Digital Isolator Market by Technology (Capacitive, Magnetic, GMR), Data Rate (25 to 75 Mbps, More Than 75 Mbps), Channel, Insulation Material, Application (Gate Drivers, DC/DC Converters, ADCs), Vertical and Region - Global Forecast to 2028
[243 Pages Report] The digital isolator market was valued at USD 1.9 billion in 2022 and is projected to reach USD 3.1 billion by 2028, growing at a CAGR of 8.6% during the forecast period from 2023 to 2028. Factors such as growing focus on utilizing digital isolators in high-altitude operations, increasing use of isolators in harsh environmental applications creates lucrative opportunities whereas inability of digital isolators to transmit low-frequency signals without modulators is a major restraint for the growth of the digital isolator market.
Digital Isolator Market Forecast to 2028
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Market Dynamics:
Driver: High demand for digital isolators from electric vehicle and battery pack manufacturers
Automobile original equipment manufacturers (OEMs) worldwide are setting ambitious targets to launch new models of battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and full-hybrid electric vehicles (FHEVs). The BEV mode of transportation is known for its smooth, silent, and eco-friendly ride. As the automobile industry is moving toward electric vehicles, high-wattage power electronics are becoming essential components in the new electronic drivetrain and battery systems. However, EV batteries are susceptible to voltage transients and electrical noise, which can potentially damage sensitive electronics. Digital isolators act as a barrier, protecting critical components from these transients. By providing a barrier between high-voltage and low-voltage sections, digital isolators safeguard the integrity of control signals and data transmission, contributing to the longevity and reliability of the EV battery system. Digital isolators also prevent ground loops, reduce the risk of electrical faults, and enhance the overall safety of the EV battery system. In the event of a fault, digital isolators help contain the impact, preventing the spread of electrical issues. The use of digital isolators enhances the overall reliability of the EV battery system by reducing the risk of electrical faults and ensuring robust communication between components. This increased reliability contributes to the efficiency of the battery system, allowing for optimal performance and longevity. Further, digital isolators facilitate seamless integration with control systems, enabling precise monitoring and control of various parameters within the EV battery. This integration is essential for implementing advanced battery management strategies, optimizing charging and discharging cycles, and ensuring the overall health of the battery pack.
Restraint: Inability of digital isolators to transmit low-frequency signals without modulators
High-frequency signals can be transmitted directly by capacitive/magnetic digital isolators. However, when dealing with low-frequency signals, between 0 and 100 Kbps, signal isolators witness signal integrity and distortion issues, resulting in diminished performance. The absence of modulators exacerbates this issue, as modulation techniques are often employed to enhance the transmission of low-frequency signals in various communication systems. Digital isolators lack the built-in modulation mechanisms necessary to efficiently handle these specific frequency ranges. Hence, there is a need to integrate external modulators or explore specialized isolator designs tailored for low-frequency applications. Thus, the inability of digital isolators to transmit low-frequency signals limits its use in various applications such as process control, sensor interfacing, and audio applications may increase the costs of components used in them, thereby hampering the growth of the digital isolator market.
Opportunity: Increasing use of isolators in harsh environmental applications
The digital isolator market is expected to experience growth due to the increasing demand for robust isolators in harsh environmental applications, including electric motors. These applications face data disruptions from high-voltage transients and electrical stress, therefore there is a need for digital isolators that can withstand these effects. In the past, optocouplers were used in harsh environments as they could handle high voltages with thick layers of internal insulation. However, optocouplers used light-emitting diodes (LED) that lose their light intensity over time and can have reliability issues due to variations in light intensity with temperature. Digital isolators overcome these issues by using semiconductor IC-based dependable circuits to transmit and receive digital signals across isolation barriers.
The insulation of these isolators has also been improved to compete with optocouplers. Digital isolators have immunity against high-voltage transients and noise. Optocouplers can operate in applications with a maximum temperature of 85°C, while digital isolators can perform in high temperatures, that is, more than 125ºC.
Challenges: High cost of digital isolators than optocouplers
Digital isolators are known to offer better performance when it comes to propagation delays, noise reduction, and data rates compared to optocouplers. However, the cost of digital isolators is higher than that of optocouplers. This is why optocouplers are widely used as a low-cost isolation solution to transmit slow digital signals.
While several companies offer low-cost digital isolators, their usage is limited in applications such as PV inverters. These isolators are manufactured using conventional semiconductor process technology to achieve channel counts and functional integration to offset the high prices of alternative isolation technologies used in digital isolators. For instance, digital isolators made using complementary metal-oxide-semiconductor (CMOS) process technology are increasingly adopted by designers. This technology enables designers to develop low-cost, compact, high-performance, and reliable isolated circuits with lower power consumption than optocouplers.
The costs of digital isolators depend on the type of isolators and their capacity to pass current and depend on the applications for which they are deployed. Digital isolators with higher data rates and more channels have higher costs than those with lower data rates and a lesser number of channels. Although manufacturers are developing low-cost digital isolators, the average cost of these devices is still higher than that of optocouplers. Very few low-cost digital isolators are available in the market.
