The encoder market size has grown strongly in recent years. It will grow from $2.64 billion in 2024 to $2.89 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to industrial automation, rising demand in automotive sector, emergence of industry 4.0, globalization of manufacturing, increased focus on robotics.
The encoder market size is expected to see strong growth in the next few years. It will grow to $4.18 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to increased adoption of artificial intelligence, growing importance in healthcare applications, expansion of electric vehicles, enhanced precision requirements, rapid expansion of e-commerce. Major trends in the forecast period include increased demand for high-resolution encoders, integration of advanced technologies, rise of optical encoders, miniaturization and compact designs, increased automation driving encoder adoption:.
The increasing demand for industrial automation is anticipated to drive the growth of the encoder market in the future. Industrial automation utilizes technology to manage machinery and operations across various sectors. Encoders are crucial components of high-speed, high-volume industrial automation systems, as they convert motion into electrical feedback signals that can be interpreted by a control device to determine position, speed, count, direction, and changes in linear distance. The presence of encoders is expanding across multiple industries, which is expected to further enhance the encoder market. For example, in September 2023, the International Federation of Robotics (IFR), a Germany-based organization, reported in its latest world robotics report that global factories recorded 553,052 new industrial robot installations in 2022, reflecting a 5% increase compared to the previous year. The regional distribution showed that Asia accounted for 73% of these installations, while Europe and the Americas comprised 15% and 10%, respectively. Thus, the rising demand for industrial automation is propelling the growth of the encoder market.
The expanding automotive industry is expected to further boost the growth of the encoder market in the coming years. The automotive industry encompasses a wide range of companies and organizations engaged in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. Encoders are essential for providing precise motion feedback and control in various automotive applications, enhancing the performance, safety, and efficiency of modern vehicles. For instance, in June 2023, the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association, reported that sales of passenger cars in the UK increased by 25.8%, rising from 140,958 units in 2022 to 177,266 units in 2023. Therefore, the growth of the automotive industry is driving the expansion of the encoder market.
Technological advancements are a significant trend in the encoder market. Leading companies in this sector are developing innovative technologies to enhance their market positions. For example, in May 2022, Pepperl+Fuchs, a Germany-based manufacturer of industrial automation products, introduced the ENI90 series of hollow shaft rotary encoders. This series is notable for integrating BlueBeam technology for heavy-duty applications and can endure rotational speeds of up to 6,000 rpm. The ENI90 series hollow shaft rotary encoders were specifically designed to meet the high-precision speed control requirements of asynchronous motors or generators.
Key players in the encoder market are focusing on introducing advanced solutions for medical video imaging applications to gain a competitive advantage. Encoders play a crucial role in medical imaging by converting motion into an electrical signal that can be interpreted by a control device within a motion control system. For instance, in September 2023, Advantech, a Taiwan-based manufacturer of industrial computers, launched the VEGA-1200, a zero-latency 4K SDVoE hybrid encoder and decoder. Featuring SDVoE capabilities and offering high-quality live HEVC and AVC encoding (up to 4Kp60) for medical video imaging applications, the VEGA-1200 facilitates real-time video recording and broadcasting. An online graphical user interface (GUI) simplifies system configuration for optimal control and data security. Its fanless design and low power consumption ensure easy integration and efficient operation. Advantech's VEGA-1200 hybrid encoder/decoder simplifies medical image and video recording while supporting all analog, digital, and IP video input sources.
In May 2022, Telestream, a privately held company based in the US that focuses on products for creating, accessing, and exchanging digital media, acquired Encoding.com Inc. for an undisclosed sum. This acquisition is intended to enhance Telestream's cloud media processing capabilities, reinforce its market leadership, and speed up innovation in video workflows to better serve its customers. Encoding.com Inc. is a US-based service provider that offers cloud-based video encoding solutions.
Major companies operating in the encoder market 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., Hans Turck GmbH & Co. KG.
Asia-Pacific was the largest region in the encoder market in 2024. 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.
An encoder functions as a device that converts an analog signal into a digital one or translates active data signals into coded message formats. It operates as a combinational circuit, converting binary data from 2N input lines into N output lines, representing the N-bit code of the input.
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.
The encoder market research report is one of a series of new reports that 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.
The encoder market size is expected to see strong growth in the next few years. It will grow to $4.18 billion in 2029 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to increased adoption of artificial intelligence, growing importance in healthcare applications, expansion of electric vehicles, enhanced precision requirements, rapid expansion of e-commerce. Major trends in the forecast period include increased demand for high-resolution encoders, integration of advanced technologies, rise of optical encoders, miniaturization and compact designs, increased automation driving encoder adoption:.
The increasing demand for industrial automation is anticipated to drive the growth of the encoder market in the future. Industrial automation utilizes technology to manage machinery and operations across various sectors. Encoders are crucial components of high-speed, high-volume industrial automation systems, as they convert motion into electrical feedback signals that can be interpreted by a control device to determine position, speed, count, direction, and changes in linear distance. The presence of encoders is expanding across multiple industries, which is expected to further enhance the encoder market. For example, in September 2023, the International Federation of Robotics (IFR), a Germany-based organization, reported in its latest world robotics report that global factories recorded 553,052 new industrial robot installations in 2022, reflecting a 5% increase compared to the previous year. The regional distribution showed that Asia accounted for 73% of these installations, while Europe and the Americas comprised 15% and 10%, respectively. Thus, the rising demand for industrial automation is propelling the growth of the encoder market.
