Encoder Global Market Report 2024

The global encoder market has grown rapidly in recent years. It will grow from $2.44 billion in 2023 to $2.69 billion in 2024 at a compound annual growth rate (CAGR) of 10.2%. Historical growth can be attributed to the implementation of industrial automation, increased demand within the automotive sector, the advent of Industry 4.0, the global expansion of manufacturing operations, and a heightened emphasis on robotics.

The global encoder market is expected to see strong growth in the next few years. It will grow to $3.91 billion in 2028 at a compound annual growth rate (CAGR) of 9.8%. The anticipated growth in the forecast period is fueled by the increased adoption of artificial intelligence, the burgeoning significance of AI in healthcare applications, the expansion of electric vehicles, heightened precision demands, and the rapid growth of e-commerce. Major trends expected during this period encompass the amplified demand for high-resolution encoders, the integration of advanced technologies, the prominence of optical encoders, the trend towards miniaturization and compact designs, and the rising adoption of encoders driven by increased automation.

The surge in demand for industrial automation is poised to propel the growth of the encoder market. Industrial automation, using technology to control machinery and operations across sectors, relies on encoders as crucial components in high-speed systems. Encoders convert motion into electrical feedback signals, aiding in position, speed, count, direction, and linear distance detection. The rising integration of encoders in diverse industrial contexts, highlighted in the World Robotics 2021 Industrial Robots report by the International Federation of Robotics in October 2021, points to a substantial boost in automation. Despite pandemic challenges, manufacturers globally deployed a record 3 million industrial robots, signifying a 13% increase in installations, with China leading with a 20% rise to 168,400 units. This trend underscores the growing demand for industrial automation, driving the encoder market's growth.

The expanding automotive industry is anticipated to drive the encoder market. In this sector, encoders play a pivotal role in providing precise motion feedback and control, enhancing the performance, safety, and efficiency of vehicles. Notably, according to reports shared by the Society of Motor Manufacturers and Traders (SMMT) in June 2023, the UK witnessed a substantial 25.8% surge in passenger car sales, reaching 177,266 units compared to 140,958 units in 2022. This industry's growth and technological advancements necessitate high-quality encoder systems, thus propelling the encoder market's expansion.

Technological advancements stand as a significant trend shaping the encoder market landscape. Leading companies are innovating to solidify their positions, exemplified by Pepperl+Fuchs, a Germany-based industrial automation products manufacturer. In May 2022, they launched the ENI90 series of hollow shaft rotary encoders. These encoders, integrating BlueBeam technology and capable of withstanding rotational speeds of up to 6,000 rpm, cater to heavy-duty applications such as asynchronous motors or generators that require precise speed control. This advancement underscores the market's focus on high-performance, innovative encoder solutions.

Major players in the encoder market are concentrating on introducing cutting-edge solutions for medical video imaging applications, seeking a competitive advantage. Encoders are pivotal in medical imaging, converting motion into electrical signals for control devices in motion control systems. For example, Advantech, a Taiwan-based manufacturer of industrial computers, unveiled the VEGA-1200 in September 2023. This zero-latency 4K SDVoE hybrid encoder and decoder facilitate real-time video recording and broadcasting for medical video imaging applications. Featuring SDVoE capabilities, high-quality live HEVC and AVC encoding (up to 4Kp60), and an intuitive graphical user interface (GUI), the VEGA-1200 offers seamless integration, low power consumption, and robust support for all video input sources, contributing to simplified medical image and video recording processes.

In May 2021, Computer Programs and Systems, Inc. (CPIS), a prominent US-based computer programming firm, completed the acquisition of TruCode LLC, with the financial details undisclosed. This strategic move aimed to integrate TruCode's offerings with CPIS's existing TruBridge services and solutions, specifically designed to streamline hospital revenue cycle processes by eliminating inefficiencies. TruCode, also based in the US, specializes in providing medical encoder solutions. CPIS's acquisition of TruCode aligns with its strategy to enhance TruBridge services, leveraging TruCode's expertise to further optimize and refine solutions aimed at improving efficiency within hospital revenue cycles.

Major companies operating in the encoder market report are Omron Corporation, Honeywell International Inc., Schneider Electric SE, Rockwell Automation Inc., Panasonic Corporation, ABB Ltd., Broadcom Inc., DR. JOHANNES HEIDENHAIN GmbH, Koyo Electronics Industries Co. Ltd., Renishaw PLC, Siemens AG, Sensata Technologies Holdings PLC, Fortive Corporation, Mitutoyo Corporation, FRABA B.V., ifm electronic GmbH, maxon motor AG, Alps Alpine Co. Ltd., Bourns Inc., CUI Devices, ELCO Holding AG, Grayhill Inc., TT Electronics PLC, Posital Fraba Inc., Hengstler GmbH, Sick AG, Baumer Group, Pepperl+Fuchs India Pvt. Ltd., Dynapar Corp., Heidenhain GmbH, Hans Turck GmbH & Co. KG

Asia-Pacific was the largest region in the encoder market in 2023. The regions covered in the encoder market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the encoder market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of encoders include linear encoders and rotary encoders. Linear encoders are sensors or transducers that detect and measure linear movements of objects. They generate position signals through different encoder types, such as absolute encoders and incremental encoders. Various sensing technologies are employed, including optical, magnetic, capacitive, and inductive sensing for these encoders. Their applications span across automotive, consumer electronics, aerospace and defense, healthcare and medical devices, industrial, and numerous other sectors.

This report provides encoder market statistics, including encoder industry global market size, regional shares, competitors with a encoder market share, detailed encoder market segments, market trends and opportunities, and any further data you may need to thrive in the encoder industry. This encoder market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The encoder market consists of sales of the electromagnetic encoder, visual encoder, acoustic encoder, elaborative encoder, and semantic encoders. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


This product will be delivered within 3-5 business days.