The deployment of IoT devices, each equipped with various sensors, will require a substantial number of data converters to bridge the gap between analog signals captured by sensors and digital data processed by other components. This includes analog-to-digital converters (ADCs) for sensors such as temperature, pressure, and motion and digital-to-analog converters (DACs) for controlling actuators. As data processing shifts closer to the source (edge devices), more data converters will be needed to digitize sensor data for local analysis and decision-making before transmission to the cloud. Thus, there is an increasing demand for low-power, high-performance converters optimized for edge-computing applications. The growing need for precise and reliable data from IoT devices will propel the demand for high-resolution and high-speed data converters. This demand is in applications such as autonomous vehicles, industrial automation, and scientific research, where accurate data is crucial.
As the edge devices become powerful, on-device machine learning will become increasingly feasible in the coming years. There will be a rising need for data converters that can efficiently handle the high data rates and complex algorithms associated with machine learning applications. By addressing the evolving needs of this dynamic landscape, data converter manufacturers can position themselves for significant growth and innovation in the coming years. Therefore, potential use of IoT devices and the resulting increase in data consumption would present significant opportunities for the data converter market during the forecast period.
Europe Data Converter Market
The Europe data converter market is segmented into Germany, France, the UK, Italy, Russia, and the Rest of Europe. The rising automotive sector drives the market growth. The automotive sector is one of the biggest sectors in Europe. According to the European Automobile Manufacturers’ Association (ACEA), the automotive sector represents over 7% of the region’s GDP. Moreover, the increasing development and sales of electric vehicles and the presence of established car manufacturers and supplier bases with strong brand value and technological and financial capabilities are projected to boost the Europe data converter market growth in the coming years.
Russia is one of the leading providers of raw materials required for the manufacturing of semiconductors. NXP Semiconductors, STMicroelectronics, and several other data converter manufacturers heavily spend on R&D to innovate and improve their product offerings. Furthermore, in January 2023, STMicroelectronics, one of the global semiconductor leaders serving customers across the spectrum of electronics applications, announced that it had again broadened access to its STM32 microcontroller (MCU) family by introducing the most affordable series: the STM32C0. STMicroelectronics targets the new STM32C0 series to equipment, including home appliances, industrial pumps, fans, and smoke detectors, typically served by simpler 8-bit and 16-bit MCUs. The modern, 32-bit design of the STM32C0 permits improvements such as faster response, extra functions, and network connection at similar overall cost and power consumption. Thus, the rising procurement of electric household appliances, increasing adoption of Wi-Fi and Bluetooth-enabled smart appliances, and the emergence of smart homes due to technological advancements across Europe are boosting the data converter market in the region. In addition, the deployment of artificial intelligence (AI), the Internet of Things (IoT), smart homes, smartphones, linked automobiles, and smart TVs drives the consumer electronics industry growth, propelling the demand for data converters in Europe.
With the changing industrial outlook and rising demand for connected vehicles and consumer electronics, the penetration rate of data converters is projected to grow at an exponential rate. Norway, the Netherlands, Denmark, Sweden, and Switzerland are among the other top countries after Germany, the UK, and France, spending massively to strengthen their industrial sector. In addition, telecommunication is another industry experiencing significant growth. Till March 2021, the 5G commercial services had been installed in Austria, Belgium, the Czech Republic, Denmark, France, Finland, Germany, Hungary, Ireland, Italy, Luxembourg, the Netherlands, Romania, Poland, Spain, Sweden, and other European countries. Increasing commercialization of 5G in European countries would drive the demand for data converters in the region.
Germany is recognized for its outstanding automotive industry in the world. According to the German Trade & Invest (GTAI), in 2021, the country produced more than 3.1 million passenger vehicles, and 351,000 commercial vehicles were manufactured in German plants, of which ~77% will be exported to the global market. In February 2021, Clean Energy Wire announced that the German government is investing US$ 1.54 billion (EUR 1.5 billion) to help the car industry become more environmentally friendly and digitalized until 2024. In addition, the sales of new cars in Germany increased in 2023. According to the KBA federal transport authority, a total of 2.8 million new cars hit the road in Europe’s largest economy in 2022. Thus, the growing automotive industry is expected to fuel the growth of the Germany data converter market.
Segmental Overview
Market Analysis: Competitive Landscape and Key Developments
The data converter market forecast is estimated on the basis of various secondary and primary research findings such as key company publications, association data, and databases. Asahi Kasei Microdevices Corporation; Analog Devices, Inc.; CIRRUS LOGIC, INC.; Microchip Technology Inc.; Semiconductor Components Industries, LLC; ROHM CO., LTD.; Renesas Electronics Corporation; STMicroelectronics N.V; Texas Instruments Incorporated; and Teledyne Technologies Inc. are among the prominent players profiled in the data converter market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth. As per the press releases published by the key market players, a few recent key market developments are listed below:
- In March 2022, Analog Devices (ADI) introduced a new portfolio of next-generation 16-to-24-bit, ultra-high precision successive approximation register (SAR) analog-to-digital converters (ADCs) that simplify the complex process of designing ADCs for instrumentation, industrial, and healthcare applications. The high-performance SAR ADC family features ADI’s patented Easy Drive technology and the versatile Flexi-SPI serial peripheral interface (SPI), which solve system design challenges and broaden the selection of compatible companion products.
- In June 2023, Cirrus Logic introduced a new Pro Audio Family of converters, allowing manufacturers to customize their products without the converters coloring the audio experience. The family includes high-performance, low-power ADCs, followed by DACs and an audio codec.