Data Converter Market is expected to reach US$ 10.06 billion by 2030

According to our latest market study on "Data Converter Market Size and Forecast (2022–2030), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Resolution, Rate of Converter, and End User," the market was valued at US$ 5.36 billion in 2022 and is expected to reach US$ 10.06 billion by 2030; it is estimated to record a CAGR of 8.2% from 2022 to 2030. The report includes growth prospects owing to the current data converter market trends and their foreseeable impact during the forecast period.

Wireless infrastructure service providers, mostly 4G and 5G service providers, focus on maintaining strict criteria for service quality, performance, and functionality. ADC is a crucial factor that digitalizes the incoming intermediate frequency (IF) signal and then transfers the data to the digital down converter (DDC). Data conversion block is another crucial factor in wireless infrastructure designs. Frequency filtering and translation can be moved from analog to digital domain to fulfill the increasing demand for a high bandwidth 5G spectrum.

Data Converter Market Share – by Geography, 2022

Source: The Insight Partners Analysis

Companies in the data converter market are engaged in creating solutions that can help in enhancing wireless applications. In August 2021, Richardson RFPD, Inc. announced the availability and full design support capabilities for two highly integrated high-speed converters from Analog Devices, Inc. The AD9081 and AD9082 mixed-signal front ends combine high-performance analog and digital signal processing and enable designers to install multiband radios in the same footprint as single-band radios. By modifying more of the frequency filtering and translation from the analog to the digital domain, the AD9081/2 provides designers with the software reconfigurability to customize radios. In June 2023, Analog Devices announced the launch of Apollo MxFE, its most advanced software-defined, direct RF-sampling, wideband mixed-signal front-end platform. Apollo MxFE enables next-generation applications such as phased array radar, electronic surveillance, test and measurement, and 6G communications in the aerospace & defense, instrumentation, and wireless communications industries.

Companies such as Synopsis provide analog IP for broadband and wired communication SoCs. The data converter IP portfolio allows designers to bring mobile and wireless communication, including 5G and SoCs, to market. Synopsys solution for the baseband analog interface - Analog Front-End (AFE) is based on state-of-the-art data converter and PLL building blocks that will enable designers to meet their specific application's requirements, reduce risk, and improve time-to-market. Thus, the increasing use and demand for data converters in wireless communication bolster the data converter market growth.

The data converter market analysis is carried out by identifying and evaluating key players in the market across different regions. Asahi Kasei Microdevices Corporation; Analog Devices, Inc.; CIRRUS LOGIC, INC.; Microchip Technology Inc.; Semiconductor Components Industries, LLC; ROHM CO., LTD.; Renesas Electronics Corporation; STMicroelectronics N.V; Texas Instruments Incorporated; and Teledyne Technologies Inc. are among the key players profiled in the data converter market report. Several other major companies have been analyzed during this research study to get a holistic view of the ecosystem.

The scope of the data converter market report covers North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). The data converter market forecast can help stakeholders plan their growth strategies.

The Asia Pacific (APAC) data converter market is segmented into Australia, China, India, Japan, South Korea, and the Rest of APAC. Increasing use of data converters for wireless communications and growing demand for communications systems and consumer equipment in countries including China, Japan, and India drive the APAC data converter market growth. The growing adoption of 5G communication is a potential driver for continued technological innovations in the semiconductor industry. Also, high-speed ADCs and DACs with high resolution and low power are becoming available for System-on-a-chip (SoC) integration. The data converters support the channel bandwidth and open the doors for the generalization of RF architectures, which can potentially reduce the complexity of the RF circuitry.

The demand for smartphones and other electronic devices is rising in APAC owing to the growing adoption of 5G technology. Also, the increasing adoption of wireless broadband, as the frequency filtering and translation can be moved from the analog to the digital domain to satisfy the upsurging demand for a high bandwidth 5G spectrum. According to the GSMA's Mobile Economy APAC 2023 Report, 5G will account for over two-fifths (41%) of mobile connections in Asia Pacific by 2030, up from 4% in 2022. By 2030, APAC will have ~1.4 billion 5G connections. The growth can be attributed to the rapid deployment of 5G devices and rapid network expansion in many countries.

The demand for consumer electronics and audio equipment devices is also rising across Asia Pacific. In March 2022, ROHM CO., LTD developed the D/A converter IC BD34352EKV, which supports the playback of high-resolution sound sources in high-fidelity audio equipment. This D/A converter IC will help in converting high-resolution digital audio data to analog audio signals, and audio DAC chips help in determining the quality of audio equipment. Thus, the rising use of data converters in different audio equipment devices is anticipated to boost the data converter market growth in the region during the forecast period.

China dominated the APAC data converter market share in 2022. China is the world's largest manufacturing hub and produces ~36% of the world's electronics, including smartphones, computers, cloud servers, and telecom infrastructure. In addition, with nearly one-fifth of the world's population, China is one of the consumption markets after the US for electronic devices embedded with semiconductors. Moreover, China's largest telecommunication provider aims to invest nearly US$ 411 billion in the introduction of 5G by 2030. The industrial Internet of things (IIoT) is anticipated to be the most important use case of 5G in support of China's Made in China 2025 initiative. Furthermore, Beijing city has built 4,300 base stations in urban areas to execute fast wireless technology. The Chinese Government has already started providing 5G licenses to telecom firms. Thus, the installation of 5G base stations propels the manufacturing business of data converters to support multiband operation.

India is expected to record the highest CAGR in the data converter market during the forecast period. Urbanization, rapid digitalization, smart city construction, and rising penetration of smartphones and other consumer electronic devices are among the significant factors driving the need for 5G in the country. According to the India Brand Equity Foundation, in May 2023, India had the second-largest telecommunication sector globally. The Department of Telecommunication was allocated US$ 11.92 billion in the Union Budget 2023–2024, contributing to developing telecommunication networks and technologies nationwide. Thus, the growing telecommunication sector and the rising demand for chips are pushing manufacturers to launch data converters, which is projected to create lucrative business opportunities for data converter providers.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com