The global encoder market size is expected to grow from USD 2.3 billion in 2021 to USD 3.7 billion by 2026, at a CAGR of 10.0%. The growth of this market is mainly driven by the need for high-end automation across industries, growth in adoption of Industry 4.0, and the inclination toward advanced technologies amid COVID-19 pandemic. However, factors such as problems related to accuracy, variation in international regulations, and mechanical failures in harsh environments are restraining the market growth.
" Rotary encoders to grow at highest CAGR during the forecast period”
The increasing demand for automated industrial machines and robotics is driving the growth of the rotary encoders market. Rotary encoders are electromechanical devices used to measure the number of rotations, rotational angle, and rotational position of equipment. These encoders are also known as shaft encoders or simply encoders. They are used for position sensing across various applications, for example, on motors paired with drives and automated machinery in consumer electronics, elevators, conveyor speed monitors, industrial machines, and robotics. They track the turning of motor shafts to generate a digital position and motion information. Whether incremental or absolute, magnetic, or optical, rotary encoders track motor shaft rotation to generate a digital position and motion information.
Rotary encoders are used in a wide range of applications that require monitoring or control, or both, of mechanical systems, including industrial controls, robotics, photographic lenses, computer input devices, and rotating radar platforms.
“Consumer Electronics application dominated the encoder market in 2020.”
Consumer electronics is one of the fastest-growing markets for encoders. In this industry, encoders are widely used in office equipment such as PC-based scanning equipment, printers, copiers, answering machines, and scanners. For instance, many industrial inkjet printing systems are equipped with a rotary encoder to track the motion of the object to be printed. This enables the print head to apply the image to a precisely controlled location on the object. Furthermore, an evident surge has been noticed in the use of encoders in APAC and North America for consumer electronics applications owing to the rapid adoption of new technologies and the presence of many consumer electronics giants, such as Apple (US), Samsung Electronics (South Korea), Huawei (China), Sony Corporation (Japan), HP Inc. (US)
“Market in APAC to grow at highest CAGR during the forecast period”
In 2020, APAC accounted for a prime share of the encoders market. The growth of the encoders market is primarily attributed to the increasing number of manufacturing and engineering hubs related to various industries. The concept of autonomous, electric, and connected cars has fueled the growth of the automotive industry in APAC, especially in China. The automotive industry in the country has been growing rapidly, and the country is playing an important role in the global automotive market. The increasing demand for energy-efficient production processes, coupled with the need for feedback systems, is expected to create opportunities for the encoder market in APAC. However, the pandemic has resulted in disruptions in supply chain activities, revenue losses, and slowdown in production activities which have highly impacted the growth of the market, eventually impacting the economy.
Breakdown of the profiles of primary participants:
- By Company Type: Tier 1 - 52%, Tier 2 - 31%, and Tier 3 - 17%
- By Designation: C-level Executives - 47%, Directors - 31%, and others - 22%
- By Region: North America - 36%, Europe - 29%, APAC - 30%, and RoW - 5%
Major players profiled in this report are as follows: Sensata Technologies (US), Dynapar Corporation (US), HEIDENHAIN (US), Renishaw plc (UK), ifm electronics (Germany), POSITAL FRABA (Netherlands), and others.
In this report, the encoder market has been segmented based on encoder type, signal type, technology, application, and region. The encoder market based on signal type has been segmented into absolute and incremental. Based on the encoder type, the market has been segmented into rotary encoder and linear encoder. Based on the technology, the market has been segmented into magnetic, optical, inductive, and others. Based on the application, the market has been segregated into industrial, healthcare, consumer electronics, automotive, power, food & beverages, aerospace, printing, textiles, and others. The study also forecasts the size of the market in four main regions?North America, Europe, APAC, and RoW.
Key Benefits of Buying the Report:
- The report would help market leaders/new entrants in this market in the following ways:
- This report segments of the encoder market comprehensively and provides the closest approximation of the overall market size and subsegments that include encoder type, signal type, technology, application, and region.
- The report would help stakeholders understand the pulse of the market and provide them with information on key drivers, restraints, challenges, and opportunities pertaining to the encoder market.
- This report would help stakeholders understand their competitors better and gain more insights to enhance their position in the business.
- The competitive landscape section includes the competitor ecosystem, as well as growth strategies such as product launches, acquisitions, and expansions carried out by major market players.