Data Converter Market Drivers and Forecasts by 2030

The data converter market size is projected to reach US$ 10.06 billion by 2030 from US$ 5.36 billion in 2022. The market is expected to register a CAGR of 8.2% during 2022–2030. Miniaturization of Temperature Sensors is likely to remain a key trend in the market.

Data Converter Market Analysis

Over the past few years, the data converter market has grown rapidly due to factors such as increasing demand for testing and measurement by end users, rising demand for data converters in wireless communications, and increasing product launches. The potential use of IoT devices and data consumption and the growing use of data converters in developing advanced 5G infrastructure are some of the factors providing growth opportunities for the data converter market.

Data Converter Market Overview

A data converter is an electronic circuit; it converts data from one form to another, i.e., a digital-to-analog converter (ADC) or analog-to-digital converter (DAC). The circuits operating with analog signals are analog, while circuits operating with digital signals are digital circuits. The high-speed ADCs are appropriate for industrial instrumentation, infrastructure, communications systems, industrial process control, data acquisition, measurement and control systems, and other sensory-based systems. Further, DACs are suitable for medical/test instrumentation and equipment, communication systems, and video applications.

Communication and protocol conversion; industrial control and measurement; 5G, wireless communications, wireline communications, LiDAR, and RADAR; automotive ethernet; and image sensors are among the major applications in which data converters are used. With an increasing demand for real-time information in these applications, the requirement for data converters will continue to grow in the coming years. Data converters have the potential to support high-speed operations with great precision and ease, which bolsters their demand in industrial, communication, consumer electronics, and medical applications. They also simplify system design while enhancing accuracy, lowering power, boosting bandwidth, and decreasing costs.

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Data Converter Market: Strategic Insights

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Data Converter Market Drivers and Opportunities

Increasing Demand for Testing and Measurement by End Users to Favor Market

Ensuring product quality, compliance, and efficiency remains a top priority for businesses across the world. The test and measurement (T&M) solution is a vital part of the electronic systems design & manufacturing (ESDM) sector, as it ensures the quality and performance of numerous electronic products. In the communications industry, enhanced voice quality and data services are the result of advanced modulation and antenna techniques. Radiofrequency (RF) signal analysis equipment, logic analyzers, signal generators, cable testers, network analyzers, and other test and measurement tools are needed to comprehensively test various networking components, including routers, repeaters, and connections. Analog-to-digital converters (ADC) and digital-to-analog converters (DAC) are frequently used in equipment for signal conversion. The growing use of ADCs and DACs in communication testing equipment propels the data converter market growth.

Growing Use of Data Converters in Developing Advanced 5G Infrastructure

Governments of many countries are taking initiatives to increase their 5G infrastructure. In September 2023, the US National Science Foundation Directorate for Technology, Innovation and Partnerships (TIP) announced that it is tackling 5G communication infrastructure and operational challenges through a US$ 25 million investment to advance five convergent teams from Phase 1 to Phase 2 of NSF Convergence. NSF selected 16 teams for Phase 1 of Track G. Over the next two years, the Phase 2 teams will take part in an innovation and entrepreneurial curriculum that includes technology development, intellectual property, financial management and planning, sustainability planning, and communications and outreach. In April 2023, US Secretary of Commerce Gina M. Raimondo announced the launch of the Public Wireless Supply Chain Innovation Fund, which aimed to invest US$ 1.5 billion in the development of open and interoperable networks. Funded by the CHIPS and Science Act of 2022, this investment is part of the Biden-Harris Administration’s Investing in America agenda, aiming to drive wireless innovation, foster competition, and strengthen supply chain resilience. Thus, the growing use of data converters in developing 5G infrastructure and increasing government initiatives are expected to offer significant opportunities for the data converter market in the coming years.

Data Converter Market Report Segmentation Analysis

Key segments that contributed to the derivation of the data converter market analysis are type, resolution, rate of converter, and end user.

• Based on the type, the data converter market is divided into ADC and DAC. The ADC segment will hold a significant market share in 2022.
• By resolution, the market is segmented into 10 Bit, 12 Bit, 14 Bit, 16 Bit, and Others. The others segment held the largest market share in 2022.
• In terms of the rate of converter, the market is segmented into up to 50 Msps, 51 to 100 Msps, 101 to 200 Msps, 201 to 500 Msps, 501 Msps to 1 Gsps, and Above 1 Gsps. The 501 Msps to 1 Gsps segment held the largest market share in 2022.
• In terms of end user, the market is segmented into automotive, communications, consumer electronics, industrial, medical, and others. The communications segment held the largest market share in 2022.

Data Converter Market Share Analysis by Geography

The geographic scope of the data converter market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

In terms of revenue, North America dominated the market in 2022. The North America data converter market is segmented into the US, Canada, and Mexico. The market growth in the region is attributed to the rising demand for high-resolution images in healthcare applications. The improved image quality can enable quick diagnosis and treatment of any disease, enhancing physicians' productivity. The rising adoption of data converters in technologically advanced data acquisition systems further drives the market growth in North America. The electronics industry is shifting toward a trend that combines flexible software and modular hardware. Moreover, North America has a significant presence of major data converter manufacturers driving the growth of the market in the region. Some of the data converter manufacturers in North America are Texas Instruments Incorporated, Analog Devices, Inc., Omni Design Technologies, Inc., Synopsys, Inc., Microchip Technology, Inc., and others.

Data Converter Market Regional Insights

The regional trends and factors influencing the Data Converter Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Data Converter Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Data Converter Market Report Scope

Data Converter Market Players Density: Understanding Its Impact on Business Dynamics

The Data Converter Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Data Converter Market are:

1. Texas Instruments Inc.
2. Siemens AG
3. TE Connectivity Ltd
4. Amphenol Corp
5. Analog Devices Inc
6. Emerson Electric Co

Disclaimer: The companies listed above are not ranked in any particular order.

Data Converter Market News and Recent Developments

The data converter market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the data converter market are listed below:

• STMicroelectronics introduced a new line of radiation-hardened power, analog, and logic ICs in low-cost plastic packages that perform critical duties for satellite electronic circuits. The first nine devices in this series were introduced, and they include a data converter, voltage regulator, line driver, LVDS transceiver, and five logic gates that are used in a variety of systems such as power generation and distribution, telemetry star trackers, on-board computers, and transceivers. (Source: STMicroelectronics, Press Release, March 2022)
• Renesas Electronics Corp added a new RX device for high-end industrial sensor systems to its lineup of 32-bit microcontrollers. The new MCU incorporates a 24-bit Delta-Sigma A/D converter with a maximum conversion speed of 125 kSPS (125,000 samples/second), and it is eight times quicker than the RX23E-A. (Source: Renesas Electronics Corp, Press Release, November 2023)

Data Converter Market Report Coverage and Deliverables

The “Data Converter Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:

• Data converter market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Data converter market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Data converter market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the data converter market
• Detailed company profiles