Digital Isolator Market Report 2026

The digital isolator market size has grown strongly in recent years. It will grow from $2.54 billion in 2025 to $2.7 billion in 2026 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to expansion of industrial electronics manufacturing, growth in power electronics adoption, increasing use of isolation in safety-critical systems, availability of advanced semiconductor fabrication, rising demand for high-voltage protection.

The digital isolator market size is expected to see strong growth in the next few years. It will grow to $3.52 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to increasing electrification of industrial systems, rising adoption of electric vehicles and charging infrastructure, expansion of smart grid technologies, growing focus on cybersecurity and system safety, increasing integration of digital isolators in advanced electronics. Major trends in the forecast period include increasing adoption of high-speed digital isolation solutions, increasing demand for compact and low-power isolators, growing integration in industrial automation systems, expansion of isolation solutions for electric vehicles, enhanced focus on signal integrity and safety.

The increasing adoption of Internet of Things (IoT) devices is expected to drive the growth of the digital isolator market going forward. IoT devices are physical objects embedded with sensors, software, and connectivity features, allowing them to collect and exchange data over the internet. Digital isolators are used in IoT devices to ensure data integrity, reliability, and security by providing electrical isolation between various components and subsystems. For instance, in August 2025, the European Commission, a Belgium-based government body, reported that in 2024, 70.9% of individuals in the EU used devices connected to the internet. Therefore, the growing adoption of IoT devices and sensors is propelling the growth of the digital isolator market.

The rising demand for automation is expected to drive the growth of the digital isolator market going forward. Automation involves the use of technology, machines, or systems to perform tasks with minimal human intervention, enhancing efficiency and accuracy. Companies are increasingly adopting automation to improve productivity, reduce human errors, and lower operational costs while maintaining high-quality output. Digital isolators support automation by providing fast and secure signal transmission between electronic components while protecting systems from electrical noise and surges. For instance, in September 2024, the International Federation of Robotics (IFR), a Germany-based non-profit organization, reported that industrial robot installations in the UK increased by 51%, reaching 3,830 units, while in the Americas, over 50,000 units were installed for the third consecutive year, totaling 55,389 units in 2023. Therefore, the growing demand for automation is propelling the growth of the digital isolator market.

Leading companies in the digital isolator market are actively involved in the development of cutting-edge products, such as the ISOFACE 2DIBx4xxF, aimed at improving reliability, efficiency, and safety across diverse environments. An example of this innovation is seen in Infineon Technologies, a prominent German semiconductor designer, manufacturer, and supplier. Infineon Technologies introduced the ISOFACE 2DIBx4xxF in June 2023, a dual-channel digital high-voltage isolator. This device leverages Infineon's patented coreless transformer (CT) isolation technology, featuring multiple channel configurations, dependable default output states, and flexible input thresholds with output activation configurations. The CT technology provides robust resistance to system noise, boasting a Common Mode Transient Immunity (CMTI) exceeding 100 kV/μs. With the ability to handle isolation voltages up to 3000 V RMS, the digital isolators ensure stable operations in interference-prone settings, enabling consistent data transfers. The 2DIBx4xxF, representing a dual-channel first-generation model, supports transmission speeds of up to 40 Mbit/s, ensuring signal clarity across diverse temperatures and production variations.

Major companies operating in the digital isolator market are Texas Instruments Inc., Analog Devices Inc., Infineon Technologies AG, Broadcom Inc., STMicroelectronics NV, NXP Semiconductors N.V., Renesas Electronics Corporation, Skyworks Solutions Inc., Vicor Corporation, NVE Corporation, Silicon Laboratories Inc., ROHM Semiconductor, ON Semiconductor, Murata Manufacturing Co., Ltd., Toshiba Electronic Devices & Storage Corporation, Panasonic Corporation, Maxim Integrated, Vishay Intertechnology, Inc., ISOBAUD, Inc., NOVOSENSE Microelectronics Co., Ltd.

Asia-Pacific was the largest region in the digital isolator market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital isolator market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital isolator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The digital isolator market includes revenues earned by entities by providing services such as capacitive coupling, giant magnetoresistive (GMR), and magnetic coupling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The digital isolator market consists of sales of systems such as optocouplers, capacitive couplers, and transformer-based isolators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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