The global digital isolator market is projected to generate USD 4,135 million revenue by 2030, advancing at a CAGR of 8.4% during 2022–2030. This can be ascribed to the stringent automobile battery safety requirements, rising sales of noise-free electronic and electrical devices, and rampant replacement of optocouplers with digital isolators.
This device isolates digital signals between the elements of a system without the requirement for optocouplers. The device consumes extremely less power (in the mW range), can interface relatively high-speed signals (up to 150 Mbps), and offers high electrical isolation, of up to 5 kV. Applications that require digital isolators include serial interface isolation, digital high-speed multichannel circuits, and instrumentation for monitoring digital signals. Digital isolators are AC-coupled, with the DC component of a signal not communicated.
The healthcare category held a significant share in 2022. In medical applications, patients are at a perpetual risk of shocks from electrical devices. The human body contains a large amount of saltwater in the cytoplasm and blood, inside the protective covering of the skin. Dry skin is a good insulator, and saltwater is a good conductor of electricity. The physiology inside the body is monitored by several medical devices and also reduces the skin resistivity which means any signal coming from the electrical devices that is redundant can cause currents to flow through the patient. This could result in interference with muscles, such as the heart, disruption of the nervous system, or a severe electric shock, in extreme cases.
Additionally, digital isolators are becoming more mobile, as they are smaller, and they have the ability to prevent harm to elderly patients. These isolation devices are smart, as with the availability of monitoring information, they can be properly configured to perform their intended tasks. Additionally, they are safer, as they offer the operational performance and electrical safety of the older hospital-based versions even if someone untrained is using them. Further, they can be programmed and updated easily.
Europe held a significant share in 2022, and with digital transformation, the adoption of pioneering semiconductors in European countries is expected to double over the forecast period. The electronics & electrical engineering sector in the region is large and growing quickly. The demand for noise-free electronics and electrical devices is increasing in various applications, thus leading to growth in the integration rate of digital isolators.
Moreover, the automotive industry is one of the largest in the region, contributing more than 6% of its GDP. In 2021, vehicle sales in Europe increased by almost 10% from 2020. The major automotive manufacturers in the region are Volkswagen AG, Ferrari S.p.A., Honda Motor Europe, Iveco Group, Bayerische Motoren Werke AG, Ford Motor Company (Europe), Hyundai Motor Europe, Jaguar Land Rover, Mercedes-Benz Group AG, Renault Group, Stellantis, AB Volvo, and Toyota Motor Europe. The increasing production of EVs and the presence of major manufacturers with a great brand value and strong technological and financial capabilities are expected to boost the demand for digital isolators in the region during the forecast period.
The major players operating in the digital isolator market include Texas Instruments Incorporated, Analog Devices Inc., Skyworks Solutions Inc., Infineon Technologies AG, NVE Corporation, Rohm Semiconductor, Broadcom inc., Vicor Corporation, STMicroelectronics N.V., and Renesas Electronics Corporation.