Digital Isolator Market Size, Share & Analysis

Updated on : Sep 16, 2024

Digital Isolator Market Size

[243 Pages Report] The digital isolator market was valued at USD 1.9 billion in 2022 and is projected to reach USD 3.1 billion by 2028, growing at a CAGR of 8.6% during the forecast period from 2023 to 2028. Factors such as growing focus on utilizing digital isolators in high-altitude operations, increasing use of isolators in harsh environmental applications creates lucrative opportunities whereas inability of digital isolators to transmit low-frequency signals without modulators is a major restraint for the growth of the digital isolator market.

Digital Isolator Market Growth Report

Digital Isolator Market Forecast to 2028

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Digital Isolator Market Trends & Dynamics:

Driver: High demand for digital isolators from electric vehicle and battery pack manufacturers

Automobile original equipment manufacturers (OEMs) worldwide are setting ambitious targets to launch new models of battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and full-hybrid electric vehicles (FHEVs). The BEV mode of transportation is known for its smooth, silent, and eco-friendly ride. As the automobile industry is moving toward electric vehicles, high-wattage power electronics are becoming essential components in the new electronic drivetrain and battery systems. However, EV batteries are susceptible to voltage transients and electrical noise, which can potentially damage sensitive electronics. Digital isolators act as a barrier, protecting critical components from these transients. By providing a barrier between high-voltage and low-voltage sections, digital isolators safeguard the integrity of control signals and data transmission, contributing to the longevity and reliability of the EV battery system. Digital isolators also prevent ground loops, reduce the risk of electrical faults, and enhance the overall safety of the EV battery system. In the event of a fault, digital isolators help contain the impact, preventing the spread of electrical issues. The use of digital isolators enhances the overall reliability of the EV battery system by reducing the risk of electrical faults and ensuring robust communication between components. This increased reliability contributes to the efficiency of the battery system, allowing for optimal performance and longevity. Further, digital isolators facilitate seamless integration with control systems, enabling precise monitoring and control of various parameters within the EV battery. This integration is essential for implementing advanced battery management strategies, optimizing charging and discharging cycles, and ensuring the overall health of the battery pack.

Restraint: Inability of digital isolators to transmit low-frequency signals without modulators

High-frequency signals can be transmitted directly by capacitive/magnetic digital isolators. However, when dealing with low-frequency signals, between 0 and 100 Kbps, signal isolators witness signal integrity and distortion issues, resulting in diminished performance. The absence of modulators exacerbates this issue, as modulation techniques are often employed to enhance the transmission of low-frequency signals in various communication systems. Digital isolators lack the built-in modulation mechanisms necessary to efficiently handle these specific frequency ranges. Hence, there is a need to integrate external modulators or explore specialized isolator designs tailored for low-frequency applications. Thus, the inability of digital isolators to transmit low-frequency signals limits its use in various applications such as process control, sensor interfacing, and audio applications may increase the costs of components used in them, thereby hampering the growth of the digital isolator market.

Opportunity: Increasing use of isolators in harsh environmental applications

The digital isolator market is expected to experience growth due to the increasing demand for robust isolators in harsh environmental applications, including electric motors. These applications face data disruptions from high-voltage transients and electrical stress, therefore there is a need for digital isolators that can withstand these effects. In the past, optocouplers were used in harsh environments as they could handle high voltages with thick layers of internal insulation. However, optocouplers used light-emitting diodes (LED) that lose their light intensity over time and can have reliability issues due to variations in light intensity with temperature. Digital isolators overcome these issues by using semiconductor IC-based dependable circuits to transmit and receive digital signals across isolation barriers.

The insulation of these isolators has also been improved to compete with optocouplers. Digital isolators have immunity against high-voltage transients and noise. Optocouplers can operate in applications with a maximum temperature of 85°C, while digital isolators can perform in high temperatures, that is, more than 125ºC.

Challenges: High cost of digital isolators than optocouplers

Digital isolators are known to offer better performance when it comes to propagation delays, noise reduction, and data rates compared to optocouplers. However, the cost of digital isolators is higher than that of optocouplers. This is why optocouplers are widely used as a low-cost isolation solution to transmit slow digital signals.

While several companies offer low-cost digital isolators, their usage is limited in applications such as PV inverters. These isolators are manufactured using conventional semiconductor process technology to achieve channel counts and functional integration to offset the high prices of alternative isolation technologies used in digital isolators. For instance, digital isolators made using complementary metal-oxide-semiconductor (CMOS) process technology are increasingly adopted by designers. This technology enables designers to develop low-cost, compact, high-performance, and reliable isolated circuits with lower power consumption than optocouplers.

