Rotary Encoder Market Size & Share, by Type (Optical, Magnetic, Mechanical, Capacitive); Product (Incremental Rotary Encoders, Absolute Rotary Encoders); Application (Metal Forming & Fabrication, Servo Motor, Elevator Industry, Machine Tool, Material Handling); End-User Industry (Automotive, Aerospace, Electronics, Healthcare, Manufacturing, Packaging) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5388
  • Published Date: Nov 22, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Rotary Encoder Market size is expected to cross USD 6.2 Billion by the end of 2036, growing at a CAGR of 8% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of rotary encoder was over USD 2.3 Billion. The growth of the market is due to the adoption of automation across a range of industries and has been further accelerated by digitization and the Industry 4.0 revolution, which is expected to moderate market development. Because of the steady rise in IoT usage and digital transformation across multiple industries, Industry 4.0 convinced OEMs to integrate IoT into their operations. For example, spending on the Internet of Things (IoT) in Europe surpassed USD 202 billion in 2021, according to a recent survey. Through 2025, it is anticipated to rise at a double-digit rate. 

In addition to these, governments throughout the world are encouraging the use of different automation technologies to help industrial companies grow structurally. Governments are also concentrated on the manufacturing industries because they are a crucial part of this development. This is anticipated to increase industrial robot adoption and therefore propel market expansion as a whole.


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Rotary Encoder Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~ 8%

Base Year Market Size (2023)

~ USD 2.3 Billion

Forecast Year Market Size (2036)

~ USD 6.2 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Rotary Encoder Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Robust Robotics Sector Fostering Encoder Sector Growth- Encoders are used extensively to ensure accuracy and expedite production in many different industries. They are used in the booming food and beverage sector, which is supporting market expansion, for filling, conveying, motor feedback, x-y positioning, and registration mark timing, among other things. Additionally, encoders are utilized to implement the Internet of Things (IoT), which speeds up market expansion by enabling devices to receive position and information. Furthermore, the increasing use of computer numerical control (CNC) equipment is driving the encoder market. The market is growing in part because of the robotics industry's strong expansion and widespread use of encoders. Upkeep and installation are now possible thanks to expanding computing and technology research and development (R&D).
  • Growing Automotive Industry Driving Market Expansion- To precisely measure angles and pedal position, a rotary encoder—a type of position sensor—is used to produce electrical outputs related to shaft rotation. The rotary switch, mode selection, wiper motor, headlight position control, seat position motor, side mirror, and throttle position control are just a few of the controls that the automotive industry uses these sensors for. According to projections from the International Energy Agency, there were 3 million electric vehicles in operation globally in 2018. By 2030, that figure is expected to increase to 125 million. Consequently, the market for rotary encoders will rise as a result of the automobile industry's expansion.
  • Technological Developments and High Accuracy Could Strengthen Market Growth- If the accuracy of 3D printers is much increased, the technology may progress and lead to a better scale in the future. This leads to reduced particle sizes and dimensions together with faster processing times, potentially expanding the employment of magnetic encoders in high-volume data applications. With interface standardisation, it is anticipated that the 36mm and 58mm encoders will see an increase in utilization. As a result, their functionality will range from extremely low to somewhat less when compared to the products of their competitors.

Challenges

  • Lack of Product Distinction Prevents Market Expansion- One of the things impeding the rotary encoder market growth is the absence of product differentiation. Customers buy rotary encoders in bulk because they are utilized in electronics, aerospace, automotive, and other industries in such big quantities. There are many possible applications and uses for rotary encoders. Consumers have many options because similar technology products are offered by numerous large companies. Manufacturers are under pressure to lower prices in order to compete with large manufacturers for the large volume of these products. This puts pressure on manufacturers' prices, which is problematic.
  • Encoders encounter a number of issues and constraints that reduce their capacity to endure competition because of their few brittle parts and possible complexity.
  • The difference between the value the encoder reads and the actual physical value being measured is known as encoder accuracy. There are other potential error causes that could lead to the inaccuracy.


Rotary Encoder Segmentation

Application (Metal Forming & Fabrication, Servo Motor, Elevator Industry, Machine Tool, Material Handling)

The machine tool segment in the rotary encoder market is anticipated to hold the largest share of about 40% during the forecast period. Rotary encoders are employed in machine tool applications to achieve precise sensing and positioning. The precise axis alignment and commutation angle can be found by a machine. Rotating encoders help machines operate at their best and increase system accuracy as a result. Because of these reasons, it is heavily utilized in this application. The strong acceptance rate and rising demand are expected to fuel the robotics segment's significant growth. According to the International Federation of Robotics (IFR), factories worldwide are expected to install almost 2 million industrial robots between 2020 and 2022. Because rotary encoders are widely used in robotics, these reasons are expected to increase demand for them.

