Encoder Market

Market Overview:

The global encoder market size reached US$ 2.44 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 4.08 Billion by 2028, exhibiting a growth rate (CAGR) of 8.66% during 2023-2028. The rising demand for high-end automation across industries, increasing product utilization in the automotive industry, and integration of the Internet of Things (IoT) technology represent some of the key factors driving the market.

An encoder refers to an electromechanical feedback device that compiles and converts motion into an electrical signal for determining position, speed, count, or direction. Linear, rotary, and angle encoders are some commonly used variants that are based on mechanical, optical, capacitive, and magnetic technologies. It consists of several components, such as a light source, variable resistor, sensors, rotating disk, electric circuit, and signal processor. An encoder is widely used in robotics, automation, cut-to-length applications, printing, packaging, conveying, sorting, machine tools, elevators, cranes, vehicles, and telescopes. It is a cost-effective, durable, compact, shock-resistant, and highly reliable device that integrates easily with existing technologies and provides high-resolution measurements. As a result, encoder finds extensive applications across the automotive, healthcare, aerospace, food and beverage (F&B), consumer electronics, power generation, and textile industries. 

Encoder Market Trends:

The rising demand for high-end automation across various industries is one of the primary factors driving the market growth. An encoder is widely used in automation to maintain and control motor speed and guide robotic arms in various operations, such as welding, assembly, material handling, and grinding, which, in turn, enhances performance, improves overall equipment effectiveness, reduces costs, and increases productivity. Furthermore, the widespread product utilization in the automotive industry to provide precision control of the drive motor system and steering assembly is providing an impetus to the market growth. Along with this, increasing product adoption in electric, hybrid, and autonomous vehicles to measure the position of the wheels and provide feedback for the control system is propelling the market growth. Additionally, the incorporation of embedded microprocessors to improve the signal processing capability of encoders, expand their functionality, enhance sensitivity, and allow users to configure the system through smartphones and web portals is positively influencing the market growth. Apart from this, the integration of the Internet of Things (IoT) technology, which allows users to analyze encoders remotely, provides diagnostic and condition monitoring capabilities, and accurately predicts a potential failure, is favoring the market growth. Moreover, increasing product adoption in the healthcare industry for robotic surgery, ophthalmic laser treatment, radiation therapy, artificial respiration, orthopedic rehabilitation, and laboratory analysis is positively influencing the market growth. Other factors, including rapid industrialization, increasing investment in the research and development (R&D) of innovative products, and the widespread product utilization in various consumer electronics, such as scanners, printers, and copiers, are anticipated to drive the market growth.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global encoder market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on type, technology, signal type, and industry vertical.

Type Insights:

• Rotary Encoder
• Linear Encoder
   

The report has provided a detailed breakup and analysis of the encoder market based on the type. This includes a rotary and linear encoder. According to the report, rotary encoder represented the largest segment.

Technology Insights:

• Optical
• Magnetic
• Photoelectric
• Others
   

A detailed breakup and analysis of the encoder market based on the technology has also been provided in the report. This includes optical, magnetic, photoelectric, and others. According to the report, optical accounted for the largest market share.

Signal Type Insights:

• Absolute Encoders
• Incremental Encoders
   

A detailed breakup and analysis of the encoder market based on the signal type has also been provided in the report. This includes absolute and incremental encoders. According to the report, absolute encoders accounted for the largest market share.

Industry Vertical Insights:

• Automotive
• Electronics
• Printing Machinery
• Textile
• Aerospace
• Pharmaceuticals
• Others
   

A detailed breakup and analysis of the encoder market based on the industry vertical has also been provided in the report. This includes automotive, electronics, printing machinery, textile, aerospace, pharmaceuticals, and others. According to the report, electronics accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific was the largest market for encoder. Some of the factors driving the Asia Pacific encoder market included the increasing demand for high-end automation across various industries, rapid industrialization, and extensive research and development (R&D) activities.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global encoder market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include Alps Alpine Co. Ltd., Baumer Holding AG, Bourns Inc., Dynapar Corporation (Fortive Corporation), OMRON Corporation, Panasonic Corporation, Pepperl+Fuchs SE, Renishaw plc, Rockwell Automation Inc., Schneider Electric SE, Sensata Technologies Inc., TE Connectivity, TT Electronics Plc, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global encoder market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global encoder market?
• What is the impact of each driver, restraint, and opportunity on the global encoder market?
• What are the key regional markets?
• Which countries represent the most attractive encoder market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the encoder market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the encoder market?
• What is the breakup of the market based on signal type?
• Which is the most attractive signal type in the encoder market?
• What is the breakup of the market based on industry vertical?
• Which is the most attractive industry vertical in the encoder market?
• What is the competitive structure of the global encoder market?
• Who are the key players/companies in the global encoder market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the encoder market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global encoder market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the encoder industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.