The costs of digital isolators depend on the type of isolators and their capacity to pass current and depend on the applications for which they are deployed. Digital isolators with higher data rates and more channels have higher costs than those with lower data rates and a lesser number of channels. Although manufacturers are developing low-cost digital isolators, the average cost of these devices is still higher than that of optocouplers. Very few low-cost digital isolators are available in the market.

Digital Isolator Market Map:

By technology, the giant magnetoresistive segment in the digital isolator market is expected to grow at the highest growth rate during the forecast period.

During the forecast period, the giant magnetoresistive segment is expected to record the highest CAGR in the digital isolator market during the forecast period. This growth is driven by the better sensitivity and higher accuracy of GMR digital isolators than isolators powered by capacitive and magnetic coupling technologies. GMR isolators also boast a faster switching speed of up to 150 Mbps, with a low propagation delay of 10 to 15 ns. Moreover, the materials used in these isolators increase their shelf life.

Industrial segment account for the largest market share of the digital isolator market, by vertical, during the forecast period

The industrial vertical accounted for the largest share (~28%) of the digital isolator market, in terms of value, in 2022. Digital isolators play a crucial role in industrial equipment by safeguarding users and equipment from ground differences and loops, voltage fluctuations, and noise. They guarantee the safety of both industrial equipment and operators. Moreover, with the growing adoption of the Industrial Internet of Things (IIoT), the demand for digital isolators in the industrial sector is expected to rise significantly during the forecast period.

Asia Pacific region is expected to exhibit the highest CAGR during forecast period

The digital isolator market in Asia Pacific is projected to grow at the highest CAGR during the forecast period, this region is likely to hold the largest share of the digital isolator market by 2028. This growth is attributed to the rising deployment of isolated gate drivers in electric and hybrid electric vehicles. Major digital isolator providers in the regions are Broadcom (US), Advantech Co., Ltd. (Taiwan), ROHM CO., LTD. (Japan), and Murata Manufacturing Co., Ltd. (Japan).

Rapid urbanization and increased investments in R&D by digital isolator manufacturers in Asia Pacific contribute significantly to the market growth. A few of the major players offering digital isolators, such as ROHM CO., LTD. (Japan), Renesas Electronics Corporation (Japan), Murata Manufacturing Co., Ltd. (Japan), Advantech Co., Ltd. (Taiwan), and MORNSUN Guangzhou Science & Technology Co. Ltd. (China) are headquartered in this region.

Digital Isolator Market by ASIA PACIFIC Region

Digital Isolator Market by Region

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Top Companies Digital Isolator - Key Market Players

• Texas Instruments Incorporated (US),
• Analog Devices, Inc. (US),
• Skyworks Solutions, Inc. (US),
• Infineon Technologies AG (Germany),
• NVE Corporation (US),
• ROHM CO., LTD. (Japan),
• Broadcom (US),
• Vicor Corporation (US),
• STMicroelectronics (Switzerland),
• Renesas Electronics Corporation (Japan),
• Murata Manufacturing Co., Ltd. (Japan),
• Semiconductor Components Industries,
• LLC (Onsemi) (US),
• TT Electronics (UK),
• TE Connectivity (Switzerland),
• Advantech Co., Ltd. (Taiwan),
• Amphenol Corporation (US),
• NXP Semiconductors (Netherlands),
• Microchip Technology Inc. (US),
• Littelfuse, Inc. (US),
• Monolithic Power Systems, Inc. (US),
• Kinetic Technologies (US), and
• MORNSUN Guangzhou Science & Technology Co. Ltd. (China), are some key players operating in the Digital Isolator Companies.

Scope of the Digital Isolator Market Size Report

Digital Isolator Market Highlights

This research report categorizes the digital isolator market based on Technology, Data Rate, Channel, Insulating Material, Applications, Vertical, and Region.

Recent developments

• In June 2023, Infineon Technologies AG (Germany) launched the first generation of its ISOFACE dual-channel digital isolators designed for robust high-voltage isolation and are pin-to-pin compatible with offerings from other suppliers. It provides modern designs with an optimized system bill of materials (BOM), reduced printed circuit board (PCB) area, accurate timing characteristics with lower power consumption, certified insulation life, improved common-mode transient immunity (CMTI), etc.
• In February 2023, Vicor Corporation (US) announced its distribution agreement with Avnet, Inc. (US), one of the global distributors of electronic components and services. The agreement expands access to Vicor’s power modules through Avnet’s world-class design and supply chain, enabling global customers to achieve world-changing innovation with higher system performance and greater scalability.
• In October 2022, Renesas Electronics Corporation (Japan) acquired Steradian Semiconductors Private Limited (India), a fabless semiconductor company providing 4D imaging radar solutions. With this acquisition, Steradian's leading-edge radar technology and engineering talent is expected to boost Renesas’ sensing solution offerings in a wide array of applications, including industrial systems.

Critical questions answered by this report:

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