Driven by a relentless global push toward automation, the encoder industry is in the midst of a significant boom, as evidenced by a market valued at USD 4.12 billion in 2023 and projected to surge to USD 6.78 billion by 2030.
Key Takeaways
- The global encoder market was valued at USD 4.12 billion in 2023 and is projected to grow to USD 6.78 billion by 2030 at a CAGR of 7.4% driven by automation demand.
- North America encoder market size stood at USD 1.05 billion in 2023 with a projected CAGR of 6.8% through 2030 due to industrial robotics growth.
- Asia-Pacific encoder market is expected to register the highest CAGR of 8.2% from 2024 to 2030, valued at USD 1.98 billion in 2023.
- Omron Corporation held 12.5% share of global encoder market in 2023 with revenue of USD 515 million from encoders.
- Schneider Electric captured 10.8% market share in 2023, generating USD 445 million in encoder sales worldwide.
- Heidenhain GmbH commanded 9.2% share with USD 379 million revenue in encoder segment for 2023.
- Optical encoders comprised 52.3% of total encoder market by technology in 2023 globally.
- Magnetic encoders held 28.4% market share in 2023, favored for robustness in dirty environments.
- Inductive encoders accounted for 12.1% share in 2023, growing due to non-contact precision.
- Asia-Pacific region dominated encoder market with 48.2% share in 2023 revenues.
- China encoder market valued at USD 1.45 billion in 2023, largest in APAC.
- USA encoder industry generated USD 0.85 billion in 2023, driven by manufacturing resurgence.
- Industrial automation end-use segment 42.3% of encoder market in 2023.
- Robotics applications consumed 25.8% of encoders in 2023 globally.
- Automotive sector encoder demand 18.4% share in 2023 revenues.
The global encoder market is growing significantly due to rising automation demands.
Applications and Segments
- Industrial automation end-use segment 42.3% of encoder market in 2023.
- Robotics applications consumed 25.8% of encoders in 2023 globally.
- Automotive sector encoder demand 18.4% share in 2023 revenues.
- Elevators and escalators segment 9.2% of market usage in 2023.
- CNC machines applications 12.1% encoder market share 2023.
- Packaging machinery end-use 7.5% in 2023 encoder deployments.
- Semiconductor manufacturing used 5.6% of encoders in 2023.
- Wind turbine generators 4.3% share in renewable applications 2023.
- Medical devices segment 3.9% of total encoder market 2023.
- Aerospace & defense 6.7% market penetration in 2023.
- Textile machinery encoders 2.8% share among discrete industries 2023.
- Food & beverage processing 4.1% end-use in 2023.
- Marine propulsion systems 1.9% niche application share 2023.
- Printing & converting equipment 3.2% encoder usage 2023.
- Servo motors integration 31.4% of motor control applications 2023.
- stepper motors 22.7% complementary use in 2023 segments.
- Heavy-duty industrial 15.6% in harsh environment apps 2023.
- Precision positioning systems 11.2% high-end share 2023.
- Consumer printers and scanners 2.5% low-end segment 2023.
- HVAC systems control 1.8% building automation use 2023.
Applications and Segments Interpretation
It seems industrial automation has firmly claimed its role as the conductor of the encoder orchestra, while robotics and automotive are the ambitious first-chair players, leaving the remaining sections—from medical devices to wind turbines—to harmonize into a symphony of precise motion across the global factory floor.
Company Profiles and Shares
- Omron Corporation held 12.5% share of global encoder market in 2023 with revenue of USD 515 million from encoders.
- Schneider Electric captured 10.8% market share in 2023, generating USD 445 million in encoder sales worldwide.
- Heidenhain GmbH commanded 9.2% share with USD 379 million revenue in encoder segment for 2023.
- Baumer Group accounted for 8.7% of market, USD 358 million in 2023 encoder revenues.
- Sick AG held 7.9% share, reporting USD 325 million from encoders in fiscal 2023.
- Renishaw plc captured 6.4% market share with USD 264 million encoder sales in 2023.
