According to the new research report on " Data Converter Market Forecast to 2030 - Global and Regional Share, Trends, and Growth Opportunity Analysis," published by The Insight Partners, the market is expected to reach 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 data converter market size is likely to surge by 2030 owing to factors such as potential use of IoT devices and data consumption and growing use of data converters in developing advanced 5G infrastructure.
Data Converter Market Trend:
Rise of High-Speed Data Converters
High-speed data converters are considered one of the most challenging and crucial analog and mixed-signal systems. They are ubiquitous in a modern and highly connected world. Understanding and designing these converters requires proficiency in analog circuit design, digital design, and signal processing.
The proliferation of high-speed communication standards such as 5G, Wi-Fi, and others propels the demand for data converters capable of handling higher sampling rates and wider bandwidths. High-speed ADCs and DACs are essential components in telecommunications infrastructure, networking equipment, and multimedia systems, enabling faster data transmission and improved signal integrity. As data rates continue to escalate, the development of ultra-fast converters remains a key focus for semiconductor companies, which further considered as data converter market trend.
Moreover, market players are engaged in offering high-speed data converters. In November 2023, Renesas Electronics Corporation, a premier supplier of advanced semiconductor solutions, expanded its 32-bit microcontroller (MCU) offering with a new RX device for high-end industrial sensor systems. The latest addition, the RX23E-B, is a 32-bit device from its popular RX Family. It features a high-precision analog front end (AFE) specifically designed for systems that demand fast and accurate analog signal measurements. As many companies are engaged in launching high speed data converters, several industries such as automotive, communication, etc. are adopting these converters and will continue to adopt in coming years to cater the demand for high-speed data conversion. Considering these parameters, rise in demand for high-speed data converters would fuel the data converter market growth in the future.
Data Converter Market Segmental Overview
The "data converter market analysis" has been carried out by considering the following segments: type, resolution, rate of converter, and application. Based on type, the market is bifurcated into ADC and DAC. By resolution, the market is segmented into 10 bit, 12 bit, 14 bit, 16 bit, and others. The data converter market, based on rate of converter, is segmented into up to 50Msps, 51Msps to 100Msps, 101Msps to 200Msps, 201Msps to 500Msps, 501Msps to 1Gsps, and above 1Gsps. By end user, the market is segmented into automotive, communications, consumer electronics, industrial, medical, and others.
Based on end user, the data converter market is segmented into medical, industrial, communications, consumer electronics, automotive, and others. The choice of data converters depends on the requirements of the industry. Industrial instrumentation, medical imaging, 5G, wireless devices, and RADAR processing are among the key applications gaining high momentum in different parts of the world. With the increase in the mentioned applications, the data converter market size is expected to grow in the forecast period.
The consumer electronics segment held the largest data converter market share in 2022 accounting for 31.6% and is expected to account for 28.6% by 2030. Consumer electronics such as smartphones, wearables, laptops, tablets, and peripheral devices are among the key application areas of data converters. The rising adoption of consumer electronics products such as laptops and smartphones in developed and developing countries is attributed to the elevating population disposable income and growing Internet penetration. Advancements in smartphone technologies and increasing digitalization are significant factors that propel the growth of the data converter market. Data converters are the common circuits found in every electronic system. High-speed and low-speed data converters are general-purpose data converter devices ideal for signal distribution in a large variety of systems, from personal computers to consumer electronics and high-performance networking and consumer communications systems.
Synchronized data converter devices allow for the timely communication of messages over a business network. Unsynchronized data converting systems can lead to false alarms, erroneous decisions, and flawed outcomes, which might result in a major setback for plant operations. Synchronized data signals provide the foundation for process optimization, particularly in high-risk industries with stringent safety and recording requirements. Thus, the manufacturing industry utilizes high-speed data converter solutions to ensure synchronized data sharing. In the industrial sector, instrumentation, precision, industrial control, and assembly-line robots are among the prominent use cases of data converters. China, the US, Japan, Germany, and India are a few leading and topmost manufacturing countries across the world. Production at factories in the US rose in November 2023 compared to 2022. According to the Federal Reserve, the manufacturing output rose by 0.3 %. The growing industrial sector in the countries mentioned above accelerates the penetration of data converters and makes the industrial process smarter and more automated. Moreover, with the rising trend of adopting industrial imaging solutions, the use of data converter solutions, including high-speed data converters, is expected to fuel industrial segment growth in data converter market in the coming years.
Data Converter Market Competitive Landscape and Key Developments
The data converter market report is based on the annual performances of major players such as 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. Several other essential data converter market players were analyzed to get a holistic view of the market and its ecosystem. The data converter market report emphasizes the key factors driving the market and prominent players' developments.
Key Findings of Study:
The constantly growing demand for data converters has forced the market players to raise investments in the development of new and innovative product offerings. A few of the major product developments are mentioned below:
In November 2023, Renesas Electronics announced the launch of a new 32-bit microcontroller in its RX family, this time bringing with it a high-precision analog front-end (AFE) providing 24-bit resolution at up to eight times the speed of its predecessor. The stand-out feature of RX23E-B is its analog front-end (AFE), a 24-bit delta-sigma ADC, which delivers a claimed sampling rate of 125,000 samples/second (125kS/s), an eightfold improvement on the company's earlier RX23E-B, according to Renesas, with a 31.25kS/s variant available offering a reduced power draw.
In February 2023, Agile Analog, an analog IP innovator, extended its range of data conversion IP with introduction of the first customizable, process-agnostic, 12-bit ADC.
In February 2024, Asahi Kasei Microdevices Corporation (AKM) developed the AK5707, a low-power monaural 16-bit ADC equipped with the acoustic activity analyzer (AAA), a specific sound detection function. Operating at only 34