by The increasing adoption of data converters in various industrial applications and emerging technologies is driving the data converters market. Data converters are electronics devices that convert an analog signal to a digital signal or vice versa. They facilitate communication between analog and digital components within a system. Data converters are widely used in audio equipment, industrial process controls, communication systems, scientific instruments and many consumer electronic devices. The growing adoption of Industry 4.0 technologies such as robotics, Industrial Internet of Things (IIoT), machine vision and artificial intelligence is fueling the demand for data converters. Additionally, increasing deployment of 5G networks and rising penetration of consumer electronics is also driving the market growth.
Global Data Converters Market is estimated to be valued at US$ 9.94 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Data Converters Market Size are Analog Devices, Inc., Caelus Technology, Digikey, GlobalSpec, Infineon Technologies AG, Microchip Technology Inc., Omni Design, Renesas, ROHM CO., LTD., STMicroelectronics, Synopsis, Teledyne Technologies Incorporated, Texas Instruments, Faraday Technology Corporation, Asahi Kasei Microdevices, Cirrus Logic.
The increasing adoption of technologies like robotics, IIoT, machine vision and artificial intelligence in industries is fueling the demand for data converters. These technologies generate massive amounts of data which needs to be converted into a digital format for further processing.
The rising deployment of 5G networks worldwide and increasing penetration of consumer electronics such as smartphones, cameras, laptops and home appliances is driving the global expansion of the data converters market. Majority of consumer electronic devices integrate data converters to convert the analog signals generated internally into digital signals for further processing.
Market key trends
The growing demand for high resolution and high-speed converters is a key trend in the data converters market. With advancements in technologies generating high volumes of data like sensor networks, 5G, high definition video etc., there is a need for data converters that can operate at very high speeds of over 500 MSPS and deliver high resolution of more than 16 bits. Major players are focusing on developing next generation converters with breakthrough technologies to support emerging applications in areas such as autonomous vehicles, industrial automation, virtual/augmented reality etc.
Porter’s Analysis
Threat of new entrants: New companies can enter this market easily as there are no major entry barriers. However, established players have economies of scale and brand recognition advantages.
Bargaining power of buyers: Buyers have significant bargaining power in this market due to the availability of substitutes and undifferentiated products offered by competitors.
Bargaining power of suppliers: A few key component suppliers exist, giving them some power over manufacturers. However, data converters require generic components that are available from multiple suppliers.
Threat of new substitutes: New substitute technologies like digital signal processors pose a threat, but data converters still offer higher precision and flexibility.
Competitive rivalry: The market is dominated by a few large players and competition is based on performance, features and pricing.
Geographical Regions
In terms of value, North America dominates the data converters market holding over 35% share owing to the presence of major players and semiconductor companies in the region. The Asia Pacific region is also a major market concentrated in countries like China, Japan, South Korea and Taiwan.
The data converters market is expected to witness fastest growth in the Asia Pacific region at a CAGR of over 9% during the forecast period. This can be attributed to increasing demand for consumer electronics from countries like India and growing adoption of Industry 4.0 technologies in major APAC economies. Establishment of manufacturing units by global players will further drive the market in the coming years.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