Digital Isolator Market Map:
By technology, the giant magnetoresistive segment in the digital isolator market is expected to grow at the highest growth rate during the forecast period.
During the forecast period, the giant magnetoresistive segment is expected to record the highest CAGR in the digital isolator market during the forecast period. This growth is driven by the better sensitivity and higher accuracy of GMR digital isolators than isolators powered by capacitive and magnetic coupling technologies. GMR isolators also boast a faster switching speed of up to 150 Mbps, with a low propagation delay of 10 to 15 ns. Moreover, the materials used in these isolators increase their shelf life.
Industrial segment account for the largest market share of the digital isolator market, by vertical, during the forecast period
The industrial vertical accounted for the largest share (~28%) of the digital isolator market, in terms of value, in 2022. Digital isolators play a crucial role in industrial equipment by safeguarding users and equipment from ground differences and loops, voltage fluctuations, and noise. They guarantee the safety of both industrial equipment and operators. Moreover, with the growing adoption of the Industrial Internet of Things (IIoT), the demand for digital isolators in the industrial sector is expected to rise significantly during the forecast period.
Asia Pacific region is expected to exhibit the highest CAGR during forecast period
The digital isolator market in Asia Pacific is projected to grow at the highest CAGR during the forecast period, this region is likely to hold the largest share of the digital isolator market by 2028. This growth is attributed to the rising deployment of isolated gate drivers in electric and hybrid electric vehicles. Major digital isolator providers in the regions are Broadcom (US), Advantech Co., Ltd. (Taiwan), ROHM CO., LTD. (Japan), and Murata Manufacturing Co., Ltd. (Japan).
Rapid urbanization and increased investments in R&D by digital isolator manufacturers in Asia Pacific contribute significantly to the market growth. A few of the major players offering digital isolators, such as ROHM CO., LTD. (Japan), Renesas Electronics Corporation (Japan), Murata Manufacturing Co., Ltd. (Japan), Advantech Co., Ltd. (Taiwan), and MORNSUN Guangzhou Science & Technology Co. Ltd. (China) are headquartered in this region.
Digital Isolator Market by Region
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Key Market Players
Texas Instruments Incorporated (US), Analog Devices, Inc. (US), Skyworks Solutions, Inc. (US), Infineon Technologies AG (Germany), NVE Corporation (US), ROHM CO., LTD. (Japan), Broadcom (US), Vicor Corporation (US), STMicroelectronics (Switzerland), Renesas Electronics Corporation (Japan), Murata Manufacturing Co., Ltd. (Japan), Semiconductor Components Industries, LLC (Onsemi) (US), TT Electronics (UK), TE Connectivity (Switzerland), Advantech Co., Ltd. (Taiwan), Amphenol Corporation (US), NXP Semiconductors (Netherlands), Microchip Technology Inc. (US), Littelfuse, Inc. (US), Monolithic Power Systems, Inc. (US), Kinetic Technologies (US), and MORNSUN Guangzhou Science & Technology Co. Ltd. (China), are some key players operating in the Digital Isolator Companies.
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Report Metric |
Details |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
USD Million/Billion |
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Segments Covered |
Technology, Data Rate, Channel, Insulating Material, Applications, Vertical, and Region. |
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Regions covered |
North America, Asia Pacific, Europe, and RoW |
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Companies covered |
Some of the leading companies operating in the digital isolator market are Texas Instruments Incorporated (US); Analog Devices, Inc. (US); Skyworks Solutions, Inc. (US); Infineon Technologies AG (Germany); NVE Corporation (US); ROHM CO., LTD. (Japan); Broadcom (US); Vicor Corporation (US); STMicroelectronics (Switzerland); Renesas Electronics Corporation (Japan); Murata Manufacturing Co., Ltd. (Japan); Semiconductor Components Industries, LLC (Onsemi) (US); TT Electronics (UK); TE Connectivity (Switzerland); Advantech Co., Ltd. (Taiwan); Amphenol Corporation (US); NXP Semiconductors (Netherlands); Microchip Technology Inc. (US); Littelfuse, Inc. (US); Monolithic Power Systems, Inc. (US); Kinetic Technologies (US); MORNSUN Guangzhou Science & Technology Co. Ltd. (China); HOPE Microelectronics CO., Ltd. (HOPERF) (China); Suzhou Naxin Microelectronics Co., Ltd. (Novosense) (China); and ETL Systems Ltd (UK). |
Digital Isolator Market Highlights
This research report categorizes the digital isolator market based on Technology, Data Rate, Channel, Insulating Material, Applications, Vertical, and Region.
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Segment |
Subsegment |
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By Technology |
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By Data Rate |
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By Channel |
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By Insulating Material |
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By Application |
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By Vertical |
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By Region |
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Recent developments
- In June 2023, Infineon Technologies AG (Germany) launched the first generation of its ISOFACE dual-channel digital isolators designed for robust high-voltage isolation and are pin-to-pin compatible with offerings from other suppliers. It provides modern designs with an optimized system bill of materials (BOM), reduced printed circuit board (PCB) area, accurate timing characteristics with lower power consumption, certified insulation life, improved common-mode transient immunity (CMTI), etc.
