The Encoder Market is expected to witness moderate growth, registering a 7.7% CAGR during the forecast period (2022 – 2030). The Market is projected to reach US$ 2.17 Bn in 2022 and US$ 3.95 Bn by 2030.
Key Takeaways of Encoder Market Study
- The optical sensing encoders segment is expected to witness a notable growth rate, owing to increasing demand for enhanced resolution and accuracy for optical technologies
- South Asia & Pacific is expected to create lucrative growth opportunities for players in the encoder market, attributed to the rapid growth of the automobile and manufacturing industry in the region
- The market concentration in the global market is consolidated, over half of the market share is expected to hold by the top 10-12 manufacturers
- Key players in the market are focusing on acquisitions to complement their product portfolio to cater to the needs of a variety of customers. Market participants are also focusing on providing products directly to end-users to improve direct customer relations
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Encoder Market Landscape
The global encoder market is highly competitive due to presence of a large number of medium- and large-sized encoder manufacturers and service providers.
Tier-I participants in the encoder market are estimated to hold around 45%-55% of the market share. Product development and innovation is the key strategy of encoder manufacturers in the encoder market to increase their market presence and enhance end user experience.
For instance, June 2020, FRABA B.V. introduced an inexpensive and flexible alternative for safety-critical motion control systems. It provides various application for new safety-ready encoders range from heavy construction equipment and mobile machines.
This report provides valuable insights at the company level, focusing on product innovation in the encoder market, along with business and marketing strategies of emerging market players.
Some market players included in the report are OMRON Corporation, Baumer Electric AG, Schneider Electric, Panasonic Corporation, Renishaw plc, Honeywell International, Inc., Rockwell Automation, Inc., and amongst others.
Impact of COVID-19 Pandemic Outbreak on Encoder Market
The worldwide spread of COVID-19 pandemic in Q1, 2020 has impacted the production of encoder products such as linear encoders, and rotary encoders and has also disrupted the encoder products industry and supply chain during the lockdowns. The majority of the end-use industries manufacturing facilities have been shut down for the preventive measures against the COVID-19 epidemic.
Moreover, in 2020, the production is expected to witness a slowdown, and the majority of manufacturers are expected to maintain the inventory level.
Before COVID-19, the global market for encoder was anticipated to increase at 7.5%-8% market growth in 2019, whereas post-COVID-19 scenario, the market for encoder is projected to declining growth of -1.5% as compared to original forecast 2019.
The COVID-19 crisis is expected to add to an uncertain long term impact on the global market. The global encoder market is expected to witness rebound from the first to the second quarter of 2021.
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Future Outlook for Encoder Market
Encoder products are used in different industries applications such as automotive, consumer electronics, aerospace & defense, healthcare & medical devices, industrial and among others.
Increasing usage of the encoder in industrial applications due to the adoption of upcoming technologies such as automation, robotics, and smart manufacturing is expected to offer lucrative growth opportunities in the encoder market.
A major growth driver of the global encoder market is the increasing number of orders placed for advanced and expanding applications, along with transition of traditional and manual controls to state-of-art automation.
More Valuable Insights on Encoder Market Report
Future Market Insights offers an unbiased analysis of the global encoder market, providing historical data for 2015-2019 and forecast statistics from 2022-2030.
Encoder Industry Survey Segmentation
Encoder Market by Type:
- Linear Encoders
- Rotary Encoders
Encoder Market by Position Signal:
- Absolute Encoders
- Incremental Encoders
Encoder Market by Sensing Technology:
- Optical Sensing Encoders
- Magnetic Sensing Encoders
- Capacitive Encoders
- Inductive Encoders
Encoder Market by Application:
- Consumer Electronics
- Aerospace & Defense
- Healthcare & Medical Devices
Encoder Market by Region:
- North America Encoder Market
- Latin America Encoder Market
- Europe Encoder Market
- East Asia Encoder Market
- South Asia and Pacific Encoder Market
- Middle East and Africa Encoder Market