Encoder Market

Global Encoder Market Research Report: By Encoder Type (Rotary and Linear), By Signal Type (Incremental and Absolute), By Technology (Optical, Photoelectric, Magnetic, and Others), By Application (Industrial, Healthcare, Consumer Electronics, Automotive, Power, Aerospace, Printing, and Textile), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2022-2031.

Electronics & Semiconductor | September 2023 | Report ID: EMR00151 | Pages: 217

The Global Encoder Market was valued at USD 2.22 billion in 2022 and is estimated to reach approximately USD 5.04 billion by 2031, at a CAGR of 9.5% from 2023 to 2031. An encoder is a type of electronic device or sensor that transfers mechanical motion into electrical signals. It is frequently used in a variety of applications to deliver accurate information on the movement, location, speed, or direction of a mechanical component or item. An encoder's main function is to measure and track the position of any moving component of a system, including a rotating shaft, linear motion, and other moving parts. Control systems, automation, robotics, and several other applications require accurate motion control, positioning, and monitoring.




Report Attribute


Estimated Market Value (2022)

2.22 Bn

Projected Market Value (2031)

5.04 Bn

Base Year


Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Encoder Type, By Signal Type, By Technology, By Application, & Region

Segments Covered

By Encoder Type, By Signal Type, By Technology, By Application, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2023 to 2031

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.


Global Encoder Market Dynamics

Encoder technology is continually improving, leading to higher resolution encoders, better accuracy, and more compact designs, which have broadened the spectrum of uses for encoders. Encoders' intelligence and communication skills allowed for their use in more advanced control systems. For applications like robotics, machine tools, and motion control systems that demand exact position and motion detection, encoders are important. The increase in demand for these applications made the encoder industry rise in the upcoming years.


Global Encoder Market Drivers

  • Industrial Automation

Encoders were widely used in the automotive industry for a variety of purposes, including electronic stability control, power steering, and anti-lock brake systems. The automobile industry's expansion had a favorable influence on the encoder market. The encoders market has been significantly impacted by the growing usage of automation across various industries. Encoders are essential for producing accurate feedback and control in robots, automated manufacturing processes, and other industrial applications.


  • Growing Demand for High-Precision Applications

Industries that demand high-precision applications rely on encoders to ensure that every movement, adjustment, or measurement is executed with impeccable accuracy. The applications for such precision are diverse and impactful. In the aerospace sector, for instance, where safety and performance are paramount, encoders are employed in critical components like aircraft controls, ensuring that maneuvers are executed with pinpoint precision and response. In medical devices and healthcare, encoders play a pivotal role in imaging equipment, robotic surgery systems, and prosthetics. Encoders enable real-time feedback and control, allowing surgeons to perform intricate procedures with unparalleled accuracy and enhancing patient outcomes.



  • High Cost

High-quality encoders became more expensive as the demand for greater accuracy and more advanced functions was built. For both manufacturers and end-users, finding a balance between performance and cost-effectiveness became difficult. Since they have more functions and a greater resolution, High quality encoders are costly by default, so it’s inaccurate to say that they may be pricey.


  • Complex Integration and Maintenance

Integrating encoders effectively requires a combination of technical expertise in both hardware and software domains. The process involves aligning the encoder's output signals with the control system's inputs, ensuring accurate communication and synchronization. This integration may necessitate modifications to the existing infrastructure, including mechanical adaptations to accommodate the encoder's physical presence and adjustments to control algorithms to interpret encoder data correctly. For industries lacking the necessary technical resources or expertise, the prospect of dealing with intricate integration and ongoing maintenance can act as a deterrent. It may lead to concerns about increased costs, potential downtime during installation and maintenance procedures, and the need for continuous support from skilled professionals.



  • Rising Adoption of Robots

Encoders benefited from the increasing popularity of robots and autonomous systems in a variety of industries, including manufacturing, logistics, healthcare, and agriculture. High-performance encoders are needed in robotic applications since these systems needed accurate motion control and feedback. The healthcare industry is increasingly adopting robotics for surgical procedures, diagnostics, and patient care. Encoders are essential components in robotic surgery systems, enabling precise and steady movements during procedures.


  • Advancements in Miniaturization and Microtechnology

The opportunity for advancements in miniaturization and microtechnology involves the development of miniature encoders to meet the demand for precise motion control in compact spaces. These tiny encoders find applications in electronics, aerospace, and medical devices, enabling precise movements and enhancing efficiency in small-scale devices. As technology continues to shrink, the need for these micro encoders grows, paving the way for innovation in various industries.


Segment Overview

By Encoder Type

Based on the encoder type, the global encoder market is divided into rotary and linear segments. With the highest revenue share, the rotary category rules the global encoder market. These rotary encoders maintain records of a shaft's rotational motion. The primary components of these devices are a disc that spins with patterns or slots and a sensor that analyses how the patterns change as the shaft revolves. The sensor generates electrical pulses in time with a rotational motion that can be used to calculate the position, speed, and direction of the rotating shaft.