- Pepperl+Fuchs GmbH had 5.8% share, USD 239 million revenue from encoders globally in 2023.
- Leine Linde AB owned 4.9% market position, USD 202 million in 2023 encoder business.
- CUI Devices Inc. generated USD 156 million from encoders, 3.8% share in 2023.
- Dynapar (Fortive Corp) held 3.5% share with USD 144 million encoder revenue 2023.
- Kollmorgen (Regal Rexnord) 3.2% share, USD 132 million in encoders for 2023.
- TR Electronic GmbH reported USD 118 million encoder sales, 2.9% market share 2023.
- Autonics Corporation 2.7% share with USD 111 million revenue from encoders in 2023.
- Elesa S.p.A. USD 98 million, 2.4% share in global encoder market 2023.
- Grayhill Inc. 2.1% market share, USD 87 million encoder revenue 2023.
- Hontai Electronics USD 76 million sales, 1.8% share in 2023 encoder industry.
- Kubler Group 1.6% share with USD 66 million from encoders in 2023.
Company Profiles and Shares Interpretation
The encoder market is a fiercely contested chessboard where a 1.7% revenue gap separates the top players, proving that in industrial automation, every million and every micron count.
Market Size and Forecast
- The global encoder market was valued at USD 4.12 billion in 2023 and is projected to grow to USD 6.78 billion by 2030 at a CAGR of 7.4% driven by automation demand.
- North America encoder market size stood at USD 1.05 billion in 2023 with a projected CAGR of 6.8% through 2030 due to industrial robotics growth.
- Asia-Pacific encoder market is expected to register the highest CAGR of 8.2% from 2024 to 2030, valued at USD 1.98 billion in 2023.
- Europe encoder industry generated revenue of USD 1.12 billion in 2023, forecasted to reach USD 1.85 billion by 2029 at 8.7% CAGR.
- Industrial encoder segment dominated with 65% market share in 2023, valued at USD 2.68 billion globally.
- Rotary encoder market size was USD 2.60 billion in 2023, projected to hit USD 4.32 billion by 2030 with 7.5% CAGR.
- Linear encoder market valued at USD 1.52 billion in 2023, expected CAGR of 7.1% to USD 2.45 billion by 2030.
- Optical encoder segment accounted for 52% of global market revenue in 2023, totaling USD 2.14 billion.
- Magnetic encoder market grew to USD 1.28 billion in 2023 with forecasted 8.0% CAGR to 2030 amid harsh environment applications.
- Absolute encoder market size reached USD 1.95 billion in 2023, projected 7.8% CAGR to USD 3.25 billion by 2030.
- Incremental encoder market was USD 2.17 billion in 2023, expected to grow at 6.9% CAGR to USD 3.52 billion by 2030.
- Multi-turn encoder sub-segment valued at USD 0.85 billion in 2023 with 9.1% CAGR forecast.
- Single-turn encoder market size USD 1.10 billion in 2023, CAGR 7.2% to 2030.
- High-resolution encoder market hit USD 1.42 billion in 2023, projected 8.3% growth.
- Low-cost encoder segment was 28% of market in 2023, USD 1.15 billion revenue.
- Automotive encoder market valued at USD 0.92 billion in 2023, CAGR 9.5% forecast to USD 1.72 billion by 2030.
- Aerospace encoder market size USD 0.45 billion in 2023, 6.5% CAGR expected.
- Medical encoder market grew to USD 0.38 billion in 2023 with 10.2% CAGR projection.
- Renewable energy encoder applications market USD 0.62 billion in 2023, 8.9% CAGR.
- Consumer electronics encoder segment USD 0.55 billion in 2023, forecasted 7.6% growth.
- The global encoder market was valued at USD 4.25 billion in 2023 and is projected to reach USD 7.02 billion by 2031 at a CAGR of 7.6%.
- The encoder market in the United States is expected to grow from USD 0.92 billion in 2023 to USD 1.48 billion by 2030 at 7.1% CAGR.
