The encoders market size is projected to reach US$ 6.03 billion by 2031 from US$ 2.70 billion in 2023. The market is expected to register a CAGR of 10.6% in 2023–2031. The growing miniaturization of electronics has resulted in the creation of lightweight, compact encoders that are simple to integrate into applications with limited space is likely to remain a key encoders market trends.
Encoders Market Analysis
The encoders market is growing at a rapid pace due to the expanding applications for encoders and favorable government initiatives for smart city projects. The market is expanding steadily, driven by the expanding automotive industry and increasing demand for electric vehicles. Moreover, the technological advancements and development of modern encoders, growing demand for high-end automation by industries, and rising adoption of AI & ML technologies are providing lucrative opportunities for market growth.
Encoders Market Overview
An encoder is a device used to change data formats for compression, standardization, speed, secrecy, and security. It is manufactured using durable materials, including steel, aluminum, and heavy-duty plastic. Numerous industries, including robotics, cars, medical equipment, industrial automation, telecommunications gear, elevators, digital cameras, and renewable energy systems, are highly using encoders for maintaining accuracy, precise position control, increasing operating efficiency, enhancing safety, enabling feedback for error correction, and providing high-speed operation. These benefits provided by encoders to numerous industries are driving the market during the forecast period.
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Encoders Market: Strategic Insights
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Encoders Market: Strategic Insights
- Get Top Key Market Trends of this report.This FREE sample will include data analysis, ranging from market trends to estimates and forecasts.
Encoders Market Drivers and Opportunities
Expanding Applications for Encoders is Driving the Market
Increasing usage of encoders in a range of applications in various industries is driving the market during the forecast. Encoders are employed in the automotive industry for precise control and safety in electric power steering, anti-lock brake systems, and powertrain systems. Furthermore, the broad use of the product to guarantee accuracy and dependability in a variety of medical devices, such as surgical robots and medical imaging systems, is driving the market. The market is driven by the increasing use of encoders in consumer electronics products, including digital cameras and printers. Additionally, the growing usage of encoders in solar tracking systems and wind turbines to ensure optimal energy harvesting is boosting the market. The aircraft industry is also increasing its use of encoders for flight controls, engine control systems, and other crucial applications. However, increased application for encoders is fueling the market during the forecast period.
Technological Advancements and Development of Modern Encoders - An Opportunity in the Encoders Market
Technological advancement and the development of modern encoders are creating opportunities in the market. Modern encoders allow sophisticated technologies to provide high precision, dependability, and efficiency in a range of applications. Accordingly, recent breakthroughs in sensor technology encourage the development of modern encoders that provide high resolution and accuracy for precise control in industrial automation, robotics, and other sectors, which are positively influencing the market growth. Furthermore, the introduction of optical and magnetic encoder technologies, which provide better performance in a variety of demanding applications, is boosting the market. Additionally, the integration of advanced communication protocols in encoders for improving their adaptability and interoperability in increasingly networked industrial environments is generating significant growth opportunities for the market.
Encoders Market Report Segmentation Analysis
Key segments that contributed to the derivation of the encoders market analysis are type, technology, and end user.
- Based on type, the encoders market is divided into linear encoder and rotatory encoder. The rotatory encoder segment held a larger market share in 2023.
- On the basis of technology, the encoders market is divided into optical, magnetic, and others. The magnetic segment held a larger market share in 2023.
- In terms of end user, the encoders market is categorized as aerospace, automotive, food and beverages, printing, consumer electronics, medical, and others. The consumer electronics segment held a larger market share in 2023.
Encoders Market Share Analysis by Geography
The geographic scope of the encoders market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
In terms of revenue, the Asia Pacific market accounted for the largest encoders market share, owing to the expanding automotive, consumer electronics, manufacturing, and other industries. Technological advancements and increasing adoption of sophisticated electronics, robotics, and automation features are driving the market. These products heavily relied on encoders to precisely work and operate. In addition, the increasing investments in developing smart cities, utilities, and transportation increase the demand for encoders for effective management and operation is propelling the market.
Encoders Market Regional Insights
The regional trends and factors influencing the Encoders Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Encoders Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
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Encoders Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 2.70 Billion |
| Market Size by 2031 | US$ 6.03 Billion |
| Global CAGR (2023 - 2031) | 10.6% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Market Players Density: Understanding Its Impact on Business Dynamics
The Encoders Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Encoders Market are:
- Delta Electronics, Inc.
- Dahua Technology Co., Ltd
- Omron Corporation
- ELCO Holding
- FRABA B.V.
- FSI Technologies Inc.
Disclaimer: The companies listed above are not ranked in any particular order.
- Get the Encoders Market top key players overview
Encoders Market News and Recent Developments
The encoders market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for encoders and strategies:
- In June 2023, Bourns, Inc., Bourns, Inc., released the PEC11J series encoder as a drop-in replacement for the discontinued ALPS Model EC11J Series. This modified configuration of the Bourns PEC11S series should enable customers to continue to support existing applications with no changes to their mechanical or electrical layouts. Testing is recommended to ensure compatibility with each customer's specific application. Samples are available upon request for testing. (Source: Bourns, Inc., Press Release, 2023)
Encoders Market Report Coverage and Deliverables
The “Encoders Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type; Technology; End User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The incremental growth expected to be recorded for the global encoders market during the forecast period is US$ 3.33 billion.
The global encoders market is expected to reach US$ 6.03 billion by 2031.
The key players holding majority shares in the global encoders market are Delta Electronics, Inc., Dahua Technology Co., Ltd, Omron Corporation, ELCO Holding, and FRABA B.V.
The growing miniaturization of electronics has resulted in the creation of lightweight, compact encoders that are simple to integrate into applications with limited space to play a significant role in the global encoders market in the coming years.
The expanding applications for encoders and favorable government initiatives for smart city projects are the major factors that propel the global encoders market.
The global encoders market was estimated to be US$ 2.70 billion in 2023 and is expected to grow at a CAGR of 10.6% during the forecast period 2023 - 2031.
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