DC-DC CONVERTERS DC-DC converter market to generate $17.85 Billion by 2027
According to a recent report published by Allied Market Research, the global DC-DC converter market will generate US$ 17.85 billion globally by 2027 at a compound annual growth rate of 11.10 percent.
DC-DC converters are being used more and more in portable electronic devices; everything from smartphones to laptop computers make use of them. In addition, they can be found in other applications like spacecraft power systems, lighting systems, and industries spanning IT and telecommunication to automotive.
As the demand for DC-DC converters continues to grow, the global DC-DC converter market is naturally expected to grow alongside it — but by how much?
According to a recent report published by Allied Market Research, the global market for DC-DC converters will grow at a compound annual growth rate of 11.10 percent between now and 2027, or US$ 17.85 billion. For context, the market was valued at $ 8.76 billion in 2019.
What is a DC-DC power converter?
Simply put, a DC-DC power converter is a high-frequency power conversion circuit that uses high-frequency switching and inductors, transformers, and capacitors to smoothen switching noise into regulated DC voltages.
DC-DC converters are used to reduce high voltage DC input to low voltage DC output for specific applications. They are also used in some applications as damage mitigation by isolating highly sensitive components in a circuit from its other components.
The top growth factors
By far, the biggest impact factor on the growth of the global DC-DC converter market is the rise in Electric Vehicle (EV) adoption. EVs, Hybrid Electric Vehicles (HEVs) and Fuel Cell Electric Vehicles (FCEVs), along with Plug-in Hybrid Electric Vehicles (PHEVs), are expected to completely replace conventional fossil fuel-powered vehicles in the near future, with some manufacturers aiming to eliminate conventional vehicles from their fleets by as early as 2030.
In EV applications, DC-DC converters are used to interface the elements in the electric power train by increasing or reducing voltage levels on the fly. In addition, new innovations in DC-DC converter technology has led to improvements like smaller volume, high efficiency, low electromagnetic interference, and low current/voltage ripple, leading to increased demand for them in various applications.
Other significant impact factors include the rise in adoption of DC-DC converters in railway applications and an increase in demand for power electronics.
In railway applications, DC-DC converters are used to convert DC battery voltages into a lower voltage for use in control and energy circuits. This is needed because rolling stock use DC power distribution systems, allowing batteries to maintain electrical power in the event of a generator failure or if a train is in an area with no overhead electrical wire coverage.
Of course, along with most industries and markets, the DC-DC converter market has been significantly impacted by the COVID-19 pandemic. Production facilities have been halted, workers have been sent home, and manufacturers who use DC-DC converter technologies have slowed down their own operations.
This, the report says, has caused a significant and protracted drop in manufacturing utilization which may lead to a slowdown in the growth of the DC-DC converter market in 2020. That being said, it’s expected to bounce back once the pandemic is over.