- Incremental rotary encoder market size estimated at USD 1.68 billion in 2023 with 6.5% CAGR forecast.
Market Size and Forecast Interpretation
As robots silently demand more precision and factories hum with automated intent, the global encoder market, valued at over four billion dollars, is spinning steadily toward a seven-billion-dollar future, proving that the most crucial feedback loops are often the ones measuring their own explosive growth.
Regional Markets
- Asia-Pacific region dominated encoder market with 48.2% share in 2023 revenues.
- China encoder market valued at USD 1.45 billion in 2023, largest in APAC.
- USA encoder industry generated USD 0.85 billion in 2023, driven by manufacturing resurgence.
- Germany held 22.5% of European encoder market share in 2023 with USD 0.25 billion.
- Japan encoder market size USD 0.52 billion in 2023, key robotics hub.
- India encoder demand grew 11.4% YoY in 2023 to USD 0.18 billion.
- South Korea encoder market USD 0.28 billion in 2023, semiconductor influence.
- UK encoder revenues USD 0.12 billion in 2023, aerospace focus.
- France 15.3% of EU encoder market with USD 0.17 billion in 2023.
- Brazil Latin America leader at USD 0.09 billion encoder market 2023.
- Mexico encoder growth 8.7% in 2023 to USD 0.07 billion.
- Australia APAC outlier with USD 0.11 billion encoder sales 2023.
- Middle East encoder market USD 0.15 billion in 2023, oil & gas driver.
- Africa encoder penetration low at USD 0.08 billion total 2023.
- Canada North America secondary at USD 0.20 billion encoder market 2023.
Regional Markets Interpretation
The Asia-Pacific region, led by a formidable China, reigns supreme in the encoder world, but while the U.S. flexes its manufacturing muscles and Germany anchors Europe, the true global story is one of Japan's robotic precision, India's rapid ascent, and dozens of other specialized markets quietly keeping the wheels of industry turning.
Technology Types
- Optical encoders comprised 52.3% of total encoder market by technology in 2023 globally.
- Magnetic encoders held 28.4% market share in 2023, favored for robustness in dirty environments.
- Inductive encoders accounted for 12.1% share in 2023, growing due to non-contact precision.
- Capacitive encoders represented 4.7% of market in 2023 with applications in high-speed machinery.
- Laser encoders captured 2.5% share in 2023, used in ultra-precision metrology.
- Absolute encoders dominated with 58.6% share over incremental types in 2023 market.
- Incremental encoders held 41.4% market share in 2023 for cost-sensitive applications.
- Single-turn absolute encoders 32.1% of absolute segment in 2023.
- Multi-turn absolute encoders 26.5% share within absolute category 2023.
- Hollow-shaft rotary encoders 45.2% of rotary market in 2023.
- Solid-shaft rotary encoders 54.8% dominance in rotary encoders 2023.
- High-resolution encoders (>20,000 pulses/rev) 38.7% share in 2023.
- Contactless encoders grew at 9.2% CAGR in 2018-2023 period within technology types.
- SSI interface encoders 22.4% of digital interface market in 2023.
- BiSS interface gaining traction with 15.8% share among open protocols in 2023.
- EnDat interface held 28.3% in absolute encoder protocols 2023.
Technology Types Interpretation
The encoder market in 2023 was a masterclass in compromise, where optical technology ruled supreme yet conceded significant ground to rugged magnetic rivals and precise inductive alternatives, all while the absolute majority definitively ended the incremental debate.
Sources & References
- Reference 1MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 2GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 3FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 4MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 5RESEARCHANDMARKETSresearchandmarkets.comVisit source
- Reference 6STATISTAstatista.comVisit source
- Reference 7ALLIEDMARKETRESEARCHalliedmarketresearch.comVisit source
- Reference 8POLARISMARKETRESEARCHpolarismarketresearch.comVisit source
- Reference 9TRANSPARENCYMARKETRESEARCHtransparencymarketresearch.comVisit source
- Reference 10VERIFIEDMARKETRESEARCHverifiedmarketresearch.comVisit source