1. LDO means Low Drop Out.
Of course, my bad, I ment linear regulator.
they require big inductors and capacitors to output a smooth voltage
Space on the board is actually not a problem. Thank you for your suggestion, i will go through them!
Linear regulators are basically controlling a transistor to give a constant voltage at Vout as long as Vin is higher than Vout plus the regulator dropout. They dissipate huge amounts of power based on the equation Pdiss = (Vin - Vout) * Iout. As already pointed out, 24V to 3.3V at 700mA is 15W of power dissipated, basically just becomes wasted heat.
Switching regulators operate by moving electricity through from input to output only part of the time. They will turn on a switch to build energy in an inductor, then turn off that switch and the inductor then sends that energy to the output through another switch. For a buck regulator (switch from high voltage to low) going from 24V to 3.3V, the switch turns on less than 15% of the time. The capacitor on the output smooths the output voltage to keep it close to where you want. I know many purists are going to point out that there are a lot of equations and details that I'm not covering, but this is meant to be a basic concept.
Because the switching regulator only pulls power from the input part of the time, wasted power is minimized. For a buck regulator, 3.3V output at 700mA is a little over 2.3W of power delivered, and the input is going to be 24V delivering 700mA, but only 15% of the time. So while it can be taking 16.8W of power at a given instant when the switch is on, the average power needed is only 15% of this, a little over 2.5W. Instead of 15W wasted, it's only 0.2W.