The global DC-DC converter market is set to experience substantial growth over the next decade, driven by increasing demand for energy-efficient solutions and the rising adoption of electric vehicles (EVs). Valued at US$ 7.4 billion in 2022, the market is projected to expand at a compound annual growth rate (CAGR) of 6.8%, reaching US$ 13.3 billion by 2031. This expansion is underpinned by technological advancements aimed at enhancing efficiency, power density, and overall performance of DC-DC converters.
DC-DC converters are critical in various industries, serving as essential components for power distribution and voltage regulation in electronic devices. They are extensively used in automotive, telecommunications, consumer electronics, healthcare, aerospace, and renewable energy sectors. In the automotive industry, for instance, these converters manage the power distribution between systems with different voltage levels, ensuring efficient operation of electric and hybrid vehicles.
A key driver of market growth is the emphasis on energy efficiency. DC-DC converters are pivotal in minimizing power loss during voltage conversion, which is crucial for battery-operated devices and EVs. The global focus on reducing carbon footprints and promoting environmental sustainability further accelerates the demand for energy-efficient DC-DC converters. These converters not only reduce power consumption but also lower operating costs, contributing to longer battery life and improved system performance.
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Innovations in the field, such as Delta Electronics' B70SP series DC-DC converter for non-automotive applications, highlight the industry's response to growing demand. Introduced in November 2019, this product boasts 91.5% efficiency and is designed for various industrial and commercial electric-powered vehicles, including forklifts and electric motorcycles. Such advancements are expected to spur market growth in the near future.
The rise in EV adoption is another significant market driver. EVs require high-voltage DC battery systems, with many components needing lower voltage levels. DC-DC converters facilitate this by efficiently converting high-voltage DC from the battery to the required lower levels. Eaton Corporation's eMobility business, for example, secured a contract in November 2021 to supply a 24-to-12-volt DC-DC converter for a commercial heavy-duty BEV, showcasing the crucial role of these converters in EV functionality.
Isolated DC-DC converters, which accounted for 73.1% of the market share in 2022, are expected to maintain dominance. Their ability to provide electrical isolation between input and output circuits ensures safety, noise reduction, and effective handling of different ground potentials. This makes them indispensable across various applications, including data centers, which increasingly demand efficient power management solutions for high-performance computing equipment.
Regionally, Asia Pacific leads the market, driven by robust growth in consumer electronics, automotive sectors, and a strong presence of major electronic component manufacturers. North America follows, bolstered by the adoption of electric mobility, 5G network deployment, and stringent energy regulations.