Rotary Encoder Market Size, Share, Growth, Trends, 2032

Oct 14, 2024

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global rotary encoder market size was USD 2.53 billion in 2023 and market is projected to touch USD 5.44 billion by 2032 at CAGR 8.87% during the forecast period.

A shaft encoder is another name for a rotary encoder. It is described as an electromechanical switch that transforms the angular motion and axle position into a digital signal or advanced encoding output. A rotary encoder produces an electrical signal, either analogue or digital, based on the rotating movement.

Due to emerging technologies like robots and smart manufacturing, demand for rotary encoders in industrial end-use applications like manufacturing is rising quickly. The path of the permanent magnet motor shaft is frequently monitored by a rotary encoder in the context of CNC machines (industrial software and robotics).

The severe health catastrophe brought on by the coronavirus (COVID-19) is still spreading and affecting people all over the world. The COVID-19's possible effects, which could include delays in the ongoing and planned construction schedule, significant supply chain disruptions, labour problems, a delay in obtaining necessary permissions, and the availability of funding.

The pandemic has a significant negative impact on several industries, including the transportation, aviation, and tourism sectors. For instance, according to the World Travel and Tourism Council, the crisis will cost the travel and tourism industry at least USD 22 billion and up to 25% of its 2020 revenue, which will result in the loss of 50 million jobs.

"High Accuracy And Technological Advancements May Leads To Enhance Market Growth"

If 3D printers significantly improve their accuracy, the technology might advance and eventually result in a better scale. This result in lower particle sizes and dimensions with shorter processing times, which can increase the use of magnetic encoders in applications involving large volumes of data.

The use of the 36mm and 58mm encoders is predicted to increase with interface standardization. Due to this, their functionality will be varied from very low and somewhat less in comparison to those of the competitors' products.

According to type, the market can be segmented into Incremental Encoders, Absolute Encoders. Incremental Encoders will be the leading segment.

Based on application, the market can be divided into Metal Forming & Fabrication, Servo motor, Elevator Industry, Machine Tool, and Material Handling. Metal Forming & Fabrication will be the dominating segment.

"Strong Robotics Industry Supporting Encoder Industry Growth"

Encoders are widely utilized in a variety of sectors to speed up production and guarantee accuracy. They are employed for filling, conveying, motor feedback, x-y positioning, and registration mark timing, among other things, in the thriving food and beverage industry, which is assisting market expansion. Encoders are also used to implement the Internet of things (IoT), which allows devices to receive position and information, hence accelerating market expansion. Moreover, the industry for encoders is being boosted by the growing usage of computer numerical control (CNC) machines. The market is expanding due in part to the robust growth of the robotics sector and the extensive usage of encoders within it.

Growing computing and technology research and development (R&D) has made upkeep and installation possible.

"Expanding Automotive Sector Leading Market Growth"

A position sensor known as a rotary encoder is utilized to deliver electrical outputs that are related to shaft rotation, precisely measuring angles and pedal position. These sensors are utilised in the automobile industries for a variety of controls, including those for the rotary switch, mode selection, volume control, wiper motor, headlight position control, seat position motor, side mirror, and throttle position control. The International Energy Agency estimates that 3.29 million electric vehicles were in use worldwide in 2018 and that number will rise to 125 million by 2030. As a result, the expansion of the automotive sector will fuel the growth of the rotary encoder market.

"Product Distinction Is Lacking, Hampering The Market Expansion"

The lack of product differentiation is one of the factors restricting growth in the market for rotary encoders. Since rotary encoders are used in such large quantities in the electronics, aerospace, automotive, and other industries, consumers purchase these goods in bulk. Rotary encoders have a wide range of applications and potential uses. Since many major businesses provide comparable technological products, customers have a wide range of possibilities. In order to compete with big manufacturers for the vast volume of these products, pricing pressure is put on manufacturers. The pressure on manufacturers' prices as a result presents a problem.

"Asia Pacific To Grow At The Highest CAGR During Forecast Period"

The desire for better manufacturing process solutions and increased industrialization are helping the industry expand quickly. Large industrial centers like those in Japan, China, and India are centered in Asia. Increased production capacity and service contracts with enterprises are other factors driving industry expansion. The entry of new products into the market as a result of increased market competition has accelerated market growth.

Programs of the Chinese government, such the Made in China 2025 plan, encourage the use of R&D in factory automation and technologies, as well as the investments made therein. Additionally, the "Made in China" project intends to increase the nation's domestic manufacturing of automation hardware and equipment because the majority of automation equipment is imported from Germany and Japan. The market under study will be driven by initiatives taken by the government in the automation industry.

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.

Market Size Value In

US$ 2.53 Billion in 2023

Market Size Value By

US$ 5.44 Billion by 2032

Growth Rate

CAGR of 8.87% from 2023 to 2032

Forecast Period

2024-2032

Base Year

2023

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

By Application

The global Rotary Encoder Market is expected to touch USD 5.44 billion by 2032.

The Rotary Encoder market is expected to exhibit a CAGR of 8.87% by 2032.

Robotics are being used more frequently in a variety of industries and in automated machinery to ensure precision, which is helping the Rotary Encoder industry.

Turck Holding GmbH, FAULHABER Group (Germany), BEI Sensors, Renishaw plc., Baumer Group, OMRON Corporation, Dynapar, maxon motor ag, Hengstler GmbH, SIKO GmbH, Ifm electronic, Pilz GmbH & Co. KG, Rockwell Automation, Inc., Dr. Johannes Heidenhain GmbH are the top companies operating in the Rotary Encoder market.