PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1605785
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1605785
The market for Encoder was projected to reach USD 2,814.5 million in 2023 and expand at a CAGR of 10.00% between 2024 - 2032.
Direct current motors can have encoders added to them in order to convert mechanical motion into digital pulses that the integrated control electronics can comprehend. Encoders are mostly used for data conversion between formats for standardization, speed control, and security reasons. They help the industry determine the precise placement of any object and the angle at which specific equipment should be positioned to get the intended results. The encoders guarantee process management, operating speed, and workflow accuracy. In the manufacturing sector, it also helps with high-feeding operations and the creation of machine tools that meet high productivity requirements.
Encoder Market- Market Dynamics
Importance of Industry 4.0 and Advanced Automation
Industry 4.0 and the requirement for sophisticated automation are the main drivers propelling the global encoder market's expansion. Encoders are essential to automation and Industry 4.0 because they give motion control systems accurate position feedback, which allows conveyor belts and CNC machines to be positioned precisely. Furthermore, encoders aid with predictive maintenance by identifying changes in motion parameters, which helps to improve overall equipment effectiveness (OEE) and avoid unplanned downtime. Globally, a large number of nations are positively embracing Industry 4.0 and creating strategic initiatives to support its implementation. For instance, an Industry 4.0 initiative is SAMARTH Udyog Bharat 4.0, which is part of the Government of India's Ministry of Heavy Industry & Public Enterprises' plan for the Enhancement of Competitiveness in the Indian Capital Goods Sector. In terms of investment and capability in Industry 4.0 technologies, the UNCTAD reports that the US and China are the leaders. 90% of the market capitalization is accounted for by the main digital platforms, which are based there. In the upcoming years, it is expected that the encoder market demand will be driven by an increased emphasis on automation and the Industry 4.0 revolution.
Encoder Market- Key Insights
According to our research analyst's analysis, the global market for encoder is projected to expand at a CAGR of approximately 10.00% during the forecast period of 2024-2032.
In 2023, the rotary encoder category was predicted to hold the largest market share based on type.
The incremental category was predicted to hold the largest market share in 2023 based on signal type.
In 2023, the magnetic category emerged as the top segment based on technology.
North America held the largest revenue share by region in 2023.
The Global Encoder Market is segmented into Type, Signal Type, Technology, Application, and Region.
The market is divided into Absolute and Incremental segments based on the type of signal. In 2023, the incremental category held the highest revenue share in the market for encoder due to its strong performance in a variety of applications, ease of integration, and affordability. Because incremental encoders are less expensive than absolute encoders, they are preferred for applications where budget is a constraint. They are excellent at giving precise position feedback and speed measurement, which is crucial for a variety of industries. These include the automotive industry, where they are used for motor control and automation, and the renewable energy sector, which includes solar tracking systems and wind turbines.
On the basis of application, the market is segmented into Consumer Electronics, Printing, Industrial, Textile, Automotive, Healthcare, Power, Food and Beverage, Aerospace, and Others. In 2023, the automotive sector held the highest revenue share in the market. With the increasing popularity of electric vehicles, there is a greater demand for accurate motor control and position feedback systems. In these applications, encoders are essential for managing batteries and controlling vehicle dynamics. This demand is further increased by developments in autonomous driving technologies, which call for precise sensors like encoders for navigation, obstacle detection, and steering control. By maximizing engine and transmission performance, boosting fuel economy, and lowering emissions, encoders also increase the efficiency of vehicles. Encoders provide critical feedback for the integration of advanced safety features & driver assistance systems in contemporary automobiles, guaranteeing the smooth operation of technologies like collision avoidance and adaptive cruise control.
Encoder Market- Geographical Insights
The Encoder market is widely distributed geographically in North America, Latin America, Europe, Asia Pacific, the Middle East and Africa. These areas are further separated based on the countries that provide business.
With a substantial 39% market share in 2023, North America was primarily driven by the robust automotive and aerospace sectors, which mostly rely on encoders for accurate control and monitoring. The region has made significant investments in research and development to improve performance across industries, making it a pioneer in technological developments and innovation in encoder technology. The need for encoders is increased by the increased use of automation and robotics in industries like manufacturing and healthcare, which allows for precise position feedback and improves operational efficiency. Furthermore, the region's focus on exacting precision and high standards of quality in manufacturing processes encourages the use of sophisticated encoders, mostly optical and magnetic types, in critical applications like the production of semiconductors and medical equipment.
Furthermore, in Europe, the encoder market is expanding. Leading the way in encoder applications innovation is the European automotive sector, which focuses on precise motor control and navigation, primarily in EVs and autonomous driving systems. Driven by Industry 4.0 ambitions, industrial automation is spreading throughout European sectors, increasing the need for encoders in robots, CNC machining, and automated machinery to boost efficiency. The demand for encoders is further increased by the region's leadership in the development of renewable energy, with applications in hydroelectric systems, solar panels, and wind turbines enhancing the efficiency of energy production.
In order to satisfy a variety of application requirements, the top market players such as Alps Alpine Co. Ltd., Bourns Inc., Dynapar Corporation (Fortive Corporation), OMRON Corporation, Panasonic Corporation, Baumer Holding AG, and others, are investing in the development of cutting-edge and technologically sophisticated encoder solutions that offer higher resolution, greater durability, and smaller sizes. In addition, a number of companies are working together with other companies and academic institutions in order to make use of their common experience and create innovative solutions. Leading encoder producers are also enlarging their supply networks and manufacturing sites to accommodate the rising demand across the globe. They are also attempting to lower manufacturing costs and increase efficiency.
June 2024: "Harnessing the potential of inductive encoders in robotics" is the title of an educational material that Heidenhain provided on their website. This demonstrates the business's dedication to informing the sector about the advantages of its technology.
October 2023: ZS Instruments was awarded a USD 1 million grant by the National Science Foundation to develop advanced lithography technology for precision optical encoders. Improvements in the production of industrial robots, measurement instruments, UAV guidance and tracking systems, precision machining tools, medical imaging equipment, and industrial robots will be made possible by the funding.
August 2023: The new programmable hollow shaft encoder, the HS35iQ Encoder with PulseIQ Technology, was introduced by encoder manufacturer Dynapar. With its digital output and color-coded LEDs, this self-diagnosing feedback device provides a novel means of real-time encoder health status information for OEMs and end users in heavy-duty machine applications to fix malfunctioning encoders.
June 2023: The latest catalog from British Encoder features a range of encoders designed for a number of applications, including robotics, manufacturing, aerospace, and medical devices. These encoders are designed with a specific application in mind, and they all work together to adapt to the particular demands and surroundings of many sectors.