The global DC-DC converter market size was valued at USD 8,921 million in 2021. It is expected to reach USD 21,007 million by 2030, growing at a CAGR of 11.3% during the forecast period (2022–2030). DC-DC converters are high-frequency power conversion circuit that converts switching noise into regulated DC voltages through high-frequency switching, inductors, transformers, and capacitors. Mission-critical electronic components increasingly depend on DC-DC converters that generate precise and steady currents. They are prevalent in portable devices like laptops and cell phones. AC was the primary way of changing the voltage of a DC supply to a higher voltage before the advent of power semiconductors. Presently, DC-DC converters are employed to provide a regulated voltage from a source that may or may not be sufficiently controlled to a load that may or may not be constant.
Various types of DC-DC converters are available, including isolated and non-isolated models. Typically, DC-DC converters are utilized in battery-powered devices and other energy-saving applications. The DC-DC converter, like a linear regulator, can reduce the voltage. However, unlike linear regulators, it can also increase an input voltage or reverse it to produce a negative value. The market for DC-DC converters is driven by factors such as the growth of the electric vehicle market, the ascent of the telecommunications industry, and the proliferation of automated systems.
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Increased Adoption of Electric Vehicles
Globally expanding use of environmentally friendly electric vehicles creates a profitable market potential for DC-DC converters. Power electronics components are widely used in the automobile sector due to the recent significant growth in the development of electric vehicles. Power electronics and power converters are an area of continual invention and development in the context of electric vehicles, which causes price fluctuations for the parts of power converters. The growth of power electronics is fueled by factors like rising electronic content per vehicle, adoption of new safety features, advancements in vehicle powertrain, and rising vehicle management & connectivity features, which further open up lucrative opportunities for the DC-DC converter market growth.
Additionally, due to their soft switching, noise-free operation, low switching loss, and high converter efficiency, the Z-Source DC-DC converter and the boost DC-DC converter with a resonant circuit are better suited for low-power BEVs and PHEVs. Governments from several nations are also moving more and more toward promoting the use of electric vehicles. The DC-DC converter market share is expected to be driven in the upcoming years by supportive government efforts, including financial incentives and purchase refunds.
Regulations and Safety Standards
The information and communications technology (ICT) industry has had difficulty comprehending the safety and isolation voltage standards applicable to DC-DC converter modules used in ICT equipment. Since the primary specifications were initially designed for AC-line-powered equipment rather than DC-powered components, some system designers interpret safety standards differently. Even product marketers have been found to alter consumer perceptions to persuade a conservative client base to want standards that the safety agencies do not mandate. The safety standards impose a specific set of requirements on equipment and any other relevant entities. Market pressures from suppliers and end users may sometimes impact accepted practice and impose further constraints. Consequently, the market for DC-DC converters is constrained.
Increased Adoption of 5G Technology
The 5G telecommunications network is designed to accommodate the constantly rising data volume demands from smartphones and smart connected devices in industries including autonomous vehicles, home, industrial automation, healthcare, and smart wearable. Massive multiple input multiple outputs (massive-MIMO) antenna arrays are used in 5G technology to enable significantly more data connections per base station. Demand for DC-DC converters will rise as 5G networks are implemented more often worldwide. A high-efficiency, reliable power system that can withstand severe loads is also required due to the increasing power and processing demands of 5G infrastructure.
The market for DC-DC converters, which can also open up new opportunities for the industry, is quite substantial for telecom base stations in off-grid or inadequately powered places. Additionally, because prominent businesses in these countries are driving investments in the telecom sector, the Asia-Pacific and North American regions are anticipated to experience rapid expansion. In the upcoming years, there will be a rise in demand for DC-DC converters as the US and China compete for global supremacy in the 5G industry.
The global DC-DC converter market is segregated by input voltage, output voltage, mounting style, application, and region.
By input voltage, the global market for DC-DC converter includes 5–36V, 36–75V, and 75V & above.
The 5–36V section will likely advance at a CAGR of 12.1% and hold the largest market share over the forecast period. DC-DC converters in the 5–36V range offer class-leading I/O isolation and high performance for network equipment, industrial, railway, and the transportation sector. These DC-DC converters are appropriate for data switching circuits, relay-driven circuits, low-frequency analog circuits, and pure digital circuits. Growing railway and transportation sectors and increasing network equipment use are predicted to open up the lucrative market potential for DC-DC converters.
