Digital Isolator Market Size, Share | Global Trends 2022, 2028

The digital isolator market size is expected to grow from US$ 2,537.53 million in 2022 to US$ 4,133.11 million by 2028; it is estimated to grow at a CAGR of 8.5% from 2022 to 2028.

Digital isolators are used to isolate the signal interference between circuits, subsequently improving a system's stability and safety. They are used in electronic circuits, especially in industrial electronic equipment, to protect systems from high-voltage hazards with the use of DC isolation. Thus, in the industrial sector, digital isolators mainly aid in component protection, signal level shifting, user safety, and safety regulation compliance. They also facilitate data transfer without any electrical connection or path that can create a safety hazard.

For the digital isolator market analysis in Europe, Germany, France, Italy, the UK, Russia, and the Rest of Europe are included. With digital transformation, the total consumption of leading-edge semiconductors in the European Union (EU) countries is expected to double in the coming years. The electronics and electrical engineering industries in Europe are large and are advancing rapidly. The growing adoption of electronics in various applications propels the demand for noise-free electronics and electrical devices, which favors the growth of the digital isolator market in Europe.

The automotive industry, one of the largest industries in Europe, represents ~7% of the region’s GDP. According to the European Automobile Manufacturers’ Association (ACEA), vehicle sales in Europe increased by 10% in 2021 compared to 2020. Moreover, BMW Group, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, Jaguar Land Rover, Mercedes-Benz, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group are among the major automotive manufacturers in the region. Thus, the increasing production and sales of electric vehicles, and the presence of major manufacturers and suppliers with strong brand value and technological & financial capabilities are likely to boost the demand for digital isolators in Europe during the forecast period and thereby fueling the digital isolator market.

 

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Digital Isolator Market: Strategic Insights

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Impact of COVID-19 Pandemic on Europe Digital Isolator Market Growth

 

With the outbreak of different variants of SARS-CoV-2 in key countries such as the UK and Germany, the digital isolator market faced challenges in its revival. Europe is a hub for the healthcare, aviation, manufacturing, automotive, and energy & power sectors. Many businesses in the region faced financial challenges as their activities were substantially reduced due to a lack of workforce, government-imposed restrictions, and decreasing sales. The limited presence of digital isolator vendors across the region has been another major factor behind the regions’ dependence on imports from international companies for digital isolator products. This certainly hampered the market of Europe as the other international vendors were not able to provide their respective solutions to their customers due to supply chain challenges. However, during the pandemic recovery period, the market began growing at a healthy pace owing to the increasing demand for advanced electronic devices due to the resumption of facilities, operations, commercial places, and transportation.

Businesses in European countries have been taking initiatives to restructure their operations and make changes across their respective organizations to cope up with uncertainties associated with the pandemic. With this, the demand for automation technologies and digital equipment has been increasing across different industries, in turn, propelling the demand for digital isolators and therefore fueling the digital isolator market growth.

Market Insights – Digital Isolator Market 

Growing Demand from Industrial Sector Bolsters Digital Isolator Market Growth

Automation helps reduce human intervention across industrial operations, subsequently improving operational efficiencies. The automation of the industrial sector is leading to the higher deployment of digital and automated system control technologies such as PCs, DCs, and programmable logic controllers (PLCs) across industrial facilities. The rise in demand for industrial automation across manufacturing facilities is one of the major factors catalyzing the digital isolator market growth worldwide. The applications of digital isolators in devices such as such as remote sensing devices, programmable logic controllers (PLCs), and motor control devices is driving the demand for digital isolators across the industrial sector. Further, the increasing applications of automated machine/motor control devices and PLCs is also catalyzing the demand for digital isolator market. The demand for PLCs is rapidly growing in the industrial automation sector due to the advantages such as better flexibility and ease, scalability, greater memory capacity, compact size, high-speed Ethernet, and access to wireless systems. PLCs provide precision output to industrial devices that are used for automating processes. Digital isolators are increasingly used in remote sensing devices, PLCs, and motor control devices, among others that allows to minimize the ground level errors in the end devices.

The demand for remote sensing technologies along with motor control technologies and compact USB connections is also driving the demand for digital isolators across the industrial sector. The deployment of USB connections across the industrial sector is also increasing with a rise in the adoption of automated technologies. All these factors are contributing to the digital isolator market growth.

Application-Based Insights – Digital Isolator Market

Based on application, the digital isolator market analysis is conducted including SMEs and large enterprises. The SMEs segment accounted for a larger share of the market in 2021. The demand for industrial automation across small and medium-scale manufacturing companies from different industries, such as automotive, medical devices, consumer electronics, industrial, energy & power, and telecom, is mainly driving the adoption of semiconductor-based systems.

The digital isolator market 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 magnetoresistive. Based on application, the market is categorized into SMEs and large enterprises. Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America. In 2021, North America held the largest digital isolator market share in 2021.

APAC is expected to register the highest CAGR in the digital isolator market during the forecast period.

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 a few key digital isolator market players. 

Digital Isolator Market Regional Insights

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

Digital Isolator Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Digital Isolator 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 Digital Isolator Market are:

1. Analog Devices Inc.
2. Broadcom Inc.
3. Infineon Technologies AG
4. Skyworks Solutions Inc
5. Nexperia BV

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

The digital isolator market players focus on developing advanced and efficient systems. For instance:

• In 2022, Mornsun Guangzhou Science & Technology Co Ltd announced that they had signed a distribution agreement with Avnet Abacus. The partnership will increase the company's reach and presence in the EMEA market.
• In 2019, Broadcom Inc announced the launch of ACNT optocouplers with 15 mm creepage and 14.2 mm clearance for the high-voltage isolation applications. The optocouplers comprise the comprehensive product types, which help them meet different galvanic isolation requirements and features.