DATA CONVERTERS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Data Converters Market Size and Trends

The Global data converters market is estimated to be valued at US$ 6.13 Bn in 2024 and is expected to reach US$ 9.94 Bn by 2031, growing exhibiting a compound annual growth rate (CAGR) of 7.1% from 2024 to 2031. Increasing use of data converters in industrial automation equipment and growing demand for high speed data conversion are expected to drive the market growth during the forecast period.

Global data converters market is witnessing growth, owing to increasing investments by governments worldwide for the deployment of advanced technologies. Furthermore, growing adoption of internet of things across industrial and automotive sectors boosts demand. Rising need for high speed data transfer and connectivity is expected to drive the market growth. Developing economies in Asia Pacific and Middle East is expected to offer numerous opportunities for players in the near future.

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Market Driver: Rising Demand for Data Converters in Consumer Electronics

There has been rise in demand for data converters due to rising adoption of consumer electronics globally. In today's digitalized world, almost all consumer electronic devices such as smartphones, smart home appliances, tablets, wearable devices and Internet of Things (IoT) enabled products incorporate data converters to enable the conversion of analog signals to digital and vice versa. Most of these modern consumer electronic products have multiple data converters integrated to support different types of connectivity such as Wi-Fi, Bluetooth, USB, cellular as well as sensors. The continuous advancement of communication technologies have enabled new connectivity options in these devices that boosts the need for integrating additional data converters.

As more people across the world are able to afford smartphones and other smart electronic gadgets, the sales of consumer electronics increases steadily over the past few years. According to recent estimates, over 6 billion smartphones were shipped globally by 2023. Moreover, with 5G networks gaining widespread adoption, it is anticipated that more smartphone manufacturers will integrate multi-mode 5G modems into their flagship phones which heavily rely on data converters to support various frequency bands. Apart from communication, data converters also play a vital role in enabling key technologies such as biometric authentication, augmented/virtual reality, machine vision and advanced image processing capabilities in consumer devices. With technology breakthroughs advancing the features and capabilities of consumer electronics, the demand for high speed and power efficient data converters from the industry will increase in the near future. 

Market Drivers: Increasing Demand from Automotive and Industrial Sectors

The automotive and industrial sectors have strong influence on the growth of the overall data converters market due to the proliferation of advanced technology solutions. In the automotive sector, the role of data converters is expanding beyond traditional usage in engine and transmission control systems. With the rapid adoption of electric and autonomous vehicles, data converters are becoming increasingly important for enabling various ADAS (Advanced Driver Assistance Systems) features, battery management, infotainment systems as well as vehicle-to-everything (V2X) communication systems. Moreover, the requirements for higher operating frequencies and precision in automotive data converters are becoming more stringent to support advanced safety and driver assistance functions.