locally before to transmission in edge computing and Internet of Things applications, which lowers latency and bandwidth consumption while enhancing data privacy. Thus, throughout the projected period, the market will rise as a result of rising DSP integration in data converters.

DATA CONVERTER MARKET SEGMENTATION

• By Type

Based on type the global market can be categorized into analog-to-digital converters and and digital-to-analog converters.

Analogue-to-Digital Converters: Electronic modules or devices known as Analog-to-Digital Converters (ADCs) transform continuous analog impulses into digital format. It is employed in many different applications, including communication systems, sensor networks, and data collecting. The fact that ADCs provide a straightforward interface between analog and digital systems is a driving force behind the market's expansion.

Digital-to-Analogue Converters: Electronic devices known as Digital-to-Analogue Converters (DACs) are responsible for converting digital signals into analog ones. The DACs are utilized in many different applications, including cellphones, portable music players, and PCs. Over the course of the projected period, the growing demand for consumer gadgets with high-quality sound is anticipated to propel market expansion.

• By Application

Based on application the global market can be categorized into communications, automotive, consumer electronics, industrial, medical, test and measurement and others.

Communications: In wireless communication systems, data converters are employed to transform analog signals, like radio frequency or speech signals, into digital format for processing and transmission. In fiber optic communication systems, analog-to-digital (ADC) and digital-to-analog (DAC) converters are used for signal processing and transmission.

Automotive: Data converters are utilized in visual displays and audio systems to transform digital media signals into analog signals that may be seen on panels or played through speakers. ADCs are employed in sensors that track different engine factors, such pressure and temperature, and they transform the analog sensor outputs into digital data so that it can be processed.

Consumer Electronics: DACs are widely utilized in multimedia devices such as TVs and audio systems to convert digital audio impulses into analog signals that can be played back through speakers. Digital cameras employ ADCs to transform analog signals from image sensors into digital data that can be processed and stored.

Industrial: In industrial automation, data converters are employed to transform analog sensor signals, such as temperature and pressure, into digital data for the purposes of monitoring and controlling. ADCs are utilized in motor control applications to precisely regulate motors by converting analog sensor signals—like position or speed feedback—into digital data.

Medical: Data converters are essential components of medical imaging devices such as MRI scanners and X-ray machines, since they transform analog inputs from sensors into digital pictures that may be used for diagnosis. ADCs are employed in vital sign monitoring equipment, where they transform analog sensor signals (blood pressure, ECG, etc.) into digital data that can be analyzed.

Test and Measurement: High precision signal generation and analysis are achieved in test and measurement equipment through the usage of DACs and ADCs. ADCs are crucial parts of oscilloscopes that allow them to record and show analog signals.

DRIVING FACTORS

Rising Developments in Telecommunication Infrastructure to Account for a Significant Market Share

Because of the introduction of 4G and the impending 5G communication, the telecommunication infrastructure is driving market expansion. While adhering to strict performance, functionality, and quality of service criteria, manufacturers of wireless infrastructure, particularly 4G and 5G, are continuously decreasing the size and cost of newly installed wireless infrastructure. The data conversion block plays a crucial role in the architecture of wireless infrastructure. The essential component that digitizes the incoming intermediate frequency (IF) signal and sends the digital data to the digital down converter is the analog-to-digital converter, or ADC. It is possible to meet the 5G solution's high bandwidth requirements by transferring frequency translation and filtering from the analog to the digital domain. This wave of digitization includes two RF converters: the mixed-signal AD9081/AD9082 RF converters introduced by analog devices.

Growing Utilization in the Automotive Sector to Accelerate the Market Growth

The data converters' wireless transceivers allow for connectivity with other cars and stationary networks. The goal of many large automakers is to expand their presence in the country. For example, General Motors Co. and its suppliers will invest a total of $500 million in Argentina operations through 2019 to get ready for the manufacturing of autonomous vehicles with sophisticated standards by 2022. Nowadays, automakers are building cars with technologies like voice-activated controls, Bluetooth connectivity for smartphone connectivity, CD players, and radar distance control in front of the car. various latest technologies have driven market development since data converters are widely used for various applications in the automotive sector. Additionally, Fiat Chrysler intends to spend $500 million in a facility in Argentina that will produce cutting-edge cars.

