Converter Modules Market - Size, Industry Share, Growth Trends and Forecasts (2025-2032)

By Type :

Based on type, the market is segmented into DC-DC converter module, DC-AC converter module, AC-DC converter module, and others.

DC-DC converters refer to modules that convert direct current (DC) from one voltage level to another. They are used in several applications including power supply for electronic devices, battery management systems, and others. DC-AC converters are used for converting direct current into alternating current (AC). This is essential for applications that require AC power from DC sources. Meanwhile, AC-DC converters are used for converting alternating current into direct current. They are mainly used to supply DC power from AC sources, such as wall outlets.

Trends in the type:

• Rising trend in adoption of DC-DC conversion modules in IT & telecommunication, automotive, aerospace & defense, and other sectors, attributing to its reliable voltage regulation, flexibility in voltage rails configuration, and other related characteristics.
• Increasing trend in adoption of AC-DC conversion modules in medical, military, and telecommunication sector, due to its several benefits including compact design, high energy efficiency, cost-effectiveness, and others.

DC-DC converter module segment accounted for the largest revenue share of 46.05% in the total converter modules market share in 2024.

DC-DC conversion modules utilize DC voltage as input and produce a regulated voltage output for target devices. DC-DC conversion modules can convert direct current from the power source from one voltage level to another based on the requirements of the target device or equipment being supplied. Moreover, DC-DC converters provide a range of benefits including reliable voltage regulation, flexibility in voltage rails configuration, safer operation, and reinforced safety isolation barrier including patient contact and patient vicinity applications among others.

• For instance, in February 2023, P-DUKE Technology Co. Ltd launched its new MPK06 series DC-DC converters that are mainly designed for medical applications. The DC-DC converter series provide several features such as 8mm clearance and insulation distance, 6-Watt output power, and complete protection functionalities.

According to the converter modules market analysis, the rising innovations associated with DC-DC conversion modules are driving the converter modules market trends.

AC-DC converter module segment is anticipated to register substantial CAGR growth during the forecast period

AC-DC conversion modules are designed to transform alternating current (AC) input to direct current (DC) output. Moreover, AC-DC converters offer numerous benefits such as compact design, ease of installation, high energy efficiency, cost-effectiveness, and others. The aforementioned benefits of AC-DC converter modules are further increasing its application in medical, military, and telecommunication equipment among others.

• For instance, Vicor Corporation offers AC-DC converter module in its product offerings, which can deliver regulated voltage in a power tablet configuration. The AC-DC converter offers an isolated and regulated DC output with improved fault protection and integrated filtering for redundant operation.

Hence, the increasing advancements related to AC-DC conversion modules are projected to drive the converter modules industry during the forecast period.

By Sales Channel :

Based on sales channel, the market is segmented into direct sales and distributor sales.

Direct sales channels and distributor sales channels are two distinctive methods used by companies to market and sell their conversion modules to consumers or other businesses. Direct sales channels involve selling products directly from the manufacturer or seller to the end consumer without any intermediaries. Direct sales approach can include various methods, such as online sales through company websites or company-owned retail stores. Meanwhile, distributor sales channels involve selling products through intermediaries or distributors. Distributors purchase products in bulk from manufacturers and then resell them to retailers, wholesalers, or other businesses. Distributor sales channel enables wider reach in broad geographical markets.

Trends in the sales channel:

• Factors including higher product quality, availability of excellent support and warranty, and reliable shipping and return policies are among the key prospects propelling the direct sales channel segment.
• Factors including higher flexibility, higher accessibility to a broad range of products, and expanded reach are vital aspects driving the distributor sales channel segment.

Direct sales segment accounted for a significant revenue in the overall market in 2024.

In direct sales channel, conversion modules are sold directly to customers through company outlets. Moreover, the direct sales channel also include online mode, wherein the manufacturers sell conversion modules through its own company websites. Further, purchasing conversion modules from direct sales channel offers various benefits such as competitive pricing, higher product quality, faster response time, higher return on investments, and others, which are vital aspects for increasing the purchase of conversion modules from direct sales channel.

• For instance, Renesas Electronics Corporation is a conversion module manufacturer that offers a range of conversion modules for direct purchase through the company website.

Hence, the increasing availability of conversion modules in direct sales channel is driving the converter modules market growth.

Distributor sales segment is anticipated to register substantial CAGR growth during the forecast period.

The distributor sales channel includes indirect distribution of conversion modules, wherein the conversion modules are purchased from several regional distributors operating in multiple regions worldwide. Moreover, distributor sales channel provides a range of benefits such as extended market reach, increased cost efficiency, reduced capital expenditure, and others. The aforementioned benefits of distributor sales channel are increasing its adoption for distribution of conversion modules.

