Optocoupler Market - Forecasts from 2025 to 2030

The optocoupler market is projected to grow at a CAGR of 5.26% over the forecast period, increasing from US$1.59 billion in 2025 to US$2.05 billion by 2030.

Optocouplers are electronic devices designed to transfer electrical signals between two isolated circuits using light as the medium of communication. It consists of an input LED (Light Emitting Diode) that emits light when an electrical signal is applied to it and an output phototransistor or photodiode that detects the light and generates an electrical signal proportional to the received light intensity. The input and output sides of an optocoupler are physically separated and electrically isolated, providing galvanic isolation between the input and output circuits.

The primary function of optocouplers is to provide isolation and protection between different circuits. They are commonly used in applications where it is necessary to transfer electrical signals between circuits that operate at different voltage levels or have different ground potentials. Optocouplers help prevent interference, voltage spikes, and noise from affecting sensitive components or systems.

Optocoupler market drivers

The rising industrial automation is anticipated to fuel the optocoupler market expansion.

Increasing industrial automation is a significant driver of the optocoupler market. Optocouplers play a crucial role in ensuring safe and reliable communication within automated systems, making them an essential component in industrial automation applications. Industrial automation involves the integration of various electrical and electronic components, including sensors, actuators, and control systems. Optocouplers provide galvanic isolation, which means they electrically isolate different sections of a system, preventing the transfer of electrical noise, voltage spikes, or ground potential differences. This isolation helps protect sensitive components from damage, ensures accurate signal transmission, and enhances overall system safety.

Moreover, in industrial automation, accurate and reliable communication between different devices and control systems is vital in industrial automation. Optocouplers enable communication between circuits that operate at different voltage levels or have varying ground potentials. They convert electrical signals into light signals, which are then transmitted across the isolation barrier. This capability allows seamless and noise-immune transmission of signals, ensuring the integrity and reliability of data in automated systems.

According to the International Federation of Robotics, the new world robotics showed an increase of 136,000 new industrial robots installed in 2022 in automotive factories, 157,000 in electronic and electrical factories, and 66,000 in metal and machinery factories around the world. As the demand for industrial robots continues to rise, the need for optocouplers to enable safe and efficient communication within robotic systems also increases, driving the growth of the optocoupler market's growth.

Optocoupler market geographical outlook

Based on geography, the optocoupler market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia-Pacific.The USA held the largest market share in the North American region. Optocoupler, owing to their ability to isolate low-voltage devices from high-voltage circuits and prevent voltage disruption, finds applicability in consumer electronics, automobile applications, and medical system isolation circuits. The booming electric vehicle market and growing trend of using wireless equipment coupled with advancements in 5G technology have provided a major scope to the market demand for optocouplers in the United States.

For instance, according to the 'Global EV Outlook 2023' report issued by the International Energy Agency, the total number of electric vehicles in the United States in 2022 reached 3 million units, signifying an increase of 36.4% over 2021's stock figure of 2.2. million units. Also, a As per the US Bureau of Labor Statistics, in Q1 of 2022, the US's computers and electronic products manufacturing output witnessed a 7% increase over production output obtained in Q1 of 2021. Furthermore, according to the International Council on Clean Transportation, in 2023, the sales of new electric light-duty vehicles in the United States reached about 1.4 million, which was up from nearly 1 million in 2022, further resulting in a sales share of about 95.

The growing popularity of 5G, coupled with advancements in WiFi technology, has further paved the way for the future market growth of optocouplers in the United States. For instance, in April 2023, the US Secretary of Commerce launched the 'Public Wireless Supply Chain Fund', which will invest US$1.5 million in the development and improvement of 5G and as well as next-generation wireless technologies in the United States.

The funding came as part of the US's efforts to drive wireless innovation in the country. Besides the establishment of funds and policies, the presence of major semiconductor and optocoupler providers in the United States, such as Broadcom Inc., is also acting as an additional driving factor for the overall market growth in the country.

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The optocoupler market is analyzed into the following segments:

By Type

• Transistor
• Darlington Transistor
• Triac
• Scr

By Application

• Power Supplies
• Telecom Switches
• White Goods
• Instrumentation
• Others

By Geography

• North America
• South America
• Europe
• Middle East and Africa
• Asia-Pacific