The 36–75V section will hold the second-largest market share. In distributed power architectures, which are employed in Internet working equipment in wireless and wired communications applications, high-efficiency DC-DC converters are developed to provide high-quality onboard power solutions. Growing 5G network usage and the expanding telecom sector are predicted to offer lucrative market potential for DC-DC converters.
By output voltage, the global market for DC-DC converters includes 3.3V, 5V, 12V, and 15V & above.
The 5V section will likely grow at a CAGR of 12.2% and hold the largest market share over the forecast period. 5V DC-DC converters are specially made for distributed power supply systems where the isolated voltage is required. The market for DC-DC converters is presented with attractive potential by the rising demand for electric vehicles, the expanding medical sector, aircraft electrification, consumer electronics, and transportation. This voltage typically needs to be lowered to a lower intermediate bus voltage, specifically 5V or even lower, to power the system's support boards.
The 12V section will hold the second-largest market share. 12V DC-DC converters are frequently used in the automobile industry to connect the electric drive train components by increasing or decreasing voltage levels. DC-DC converters are required to control the power at the point of load in each device due to the growing number of control modules throughout the vehicle. They are crucial for voltage conversion and isolation.
By mounting style, the global market for DC-DC converter includes Surface-Mount and Through-Hole.
The Through-Hole section will likely grow at a CAGR of 11.3% and hold the largest market share over the forecast period. A through-hole converter is often used to create an isolated, regulated, short circuit protected output and is designed to run from industry-standard 24V or 5V unregulated supply. These converters operate in the entire – 40°C to + 68°C temperature range, drive huge capacitive loads, and are suited for industrial applications.
The Surface-Mount section will hold the second-largest market share. Surface-mount components don't need mounting holes because they are mounted directly on the printed circuit board (PCB). The need for lighter and smaller components grows as technology develops. Thus, surface-mount technology (SMT), a new and enhanced technology, is produced.
By application, the global market for DC-DC converter includes Smartphones, Servers & Storage, EV Battery Management units, Railways, Medical Equipment, and Others.
The Smartphone section is projected to advance at a CAGR of 12% and hold the largest market share over the forecast period. Mobile devices primarily rely on a battery power supply, which varies daily depending on the device's use. Smartphones, tablets, and other mobile devices with NFC capabilities operate more efficiently, owing to DC-DC converters. Due to the unique requirements of a battery-operated system, such as an extensive input voltage range and dynamic operational load, developing a high-efficiency DC-DC converter for these devices is difficult.
The Medical Equipment section will hold the second-largest market share. The medical grade DC-DC converter series has > 8mm creepage and clearance distances strengthened isolation with two patient protections and minimal leakage. To meet the medical safety standard, these converters offer an additional level of safety above and above the usual functional isolation.
Asia-Pacific Surpasses Other Regions
By region, the global DC-DC converter market includes North America, Europe, Asia-Pacific, and LAMEA.
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Asia-Pacific will command the market, expanding at a CAGR of 12.5% over the forecast period. In Asia-Pacific, increasing consumer demand for electronic devices, including laptops, personal computers, and cell phones, is anticipated to spur market expansion for DC-DC converters. China, Japan, and South Korea's telecommunications industries are concentrating on network infrastructure development to support 5G infrastructure, eventually increasing demand for 5G devices. These variables will hasten the expansion of the Asia-Pacific DC-DC converter market.
The need for DC-DC converters is also driven by China, Japan, and South Korea being the world's top electronic equipment and integrated circuits producers. Due to its substantial population and increasing demand for electronic applications, Asia-Pacific is predicted to offer the DC-DC converter market attractive potential. The need for medical applications such as autonomous surgical robots, wireless charging for medical devices, and the growth of industrialization and globalization are additional factors driving the use of DC-DC converters in Asia-Pacific.
North America will likely account for USD 5,970 million by 2030, growing at a CAGR of 10.3%. The presence of nations like the United States and Canada, where the governments are expanding their involvement in using EVs and HEVs, which combine power components on a large scale, is credited with the region's growth. Another driver for developing the converter market in the region is the US's most significant defense expenditure. The DC-DC converters market is also expanding due to the rising use of power modules and the sales of electronic gadgets in North America. The market has grown tremendously due to the well-established telecommunications sector and the quick increase in consumer electronics sales in North America.
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