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Digital Isolator Market is Dominated by the Capacitive Coupling Category

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Ritik Sinha
Digital Isolator Market is Dominated by the Capacitive Coupling Category

As per a report by P&S Intelligence, the digital isolator market generated a value of USD 2,169 million in 2022, and it will reach USD 4,135 million, propelling at an 8.4% compound annual growth rate, by 2030.


The growth of the industry is attributed to the increasing requirement for noise-free electronic and electrical devices, the rising acceptance of digital isolators as substitutes of optocouplers, and stringent battery safety requirements for vehicles.


In 2022, the capacitive coupling category, based on technology, accounted for the largest digital isolator market share. The advantages of implementing a capacitive isolation barrier are resistance to magnetic fields and size and energy transfer efficiency. 


In 2022, the automotive category, based on vertical, accounted for the largest share, of approximately 36%. The integration of electronic engine control systems has revolutionized vehicles, turning them from a simple physical mechanical systems integration into a complex system of microcontrollers, sensors, and various electronic components.


Automotive manufacturers are swiftly embracing this emerging technology and expanding their expertise to incorporate more electronic components into their vehicle models. With the advent of e-vehicles and hybrid e-vehicles, manufacturers are phasing out the outdated 12-volt low voltage, low-power systems, opting instead for modern BEVs and HEVs equipped with systems rated at 800 volts, and the potential for even higher voltages in the future.

 

The demand for digital isolator products is growing at nearly double the rate of the overall isolator industry, indicating a rising assurance among end users to transition from conventional optocouplers to digital isolators. 


In 2022, the APAC industry accounted for the largest share, of approximately 40%, because China is the manufacturing hub of electronic devices and various other equipment. Over the last five years, the electronic component manufacturing sector revenue in the nation advanced at a 5.5% rate annually, reaching approximately USD 0.3 trillion in 2022. 


Moreover, over the past decade, China has been at the forefront of electronics manufacturing. Despite the challenges posed by COVID-19 restrictions and the recent trade tensions with the U.S., the country continues to play a pivotal role in global electronics manufacturing. China is responsible for exporting nearly half of the world's laptops and cell phones.


In 2022, the North American digital isolator industry accounted for a significant share, of approximately 31%. This is ascribed to the growing e-vehicles sales in the region, as well as the rising emphasis of the manufacturers to increase their adoption.


It is because of the strict safety requirements for automotive batteries and the replacement of optocouplers by digital isolators, the global digital isolator industry will continue to advance in the years to come.


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