Digital Isolator Market Outlook:
Digital Isolator Market size was over USD 2.33 billion in 2025 and is projected to reach USD 4.76 billion by 2035, witnessing around 7.4% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of digital isolator is evaluated at USD 2.49 billion.
To isolate machines from electricity and disrupt current flow patterns, there is an increasing trend of integrating digital isolation devices into a wide variety of equipment. This is often done to address the challenge confronted by conclusion clients and producers where they see to run their offices and gear at low-cost controls, and decrease machine downtime, among others. Digital isolators provide signal isolation and shift levels to see the correct operation of different circuits, in high-voltage equipment. They're also designed to prevent electric shocks for users. The growth of the market in terms of revenue is being driven by this. Digikey announced in 2020 the launch of its industrial communication networks, which are protected by the integration of digital isolators. Digital isolation, based on chip-scale transformers, has been made possible by RS4220/RS485 transceivers that integrate an isolated DCDC regulator and a three-channel signal isolator on a single chip.
Digital isolators offer a wide range of advantages, including benefits in terms of size, speed reduced energy consumption, reliability, and ease of integration into the module as compared to optocouplers. In the past, it has been difficult for designers to choose a suitable isolation barrier system used in medical modules or industry applications due to limited options.
