The encoders market was valued at US$ 1,748.4 million in 2020 and is expected to grow at a CAGR of 10.2% from 2020 to 2027 to reach US$ 3,447.7 million by 2027.
Industrial robots are widely used for manufacturing processes across the globe. With the adoption of robots, the cost of labor can be reduced to a great extent in various countries, such as the US and China. Developments in computing power and networking technologies have made installing and maintaining robots cost-efficient and faster. Such factors and their impact on the growth of the robotics industry are expected to continue. As per IFR, from 2020 to 2022, ~2 million units of industrial robots are anticipated to be installed in factories across the globe. APAC is the largest industrial robot market. In 2018, APAC grew by 1% in terms of robot installations, and Europe increased by 14%. The top industrial robotics markets in 2018 were South Korea, Japan, China, Germany, and the US. As leading companies in this market continue to broaden its addressable market by expanding their current offerings and diversifying their client base, all the prominent players face an increasing level of competition, both from start-ups and leading established companies across the globe. Several companies in the value chain are developing new products and acquiring other players in the market to maintain their position in the market and provide efficient services to their customers. Major providers of encoders are based in Europe and North America. However, the encoders market is penetrating at a high growth rate in APAC.
The COVID-19 (coronavirus) pandemic is impacting society and the overall economy across the world. The impact of this pandemic is growing day by day as well as affecting the world's technology supply chain. The COVID-19 crisis is leading toward the uncertainty in the stock market, massive slowing of supply chain, falling business confidence, and increasing panic among the population. The overall effect of the pandemic is impacting the production process of several industries, such as consumer electronics, automotive, food & beverages, and many more. As governments of different regions have already announced total lockdown and temporarily shutdown of industries, the overall production process being adversely affected; thus, hinder the overall encoder market globally.
Various companies in Europe and North America focus on R&D initiatives and rising investments are further complementing the growth of the global encoder market. A few key encoder material and technology providers include Gurley Precision Instruments Inc., FSI Technologies Inc., FRABA B.V., Baumer Group, and Dynapar Corporation.
Lucrative Regions for Encoder Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights
Growing Industrial Automation Across Industries
Industrial automation is implemented in several industries, such as automotive, aerospace, food & beverages, healthcare, and electronics. Industrial automation observes a high growth rate due to the requirement for enhanced productivity, speed, and efficiency in manufacturing procedures. Encoders are crucial devices of high volume, high-speed industrial automation applications. Encoders convert motion into electrical feedback signals read by a control device in order to measure changes in speed, position, direction, count, and linear distance. Encoders are suitable for accurate position determination in industrial automation. In several countries, the automation of vehicles is increasing swiftly. With the advent of advanced technology, various automakers are anticipated to invest heavily in autonomous car technology. The encoder is attached to a wheel in order to measure rotation. By measuring rotation, it determines velocity and acceleration. Thus, in automotive automation, encoders play a crucial role and are progressively used in car manufacturing by automakers across the world. This factor accelerates revenue in the global encoder market.
Type Insights
In the type segment, rotary encoder captured a larger share of the global encoder market. The growing demand for electronic position sensing devices across various industries is mainly driving the growth of rotary encoders. Rising demand for rotary encoders in the automotive industry and increasing trend of industrial automation are among the factors anticipated to drive the growth of the market for rotary encoders during the forecast period.
Global Encoders Market Breakdown, by Type - 2019 and 2027
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- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Note: The inner circle in the above figure represents the market share of type segment in 2019, and the outer circle represents the market share of the type segment in 2027.
Technology Insights
The encoders market, by technology, is sub segmented into magnetic, optical, and others. The magnetic technology segment captured a dominating share in the global encoder market.
End User Insights
The encoders market, by end user, is further segmented into aerospace, automotive, food & beverages, printing, consumer electronics, medical, and others. The consumer electronics segment captured a dominating share of the global encoder market.
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Encoders Market: Strategic Insights
Market Size Value in US$ 1,748.4 Million in 2020 Market Size Value by US$ 3,447.7 Million by 2027 Growth rate CAGR of 10.2% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Encoders Market: Strategic Insights
| Market Size Value in | US$ 1,748.4 Million in 2020 |
| Market Size Value by | US$ 3,447.7 Million by 2027 |
| Growth rate | CAGR of 10.2% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Product development strategy is commonly adopted by companies to expand their footprint worldwide and meet the growing demand. This strategy is mostly observed in Europe. A few recent developments are listed below:
2020:FRABA’s subsidiary POSITAL has extended its product portfolio of rotary encoders and inclinometers in order to include more devices with IP69K level environmental protection. They are available with a comprehensive range of mechanical options and communications interfaces.
2019:Renishaw Plc launched a new encoder, ATOM DX encoder, designed on Renishaw's ATOM miniature encoder series and integrated with an innovative interpolation technology originally developed for the VIONiC and QUANTiC encoder families.
Encoders Market – by Type
- Linear Encoder
- Incremental
- Absolute
- Rotary Encoder
- Incremental
- Absolute
Encoders Market – by Technology
- Optical
- Magnetic
- Others
Encoders Market – by End User
- Aerospace
- Automotive
- Food and Beverage
- Printing
- Consumer Electronics
- Medical
- Others
Encoders Market – by Geography
North America
- US
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- UK
- Russia
- Rest of Europe
Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
- Australia
- Rest of APAC
Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
- UAE
- Rest of MEA
South America
- Brazil
- Argentina
- Rest of South America
Company Profiles
- Delta Electronics, Inc.
- Dahua Technology CO., Ltd
- Omron Corporation
- ELCO Holding
- FRABA B.V.
- FSI Technologies Inc.
- Renishaw Plc.
- Rockwell Automation, Inc.
- Scancon Encoders A/S
- Servotechnik GmbH
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type; Technology; End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The Asia Pacific region led the encoders market in 2020. China and Japan are the leading countries in the APAC encoder market. The key reason behind significant demand in the above-mentioned countries is the steep rise in industrialization. The adoption of high-end automation solutions among various industries in China and Japan is a key parameter identified for the growing demand for encoders. Several industries, such as consumer electronics, automotive, medical devices, and food & beverage are booming in the countries and is also anticipated to continue to climb at a substantial rate during the forecast period. The end-users or the industries are witnessing noteworthy demand from respective customers, and owing to which, the demand for automation solutions is higher, which is resulting in a rise in the procurement of encoders, thereby catalyzing the encoders market.
Industrial robots are widely used for manufacturing processes across the globe. This robot carries out several activities, which include assembling and welding. In various countries, such as the US and China, the cost of manufacturing labor is increasing; thus, owing to the growing cost, the payback for robotics is becoming more attractive. Developments in computing power and networking technologies have made installing and maintaining robots cost-efficient and faster. Such factors and their impact on the growth of the robotics industry are expected to continue which propel the encoders market globally.
The rotary encoders are widely used for velocity control, temperature control, position sensing, and volume control. The growing demand for electronic position sensing devices across various industries is mainly driving the growth of the rotary encoder. The rising demand for the rotary encoder in the automotive industry and the increasing trend of industrial automation is anticipated to drive the growth of rotary encoders during the forecast period.
The List of companies - Encoder Market
- Delta Electronics, Inc.
- Dahua Technology CO., Ltd
- Omron Corporation
- ELCO Holding
- FRABA B.V.
- FSI Technologies Inc.
- Renishaw Plc.
- Rockwell Automation, Inc.
- Scancon Encoders A/S
- Servotechnik GmbH
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