The expanding automotive industry is expected to further boost the growth of the encoder market in the coming years. The automotive industry encompasses a wide range of companies and organizations engaged in the design, development, manufacturing, marketing, selling, repairing, and modification of motor vehicles. Encoders are essential for providing precise motion feedback and control in various automotive applications, enhancing the performance, safety, and efficiency of modern vehicles. For instance, in June 2023, the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association, reported that sales of passenger cars in the UK increased by 25.8%, rising from 140,958 units in 2022 to 177,266 units in 2023. Therefore, the growth of the automotive industry is driving the expansion of the encoder market.
Technological advancements are a significant trend in the encoder market. Leading companies in this sector are developing innovative technologies to enhance their market positions. For example, in May 2022, Pepperl+Fuchs, a Germany-based manufacturer of industrial automation products, introduced the ENI90 series of hollow shaft rotary encoders. This series is notable for integrating BlueBeam technology for heavy-duty applications and can endure rotational speeds of up to 6,000 rpm. The ENI90 series hollow shaft rotary encoders were specifically designed to meet the high-precision speed control requirements of asynchronous motors or generators.
Key players in the encoder market are focusing on introducing advanced solutions for medical video imaging applications to gain a competitive advantage. Encoders play a crucial role in medical imaging by converting motion into an electrical signal that can be interpreted by a control device within a motion control system. For instance, in September 2023, Advantech, a Taiwan-based manufacturer of industrial computers, launched the VEGA-1200, a zero-latency 4K SDVoE hybrid encoder and decoder. Featuring SDVoE capabilities and offering high-quality live HEVC and AVC encoding (up to 4Kp60) for medical video imaging applications, the VEGA-1200 facilitates real-time video recording and broadcasting. An online graphical user interface (GUI) simplifies system configuration for optimal control and data security. Its fanless design and low power consumption ensure easy integration and efficient operation. Advantech's VEGA-1200 hybrid encoder/decoder simplifies medical image and video recording while supporting all analog, digital, and IP video input sources.
In May 2022, Telestream, a privately held company based in the US that focuses on products for creating, accessing, and exchanging digital media, acquired Encoding.com Inc. for an undisclosed sum. This acquisition is intended to enhance Telestream's cloud media processing capabilities, reinforce its market leadership, and speed up innovation in video workflows to better serve its customers. Encoding.com Inc. is a US-based service provider that offers cloud-based video encoding solutions.
Major companies operating in the encoder market 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., Hans Turck GmbH & Co. KG.
Asia-Pacific was the largest region in the encoder market in 2024. 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.
An encoder functions as a device that converts an analog signal into a digital one or translates active data signals into coded message formats. It operates as a combinational circuit, converting binary data from 2N input lines into N output lines, representing the N-bit code of the input.
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.
The encoder market research report is one of a series of new reports that 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.
Table of Contents
1. Executive Summary2. Encoder Market Characteristics3. Encoder Market Trends and Strategies4. Encoder Market - Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics, and the Recovery from COVID-19 on the Market32. Global Encoder Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the Encoder Market34. Recent Developments in the Encoder Market
5. Global Encoder Growth Analysis and Strategic Analysis Framework
6. Encoder Market Segmentation
7. Encoder Market Regional and Country Analysis
8. Asia-Pacific Encoder Market
9. China Encoder Market
10. India Encoder Market
11. Japan Encoder Market
12. Australia Encoder Market
13. Indonesia Encoder Market
14. South Korea Encoder Market
15. Western Europe Encoder Market
16. UK Encoder Market
17. Germany Encoder Market
18. France Encoder Market
19. Italy Encoder Market
20. Spain Encoder Market
21. Eastern Europe Encoder Market
22. Russia Encoder Market
23. North America Encoder Market
24. USA Encoder Market
25. Canada Encoder Market
26. South America Encoder Market
27. Brazil Encoder Market
28. Middle East Encoder Market
29. Africa Encoder Market
30. Encoder Market Competitive Landscape and Company Profiles
31. Encoder Market Other Major and Innovative Companies
35. Encoder Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
Encoder Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on encoder market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for encoder? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The encoder market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) by Type: Linear Encoders; Rotary Encoders2) by Position Signal: Absolute Encoders; Incremental Encoders
3) by Sensing Technology: Optical Sensing Encoders; Magnetic Sensing Encoders; Capacitive Encoders; Inductive Encoders
4) by Application: Automotive; Consumer Electronics; Aerospace and Defense; Healthcare and Medical Devices; Industrial; Other Applications
Subsegments:
1) by Linear Encoders: Optical Linear Encoders; Magnetic Linear Encoders; Capacitive Linear Encoders2) by Rotary Encoders: Optical Rotary Encoders; Magnetic Rotary Encoders; Inductive Rotary Encoders
Key Companies Mentioned: Omron Corporation; Honeywell International Inc.; Schneider Electric SE; Rockwell Automation Inc.; Panasonic Corporation
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
Some of the major companies featured in this Encoder market report include:- 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.
- Hans Turck GmbH & Co. KG
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 200 |
| Published | February 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 2.89 Billion |
| Forecasted Market Value ( USD | $ 4.18 Billion |
| Compound Annual Growth Rate | 9.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 31 |
