Optical encoders are devices that provide digital or analog output signals corresponding to the angular position of the shaft or axle to which they are attached. Optical encoders are commonly used in automotive components like steering systems, electric windows, wipers as well as in industrial automation applications involving robotics and motor control systems to provide position feedback or motion control. Incremental encoders and absolute encoders are the two main types of optical encoders used in industries. Incremental encoders provide signal output that depends on the direction and amount of rotation from an initial position while absolute encoders provide instant digital output indicating shaft position regardless of the previous position.
The global optical encoder Market is estimated to be valued at US$ 2580.9 Mn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Increasing need for automation across industries is expected to drive the growth of the optical encoder market over the forecast period. Fast industrialization and rising labor costs have accelerated the adoption of automation systems that leverage motion control components like optical encoders for enhanced productivity and efficiency. Optical encoders provide high-resolution, high accuracy motion control capabilities demanded by industrial automation systems. Furthermore, the increasing penetration of robotics, machinery in smart factories will promote the integration of advanced optical encoders. Additionally, growing digitization and IoT adoption is fueling demand for connectivity of devices, equipment and machinery driving the need for sensing components like optical encoders in industries. The market opportunity highlighted in the heading, increasing automation needs across industries, is expected to fuel the demand for optical encoders significantly during the forecast period.
The global optical encoder market is dominated by the automotive sub-segment within the industrial sub-segment which holds around 35% of market share. This is because precise motor control is crucial for autonomous driving, advanced driver assistance systems and electric vehicle development which largely rely on optical encoders for angular and linear position sensing.
Political: The growing automotive sector in emerging economies due to favorable government policies is promoting the use of optical encoders for advanced vehicle manufacturing.
Economic: Rising incomes and increasing demand for sophisticated consumer electronics is positively impacting the consumer electronics sub-segment of the optical encoder industry.
Social: Greater emphasis on automation and Industry 4.0 trends and focus on improved manufacturing practices is boosting adoption across industrial applications.
Technological: Advancements in semiconductor technology is enabling the development of compact and high-resolution encoders integrated with connectivity and intelligent features.
The Global Optical Encoder Market Growth is expected to witness high. The global optical encoder Market is estimated to be valued at US$ 2580.9 Mn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period 2023 to 2030.
The Asia Pacific region is witnessing rapid growth in industrial automation and adoption of automation solutions across factories to improve productivity. Countries like China and India are major automotive production bases and increasing vehicle electronics content is driving encoder demand.
Key players operating in the optical encoder market are Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. Honeywell and Renishaw have a significant market share due to their extensive product portfolio and leadership in industrial and automotive encoder solutions.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it