Digital Isolator Market is expected to reach US$ 4,133.11 Million by 2028

Published Date: 05 Dec 2022

The digital isolator market size is expected to reach at US$ 4,133.11 million by 2028; registering at a CAGR of 8.5% from 2022 to 2028, according to a new research study conducted by The Insight Partners. 

Increasing Use of Digital Isolator in Telecommunications Sector to Offer Growth Opportunities for Digital Isolator Market

The demand for electronic devices is increasing with the ongoing proliferation of the telecom sector. In this industry, digital isolator are used in isolated communication technologies, VoIP gateways, and service ports. They are also deployed in the communication sector due to the rising demand for end-point devices. Based on the Integrated Services Digital Network (ISDN), British Telecom and several other telecom operators have replaced the existing ISDN systems with VoIP and SIP systems. The demand from enterprises for switching from ISDN to VoIP networks and other substitutes for their operations is expected to catalyze the adoption of VoIP gateways and boost the deployment of digital isolator across the telecom industry in the coming years. Further, the growing demand for digital isolator for integration into service ports of different electronic devices is another major factor catalyzing the digital isolator market growth. With the growing adoption of VoIP gateway devices, the integration of digital isolator in service port applications is also increasing.

Digital Isolator Market Share — by Geography, 2021

Digital Isolators Market Share — by Geography, 2021

Report : Digital Isolator Market Forecast to 2028 - COVID-19 Impact and Global Analysis by Type (Optical Coupling, Magnetic Coupling, Capacitive Coupling, and Giant Magnetoresistive) and Application (SMEs and Large Enterprises)

Source: The Insight Partners Analysis

The digital isolator market size in South America is segmented into Brazil, Argentina, and the Rest of South America. South American countries have been slow adopters of technologies. Therefore, the presence of digital isolator manufacturing companies in the region is limited. Brazil is estimated to be the most significant contributor to the revenue of the regional market during the forecast period. The growing urbanization, increasing deployment of advanced technologies in industries, gradually improving economy, and flourishing communications sector are among the prominent factors propelling the demand for digital isolator in Brazil. The automotive industry is expanding in South America. According to the study conducted by ANFAVEA, i.e., the National Association of Motor Vehicle Manufacturers, automobile sales in Brazil are expected to reach 8.5% in 2022, i.e., 2.3 million units, recording a year-on-year upsurge of 3% from 2.12 million units in 2021. Further, the telecommunications sector in Brazil is continuously growing, and it represents 2.9% of the national GDP. The revenue of this sector reached US$ 54 billion in 2021, recording an increase of 4.7% compared to 2020. Thus, the ongoing proliferation of the automotive and telecommunications sectors is likely to propel the digital isolator market growth in the coming years.

Further, modernizing manufacturing facilities with advanced technology is increasing with the rise in investments and government support in various industries like healthcare, telecom, automotive and others is expected to create lucrative opportunity for digital isolator market in South America region.

Impact of COVID-19 Pandemic on South America Digital Isolator Market Growth 

In South America, industries such as electronics & semiconductor, automotive, aerospace, and equipment manufacturing experienced a prominent decline in demand for their offerings during the COVID-19 pandemic. Brazil recorded the highest number of COVID-19 cases, followed by Peru, Chile, Colombia, and Ecuador, among others. The governments of South American countries took several actions to protect people from COVID-19 and contain the disease spread. This situation led to limited resource allocations and investments in product development, which slowed down the adoption of industrial automation solutions, automotive vehicles, telecom devices (VoIP gateways), and medical devices. Similar to the MEA, South American countries rely on international suppliers for digital isolator products. Therefore, disruptions in supply chains led to an increase in the demand & supply gap for digital isolator across the region. However, with the relaxation in the social restrictions in 2021, the digital isolator market has started to recover from the losses that occurred during the pandemic across the region.

The digital isolator market analysis is segmented on the basis of type, application, and geography. Based on type, the market is segmented into optical coupling, magnetic coupling, capacitive coupling, and giant magentoresistive (GMR). Based on application, the digital isolator market is categorized into SMEs and large enterprises. Based on geography, the digital isolator market size is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

Analog Devices Inc; Broadcom Inc; Infineon Technologies AG; Skyworks Solutions Inc; Nexperia BV; Texas Instruments Inc; Vicor Corp; On Semiconductor Corp; NVE Corp; and Mornsun Guangzhou Science & Technology Co Ltd. are the key digital isolator market players profiled in the study. Several other important digital isolator market players were also studied and analyzed during the course of this study to get a holistic view of the market and its ecosystem.

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