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.
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.
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.
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.
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.
Key segments that contributed to the derivation of the data converter market analysis are type, resolution, rate of converter, and end user.
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.
The regional trends and factors influencing the Data Converter Market throughout the forecast period have been thoroughly explained by the analysts at 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.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 5.36 Billion |
| Market Size by 2030 | US$ 10.06 Billion |
| Global CAGR (2022 - 2030) | 8.2% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Data Converter Market 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:
Disclaimer: The companies listed above are not ranked in any particular order.
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:
The “Data Converter Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
The List of Companies - Data Converter Market
The data converter market size is projected to reach US$ 10.06 billion by 2030.
North America is expected to dominate the data converter market with the highest market share in 2022.
The leading players operating in the data converter market are Texas Instruments Inc., Siemens AG, TE Connectivity Ltd, Amphenol Corp, Analog Devices Inc, Emerson Electric Co, Microchip Technology Inc, Panasonic Holdings Corp, Honeywell International Inc, and NXP Semiconductors NV.
The global data converter market is expected to grow at a CAGR of 8.2% during the forecast period 2023 - 2030.
Increasing demand for testing and measurement by end users, rising demand for data converters in wireless communications and increasing product launches are the major factors driving the data converter market.
The rising adoption of high-speed data converters is anticipated to play a significant role in the global data converter market in the coming years.