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Encoder Market - By Type (Rotary, Linear), By Technology (Optical, Photoelectric, Magnetic), By End Use (Aerospace, Automotive, Consumer Electronics, Healthcare, Industrial, Printing, Textile) & Forecast, 2023 – 2032

  • Report ID: GMI6985
  • Published Date: Oct 2023
  • Report Format: PDF

Encoder Market Size

Encoder Market was valued at USD 2.57 million in 2022 and is estimated to register a CAGR of over 9% between 2023 and 2032. The rising need for high-end automation across industries is a significant growth driver for the encoder industry.

Encoder Market

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As industries increasingly adopt advanced automation solutions, such as Industry 4.0 & robotics, precise position and motion control become essential. Encoders play a pivotal role in providing accurate feedback for automated systems, enabling tasks such as assembly, packaging & material handling. Their ability to ensure precision, reliability, and efficiency in automated processes positions encoders as crucial components in the automation ecosystem, thereby fueling the demand for high-quality encoder products across a wide range of industries.

An encoder is an electromechanical device or sensor that converts mechanical motion, typically in the form of angular or linear movement, into electrical signals. It measures the position or displacement of an object and translates it into digital or analog signals, providing feedback to control systems. Encoders are widely used in various industries including manufacturing, robotics, automotive & aerospace to ensure precise motion control, position sensing, and feedback in applications ranging from automated machinery to consumer electronics.

Variations in international regulations can hamper the encoder market growth as they create challenges in terms of standardization and compliance. Different countries have varying regulatory requirements, certifications, and safety standards for encoders & their applications. This can lead to increased complexity and costs for manufacturers who must adapt their products to meet different standards. Additionally, it may limit market access and hinder international trade. Companies operating in the encoder industry need to navigate this regulatory landscape, potentially slowing down product development and market expansion efforts, which can be a significant hurdle for global growth.

COVID-19 Impact

The COVID-19 pandemic initially disrupted the encoder market, causing supply chain interruptions, factory closures, and reduced demand as industries scaled back operations. However, as industries adapted to pandemic conditions, there was a resurgence in demand for encoders, particularly in the healthcare and automation sectors. The need for medical devices, robotics, and e-commerce automation drove market recovery. Remote work and data center expansion also boosted the demand for encoders. Overall, COVID-19 had a mixed impact, initially causing setbacks but ultimately accelerating trends such as automation & digitization, benefiting the market.

Encoder Market Trends

The encoder industry is experiencing notable trends that are shaping its trajectory. There is an increasing demand for high-resolution encoders in precision industries such as semiconductors and nanotechnology. As technology progresses, the need for finer measurements and control becomes critical. Additionally, the market is witnessing a surge in demand from the Electric Vehicle (EV) industry, driven by the global shift toward sustainable transportation. EVs rely on encoders for precise motor control and battery management.

Encoders are also integrated into Industry 4.0 and IoT systems. Encoders are becoming essential components in smart factories and automation processes, enabling real-time data collection & analysis for enhanced efficiency. As these trends continue to evolve, the market is poised for sustained growth across diverse industries, driven by the demand for accuracy, efficiency & automation.

Encoder Market Analysis

Encoder Market Size, By Type 2021-2032, (USD Million)

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Based on type, the market is segmented into rotary & linear. The rotary segment dominated the market with a revenue of over USD 1.5 million in 2022 and is expected to register a CAGR of about 9% during the forecast period.

  • Rotary encoders are known for their high precision and accuracy in measuring angular position or rotational movement. This precision is crucial in various industries such as manufacturing, robotics & aerospace, where exact position and motion control are required. Rotary encoders are versatile and can be used in a wide range of applications, from simple tasks such as volume control in consumer electronics to complex tasks in industrial automation and CNC machinery.
  • Many rotary encoders use non-contact sensing technology, such as optical or magnetic, which eliminates mechanical wear & tear, making them more durable and reliable over time.
  • As industries embrace Industry 4.0 & IoT technologies, rotary encoders play a crucial role in providing real-time data on machine performance, enabling predictive maintenance, and optimizing production processes.


Encoder Market Share, By Technology 2022)

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Based on technology, the market is segmented into optical, photoelectric, and magnetic. The magnetic segment held a market share of over 30% in 2022 and is anticipated to grow over the forecast period.

  • Magnetic encoders are highly durable and robust, making them suitable for harsh industrial environments where they can withstand dust, moisture, vibration & extreme temperatures. This durability ensures reliable performance and a longer lifespan. While optical encoders are known for their high precision, magnetic encoders offer a cost-effective alternative with comparable performance, making them an attractive choice for budget-conscious applications.
  • Magnetic encoders use non-contact sensing technology, which means there is no physical contact between the sensor and the encoded surface. This feature reduces wear & tear, minimizing maintenance requirements and increasing longevity. Magnetic encoders can also offer high resolution and accuracy, making them ideal for applications that require precise position and motion control such as CNC machining, robotics, and semiconductor manufacturing.


China Encoder Market Size, 2021-2032, (USD Million) 

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Asia Pacific held a significant market share of over 38.5% in 2022. The encoder market is experiencing robust growth in Asia Pacific due to a convergence of factors. The expanding manufacturing sector in countries such as China and India is driving demand for encoders in automation and robotics. Rapid urbanization is fueling construction & infrastructure developments, which require precise positioning and measurement solutions. Furthermore, the region’s increasing focus on renewable energy projects, such as wind and solar power installations, necessitates encoders for precise tracking and control. Additionally, the proliferation of consumer electronics, automotive production, and the adoption of IoT technologies contribute to the expanding market in Asia Pacific.

Encoder Market Share

The encoder industry is highly competitive owing to the presence of key players such as:

  • Renishaw plc
  • Rockwell Automation, Inc.
  • Schneider Electric
  • TE Connectivity
  • Mitutoyo Corporation
  • Omron Corporation

Significant investments in R&D to gain technological competitiveness and aggressive business strategies including technological launches, collaborations & long-term agreements with clients to capture market share are positively impacting market growth.

Encoder Industry News

  • In May 2021, Broadcom Inc.  and VMware, Inc. announced an agreement under which Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61 billion, Accelerates software scale and growth opportunities for Broadcom, with pro forma revenue of more than $40 billion, including 49% software revenue.

The encoder market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Type

  • Rotary
  • Linear

Market, By Technology

  • Optical
  • Photoelectric
  • Magnetic
  • Others

Market, By End Use

  • Aerospace
  • Automotive
  • Consumer Electronics
  • Healthcare
  • Industrial
  • Printing
  • Textile
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA


Authors: Suraj Gujar, Deeksha Vishwakarma

Frequently Asked Questions (FAQ) :

Market size for encoder was valued at USD 2.57 million in 2022 and is estimated to register a CAGR of over 9% between 2023 and 2032, owing to the rising need for high-end automation across industries.
The rotary segment generated over USD 1.5 million in 2022 and is expected to register a CAGR of about 9% through 2032, as these encoders are versatile and can be used in simple tasks such as volume control in consumer electronics to complex tasks in industrial automation and CNC machinery.
Asia Pacific held a significant market share of over 38.5% in 2022 and is experiencing robust growth due to the expanding manufacturing sector in countries such as China and India.
HEIDENHAIN, Renishaw plc, Rockwell Automation, Inc., Schneider Electric, TE Connectivity, Mitutoyo Corporation, and Omron Corporation.

Encoder Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 18
  • Tables & Figures: 288
  • Countries covered: 21
  • Pages: 200
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