Growth expected for data converters in 2006

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17 May 2006 News

Databeans predicts that demand for data converters will be very high for 2006, due to new growth in the communications and consumer markets in particular. And suppliers are ready, which will produce increased shipments with gains in revenue.

The data converter provides a key technology that is used in multiple market segments and in many applications. It is essentially the connecting technology between the analog world and the digital space. These components basically convert an analog wave into a digital form for processing, and then convert it back to analog for use in the real world.

Major application markets that require data converters include wireless infrastructure, advanced imaging, and a range of consumer electronics - including home entertainment and appliances, says the research group. Data converters are also used in the automotive and other industrial markets, which would include applications such as motor control in manufacturing equipment, precision measurement in home medical electronics, and most vehicle entertainment systems.

While market segments vary in terms of revenue and growth rates, Databeans says that the impact of increasing demand for high-speed communication, high-resolution displays, high performance audio, and increasing digital content, has created advancing opportunities for data converter suppliers.

Databeans has found that the major design trend in data converters is toward higher speed and resolution, with lower power consumption. Higher sampling rates are important for applications that require fast processing, such as in wireless communication. Resolution is an issue wherever higher precision is required. Low power consumption is a requirement in several types of applications, and in portable electronics design especially.

This year's data converter market will likely be up by 26%, and it is expected to outperform the total semiconductor industry by far. Longer term, the market for converters should continue to advance with an average annual growth rate of 12%. Databeans estimates that unit shipments for data converters will increase from 1,5 bn units in 2006 to about 2,9 bn units by 2011.

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Growth expected for data converters in 2006

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