The Global Encoder Market size is expected to reach $4.8 billion by 2028, rising at a market growth of 9.1% CAGR during the forecast period.
A tool or procedure which translates data from one format to another desirable format is known as an encoder. An encoder is a device used in position sensing that can recognize mechanical motion and translate it into an output signal with an analog or digital code. More precisely, it measures the position, and from the position, in either a linear or rotating motion, direction, velocity, and acceleration can be calculated.
Different physical operating principles, communication protocols, outputs, and other factors contribute to encoders' different functioning. All types of mechanical systems require encoders as essential components. They are prevalent in industrial environments where heavy gear completes delicate labor, repeated operations, or high-precision prototyping.
In addition, advanced electronics manufacturing, the automation industry, robotics, the healthcare industry, and other fields rely heavily on encoders. Although encoders have the same primary function of measuring motion and communicating feedback, their setups, capabilities, and uses differ significantly.
Machines employ encoders for motion control and motion feedback. In machinery across all industries, encoders are present. Plotters utilize encoders, packaging, robotics, conveying, sorting, automation, imaging, filling, and many other devices. They may have escaped your attention, but they do exist.
The COVID-19 pandemic had a significant negative influence on the encoder industry. Many countries have imposed and extended lockdowns, which has caused industry and manufacturing facilities worldwide to shut down due to crisis and a lack of labor. It is determined that the market experienced a decline between 2019 and 2020 after taking into account the opinions of numerous industry experts from different segments of the value chain, including OEMs, integrators, suppliers, end users, and distributors, as well as the financial results of other businesses in the encoder ecosystem.
Since encoders are used in automation to offer exact speed and direction to ensure that whichever motor is driving operates safely and smoothly, the requirement for automation by manufacturers throughout industries has been the primary demand driver for encoders. In order to avoid motor burnout or machine shutdown, accurate motor speed tracking provides optimal machine efficiency and operation. Encoders in automation, therefore, monitor machine energy and operating characteristics to assist increase overall equipment effectiveness (OEE). To properly control the robotic system, force detection and adjustment are crucial in various applications where the encoder is used.
Artificial intelligence is used to build computers that perform tasks more effectively than people, enabling them to work around-the-clock under challenging conditions. As robots become more adept, businesses are adopting artificial intelligence in applications such as unmanned aerial drones, mobile robotics, digital twins, virtual assistants, machine learning, speech and image recognition, and other fields. Encoders also consume less energy when controlling and switching the rotor's displacement. During the forecast period, market growth is expected to be supported by this rising AI adoption.
Encoders are frequently employed in difficult settings, including those found in producing food and beverages, heavy equipment, specialty vehicles, energy production, the fabrication of medical devices, and wastewater treatment facilities. Solid particle or liquid contamination, mechanical bearing overload, and signal output failure are the leading causes of encoder failure in challenging situations. Any of these causes the encoder to stop working or the system to start acting strangely. As a result, the use of encoders may decrease in the years to come.
Based on the type, the encoder market is classified into rotary and linear. In 2021, the rotary category dominated the encoder market with largest revenue share. These kinds of encoders are typically used when mechanical systems need to be controlled or monitored. Robotics, conveying, filling, the lift industry, cut-to-length applications, robotics, and motor feedback are just a few industries that frequently use encoders. The need for robotics and automated industrial machinery is driving growth in the market for rotary encoders.
Based on the applications, the encoder market is segmented into industrial, healthcare, power, food & beverage, automotive, consumer electronics, aerospace, printing, textile, and others. The healthcare sector showcased the significant revenue share in the encoder market in 2021. The demand for combining technical knowledge, skills, and experience with the latest technology is growing due to the healthcare sector's digitization and the rising demand for medical experts. Encoders not only lower the possibility of medical errors and also support the creation of novel lab techniques.
Based on signal type, the encoder market is divided into incremental and absolute segments. In 2021, the incremental segment experienced the largest revenue share in the market. Incremental rotary encoders convert rotational movement into electrical impulses for even more high precision of automated systems. When rotation occurs, incremental encoders create alternating high and low pulses as opposed to absolute encoders, which measure the angle. These pulses may be used to determine the speed and direction of the spinning object.
Based on technology, the encoder market is classified into magnetic, optical, inductive, and others. In 2021, the encoder market's magnetic category had the most significant revenue share. Magnetic field variations cause the magnetic encoder to detect rotational position information and convert it into electrical impulses for an output. A permanent magnet and a magnetic sensor are common parts of magnetic encoders. Magnetic encoders are used in applications that prioritize environmental durability, portability, lightweight, and exceptional dependability.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 2.6 Billion |
| Market size forecast in 2028 | USD 4.8 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 9.1% from 2022 to 2028 |
| Number of Pages | 270 |
| Number of Tables | 504 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Type, Application, Signal Type, Technology, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on geography, the encoder market is categorized in North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region had the largest revenue share in the encoder market in 2021. Expanding the encoder market in the Asia Pacific region is linked to the emergence of manufacturing and engineering hubs associated with various sectors. China, for example, has had rapid industrial development over the past two decades and has surpassed the US to become the world's top manufacturer of manufactured products.
Free Valuable Insights: Global Encoder Market size to reach USD 4.8 Billion by 2028
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Sensata Technologies Holdings PLC and Fortive Corporation are the forerunners in the Encoder Market. Companies such as Renishaw PLC, Maxon Motor AG, and Fraba B.V. are some of the key innovators in Encoder Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Renishaw PLC, Dr. Johannes Heidenhain GmbH, Fraba B.V., Sensata Technologies Holdings PLC, IFM Electronics GmbH, Mitutoyo Corporation, Pepperl + Fuchs Group, Fortive Corporation, Maxon Motor Ag, and Balluff GmbH.
By Type
By Application
By Signal Type
By Technology
By Geography
The global Encoder Market size is expected to reach $4.8 billion by 2028.
Rising Demand Across Businesses For Advanced Automation are driving the market in coming years, however, Mechanical malfunctions in severe settings are a hindrance restraints the growth of the market.
Renishaw PLC, Dr. Johannes Heidenhain GmbH, Fraba B.V., Sensata Technologies Holdings PLC, IFM Electronics GmbH, Mitutoyo Corporation, Pepperl + Fuchs Group, Fortive Corporation, Maxon Motor Ag, and Balluff GmbH.
The expected CAGR of the Encoder Market is 9.1% from 2022 to 2028.
The Industrial segment acquired maximum revenue share in the Global Encoder Market by Application in 2021 thereby, achieving a market value of $1 billion by 2028.
The Asia Pacific market dominated the Global Encoder Market by Region in 2021, and would continue to be a dominant market till 2028; thereby, achieving a market value of $1.8 billion by 2028.
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