The data converter market is expected to grow from USD 3.52 Billion in 2017 to USD 5.08 Billion by 2023, at a CAGR of 6.3% between 2017 and 2023. The growth of this market is fueled by the rising demand for test and measurement solutions by end users, growing demand for high-resolution images in scientific and medical applications, increasing adoption of technologically advanced data acquisition systems, and developments in the data converter ecosystem through organic and inorganic growth strategies such as product launches and developments, mergers and acquisitions, partnerships, contracts, agreements, and collaborations.
Among all types in the data converter, the market for analog-to-digital converters (ADCs) is expected to grow at the highest CAGR between 2017 and 2023. The rising demand for high-resolution images have led to the adoption of ADCs, which provides precise and flexible conversion, along with the additional and often critical details about a set of data; the demand for the ADCs would continue to raise competitive situations in the market, which, in turn, is likely to lead to further innovations in the data converter.
The market for high-speed data converters is expected to grow at a high rate between 2017 and 2023. The demand for high-speed data converters would be driven by the evolution of wireless communication networks. For instance, the 5G wireless communications technology is developing rapidly and is expected to start rolling out globally by 2020. For advanced high-performance communication applications, network infrastructure manufacturers need to develop a high-speed lag-free solution, which results in the increased demand for high-speed data converters.
Among various applications, the communications application accounted for the largest share of the overall data converter market based on the industry in 2016. The growth is attributed to the transition to fourth-generation (4G) network, with advanced modulation and antenna techniques for improved voice and data services and quality.
Furthermore, the ongoing developments in technology and the widespread demand for the wireless technology are the major reasons behind the higher share of this application. With all this development in the communications application, the demand for data converters would also rise.