Optocoupler Market Size, Share, Opportunities, COVID-19 Impact, And Trends, By Comparison (Isolation Transformer, Optocoupler, Magnetic Coupler, Digital Isolator), By Type (Transistor, Darlington Transistor, TRIAC, SCR), By Applications (Power Supplies, Telecom Switches, White Goods, Instrumentation, Others), And By Geography - Forecasts From 2023 To 2028

The optocoupler market is expected to grow at a compound annual growth rate of 4.78% over the forecast period to reach a market size of US$1,851.723 million in 2028, from US$1,335.305 million in 2021.

Optocouplers are electronic devices designed to transfer electrical signals between two isolated circuits using light as the medium of communication. Optocouplers consist 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.

Growth drivers of the optocoupler market

The optocoupler market has witnessed significant growth in recent years due to the increasing demand for electronic devices and the need for reliable signal isolation. They are employed in power electronic devices, such as inverters, motor drives, and power supplies, to protect control circuits from high voltage transients and provide feedback signals. They are also utilized in medical devices and equipment for patient safety, signal isolation, and noise immunity.

The market is further driven by advancements in technology, such as the development of high-speed optocouplers, integrated optocoupler solutions, and miniaturized optocouplers for space-constrained applications. Additionally, the increasing adoption of optocouplers in emerging sectors like Internet of Things (IoT) devices and electric vehicles is contributing to market growth.

Increasing industrial automation

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.  

Furthermore, an increase in the demand for industrial robots is another growth driver for the optocoupler market. Optocouplers are employed in robot control systems to provide reliable signal transmission, protect control circuits, and ensure seamless integration with sensors and actuators. According to the International Federation of Robotics, the new world robotics shows an increase of 517,385 new industrial robots installed in 2021 in 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.

 The transistor segment is projected to grow.  

The proliferation of consumer electronics, industrial automation, and automotive sectors drives the demand for optocouplers with transistor technology, as they are widely used for signal isolation and voltage level shifting. Moreover, the continuous progression in semiconductor manufacturing techniques, encompassing factors such as miniaturization of transistor dimensions, enhanced performance attributes, and heightened reliability, plays a pivotal role in driving the expansion of the transistor segment within the optocoupler market.

Additionally, transistors offer high gain, low power consumption, and fast switching speeds, making them suitable for applications that require precise signal amplification and efficient switching, such as motor control, power supplies, and communication systems. They provide isolation between input and output circuits, offering protection against voltage spikes, noise, and potential ground loop issues. This drives their adoption in safety-critical applications and high-voltage environments.

The United States is the dominant market 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.

The growing popularity of 5G technologies coupled with advancements in Wi-Fi technology has further paved the way for the future market growth of optocoupler 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 billion in the development and improvement of 5G as well as next-generation wireless technologies in the United States.

Market Developments:

• In June 2023, Samsung's semiconductor business, under President Kyung Kye-hyun, announced plans to utilize AI and big data to enhance wafer manufacturing yields, rivaling Taiwan Semiconductor Manufacturing Co., and optimize chip productivity and quality, leveraging data-driven decisions for improved outcomes.

Optocoupler Market Scope:

Market Segmentation:

• By Comparison
  • Isolation Transformer
  • Optocoupler
  • Magnetic Coupler
  • Digital Isolator
• By Type
  • Transistor
  • Darlington Transistor
  • TRIAC
  • SCR
• By Application
  • Power Supplies
  • Telecom Switches
  • White Goods
  • Instrumentation
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others