Data Converter Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Data Converter Market Size & Growth

The Data Converter Market Size is valued at USD 5.5 Billion in 2023 and is anticipated to be USD 7.4 Billion by 2028; growing at a CAGR of 6.0% during the forecast period from 2023 to 2028.

Factors such as the rising demand for test & measurement (T&M) solutions by end users, growing demand for high-resolution images in scientific and medical applications, and the increasing adoption of technologically advanced data acquisition systems are driving the growth of the data converter industry during the forecast period.

Data Converter Market Forecast to 2028

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Data Converter Market Trends and Dynamics:

Driver: Increasing adoption of technologically advanced data acquisition systems

The transition of end users from traditional data acquisition (DAQ) systems to computer-based systems have been the key factor behind the growth of the data converter market. The computer-based systems convert and measure analog signals, such as voltage and current, to digital signals with the help of ADCs. The DAQ system mainly consists of the ADC, DAC, multiplexer, high-speed timer, and random-access memory (RAM) card. Technological advancements have led to the development of computer-based data acquisition systems, which, in turn, provide end users flexibility, along with reduced cost and time. Furthermore, in the computer-based data acquisition system, engineers can customize the software according to their requirements, which increases overall productivity.

Moreover, high-speed DAQ systems are used to achieve high accuracy and repeatability without compromising on bit resolution, memory depth, and streaming performance. For instance, Texas Instruments Incorporated (US) provides ADS8691, ADS8695, and ADS8699 devices in the integrated data acquisition system family. These devices are based on a high-speed, high-precision successive approximation (SAR) ADC.

Restraint: Integration of RF data converters into FPGA and system-on-chip (SoC)

The trend of integrating data converter design intellectual properties (IPs) into SoC and field-programmable gate array (FPGA) devices could be a restraining factor for the discrete data converter market growth.  Analog Devices, an American multinational semiconductor company specializing in data conversion and signal processing technology, provides the intermediate frequency (IF) and radio frequency (RF) receivers with integrated data converters. The programmable system integration eliminates the need for discrete ADCs, DACs, and FPGA-to-analog interface power and accelerates design productivity.  Thus, the trend of data converter integration helps the communications industry improve product design flexibility. The added flexibility constrains the growth of the 5G market and the adoption of millimeter-wave wireless backhaul systems.

Opportunity: Potential use of data converters in developing advanced 5G infrastructure

The use of high-bandwidth equipment, such as routers, repeaters, access points, and wireless antennas, in wireless networks, would face congestion in data networking due to enormous data generated by various devices and more data consumption by smartphones in the coming years. The need for high-speed communication networks and the requirement for network congestion control are expected to increase with the adoption of 5G technology. The aggregate data rates supported by the 5G technology are expected to be 1,000 and 100 times faster than the existing 3G and 4G data rates, respectively.  The deployment of 5G would significantly increase the number of mobile subscribers, creating a requirement for developed infrastructure that can handle user data requests. To provide high bandwidth to several use cases, the 5G technology is likely to be operated at higher frequency bands, leading to the adoption of the small cell network concept. This would, in turn, create an opportunity for high-speed data converters in the development of advanced 5G infrastructure, as high-speed data converters are among the key components of communication transceivers.

Challenge: Development of low-power consumption data converters

The data converter is an electronic circuit that converts the data from analog sensor nodes to the digital domain. During the signal conversion, the data converter consumes large amounts of power. Several types of portable battery-operated equipment have limitations in terms of power capacity. It is one of the key challenges to providing greener designs of data converters with minimum power consumption.

In low-power data acquisition (DAQ) systems, integrating an ADC into the controller decreases the component count, cost, and power consumption. However, this approach may increase the overall power consumption of DAQ systems. Hence, low-power consumption data converters pose a major challenge for data converter manufacturers. With the increasing demand for sensor-based low-power DAQ systems, predictive monitoring and analytics solutions will be the key opportunities in the market.

Data Converter Market Segmentation

Analog-to-Digital Converters (ADCS)  to hold the largest market share of data converter market during the forecast period

ADCs can measure and convert real-world signals such as temperature, pressure, acceleration, and speed into digital signals. During the conversion process, the ADC compares the analog input signal to a known reference input and then produces a digital representation of the analog input. Many systems employ a higher resolution ADC to avoid a loss of information. The converter's accuracy determines how many bits in the digital output code represent useful information about the input signal. Therefore, a sampling rate plays a vital role in ADC devices as it determines how precisely the ADC converts the analog signal into a digital form. The growing adoption of industrial DAQ and medical devices, including cardiac monitors, hemodynamic monitors, respiratory monitors, multi-parameter monitors, digital thermometers, endoscopes, and ophthalmoscopes, is likely to drive the market for ADCs.