End-User Industry (Automotive, Aerospace, Electronics, Healthcare, Manufacturing, Packaging)

Rotary encoder market from the manufacturing segment is projected to hold the largest share of about 30% during the forecast period. Encoders used in manufacturing applications that are frequently exposed to fluids, dust, or humidity. Encoder housings that can withstand corrosive and toxic substances can be used in manufacturing. Temperature resistance and stainless-steel housings are required. Encoders are necessary for production lines' machinery to provide accuracy, dependability, compactness, and compatibility with a range of improved machines. Furthermore, the market growth rate is expected to increase due to the notable implementation of rotary encoders for speed control applications in the automotive sector. The market growth rate is expected to increase due to the notable increase in expansions. Toyota declared in January 2020 that it would invest USD 700 million to expand its US manufacturing facility. Toyota Motor Corporation said in September 2019 that it would invest USD 190 million to expand its factory in Brazil in order to improve output.

Our in-depth analysis of the global rotary encoder market includes the following segments:

Type  

  • Optical
  • Magnetic
  • Mechanical
  • Capacitive  

Product  

  • Incremental Rotary Encoders
  • Absolute Rotary Encoders

Application

  • Metal Forming & Fabrication
  • Servo Motor
  • Elevator Industry
  • Machine Tool
  • Material Handling

End-User Industry  

  • Automotive
  • Aerospace
  • Electronics
  • Healthcare
  • Manufacturing
  • Packaging

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Rotary Encoder Industry - Regional Synopsis

APAC Market Forecast

Rotary encoder market in the Asia Pacific region is expected to hold largest share of about 33% during the forecast period. The sector is growing significantly due to the quest for better manufacturing process solutions and rising industrialization. Asia is home to numerous sizable industrial hubs, including those in China, Japan, and India. Enhanced manufacturing capabilities and agreements for services with businesses are two other elements propelling industry growth. Market expansion has been expedited by the introduction of new products into the marketplace as a result of heightened competition. The Chinese government's Made in China 2025 initiative and other programs promote the utilization of R&D in factory automation and technologies, as well as investments in those fields. Additionally, as most automation equipment is imported from Germany and Japan, the "Made in China" project aims to enhance the country's local manufacturing of automation hardware and equipment. The government's actions in the automation industry will push the market being studied. With more than 300,000 industrial robots in use, Japan boasts the highest robot density per manufacturing employee in the world. Numerous industries, including the automotive, electronics, and healthcare sectors, use these robots.

North American Market Statistics

Rotary encoder market in North America region is attributed to hold second largest share of about 27% during the forecast period. The growing use of rotary encoders in the automobile industry is the main driver generating demand for them. They work in the automotive industry with the steering, throttle, and gear positions. Another key element driving the market's expansion is the use of these rotary encoders in the aerospace industry, where they are employed for automation. Therefore, it is anticipated that the market will rise at a faster rate due to the rising need for rotary encoders.

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Companies Dominating the Rotary Encoder Landscape

top-features-companies
    • Hans Turck GmbH & Co. KG
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • FAULHABER Group
    • BEI Sensors
    • Renishaw plc.
    • Baumer Group
    • SIKO GmbH
    • Rockwell Automation, Inc.
    • Dr. Johannes Heidenhain GmbH
    • Maxon Precision Motor India Pvt. Ltd.
    • Honeywell International, Inc.

In-the-news

In The News

  • The EAM300, the smallest CANopen interface rotary encoder in the MARGES EAM series, was introduced by Baumer. Its small size allows for more space in machine designs, and some variants provide design freedom. It is primarily intended for use in medical technology and mobile automation.
  • The FORTiS enclosed linear absolute encoder series was introduced by Renishaw plc. The series is built on RESOLUTE encoder technology and is suitable for use in harsh environments. Furthermore, it provides superior repeatability, reduced hysteresis, and improved measurement performance due to an advanced non-contact mechanical design that does not require a mechanical guidance carriage.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5388
  • Published Date: Nov 22, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing automation, digitization and adoption of industry 4.0 are the major factors driving the growth of the rotary encoder market.

The market size of rotary encoder is anticipated to attain a CAGR of 8% over the forecast period, i.e., 2024-2036.

The major players in the market are FAULHABER Group, BEI Sensors, Renishaw plc., Baumer Group, SIKO GmbH, Rockwell Automation, Inc., Dr. Johannes Heidenhain GmbH, Maxon Precision Motor India Pvt. Ltd., and others.

The machine tool segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Rotary Encoder Market Report Scope
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