By Signal Type

Based on the signal type, the global encoder market is segmented into incremental and absolute segments. The incremental segment dominates the global encoder market. Simple incremental encoders consist of a revolving disc or strip and a sensor that produces pulses as the disc rotates. They are flexible, dependable, and simple to deploy in a variety of applications, including manufacturing, automation, robotics, automotive, consumer electronics, and more due to their simplicity. They are frequently used for position control, speed measurement, and monitoring of rotary or linear motion.


By Technology

Based on technology, the global encoder market is classified into optical, photoelectric, magnetic, and others. The magnetic segment dominates the global encoder market with the largest revenue share. Magnetic encoders can be used in both rotary and linear motion applications also magnetic encoders are relatively easy to install and integrate into existing systems so it helps in reducing installation time and costs.


By Application

Based on application, the global encoder market is divided into industrial, healthcare, consumer electronics, automotive, power, aerospace, printing, and textile. In the global encoder market, the Industrial segment dominates with the largest revenue share.


Global Encoder Market Overview by Region

The global encoder market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific emerged as the leading region, capturing approximately 9.14% of the CAGR during 2022-2031. The dominance of the Asia-Pacific region in the encoder market is a result of its rapid economic development, industrialization, and technical enhancement. Several countries in the Asia-Pacific area, including China, Japan, South Korea, and Taiwan, have thriving manufacturing sectors that depend significantly on encoders for accurate monitoring and motion sensing in a variety of production processes.



Global Encoder Market Competitive Landscape

In the global encoder market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.


Some of the prominent players in the global battery management system market include HEIDENHAIN, Broadcom Inc., Rockwell Automation, Inc., ELCO Holding, Alps Alpine Co., Ltd., TE Connectivity, Schneider Electric, FRABA B.V., CUI Devices, Panasonic Corporation, Sensata Technologies, Inc., Omron Corporation, TT Electronics, Grayhill Inc., FENAC / Fenac Technology / Fenac Engineering, Dynapar, Bourns, Inc., and various other key players.


Global Encoder Market Recent Developments

In July 2022, Sensata Technologies Completes the Acquisition of Dynapower. Dynapower provides energy storage and power conversion solutions including inverters, converters, rectifiers and custom transformers for renewable energy generation, green hydrogen production, electric vehicle charging stations, and microgrid applications, as well as industrial and defense applications. A broad product portfolio, strong track record in the field, and commitment to customers makes Dynapower a trusted global name in power conversion solutions.


In March 2022, the explosion-proof IXARC rotary encoders from POSITAL were approved to meet the requirements of the ATEX/IECEx guidelines for Category 3 electrical equipment. These tools are perfect for oil and gas installations, chemical plants, woodworking activities, and grain handling facilities, as they used in Zone 2 and Zone 22 conditions (possible exposure to dangerous quantities of explosive gases and combustible dust)


Scope of the Global Encoder Market Report

Encoder Market Report Segmentation



By Encoder Type

  • Rotary
  • Linear

By Signal Type

  • Incremental
  • Absolute

By Technology

  • Optical
  • Photoelectric
  • Magnetic
  • Others

By Application

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

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request


  • Available upon request


Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:


  • Global Encoder Market Size and Forecast:

To identify and estimate the market size for the global encoder market segmented by encoder type, by signal type, by technology, by application, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers between 2019 and 2031.


  • Market Landscape and Trends:

To identify and infer the drivers, restraints, opportunities, and challenges for the global encoder market


  • Market Influencing Factors:

To find out the factors which are affecting the sales of encoders among consumers


  • Impact of COVID-19:

To identify and understand the various factors involved in the global encoder market affected by the pandemic


  • Company Profiling:

To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.


Intended Audience

  • Government and Non-governmental Organizations
  • Investors and Financial Institutions
  • Academics and Research Institutes
  • Environmental Agencies
  • Encoder Manufacturers, Distributors/Reseller,
  • End-use Industries

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.

Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.

Quality Checking & Final Review

The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.

Frequently Asked Questions

The global encoder market forecast period is 2022 - 2031
According to encoder market research, the market is expected to grow at a CAGR of ~8.4% over the coming years.
Asia-Pacific is expected to register the highest CAGR during 2022 - 2031
Asia-Pacific held the largest share in 2022
The major players operating in the global encoder market include HEIDENHAIN, Broadcom Inc., Rockwell Automation, Inc., ELCO Holding, Alps Alpine Co., Ltd., TE Connectivity, Schneider Electric, FRABA B.V., CUI Devices, Panasonic Corporation, Sensata Technologies, Inc., Omron Corporation, TT Electronics, Grayhill Inc., FENAC / Fenac Technology / Fenac Engineering, Dynapar, Bourns, Inc., and various others.

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