Incremental Encoders Market Analysis by Type (Quadrature Incremental Encoder, Optical Incremental Encoder, and Magnetic Incremental Encoder); and by Application {Heavy Duty (Paper, Steel, and Wood Production), Industrial Duty (Food and Beverage Industry, Textile, General Factory Automation), Light Duty (Robotics, Electronics, and Semiconductors)} – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4343 | Published Date: Feb 14, 2023
The global incremental encoders market is estimated to garner a revenue of ~USD 6 billion by the end of 2035 by growing at a CAGR of ~10% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 3 billion in the year 2022. The growth of the market can primarily be attributed to the growing demand for incremental encoders for airborne systems as well as flight simulators with the rise in the aerospace industry worldwide. For instance, it was found that, the revenue of global commercial aerospace and defense (A&D) industry accounted for more than USD 700 billion in 2021
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Encoders are used in machinery for motion feedback and motion control. They are found in machinery in all industries. The encoder sends a feedback signal that can be used to determine position, count, speed, or direction. A control device can use this information to send a command for a particular function. The demand for incremental encoders is on the rise in the automotive industry, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global incremental encoders market during the forecast period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 3 billion |
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Forecast Year Market Size (2035) |
~ USD 6 billion |
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Regional Scope |
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Growth Drivers
Growing Textile Industries – Textile industries are driving the demand for incremental encoders. In textile manufacturing machinery, encoders provide critical feedback for speed, direction, and distance. Hence, with the boom in the textile industry in the forecasted period, the demand for incremental encoders is also expected to escalate. It was found that, in the year 2021, the Indian textile industry was valued at more than USD 220 billion.
Increasing Investment in Robotics – In 2021, robotic startup investments accounted for over USD 17 billion.
Increasing Automation in Manufacturing Industry – As automating different tasks can raise productivity to grow at ~1.4% annually. It was estimated that, by 2030, the use of automation in 3 key industries including manufacturing will contribute more than USD 15.5 trillion to the world economy.
Upsurge in the Food and Beverages Industry – The output of India’s food processing sector is expected to be more than USD 500 billion by 2025-26.
Growing Sales of the Automotive Industry - It is estimated that the unit sales volumes of the automotive industry to be around 78 million units in 2022 worldwide.
Challenges
The global incremental encoders market is segmented and analyzed for demand and supply by type into quadrature incremental encoder, optical incremental encoder, and magnetic incremental encoder. Amongst these segments, the quadrature incremental encoder segment is anticipated to garner the largest revenue by the end of 2031, backed by the surge in the sale of personal computers (PC) worldwide along with the growing sales of mice and trackballs for computers. For instance, it was found that more than 72 million PCs were shipped globally in the second quarter of 2022.
The North America incremental encoders market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by the presence of a strong maritime network in the region, a growing number of jobs on ports, as well as the rising economy generated from marine transportation. For instance, as per the 2022 data, ports in the United States support over 13 million jobs, whereas ships move ~USD 1.5 trillion in and out of the country's ports annually. Also, also ~75% of all trade involves some form of marine transportation in the United States.
Our in-depth analysis of the global incremental encoders market includes the following segments:
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By Type |
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By Application |
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TE Connectivity Corporation (TE)
TE Connectivity Corporation (TE) - introduced the KMA36 Magnetic Encoder IC, based on Anisotropic Magnetoresistive (AMR) technology.
Renishaw PLC - launched the QUANTiC encoder series for linear axes which offers exceptionally wide installation tolerances and axis speeds of up to 24 m/s.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The upsurge in the aerospace & defense industry as well as rise in the automotive industry sales along with growing automation in manufacturing sector are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~10% over the forecast period, i.e., 2023 – 2035.
Ans: Concern about setting a reference point as well as the possibility of losing the results without an electrical supply are some of the factors estimated to hamper the market growth.
Ans: The market in North America is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are TE Connectivity Corporation (TE), British Encoder Products Company, Newall Electronics, Inc, Dynapar Corporation, Gurley Precision Instruments Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, application, and by region.
Ans: The quadrature segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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