Digital Isolator Market Overview
The Digital Isolator market size is forecast to reach US$ 2,401 million by 2027, growing at a CAGR of 9.81% from 2022 to 2027. Digital isolators consist of metal-oxide-semiconductor (CMOS), Complementary Metal Oxide Semiconductor, Giant Magnetoresistive, Capacitive Coupling and circuit-based isolators, acting as an isolation barrier that finds applications as an alternative to traditionally used optocouplers and offers several advantages such as power savings, digital signals and higher data rates among others. Digital isolators are incorporated for meeting a wide range of regulations The growing trend of industrial automation is expected to remain a key growth driver for digital isolators during the period of study. The most widely used applications for digital isolators are in factory automation. The digital isolators are used in equipment such as process control, PLC (programmable logic controllers) or PAC (process automation controllers), inverters for motor control and uninterruptable power supplies (UPS). Digital isolators further facilitate part-to-part matching in factory automation and provide a barrier to noise. are extensively used in electronic, electrical and communications systems.
Digital Isolator Market Report Coverage
The report: “Digital Isolator industry outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Industrial Internet of Things (IoT) Shield industry.
- The silicon dioxide-based (SiO2) segment in the digital isolator market segmented by insulation material accounted for the largest Digital Isolator market share with 56% in terms of revenue, in 2021. The material has a high adoption in digital insulators used in the manufacturing sector.
- The automotive segment in the digital isolator market segmented by end-use is expected to grow at the fastest rate over the forecast period, 20222 to 2027. The switch from IC vehicles to EV vehicles is expected to be a key factor resulting in the high CAGR over the forecast period, 2022 to 2027.
- Asia Pacific accounted for the largest Digital Isolator market share with 35%, in terms of revenue, in 2021. Digital isolators are popularly used in ADC converters in this region thus resulting in a high revenue share.
Digital Isolator Market Segment Analysis - by Insulation Material
The digital isolator market by insulation material has been segmented into polyimide, silicon dioxide and others. The silicon dioxide-based (SiO2) segment in the digital isolator market segmented by insulation material accounted for the largest Digital Isolator market share with 56% in terms of revenue, in 2021. The revenue for the segment can be attributed to the high adoption of silicon dioxide as an insulation material by many top players operating in the market. Silicon dioxide is an amorphous material that finds application in microsystems as a dielectric in transistors and capacitors like an insulator to various electronic elements. In July 2022, Texas Instruments in their digital isolator design guide mention that the company uses silicon dioxide built, high-voltage capacitors to work as an isolation component. They further mentioned in the design guide that their TX and RX circuits, have two different architectures which include and On-Off Keying (OOK) and Edge-based.
Digital Isolator Market Segment Analysis - by End-user
The digital isolator market by end-user has been segmented into Power & Energy, Telecommunication, Aerospace & defense, Automotive, Consumer Electronics, Healthcare and Others. The automotive segment in the digital signals isolator market segmented by end-use is expected to grow at the fastest CAGR with 12.1%, over the forecast period, 20222 to 2027. The switch from IC vehicles to EV vehicles is expected to be a key factor resulting in the high CAGR over the forecast period, 2022 to 2027. The digital isolators find application in electric motor vehicles which also includes Capacitive Coupling. Electric motor power pure electric vehicles and Hybrid electric vehicles and plug-in hybrid electric vehicles. The advent of electric vehicles is driving the high growth CAGR of digital isolators in the automotive industry over the forecast period, 2022 to 2027. In 2022, some of the key players offering digital isolators for automotive applications include NXP Semiconductors, Analog Devices, Silicon Labs (now part of Skyworks), Texas Instruments and Infineon Technologies, among others.
Digital Isolator Market Segment Analysis - by Geography
The industrial internet of things (IoT) shield market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America and the rest of the world (RoW). The Asia Pacific accounted for the largest share in the digital isolator market with 35%, in terms of revenue, in 2021. Digital isolators are popularly used in ADC converters by most companies in the region thus resulting in a high revenue share. The Capacitive Coupling technology further plays a key role. The region is also expected to grow at the fastest rate over the forecast period, 2022 to 2027. The region is also the largest manufacturer of electric vehicles, this is directly creating high growth opportunities for the Digital Isolator market size growth.
Digital Isolator Market Drivers
Growing preference of digital isolators over traditionally used optocouplers is driving the growth of the market
The application of digital isolators over optocouplers have a wide range of advantage which includes advantage in terms of size, the digital isolators are faster, use less power consumption, are reliable and easier to integrate into a module. Traditionally designers had limited options when it came to choosing a proper isolation barrier system used in modules for healthcare, and industrial applications. Understanding the nature and interdependence of three key elements of a digital isolator is important in choosing the right digital isolator. These elements are insulation material, their structure and data transfer method. These are key factors driving the application of digital isolators, thus aiding in Digital Isolator market size growth in terms of revenue. In 2022, according to an article published by Analog Devices, Inc., designers are switching to incorporating digital isolators to abide by safety regulations or the reduction of noise. The article further confirms the application of digital isolators offers performance advantage in an industrial motor drive application.
