Data Converter Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (DAC and ADC), Sampling Rates (High Speed Converters and General/Low Speed Converters), Application (Medical, Industrial, Communications, Consumer Electronics, Automotive

Data Converter Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (DAC and ADC), Sampling Rates (High Speed Converters and General/Low Speed Converters), Application (Medical, Industrial, Communications, Consumer Electronics, Automotive, and Others), Resolution (10–14 bit, Above 14-20 bit, and Above 20 bit), and Rate of Converter (Below 100Msps, 100-500Msps, Above 500Msps-1Gsps, and Above 1Gsps-3Gsps)

The Data Converter market size is projected to reach US$ 8,281.72 million by 2028; it is expected to grow at a CAGR of 8.4% from 2022 to 2028.

A data converter is an electronic circuit that converts data from one form to another, i.e., digital-to-analog (ADC) or analog-to-digital (DAC). The circuits operating with analog signals are analog circuits, while circuits operating with digital signals are digital circuits. The high-speed ADCs are appropriate for industrial instrumentation, infrastructure, communications systems, industrial process control, data acquisition, measurement and control systems, and other sensory-based systems. Further, DACs are suitable for medical/test instrumentation and equipment, communication systems, and video applications.

Communication and protocol conversion; industrial control and measurement; 5G, wireless communications, wireline communications, LiDAR, and RADAR; automotive Ethernet; and image sensors are among the major applications in which data converters are used. With an increasing demand for real-time information in these applications, the requirement for data converters would continue to grow in the coming years. Data converters have the potential to support high-speed operations with great precision and ease, which is bolstering their demand in industrial, communication, consumer electronics, and medical applications. They also simplify system designs while enhancing accuracy, lowering power, boosting bandwidth, and decreasing costs. With an increasing applications of data converters globally, the data converter market is projected to rise at an exponential rate.

The data converter market in APAC is expected to grow at the highest CAGR during the forecast period. China and India have many domestic manufacturers of data converters. In addition to this, the growing telecommunications, automotive, and consumer electronics industries in APAC and rising investments by governments in the expansion of the semiconductor industry boost the data converter market growth in the region.

In 2021, China dominated the APAC data converter market growth. China is the world’s largest manufacturing hub and produces ~36% of the world’s electronics, which include smartphones, computers, cloud servers, and telecom infrastructure. In addition, China is the second-largest consumer of electronic devices embedded with semiconductors, after the US. In 2020, China imported semiconductors worth ~US$ 378 billion and assembled ~35% of the world’s electronic devices, which accounted for 30–70% of the global TV, PC, and mobile phone exports; the country consumed one-quarter of all semiconductor-enabled electronics. Moreover, the Made in China 2025 initiative aims to achieve 70% self-sufficiency in semiconductors by 2025. In 2019, National Integrated Circuits Industry Development Investment Fund financed more than US$ 35 billion in the semiconductor industry in China. Thus, the rising government investments in this industry would boost the Chinese data converter market share in the coming years.

COVID-19 Impact on Data Converter Market

Manufacturing facilities were fully operational in major electronics and semiconductor producing countries in Asia Pacific, such as India, Japan, and China, in 2020. In October 2021, Taiwan Semiconductor Manufacturing Company, Limited (TSMC) announced a plan to build a new factory in Japan to meet the growing demand for semiconductor-based components during the COVID-19 pandemic. However, NXP Semiconductors and STMicroelectronics, among others, had to cease operations at their manufacturing facilities in Malaysia for as many as 14 days due to the surging number of COVID-19 cases in the Q3 of 2021. Asia Pacific is known for its robust industrialization, and many companies from diverse industries came up with wireless communication solutions to run their operations virtually.

Several nations in the rest of Asia-Pacific are experiencing rapid urbanization; as a result, IT and telecommunication infrastructure demand in APAC are more robust which will fuel the growth of the data converter market in the region. The rising demand for consumer electronic devices such as smartphones, tablets, smart TV, and others in the countries in the rest of APAC region is propelling the data converter market in the forecasted period. Country such as Taiwan competes with China, South Korea, and Japan for the manufacturing of semiconductor and electronic components in APAC. Smartphones and computers are the key products of Taiwan's consumer electronics manufacturing sector. The county is also recognized for exporting different and distinct kind of electronics. Components such as modules, camera lenses, and power supplies are few products exported by the country. TSMC, ASE Technology Holding Co., Himax Technologies Inc., are some of the largest Taiwanese companies. The strong hold on consumer electronics by Taiwan is expected to generate profitable opportunities for data converter manufacturers. Similarly, Vietnam is another country making its position in the field of electronics manufacturing. Nowadays, the country is witnessing presence of major electronic companies with manufacturing plants also. Samsung, HP, LG, Foxconn, and Canon are some of the companies having significant operations in Vietnam. Such increasing base of consumer electronics is projected to boost the demand for data converters also and therefore contributing towards data converter market.

Analog Devices, Inc.; Texas Instruments Incorporated; NXP Semiconductors; STMicroelectronics; and ROHM CO., LTD. are few data converter market players profiled in the market study. The market is highly fragmented with several players localized in a specific region to cater to domestic demands. Microchip Technology; Omni Design Technologies, Inc.; On Semiconductor; Renesas Electronics Corporation; and Synopsys, Inc.; are among other data converter market players considered during the market study.

The overall data converter market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information about the market. The process also obtains an overview and forecast of the data converter market size with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the data converter market. The participants typically involved in this process include VPs, business development managers, market intelligence managers, national sales managers, and external consultants—such as valuation experts, research analysts, and key opinion leaders—specializing in the data converter market.

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