RESTRAINING FACTOR

Presence of Noise and Interference to Pose Challenge and Deprive the Market Growth

Errors and inconsistencies in the transformed digital data might be caused by noise and interference. It is crucial to preserve signal integrity during the conversion process, especially for high-precision applications. Because number representation is discrete, quantization noise happens. Temperature variations can also have an impact on the operation of data converters, resulting in thermal noise and drift. Techniques for compensation and heat control are required. Furthermore, in order to address mistakes that result in noise over time and during variations in operating circumstances, data converters could require calibration and compensating procedures. Scalability can be hampered and resources expended when tailoring data conversion systems to particular needs for noise and interference. Thus, over the projected period, the market's expansion would be hindered by the noise and interference problems in data converters. As a result, the above factors are expected to impede the data converter market growth under consideration throughout the projected timeframe.

DATA CONVERTER MARKET REGIONAL INSIGHTS

The market is primarily segregated into North America, Latin America, Europe, Asia Pacific, and the Middle East & Africa.

North America with Growth in Telecom Sectors and Consumer Electronic Sales to Dominate the Market Globally

The North America holds highest data converter market share owing to the growth in telecom sector and the use of FPGA (field-programmable gate array). One of the main factors propelling the market is the growing need for A2D converters in consumer electronics for high-resolution photos. Moreover, temperature sensors that detect various engine states and radar/LIDAR that powers automotive driving assistance systems (ADAS) are among the sensor applications in automobiles that call for data converters. Wireless transceivers for corresponding with other cars or fixed networks are among the numerous uses for data converters. The proposed elimination of the USD 7,500 per car tax credit, which has increased EV sales in the US, would not raise the incentive's maximum amount. Additionally, international businesses are being forced to shop in North America by tariff risk.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

Important industry players have a big impact on the market and are crucial in determining customer preferences and market dynamics. These major firms provide consumers easy access to a vast array of clothing alternatives through their huge retail networks and online platforms. Product adoption has increased as a result of their strong worldwide presence and well-known brand, which has also enhanced consumer trust and loyalty. These industry titans also consistently fund R&D, bringing cutting-edge designs, materials, and clever features to data converter to meet changing customer demands and preferences. These big businesses' combined efforts have a big impact on the market's future direction and level of competition.

List of Market Players Profiled

• Analog Devices (U.S.)
• Asahi Kasei Micro devices (Japan)
• Cirrus Logic (U.S.)
• Intersil (Renesas)
• Maxim Integrated (U.S.)
• Microchip Technology (U.S.)
• NXP Semiconductors (The Netherlands)
• On Semiconductor (U.S.)
• Stmicroelectronics (Switzerland)
• Texas Instruments (U.S.).

INDUSTRIAL DEVELOPMENT

• March 2022: STMicroelectronics disclosed a new range of integrated logic circuits (ICs), power, analog, and radiation-resistant ICs in reasonably priced plastic packaging that are essential components of low-Earth orbit satellite electrical circuitry. The first nine items in this series are already on the market and include a data converter, a voltage regulator, an LVDS transceiver, a line driver, and five logic gates. Telemetry star trackers, transceivers, onboard computers, and power generating and distribution systems all employ these components.

REPORT COVERAGE

The report includes a thorough SWOT analysis and offers predictions for market growth in the future. It explores a broad range of market categories and possible applications that might have an impact on the market's trajectory in the upcoming years, as well as key aspects that contribute to the market's growth. The research provides a comprehensive overview of the market's components and identifies possible growth opportunities by taking into account both historical turning points and present trends.