• For instance, Mouser Electronics Inc., DigiKey Corporation, Arrow Electronics Inc., and others are few of the distributors of conversion modules.

Hence, the increasing availability of conversion modules in distributor sales channel is expected to drive the market during the forecast period.

By End-User :

Based on the end-user, the market is segmented into IT & telecommunication, healthcare, transportation, aerospace & defense, and others.

Conversion modules are vital components in several industries including IT & telecommunications, healthcare, aerospace & defense, and other sectors, for supporting essential power conversion functions. In IT & telecommunication sector, conversion modules are used in power supply units, network devices, and other telecom equipment. In healthcare sector, conversion modules are used in medical devices, such as ultrasound equipment, MRI machines, and other devices, where reliable power conversion is critical. Additionally, conversion modules are used in aerospace & defense systems including avionics systems, flight control systems, and others.

Trends in the end-user:

• Factors including the rising deployment of 5G infrastructure, increasing development of data centers, and growing demand for high-speed communication and cloud services are key trends driving the IT & telecommunication segment.
• Factors including growing commercial flight activities, rising aircraft production, and increasing investments in development of defense vehicles are driving the growth of the aerospace & defense segment.

IT & telecommunication segment accounted for the largest revenue share in the overall converter modules market share in 2024.

Conversion modules are mainly used in servers and telecommunication infrastructures for enhancing system efficiency and improving power factor to ensure constant operations and enhanced system or device reliability. Moreover, conversion modules are often used in data centers for facilitating direct current voltage conversion to provide stabilized voltage for powering data center servers and systems.

• For instance, according to VIAVI Solutions Inc., approximately 2,497 cities worldwide have deployed commercial 5G networks across 92 countries as of 2022.

According to the analysis, the growing IT & telecommunication sector and rising deployment of 5G network are driving the adoption of conversion modules, in turn propelling the market.

Aerospace & defense segment is anticipated to register substantial CAGR growth during the forecast period.

Conversion modules are often used in aerospace & defense sector for providing efficient power distribution, improved power system performance, and enhanced connectivity from several unregulated power sources to the point of load. Moreover, conversion modules provide a stabilized and reliable power for aircraft power systems including displays, processors, along with communication and navigation electronics. The aforementioned features of converter modules are driving its utilization in the aerospace & defense sector.

• For instance, Airbus, an aircraft manufacturer, delivered 735 commercial aircraft in 2023, witnessing an incline of approximately 11% in comparison to 661 deliverables in 2022.

Thus, the rising aircraft production is projected to drive the converter modules market size during the forecast period.

By Region :

The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 4,305.39 Million in 2024. Moreover, it is projected to grow by USD 4,519.34 Million in 2025 and reach over USD 7,407.68 Million by 2032. Out of this, China accounted for the maximum revenue share of 37.23%. As per the converter modules market analysis, the adoption of conversion modules in the Asia-Pacific region is primarily driven by growing telecommunication, military & defense, and other sectors. Additionally, increasing investments in telecom base stations, specifically 5G base stations, are further accelerating the converter modules market expansion.

• For instance, according to the Department of Telecommunication of India, the total deployment of 5G base stations reached nearly 464,990 base stations across India as of December 2024, representing an incline of 10.8% as compared to 419,845 base stations in January 2024. The above factors are driving the adoption of conversion modules in telecom equipment and base stations, in turn boosting the market demand in the Asia-Pacific region.

North America is estimated to reach over USD 5,264.34 Million by 2032 from a value of USD 3,144.74 Million in 2024 and is projected to grow by USD 3,293.39 Million in 2025. In North America, the growth of converter modules industry is driven by rising adoption of conversion modules in aerospace & defense, telecommunication, automotive, and other sectors. Similarly, increasing investments in aerospace & defense industry are contributing to the converter modules market demand.

• For instance, the U.S. Government allotted USD 883.7 billion budget for national defence for FY 2024, among which USD 841.4 billion was allocated for the United States Department of Defence. The above factors are projected to drive the adoption of conversion modules in defense vehicles and systems, in turn driving the converter modules market trends in North America during the forecast period.

Additionally, the regional analysis depicts that the growing telecommunication sector, increasing penetration of 5G infrastructure in several countries across Europe, rising adoption of electric vehicles, and substantial investments in healthcare sector are driving the converter modules market demand in Europe. Further, as per the market analysis, the market demand in Latin America, Middle East, and African regions is anticipated to grow at a considerable rate due to factors including growing transportation sector, along with increasing investments in telecom infrastructure and military & defense sector among others.