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The global DC-DC converter market size was valued at USD 9.17 billion in 2021. The market is projected to grow from USD 10.04 billion in 2022 to USD 21.92 billion by 2029, exhibiting a CAGR of 11.79% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with DC-DC converter experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 4.57% in 2020 as compared to 2019.
Converters are increasingly used in portable electronic devices such as cell phones, laptops, and computers. The high demand for these portable devices will boost the DC-DC converter market growth. The converter finds its applications on computers, laptops, mobile phones, space vehicles, buses, and lighting systems, which are thus used in consumer electronics, I.T. and telecommunications, energy and power, and cars.
DC-DC Converter Market Faced Unprecedented Challenges Owing to Declining Electronics Production
Since the COVID-19 outbreak in December 2019, the disease has spread to almost 100 countries around the globe, with the World Health Organization (WHO) declaring it a pandemic. The impact of the COVID-19 pandemic was severe on the semiconductor and electronics industry. According to our analysis, sudden decline in the production of electronics components and the performance gap was a major reason for the decline in industry growth. The demand for home-office electronics, home electronic equipment, and other necessary systems declined during the lockdown. However, enterprises are planning to postpone investments in R&D and company contracts.
Start-ups and Small & Medium-sized Enterprises (SMEs) represent a significant portion of the semiconductor industry's electric vehicles and EV charging stations. These companies were generating limited cash and were focused on establishing contracts. Hence, in the short term, such companies have been compelled to delay their ambitious EV deployment timelines and fight for survival.
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Power Electronics to Emerge as a Leading Market Trend
Power electronics have come a long way from their dominance several years ago through discrete power equipment and esoteric design approaches that usually required the close involvement of experienced energy engineers. Power electronics are entering systems integration by combining high-speed grids, microprocessors, smart power design converters, and innovative thermal management approaches to keep electronics cool. In addition, power electronics follow technological trends in power density and small size, weight, and power consumption (SWaP). Therefore, the emergence of modern power electronics will drive the market's growth in the coming years. Power electronics play an important role in various markets such as aerospace, consumer, industrial, and automotive. It also helps improve the performance, safety, and functionality of smart cars and grids.
Increasing Demand for Portable Electronic Devices and Applications in Renewable Energy to Propel Market Growth
Most semiconductor devices that can operate only using DC electrical appliances need to be plugged into an external power source that usually has an AC-DC converter. Portable electronic devices, including cellphones and laptops cannot function without a key power electronic component called the converter. ICs and other components mounted on substrates require different voltage levels to operate. An unstable power supply can affect the devices and cause degradation and malfunction.
Hence, these devices require a converter to step up or down to the required voltage. The rising demand for more computing power and storage capacity is also surging the demand for DC converters.
The global semiconductor industry has been rising at a very high pace. An increase in the semiconductor chip industry will propel the growth of semiconductor devices. Further, the rising pace of semiconductors may also surge the demand for portable electronics. Technological innovation and digital adaptation in emerging economies from the Asia Pacific region are further leading to increased demand for converters. China, Japan, Taiwan, and South Korea lead the semiconductor market in Asia. With the COVID-19 pandemic and related social distancing norms, there has been an increase in sales of laptops with an increasing demand for remote work.
Rising Electric Vehicles to Boost DC-DC Converter Devices’ Sales
DC-DC converters convert high voltage from a car's battery to lower voltages to power several devices within the car, which operate at lower voltages in various configurations of electric vehicles. A vehicle’s DC-DC converter takes a battery’s voltage down to 12 V for common car loads such as headlights, window motors, and pumps. The key design concerns for DC-DC include low losses, high efficiency, low volume, and lightweight. They can be found in every E.V. or hybrid with a high-voltage battery. DC-DC is an essential part of the vehicle, converting voltages to power various onboard systems, increasingly sophisticated infotainment, and enhanced safety features using Advanced Driver Assistance Systems (ADAS).
Rising focus on the environment and renewable and clean energy solutions may boost the demand for electric vehicles and hybrid electric vehicles globally. An increase in sales of E.V. led to an increase in demand for converters.
High Frequency Noise Linked with Power Converters to Hamper Market Growth
Switching converters are prone to noise. The main parts of power inductors fitted with DC-DC converters may often vibrate when alternating current switches and pulse waves of frequencies flow in the audible range causing acoustic noise. This noise is generated when the input voltage is above, below, or equal to the output. The converter is needed to perform both step-up and step-down functions. Converters find their application in many areas but are expensive. The cost factor may act as a restraint in demand for converters.
Very Short Hold-up Time of DC-DC Converters May Hinder Growth
DC-DC converters have a very short hold-up time, usually in Picoseconds. Hold-up time is the duration the converter operates within its limits after power input is lost. This factor can create problems in data processing and other computer-related applications that require hold-up time to be longer for orderly system shutdown. The holdup time also varies according to the size and value of the output capacitors used in a small module. To increase the hold-up time, the size of the capacitor may have to be increased. These factors may hinder market growth as customers might look for less noise-generating alternatives. This factor may decline market revenues.
Isolated Segment Commanded the Market Owing to Increasing Acceptance of Power Electronics
By type, the market is bifurcated into isolated and non-isolated. The isolated segment dominated the market in 2021. An isolated DC-DC converter uses a transformer to eliminate the DC path between input and output. The increased demand for power electronics for application spaces such as factory automation, building automation, medical, aerospace, and automotive has led to the segment's dominance in the market globally.
The non-isolated converter has a DC path between the input and the output. These power converters generally use special integrated circuits and are used specifically for industrial applications where high output power is required. Thus, the demand in the industrial sector will fuel the growth of non-isolated converters in the near future.
