The Global Data Converter Market is estimated to reach $5.1 billion by 2026, growing at a CAGR of 5.4% from 2021 to 2026. The data converters convert voltage values between the two different domains of continuously changing analogue signals and discrete digital signals. The increasing adoption of technologically advanced data acquisition system and demand for high resolution images in scientific and medical applications have driven the growth of the market.
In addition, the evolution of wireless communication networks and connected devices, for instance 5G wireless communication networks, have also fueled the growth of the market. The demand for improved voice and data services, data acquisition systems and quality attributed for the fourth-generation network with advanced modulation and antenna techniques. Owing to these reasons the demand for data converters are attributed to go high as they provide flexible and precise conversion along with the critical details about a set of data.
Data Converter Market Segment Analysis – By Type
By Type the market is segmented into Analog-to-Digital Converter, Digital-to-Analog Converter. The analog to digital converter are witnessing significant growth of 6.6% through the forecast period 2021-2026 in the market owing to the growth of connected devices and consumer electronics, growth of medical sector where these analog to digital converters and data acquisition systems are used in medical devices, used in scientific instruments and others. According to Intelligence Node, the number of smartphone users in United States crossed 260 million in April 2020, and smartphone shipments reached $161 million in 2019. Owing to the rising competition aimed at improvement of networks and expansion of the reach and capabilities of new technologies two players such as Movistar and Digitel are planning to make investments. These investments will ensure good communication due to which analog-to-digital converters will get opportunities to grow in the market.
Data Converter Market Segment Analysis – By Industry Vertical
By Industry Vertical segment, the market is classified into Aerospace and Defense, Automotive, Telecommunications, Consumer Electronics, Industrial, Medical, Test and Measurements, Others. The Telecommunication sector is dominating the market with a share of 19.2% in 2020 owing to the wide use of data converters for wireless communications, use in smartphones and other electronic gadgets. The fixed wireless broadband is increasing adopted as it uses base stations to transfer signal from building to building. It is just like satellite communication. The fixed wireless broadband has low latency and is faster than the 4G cellular networks. Owing to these benefits it is mostly preferred for public safety purposes. The fixed wireless broadband connects fiber, cable or DSL internet through radio and receiver between two fixed locations. The speed is high and bandwidth is also very high owing to which this technology is adopted globally thereby driving the growth of the market. Advancing broadband technologies, such as 3G, 4G and 5G, offers an incentive for the successful user sector of optical cable to guarantee better penetration and reliable data. The aerospace and defense segment is also showcasing increased growth as demand for electronic warfare system, radar and other such solutions drives the data converter market.
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Data Converter Market Segment Analysis – By Geography
By Geography the Data Converter Market is dominated by North America with a market share of 37.5% in 2020. North America is dominating the market owing to the growth of telecommunication, Consumer Electronics and Automotive sectors. In United States, the consumers are increasingly concerned about long term growth in personnel wealth. This factor is resulting in low density living and increasing volume of households which is thereby leading to the demand for connected devices and consumer electronics as the consumers are using smart phones, television, personal computers. There is a requirement of good internet connectivity in these electronic devices. The high demand for consumer electronics is driving the growth of the market in this region. IoT and connected devices is widely being used in Canadian markets as the tracking and monitoring of vital assets has become much simpler through the use of this technology. Moreover, connected sensors that transmits the location of vehicles are used to track the status of machines and containers. All these applications are carried out through the use of active optical cables which are responsible for maximum data transmission. These factors are boosting the growth of the market.
Data Converters Market Drivers
Growth of the Telecommunication Industry
The government of United Kingdom funded $5 billion for the rural areas in 2020. This investment is to enhance the communication channels in the rural areas of the UK. In addition, high usage of smart phones, tablets and many such electronic devices for prolong hours, people are using high speed internet along with use of local area networks and wide area networks. These networks are using data acquisition systems and converters for better audio and video communication transmission over long distances and at higher bandwidths. Further growth of the telecommunication sectors, consumer electronics, aerospace and industrial sectors are anticipated to boost the growth of the market in the forecast period.
Growth of the Automotive industry accompanied with the technological advancements
The data converters consist of wireless transceivers due to which communication is possible with fixed network or other vehicles. Several Automotive giants are looking to expand their business in the country. For instance, General Motors Co and its suppliers will invest a total of $500 million in Argentina operations through 2019 to prepare for the production of autonomous vehicles with advanced specifications by 2020. The innovations and funding in automotive industry have led to the manufacturing of cars which are equipped with radar distance control in front of the car, voice activated controls, bluetooth connections with smartphones for the easy of communication and CD players. These latest technologies have driven the market growth as they use data converters widely for these applications in automotive industry. In addition, Fiat Chrysler is set to invest $500 million in Argentina plant for the production of advanced vehicles. These production investments in automotive sector will bring opportunities for data converters in the forecast period.
Data Converters Market: Challenges
Challenges related to the complex integration of data converters
Although the data converters are finding their applications in major industrial sectors but the integration of RF data converters into FPGA and system-on-chip is a complex task. The utilization of FPGA and system-on-chip in smart devices requires a lot of knowledge. These factors are hindering the growth of the market.
Data Converters Market Landscape
Data Converters Market is dominated by major companies such as Analog Devices, Inc., Microchip, Inc., Maxim Integrated, Texas Instruments, Avia Semiconductor, DATEL, Asahi Kasei MicroDevices, IQ- Analog, Cirrus, Renesas Corporation, among others.
In June 2019- Analog Devices, Inc., introduced a platform which helps to combine high-performance analog and digital signal processing for a range of wireless equipment such as 4G LTE and 5G millimeter-wave (mmWave) radios. The platform is a mixed signal front end RF data converter
The growth of Telecommunication sector along with the growth of automotive sector and advancement in technologies are driving the growth of the market.
The analog-to-digital converters are witnessing a significant growth in the market due to wide application in oscilloscopes, scientific instruments, smart phones and other electronic gadgets.
In North America, rise in IT and telecommunication sector is driving the market growth due to the development of wireless networking, image processing, network signal processing and others.
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