Digital Isolator Market size is anticipated to reach USD 84 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period i.e., 2024-2036. In the year 2023, the industry size of digital isolators was over USD 11 Billion. To isolate machines from electricity and disrupt current flow patterns, there is an increasing trend of integrating digital isolation devices into a wide variety of equipment. This is often done to address the challenge confronted by conclusion clients and producers where they see to run their offices and gear at low-cost controls, and decrease machine downtime, among others. Digital isolators provide signal isolation and shift levels to see the correct operation of different circuits, in high-voltage equipment. They're also designed to prevent electric shocks for users. The growth of the market in terms of revenue is being driven by this. Digikey announced in 2020 the launch of its industrial communication networks, which are protected by the integration of digital isolators. Digital isolation, based on chip-scale transformers, has been made possible by RS4220/RS485 transceivers that integrate an isolated DCDC regulator and a three-channel signal isolator on a single chip.
Digital isolators offer a wide range of advantages, including benefits in terms of size, speed reduced energy consumption, reliability, and ease of integration into the module as compared to optocouplers. In the past, it has been difficult for designers to choose a suitable isolation barrier system used in medical modules or industry applications due to limited options.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024 - 2036 |
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CAGR |
~8% |
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Base Year Market Size (2023) |
~USD 11 Billion |
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Forecast Year Market Size (2036) |
~USD 84 Billion |
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Regional Scope |
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Insulation Material (Polyimide, Silicon Dioxide)
In terms of insulation material, the silicon dioxide segment in the digital isolator market is set to hold the largest revenue share of 70% during the period between 2024-2036. The high adoption of silicon dioxide as an insulation material by several leading market players is the reason for the segment's revenue. In July 2022, Texas Instruments' Digital Isolator Design Guide mentioned that the company uses silicon dioxide-built, high-voltage capacitors to function as an isolation component. In addition, they noted in the Design Handbook that there are two other architectures for their and TX RX circuits which include OnOff Keying Edge as well as Based onOn.
Vertical (Industrial, Healthcare, Automotive, Energy & Power, Consumer Electronics)
Based on industry vertical, the automotive segment in the digital isolator market is set to grow significantly by the end of 2036. It is estimated that the automotive segment in the Digital Signal Isolator Market, divided into end-use sectors, will be significantly growing. The digital isolators are also used in electrical motor vehicles and include Capacitive Couplings. Electric motor power pure electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles. The high growth rate of digital isolators in the automotive industry over the forecast period is driven by the introduction of electric vehicles.
Our in-depth analysis of the global market includes the following segments:
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Data Rate |
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Channel |
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Industry Vertical |
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Insulation Material |
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Technology |
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APAC Market Forecasts
The digital isolator market in the Asia Pacific is set to hold the largest revenue share of 33% by the end of 2036. The digital isolation market in Asia Pacific is expected to grow at the fastest rate during the forecast period, given the presence of a large number of major electrical device and equipment manufacturers in the region. In addition, digital isolators are commonly used for gate drivers and analog to digital converters in the Asia Pacific region. One of the most technologically advanced countries in the Asia Pacific region is China. This is a major contribution to the growth of the market in the Asia Pacific region.
North American Market Statistics
The digital isolator market in the North American is set to hold a significant share by the end of 2036. The increase in EV sales in the region is largely due to aggressive efforts by vehicle manufacturers to promote their adoption. In the United States, more than 0.8 million electric vehicles were sold in 2022, and Tesla accounted for over 60% of all sales. Currently, about 1% of the 250 million cars, LCVs, and SUVs in the country are electric, and it is expected that by 2030, their share in the total number of cars will increase to 30% and further to 40% by 2035.
Author Credits: Abhishek Verma, Hetal Singh
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