General-Purpose data converters to hold the second largest market share data converter market during the forecast period

General-purpose data converters operate with a sampling rate of up to 10 MSPS. These converters are used for several medical, industrial, and automotive applications. These data converters ensure output reliability and accuracy during data conversion from analog to digital or vice versa.  The Fourth Industrial Revolution (Industry 4.0) has led to the integration of sensing technologies into the industrial process. Manufacturers use sensors to monitor, control, and automate processes while enhancing safety. The use of sensors in industrial applications has a number of benefits, including improved asset management, higher operational effectiveness, and more adaptable product development. Increasing use of various types of control systems, such as programmable logic controllers (PLCs), supervisory control and data acquisition (SCADA), and distributed control systems (DCS), and the rising deployment of sensor-based technologies for industrial applications are expected to create the demand for general-purpose data converters in the near future. General-Purpose data converters are primarily used for medical and automotive applications. The growing adoption of remote monitoring and automated solutions is one of the key factors for the general-purpose market growth.

Medical application is expected to witness the highest CAGR during the forecast period

The medical application involves the use of imaging and monitoring devices. Monitoring devices such as cardiac, hemodynamic, and respiratory monitors require general-purpose data converters. On the other hand, imaging devices such as computed tomography (CT) scanners, magnetic resonance imaging (MRI) scanners, and ultrasound systems may require high-speed data converters to operate, which is one of the key driving factors for the high-speed market growth. The rising demand for personalized, easy-to-use, and advanced medical devices and the increasing adoption of wearable electronics are the major factors for the growth of the market for electronic medical devices. These devices have one or more sensors and probes depending on the requirement. Data converters play a crucial role by converting the data into digital form for analysis purposes which is resulting in the growth of the data converter market.

Data Converter Industry Regional Analysis

Asia Pacific to hold the largest share of the data converter market during the forecast period

Asia Pacific has many emerging economies, which are likely to create opportunities for the growth of the market. Australia, Japan, China, India, and Taiwan are the key countries in Asia Pacific. Asia Pacific is home to numerous OEMs as well as semiconductor device and product manufacturers. Favorable regulatory policies for the approval of new semiconductor technologies and the saturation of the market in developed countries are further intensifying the interest of foreign players in expanding their businesses in Asia Pacific, especially in China. The growing digitization in the industrial sector, adoption of IIoT, and penetration of connected devices will create a need for data converters in the region. The high-speed data converter market growth is driven by the growing communications sector in Asia Pacific and the growing demand for communication systems.

Data Converter Market Statistics by Region

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Top Data Converter Companies - Key Market Players

The Data Converter Companies is dominated by a few globally established players such as

• Texas Instruments (US),
• Analog Devices (US),
• Skyworks Solutions, Inc. (US),
• Infineon Technologies AG (Germany),
• STMicroelectronics (Switzerland),
• Qorvo, Inc. (US),
• NXP Semiconductor (Netherlands),
• ON Semiconductor (US),
• Microchip Technology (US),
• Renesas Electronics Corporation (Japan),
• Cirrus Logic (US),
• Asahi Kasei Microdevices (Japan),
• Faraday Technology (Taiwan),
• Avia Semiconductor (Xiamen),
• Data Device Corporation (DDC) (US),
• IQ-Analog (US),
• ROHM Semiconductor (Japan),
• Synopsys (US),
• Omni Design Technologies (US),
• iSine Inc. (US),
• AMS OSRAM (Austria),
• ADSANTEC Inc. (US),
• Phoenix Contact (Germany),
• MaxLinear, Inc. (US),
• Antelope Audio (US).

Data Converter Market Report Scope:

Data Converter Market Highlights

The study categorizes the data converter market share based on type, sampling rate, applications, and region

Recent Developments in Data Converter Industry

• In May 2022, Analog Devices (US) launched the next generation of 16 to 24-bit, ultra-high precision successive approximation register (SAR) analog-to-digital converters (ADCs), simplifying the frequently complex process of designing ADCs for instrumentation, industrial, and healthcare applications.
• In May 2022, Analog Devices (US) launched AD3541R  which is a low drift, single channel, ultra-fast, 12-/16-bit accuracy, voltage output digital-to-analog converter (DAC) that can be configured in multiple voltage span ranges.
• In December 2021, Texas Instruments (US) launched ADS127L11 which is a 24-bit wideband ADC, which accurately measures signals at wider bandwidths for industrial systems.
• In August 2021, Analog Devices (US) acquired Maxim Integrated Inc. (US) With this acquisition strengthens Analog Devices’ position as a high-performance analog semiconductor company.
• In October 2020,  Microchip Technology (US) acquired Tekron International (New Zealand). This acquisition enables Microchip to expand its offering across a broad customer base in the rapidly expanding smart energy and industrial markets.

Frequently Asked Questions (FAQ):

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