- In February 2023, Vicor Corporation (US) announced its distribution agreement with Avnet, Inc. (US), one of the global distributors of electronic components and services. The agreement expands access to Vicor’s power modules through Avnet’s world-class design and supply chain, enabling global customers to achieve world-changing innovation with higher system performance and greater scalability.
- In October 2022, Renesas Electronics Corporation (Japan) acquired Steradian Semiconductors Private Limited (India), a fabless semiconductor company providing 4D imaging radar solutions. With this acquisition, Steradian's leading-edge radar technology and engineering talent is expected to boost Renesas’ sensing solution offerings in a wide array of applications, including industrial systems.
Critical questions answered by this report:
What are the key strategies adopted by key companies in the digital isolator market?
Product launches, acquisitions, and collaborations have been and continue to be some of the major strategies the key players adopted to grow in the digital isolator market.
What region dominates the digital isolator market?
The Asia Pacific region will dominate the digital isolator market.
What application dominates the digital isolator market?
Gate drivers applications are expected to dominate the digital isolator market.
Which technology from the technology segment dominates the digital isolator market?
The capacitive coupling segment is expected to have the largest market size during the forecast period.
Who are the major digital isolator market companies?
Texas Instruments Incorporated (US), Analog Devices, Inc. (US), Skyworks Solutions, Inc. (US), Infineon Technologies AG (Germany), and Broadcom (US).
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The study involved four major activities in estimating the current size of the digital isolator market—exhaustive secondary research collected information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Various secondary sources have been referred to in the secondary research process for identifying and collecting information important for this study. These secondary sources include digital isolator technology journals and magazines, annual reports, press releases, investor presentations of companies, white papers, certified publications and articles from recognized authors, and directories and databases such as Factiva, Hoovers, and OneSource.
Primary Research
Various primary sources from both supply and demand sides have been interviewed in the primary research process to obtain qualitative and quantitative information important for this report. The primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related executives from key companies and organizations operating in the digital isolator market. After complete market engineering (including calculations regarding market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information as well as to verify and validate the critical numbers arrived at.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
In the complete market estimation process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the digital isolator market and other dependent submarkets listed in this report.
- Extensive secondary research has identified key players in the industry and market.
- In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Digital Isolator Market: Bottom-Up Approach
Digital Isolator Market: Top-Down Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the global market has been split into several segments and subsegments. Market breakdown and data triangulation procedures have been employed wherever applicable to complete the overall market engineering process and arrive at exact statistics for all segments and subsegments. The data has been triangulated by studying several factors and trends identified from both the demand and supply sides.
Market Definition
A digital isolator is a semiconductor device that provides electrical isolation between two parts of an electronic system while allowing digital signals to be transmitted across the isolation barrier. The primary purpose of a digital isolator is to prevent electrical currents or potential differences in one part of the system from affecting the other, thereby enhancing safety, reducing noise, and meeting regulatory requirements. They play a critical role in enhancing the safety and reliability of electronic systems by preventing the transmission of potentially harmful electrical currents between different parts of the system. Applications of digital isolators span a wide variety of verticals, including industrial automation, automotive consumer electronics, healthcare, telecommunications, and energy & power. The digital isolator market is concentrated, with companies such as Texas Instruments; Analog Devices; Skyworks Solutions, Inc.; Broadcom Inc.; and Infineon Technologies operating in it.
Key Stakeholders
- Raw material and wafer suppliers
- System integrators
- Original equipment manufacturers (OEMs)
- Integrated device manufacturers (IDMs)
- Original design manufacturers (ODMs)
- Assembling, testing, and packaging companies
- Suppliers and distributors
- Governments and other regulatory bodies
- Research institutes and organizations
- Market research and consulting firms
Report Objectives
The following are the primary objectives of the study.
- To forecast the size of the digital isolator market based on application and vertical, in terms of value
- To describe and forecast the digital isolator market based on technology, data rate, channel, and insulating material, in terms of value and volume
- To describe and forecast the market for various segments across four main regions: North America, Asia Pacific, Europe, and Rest of the World (RoW), in terms of value
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To study the complete value chain and related industry segments and perform a value chain analysis of the digital isolator market landscape
- To strategically analyze the ecosystem, regulatory landscape, patent landscape, Porter’s five forces, import and export scenarios, trade landscape, and case studies pertaining to the market under study
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contributions to the overall market
- To analyze opportunities in the market for the stakeholders by identifying high-growth segments in the market
- To strategically profile the key players and provide a detailed competitive landscape of the digital isolator market
- To analyze strategic approaches adopted by the leading players in the digital isolator market, including product launches/developments and acquisitions
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to a company’s specific needs. The following customization options are available for the report:
Company Information:
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Digital Isolator Market