Encoder market is anticipated to grow at a CAGR of 9.2% during the forecast period (2023-2030). Encoder demand is being driven by the increasing adoption of automation across a variety of industries, including manufacturing, automotive, and healthcare. Encoders play a critical role in giving accurate position feedback and precise motion control, both of which are required for automated systems. Electric vehicles, autonomous driving, and space exploration are all driving considerable growth in the automotive and aerospace industries. Hence, the market is growing with increasing product launches in the market. For instance,  In September 2023, 4B Group has introduced the Encoder-Flex 1024, a configurable multi-function encoder designed for monitoring position or speed. The Encoder-Flex 1024 has many applications and is very well suited to monitor the position of rack and pinion gates, angular position of distributors, as well as shaft speed for rotating machines such as bucket elevators and conveyors. The new, ATEX-approved Encoder-Flex 1024 has numerous industrial applications in one design.

Segmental Outlook 

The global Encoder market is segmented on the type, technology, and application. Based on the type, the market is sub-segmented into Rotary and Linear. Based on technology, the market is sub-segmented into optical, photoelectric, magnetic and others. And based on the industry verticals, the market is sub-segmented into automotive, aerospace, manufacturing, healthcare, power & utility and other. Among the industry verticals, the automotive sub-segment is anticipated to hold a considerable share of the market, owing to encoders are widely used in various industries for applications such as motor control, navigation systems, and precision positioning. Encoders are essential components of automated systems, providing accurate position feedback and precise motion control. As automation continues to be adopted across a wide range of industries, the demand for encoders is expected to increase.

The Rotary Sub-Segment is Anticipated to Hold a Considerable Share of the Global Encoder Market

Among the type, the rotary sub-segment is expected to hold a considerable share of the global Encoder market. This segmental growth is attributed to several factor such as, rotary encoders are widely used in applications such as assembly machines, and packaging. It provides advantages such as highly reliable and accurate, low-cost feedback, high resolution, integrated electronics, fuses optical and digital technology, and others. Hence, companies are working on development of better technology and adopting various strategic initiatives such as partnership, product launch and acquisition to stay competitive in the market. For instance, In October 2023, M5Stack announced the launch of the M5Dial, a smart rotary control device with a colour touchscreen display, based on the company's M5StampS3 module itself built around the Espressif ESP32-S3 microcontroller. As a versatile embedded development board, M5Dial integrates the necessary features and sensors for various smart home control applications, It features a 1.28-inch round TFT touchscreen, a rotary encoder, and Radio-Frequency Identification detection module, an RTC circuit, a buzzer, and under-screen buttons, enabling users to easily implement a wide range of creative projects.

Regional Outlook

The global Encoder market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Asia pacific is anticipated to hold a prominent share of the market across the globe, owing to Increasing demand for encoders in emerging economies such as China and India are experiencing rapid industrialization. which is leading to a growing demand for encoders.

Global Encoder Market Growth, by Region 2023-2030

The North America Region is Expected to Grow at a Significant CAGR in the Global Encoder Market

Among all regions, the North America regions is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to growth of Industry 4.0 in the region. Industry 4.0 is the fourth industrial revolution, characterized by the increasing integration of digital technologies into manufacturing processes. Encoders play a vital role in Industry 4.0 applications such as smart machines, autonomous robots, and predictive maintenance. Hence, the market players are focusing on strategic initiatives such as partnership, merger, and product launch to capture the market.  For instance, In September 2022, Celera Motion, a motion control division of Novanta Inc., increased the selection of encoders for robot arms. The business introduced new encoding with a range of widths to enable precise angular measuring across almost all varieties of robot joints. From small end effectors at the end of the arm to the upper shoulder joints, the new encoder range may cover all the normal sizes needed in arms.

Market Players Outlook

The major companies serving the Encoder market include Alps Alpine Co., Ltd., Bourns, Inc., CUI Devices, ELCO Holding, FRABA B.V., Grayhill Inc., Omron Corp, Panasonic Corp, Rockwell Automation, Inc., Schneider Electric, Sensata Technologies, Inc., TE Connectivity, and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, In June 2023, ZeeVee Introduced ZyPerUHD60-2E, Encoders the ZyPerUHD60-2E encoder features dual LAN and twin HDMI 2.0a ports and a USB-C port, making it ideal for a wide range of applications from simple meeting spaces to complex AV integration projects. The ZyPerUHD60-2D decoder sports an additional ethernet port and is optimized to work in tandem with the new encoder. It deliver pixel-for-pixel reproduction of compressed 1080p HD and full 4K at 60 Hz UHD resolution content with ultra-low latency over a standard 1Gb Ethernet network via off-the-shelf IP switches. 

The Report Covers

• Market value data analysis of 2022 and forecast to 2030.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global encoder market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.