A novel deuteron cyclotron auto-resonance accelerator (dCARA) is described here. It is predicted to produce a 40-MeV, 125 mA CW deuteron beam, with notable features including continuous acceleration without bunching for good beam stability, high efficiency, wide beam aperture, and an exceptionally short length of 1.6 meters. Such an accelerated beam can be used to produce the intense neutron flux via breakup of deuterons on a low-Z target. It is estimated that 5-10 small dCARA-based modules could provide the same level of transmutation as one acceleration driven system (ADS) employing a GeV-level 25-MW linac. Other applications of dCARA include medical isotope production system, or fusion prototypic neutron source for testing inner-wall materials for a future fusion power reactor.