100-500V Segment to Grow at Highest CAGR Due to Increased Demand from the Automotive and Telecommunications Sectors
Based on input voltage, the market is segmented into up to 40V, 40V-100V, 100V-500V, and 500-1000V. The 100-500V segment is expected to become dominant in the market due to its wide range of applications in the automotive and telecommunications sectors. Additionally, with a rated input voltage of 100-500V, these converters have high switching capabilities with low noise. Hence, the segment is expected to witness remarkable growth over the forecast period. Converters with a rated input voltage of 40-100V are expected to experience higher growth due to their adoption in the aerospace industry. Additionally, the advent of more electric aircraft and the development of electric motors will drive segmental growth.
100-500V Output Voltage Segment to Witness Highest CAGR Due to Increased Adoption of Electric Vehicles (EV)
Based on output voltage, the market is segmented into voltage ranges of up to 100V, 100V-500V, and 500V-1000V. The 100-500V output voltage segment will witness the highest CAGR thanks to the growing adoption of Electric Vehicles (EVs) and Hybrid Electric Vehicles (HEVs) for commercial transport. Additionally, 100 voltage output power converters are used to customize LED lights and display batteries on a vehicle engaged in commercial and military sectors. The output voltage above 500-1000V will witness moderate growth due to the adoption of these DC-DC power converters in ships manufactured for naval and maritime operations where high-frequency switching is the main focus.
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Due to High Demand, Energy & Power Segment Held Highest Market Share in the Base Year
Based on end-user, the market is segmented into telecommunication, automotive, consumer electronics, energy & power, aerospace & defense, healthcare, and others. In the market share, energy & power held a major part in 2021 due to high adoption in emerging countries. In addition, the energy & power segment is witnessing developments on a daily basis and will dominate the segment in Asia. For example, India, with an installed capacity of 401.01 GW (as of April 2022), according to the India Brand Equity Foundation (IBEF), India is the third largest producer and consumer of electricity in the world. The automotive segment will witness significant growth due to high electric vehicles adoption, including cars, buses, and other road transport vehicles. Hence, higher revenue growth is expected during the forecast period.
Asia Pacific DC-DC Converter Market Size, 2021 (USD Billion)
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The market is segmented into North America, Europe, Asia Pacific, and the rest of the world based on region.
The Asia Pacific market was valued at USD 4.83 billion in 2021 and is anticipated to be the fastest growing region during the forecast period Asia Pacific is expected to dominate the global market due to the expansion of the telecommunications and transport sectors. The telecommunications industry in Pacific Asia countries, such as China, South Korea, Singapore, and Japan, focuses on updating their network infrastructures to stimulate 5G infrastructure, which will eventually stimulate the demand for qualified devices for 5G and will stimulate the market. By increasing the use of cell phones, tablets, and the next 5G spectrum, vertical telecommunication for the converter should grow during the forecast period.
North America grew at a significant rate in terms of the global DC-DC converter market share in 2021. In addition, the growing adoption of the Internet of Things or IoT technology and advances in surgical devices for digital power management and controllers are expected to drive the expansion of the global market. North America holds the commanding share of the global market due to the wide adoption and demand for converters from nearly every major industry vertical. Market analysis of North America shows that it will lead due to the resources needed to deploy converters in the region. The rising use of devices, such as computers, laptops, cell phones, spacecraft power systems, buses, and lighting systems, is fostering the growth of the market in the region.
During the forecast period, the European market is predicted to grow fairly. Europe has the second largest market portion with countries such as the U.K., Germany, and France. In the defense and aerospace industries, the design of converters has transformed due to numerous silent technology drivers over the past decade. New military and space programs, airborne drones, national security, and future warrior technologies are all seeking lightweight, affordable, and highly reliable electronic packages offered by converters.
According to the rest of the world's regional analysis, the market is expected to experience slow growth in 2022-2029 due to limited investment in the power electronics and telecommunications sectors. However, increasing investments in aviation operations in the UAE and other neighboring countries are expected to create growth opportunities soon.
Increasing Demand for Telecommunication to Drive Market Growth
The market's competitive landscape shows the dominance of select players such as Texas Instruments, General Electric (G.E.), and ABB LTD, among others. These companies focus on designing and developing advanced DC-DC power converters and integrated 5G network capabilities for applications such as consumer electronics, aerospace, and satellite to drive market growth. The constant investment in research and development, a strong focus on product innovation, and long-term contracts with the government and relevant authorities will support these companies in resisting their market position. Additionally, these companies are expanding their geographic reach into Asia Pacific in the coming years.
An Infographic Representation of DC-DC Converter Market
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The report provides detailed information on the market and focuses on aspects such as converter types, input voltage, output voltage end-users, and key/major players. Additionally, the research report provides information on DC/DC converter trends, competitive landscape, market competition, product pricing, and market conditions with an emphasis on key industry developments. In addition to the factors mentioned above, it includes several factors contributing to the global market sizing in recent years.
Value (USD Billion)
By Type, Input Voltage, Output Voltage, End-user, and Geography
By Input Voltage
By Output Voltage
Fortune Business Insights stated that the global market size was USD 9.17 billion in 2021 and is projected to reach USD 21.92 billion by 2029
The market will exhibit a CAGR of 11.79% during the forecast period (2022-2029)
The automotive segment is expected to dominate this market during the forecast period
Texas Instruments, Delta Electronics, and Analog Devices are the leading players in the global market
Asia Pacific topped the market in terms of market share in 2021.
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