Digital Isolator Market projected to reach USD 2.7 billion by 2027, at a CAGR of 8.3%

The digital isolator market size is estimated to be USD 1.8 billion in 2022 and projected to reach USD 2.7 billion by 2027, at a CAGR of 8.3% during the forecast period. The market is driven by factors such as a rise in adoption of digital isolators as alternatives to optocouplers, an increase in demand for noise-free electronics and electrical devices, a surge in adoption of digital isolators as gate drivers, rapid adoption of digital isolators for industrial motor-drive applications, stringent battery safety requirements for automobiles, and surge in the use of renewable energy sources.

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Globally, the digital isolator market is expected to be dominated by the capacitive coupling segment in 2022. Capacitor coupling isolation type isolators are comparatively inexpensive. Capacitive couplings account for the majority of the market share due to this factor. In the forecast period, the giant magnetoresistive segment will grow at the highest CAGR. The growth of this segment is attributed to digital isolators based on giant magnetoresistive isolation having better sensitivity and accuracy than digital isolators based on capacitive coupling and magnetic coupling. Isolators based on giant magnetoresistive isolation are also fast, with switching speeds up to 150 Mbps, and with propagation delays between 10 ns and 15 ns. Additionally, the materials used in these isolators prolong their shelf life.

In terms of value, the 75 Mbps segment is expected to dominate the global digital isolator market from 2021 to 2026. Due to the increased adoption of giant magnetoresistive (GMR) isolation type in digital isolators, the segment has experienced growth due to its improved accuracy and high data rate. With data rates over 75 Mbps, digital isolators also reduce propagation delays, thereby delivering smooth, sensitive, and accurate data signals at their output end without any major delays. Digital isolators with data rate of less than 25 Mbps are relatively inexpensive and can serve as good substitutes for optical isolators used in general-purpose applications.

Based on geography, the digital isolator market has been divided into North America, Asia Pacific (APAC), Europe, and the Rest of the World (RoW). As a result of the presence of a number of key electrical device and equipment manufacturers in the region, the Asia Pacific digital isolator market is projected to hold the largest share during the forecast period. Additionally, digital isolators are widely used in gate drivers and analog to digital converters in the Asia Pacific. China is one of the most technologically advanced nations in the Asia Pacific. Digital isolators are a major market contributor in the Asia Pacific. Due to the presence of a large number of electric vehicle manufacturers, particularly in China, South Korea, and Japan, Asia Pacific is a developing region. Considering the futuristic view of electric vehicles with zero emissions, the region is a key producer of automobiles. During the forecast period, the digital isolator market is expected to grow significantly in this region. A few key players operating in the Asia Pacific digital isolator market include ROHM Semiconductor, Broadcom, Murata Manufacturing, Advantech, and MORNSUN.