The integration of a wide range of components, modules and equipment, which function at different levels of voltage is driving the demand for digital isolators.
There is a growing trend to integrate digital isolators in a wide range of machines to isolate machines from the electricity to disrupt the current flow direction. This is done to address the challenge faced by end users and manufacturers while they look to run their facilities and equipment at low-cost controls, after-market machine components, and reduce machine downtime, among others. Further, they are combining high-current machines, high-voltage industrial CNC machines and robots with low-current, low-voltage. This situation is a challenge for the system integrators and this challenge can be overcome with the integration of digital isolators. Capacitive, inductive and various other techniques are used for powering different sections of electrical systems. In high-voltage equipment, digital isolators provide signal isolation and level-shifting to ensure proper operations of different circuits. They also protect users from electric shocks. This is driving the market growth in terms of revenue. In 2020, Digi-key announced the launch of its industrial communication networks which are protected with the integration of digital isolators. digital isolation, based on chip-scale transformers, has made possible RS-422/RS-485 transceivers that integrate both isolated DC-DC regulators and a three-channel signal isolator on a single chip.
Digital isolation barrier devices are key for the efficient functioning of connected factories.
These devices are used in data acquisition systems, sensors and high-speed communication infrastructures of connected factories. The explosion of the industrial Internet of things (IIoT) is predictable to increase demand for the digital isolator market during the forecast period, 2022 to 2027. The IIoT market is expected to grow at a CAGR of 12.1%, from 2022 to 2027. In 2021, some of the examples of key players offering digital insulators are Silicon Labs provides the Si838x PLC input isolator, i834x isolated switch and Si875x SSR replacement systems ideal for industrial automation equipment.
Digital Isolator Market Challenge
High cost of integrating digital isolators compared to traditionally used optocouplers
Digital isolators are expensive compared to traditionally used optocouplers. Therefore, small companies prefer to use low-cost isolation barrier solutions over digital isolators. Some companies have priced their digital isolators at a lower cost. However, these products have limited utility or application. To achieve channel counts and functional integration, they are fabricated with conventional semiconductor process technology. therefore, the high cost of digital isolation barrier technologies used in digital isolators is posing a key challenge for the market growth. Thus, the high cost of integrating digital isolators is a key challenge faced by the players operating in the digital isolator market. However, designers, also looking for metal-oxide-semiconductor (CMOS) process technology which is used in digital signals isolators is gaining popularity. These techniques will help the designers to create compact, low-cost, reliable and high-performance digital isolated circuits that consume less power than the optocouplers. This is expected to drive the market in the near future. In 2020, according to a report by WTWH Media LLC, the application of an optocoupler saves a great deal of the cost of replacing components and makes it convenient to control the connection between two circuits by connecting/disconnecting an optocoupler. The application of optocouplers over digital isolators can save 30% – 40% of the cost.
Digital Isolator Market Outlook
Product launches, acquisitions and R&D activities are key strategies adopted by players in the Industrial Internet of Things (IoT) Shield industry. The top 10 companies in the Digital Isolator market are:
- Murata Manufacturing Company Ltd. (Japan)
- Advantech Co. Ltd. (Taiwan)
- NXP Semiconductors NV (The Netherlands)
- Texas Instruments
- Analog Devices (US)
- Broadcom Ltd. (US)
- ST Microelectronics NV (Switzerland)
- ON Semiconductor (US)
- Infineon Technologies AG (Germany)
- Digi – Key Corporation
- In 2022, Texas Instruments announced the launch of its new ultralow power, four-channel digital isolator. multichannel digital isolator that can be used to isolate CMOS or LVCMOS digital I/Os. This product launch is expected to provide a competitive advantage to the company over other players present in the market
- In 2022, Texas Instruments announced the launch of its new low-ripple, low-emission, quad-channel, 4/0, reinforced digital isolator which is integrated with integrated power. This product launch will help the company is widening it product portfolio in the digital isolator. Thus, gaining a competitive advantage over its competitors.
- In August 2022, according to Asia Pacific Power Seminar. Growing need for the bandwidth for factory automation, the CMOS-based digital isolators enable a perfect solution.
- In 2021, onsemi announced the launch of its new high-speed dual channel, Bi-Directional Ceramic Digital Isolator. This launch is expected to provide a competitive advantage to the company over other players operating in the market.
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