Global Market for Digital Isolators Set for Growth Amid EV and Smart Grid Expansion

“Comprehensive Market Analysis Highlights Rising Demand for Digital Isolators Across Electric Vehicles, Renewable Energy Infrastructure, and Advanced Medical Technologies, Driven by Industry Shifts Toward High-Speed Data, Enhanced Isolation Levels, and Next-Generation Applications Worldwide”

Boston, Feb. 26, 2026 (GLOBE NEWSWIRE) -- According to the latest BCC Research report, “Global Digital Isolators Market” is projected to grow from $2.9 billion in 2025 to $4.3 billion by the end of 2030, at a compound annual growth rate (CAGR) of 8.4% from 2025 to 2030.

This report provides a comprehensive analysis of the global market for digital isolators, examining revenue and volume from 2024 as the base year, with forecasts through 2030. It segments the market by power range, device type, sales channel, and region, covering North America (U.S., Canada, Mexico), Europe (U.K., Germany, France, Rest of Europe), Asia-Pacific (China, Japan, South Korea, Rest of Asia-Pacific), and Rest of the World (South America, Middle East and Africa).

The study highlights market trends, emerging technologies, and growth opportunities, along with an analysis of the competitive landscape. It concludes with detailed profiles of the major companies shaping the future of digital isolators.

The factors driving the market include:

Rising Demand for Electric Vehicles (EVs) Worldwide: EVs rely on advanced power electronics for battery management and motor control. Digital isolators ensure safe isolation between high- and low-voltage circuits, improving reliability and protecting sensitive components in fast-switching environments.

Growth in Solar and Smart Grid Infrastructure Globally: Solar systems and smart grids need secure data transfer and voltage isolation in inverters and controllers. Digital isolators provide galvanic isolation, protect against surges, and enable efficient communication for renewable energy systems.

Proliferation of Medical Devices: Modern medical equipment requires high-speed data and patient safety. Digital isolators prevent electrical shock by isolating patient-connected circuits and help meet strict medical standards like IEC 60601.

Growing Demand for Digital Isolators in Harsh Industrial Motor Drive Applications: Industrial environments expose electronics to noise, heat, and voltage spikes. Digital isolators maintain signal integrity and provide robust isolation for motor drives and automation systems, ensuring reliability in harsh conditions.

GMR Technology for Digital Isolators: Giant Magnetoresistance (GMR) technology offers faster data rates, lower power use, and better noise immunity compared to traditional methods. It is increasingly used in automotive and industrial applications for high-speed, energy-efficient isolation.

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Report Synopsis

Report Metric	Details
Base year considered	2024
Forecast period considered	2025-2030
Base year market size	$2.7 billion
Market size forecast	$4.3 billion
Growth rate	CAGR of 8.4% from 2025 to 2030
Segments covered	Technology, Data Speed, Level of Isolation, End-Use Industry and Region
Regions covered	North America, Europe, Asia-Pacific and the Rest of the World (South America and the Middle East and Africa)
Market Drivers	Rising demand for EVs worldwide. Growth in solar and smart grid infrastructure globally. Proliferation of medical devices. Growing demand for digital isolators in harsh industrial motor drive applications. GMR technology for digital isolators.

Innovations:

• Next-generation isolators, such as Würth Elektronik’s WPME-CDIS and Toshiba’s DCM32xx00 series, support higher isolation voltages (up to 5000 VRMS) and better CMTI performance (±150 kV/µs) to become capable of high-speed applications in EVs and industrial systems.

• Multi-channel designs enable forward, reverse, and bi-directional setups, addressing battery management, industrial automation, and other high-speed communication applications.

• The use of AI-driven optimizations on propagation delay, pulse-width distortion, and channel matching leads to more dependability, reduces defects and lowers power consumption for automotive, energy, and industrial applications.

Emerging startups

• Suzhou Nanochip Microelectronics Co. Ltd.
• 3Peak Inc.

AI Impact on Digital Isolators Market

Artificial intelligence (AI) in the digital isolators industry is transitioning from process-to-process optimization to system-level intelligence in automotive and energy applications. AI digital isolators are being incorporated into EV BMS and onboard chargers to reduce latency and improve safety in high-voltage applications. In addition, the smart grid infrastructure is increasingly leveraging AI-based digital isolation for predictive maintenance and efficient integration and usage of renewable energy. Smart grids with AI-enabled isolation enhance grid reliability by reducing the time experiencing an outage and lowering operational costs.

For an in-depth analysis of AI’s impact on this sector, explore the complete AI Impact on Digital Isolators Market - BCC Pulse Report

The report addresses the following questions:

1. What are the projected market size and growth rate?

• The global market for digital isolators was valued at $2.7 billion in 2024 and is projected to reach $4.3 billion by 2030, at a CAGR of 8.4% from 2025 to 2030.

2. What factors are driving the growth of the market?

• Key drivers include:

• Rising demand for EVs worldwide.
• Increasing solar and smart grid infrastructure worldwide.
• Proliferation of medical devices.

3. What are the challenges and opportunities of the market?

• Key challenges include:

• High costs of digital isolators as compared to optocouplers.
• Design complexities.

• Key opportunities include:

• Growing opportunities for digital isolators in harsh industrial motor drive applications.
• GMR technology for digital isolators.

4. Which market segments are covered in the report?

• The market is segmented by industry, data speed, technology, level of isolation, and region.

5. Which technology segment will be dominant through 2030?

• In 2024, due to capabilities such as fast data transfer speeds, small form factors, and lower manufacturing costs, capacitive digital isolators account for 59.2% of the market revenue. Also, capacitive isolators dominate because they provide high-speed signal transmission, compact integration, low power consumption and cost-effective manufacturing, making them ideal for Ethernet, USB, mobile and industrial applications.

6. Which region has the largest market share?

• The Asia-Pacific region holds the largest share of the global market for digital isolators due to the increasing number of EVs across the region (especially in China), semiconductor fabrication, growing industrial automation, rising government support for the renewable energy generation, and technology adoption across the region.

Market leaders include:

• 3PEAK INC.
• ANALOG DEVICES INC.
• BROADCOM
• INFINEON TECHNOLOGIES AG
• LITTELFUSE INC.
• MONOLITHIC POWER SYSTEMS INC.
• NVE CORP.
• RENESAS ELECTRONICS CORP.
• SEMICONDUCTOR COMPONENTS INDUSTRIES LLC.
• SKYWORKS SOLUTIONS INC.
• STMICROELECTRONICS
• SUZHOU NANOCHIP MICROELECTRONICS CO. LTD.
• TEXAS INSTRUMENTS INC.
• VICOR CORP.
• WURTH ELEKTRONIK EISOS GMBH & CO. KG

Related report:

Smart Medical Devices: Global Markets: The report highlights the structure and growth outlook of the global market for smart medical devices, segmented by product type including implantable, wearable, and nonwearable, along with applications in areas such as cardiovascular, diabetes, neurology, and sleep disorders. It offers a detailed regional analysis across North America, Europe, Asia Pacific, South America, the Middle East, and Africa, while examining market dynamics, including drivers, challenges, and emerging trends. Additionally, the study reviews innovations in product performance and concludes with insights into leading manufacturers.

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