Digital Isolator Market

Rising trend of industrial automation is driving the market growth

The increasing adoption of industrial automation across the manufacturing sector is a driving trend in the market. This isolator eliminates errors due to the ground loop in the industrial automation components. According to Fortune Business Insights, in 2021, the global industrial automation market size was valued at USD 191.89 billion and is expected to reach USD 395.09 billion by 2029, with a 9.8% CAGR during the forecast period. 

It is widely used for industrial automation product manufacturing, which acts as an isolation barrier and avoids noise. It has low latency, noise reduction, and high data rate transfer capabilities. Several leading players have increased their production capacity by launching advanced isolators through merger and acquisition strategies. This factor drives the Market CAGR.

It is additionally,Increasing Adoption of Industrial Robots and Consumers' Electronics Industry Aids Market Growth. The rising demand for isolation products across consumer electronics and robotics product manufacturing is driving market growth. According to the World Economic Forum, the global consumer electronics market is expected to be valued at USD 1 trillion by 2030 and is growing fast. 

This primarily results from a surge in disposable income and consumer spending on advanced technology-based devices. These are widely used in electronics circuit design, especially robotics and consumer electronics products. These devices are equipped with D.C. isolation type to prevent the potentially high voltage from harming the users and system. Industrial electronic equipment operates stably in harsh environments.It avoids unstable factors, including high solid electromagnetic fields, high current surges, high noise, and fast transients. It ensures that the device is operated without faults for a long and is reliable with a digital isolation circuit.Thus, driving the Digital Isolator market revenue.

The Global Digital Isolator Market Industry experiences a rising demand for safety and reliability in various applications, particularly in industrial automation and automotive sectors. As industries prioritize safety, digital isolators provide essential protection against voltage spikes and electrical noise. This trend is underscored by the projected market value of 1.9 USD Billion in 2024, reflecting a growing recognition of the importance of isolation technologies. Companies are increasingly adopting digital isolators to enhance system reliability, which is crucial in applications such as motor control and power management. This focus on safety is likely to drive further growth in the Global Digital Isolator Market Industry.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Digital Isolator market area will dominate this market; consumer electronics and automotive electrification account for a major portion of the demand for digital isolators.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: GLOBAL DIGITAL ISOLATOR MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Digital Isolator market accounts for the second-largest market share due to the good research and development backup for product development, and increasing investments in electric systems and products will secure the market development in this Region. Further, the German Digital Isolator market held the largest market share, and the U.K. Digital Isolator market was the fastest-growing market in the European Region.

The Asia-Pacific Digital Isolator Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due toemerging as a global manufacturing hub of electronic goods and the largest consumer, contributing to the market growth.Moreover, China’s Digital Isolator market held the largest market share, and the Indian Digital Isolator market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Digital Isolator market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Digital Isolator industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global Digital Isolator industry to benefit clients and increase the market sector. The Digital Isolator industry has offered some of the most significant advantages in recent years. Major players in the Digital Isolator market, includingAdvantech Co Ltd (Taiwan), Murata Manufacturing Company Ltd (Japan), NXP Semiconductors N.V. (the Netherlands), Broadcom Ltd (U.S.), Texas Instruments, Inc (U.S.), STMicroelectronics N.V. (Switzerland), Infineon Technologies AG (Germany), ON Semiconductor (U.S.)., and others, are attempting to increase market demand by investing in research and development operations.

With its headquarters in Wilmington, Massachusetts, Analogue Devices, Inc., often known as Analogue, is an American global semiconductor business with a focus on data conversion, signal processing, and power management technologies. Analog Devices launched a 10 Gb/ps data rate iCoupler digital Isolators series. The ADN4624 isolator has four 2.5 Gbps channels that allow data transfer in electrical domains. It is widely used in digital healthcare devices and smart industrial applications.

Texas Instruments Incorporated is an American technological business with its main office in Dallas, Texas. It creates and produces integrated circuits and semiconductors, which it then sells to producers and designers of electronics across the world. Texas Instruments Inc. introduced the first digital isolators with grade 0 ambient temperatures. This isolator was launched with the automotive electronic council Q-100 standards grade for automotive applications.