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Data Converter Market size was valued at over USD 4 billion in 2022 and is expected to grow at a CAGR of over 6% during the forecast period. The increasing adoption of technologically advanced data acquisition systems and the transition of end users from traditional DAQ to computer-based systems are driving the data converter market growth. The computer-based systems convert and measure analog signals such as voltage and current to digital signals with help of analog-to-digital converters.
The DAQ system mainly consists of ADC, DAC, multiplexer, high-speed timer, and RAM. The traditional data acquisition system is slow and requires a lot of maintenance investment, but computer-based systems are more flexible and reduce cost & time. Also, customer-based systems can be customized according to the requirement of the business, which increases overall productivity. New high-speed DAQ systems are used to achieve higher accuracy and repeatability without compromising on the resolution, memory depth, and streaming performance.
Data converter market is being driven by the rising need for high-resolution images in scientific and medical applications. The most difficult problem that medical imaging presents to electronic devices is in terms of necessary dynamic range, resolution, accuracy, linearity, and noise with data converters. To produce crisper, sharper images, the ADC must have a high resolution of at least 24 bits as well as a quick sampling rate to digitize detector readings, which in a CT solution that can be as brief as 100s. To leverage multiplexing and reduce the number of converters needed as well as the size and power of the complete system, the ADC sampling rate must also be sufficient.
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The development of low-power consumption data converters hampers the data converter market growth. Power consumption is one of the leading design constraints in today's integrated circuits. Conversion of the low-frequency bioelectric signals does not require high speed but requires an ultra-low-power operation. This, combined with the required conversion accuracy, makes designing such ADCs a major challenge.
Furthermore, due to the impact of the COVID-19 pandemic, the semiconductor industry witnessed a high global impact on supply demand. For the development of data converters, there is a need for ICs, resistors, capacitors, etc. Breakage in the distribution channel will result in slow market growth. However, many central and local governments have recognized the strategic importance of the semiconductor industry and prioritized uninterrupted operations for their domestic companies and suppliers in the midst of mandated business closures.
Telecommunication infrastructure is stimulating market growth owing to the advent of 4G communication and the emerging 5G communication. Manufacturers of wireless infrastructures, especially 4G and 5G, are constantly reducing the size and cost of a newly installed wireless infrastructure while holding to high standards of performance, functionality, and quality of service. The data conversion block is a critical function in wireless infrastructure designs. The Analog-to-Digital Converter (ADC) is the fundamental block that digitizes the incoming Intermediate Frequency (IF) signal and then passes the digital data to the digital downconverter.
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The wide bandwidth demands of 5G are met with moving frequency convergence and filtering from the analog to the digital domain. Further, the radio architecture core must be tightly integrated for a 5G solution to support small antenna deployments. One solution is the traditional approach combining multi-Giga sample ADCs and DACs with a System-on-Chip (SoC). This approach provides the ability to perform the embedded system design and to address the increased required operating bandwidths.
General-purpose data converters operate with a sampling rate of 10MSPS. The converters are used for medical, industrial, and automotive applications. Converters ensure output reliability and accuracy during data conversion from analog to digital and vice-versa. The growing adoption of remote monitoring and automated solutions is growing the general-purpose data converter market. Industry 4.0 led the sensors market growth. The use of sensors in industrial applications has several benefits including improved asset management, higher operational effectiveness, and more adaptable product development. The increasing use of various types of control systems, such as programmable logic controllers and supervisory control, data acquisition & distributed control systems, and the rising deployment of sensor-based technologies in industrial applications are expected to create a demand for general-purpose data converters.
North America holds the highest market share due to the growing telecom sector and the use of FPGA. The rising demand for A2D converters in consumer electronics for high-resolution images has become an essential part of driving the market. Further, sensor applications in automotive require data converters, ranging from temperature sensors identifying different engine statuses to radar/LiDAR-enabling ADAS. Other data converter applications include wireless transceivers for communicating with other vehicles or fixed networks.
Data converter market is fragmented as global players integrate signals in various applications such as consumer electronics and automotive, resulting in an intense rivalry among competitors. Key players in the industry are Analog Devices, Inc., Microchip Technology Inc., etc.
The Data Converter market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:
By Sampling Rate
The above information has been provided for the following regions and countries: