Rotary Encoder Market Analysis

Type Segment Analysis

The incremental encoders segment is expected to acquire a significant market share by the end of 2036, owing to lower costs and a simple design. Mainly, the exclusion of the use of complex components and advanced manufacturing measures makes the costs of producing incremental encoders lower. Companies are also increasingly investing in the production of incremental encoders. In August 2023, Dynapar announced the launch of the HS35iQ Encoder with PulseIQ Technology. It is a hollow shaft incremental encoder, incorporated with color-coded LEDs and digital output, and suitable for use in self-diagnosis.

Output Type Segment Analysis

The digital output encoders segment is anticipated to expand extensively by acquiring a market share of 58.2% by the end of 2036, owing to their high performance and compatibility with modern automation systems. New easily incorporable digital output encoders are consistently launched by companies across different regions. Once such an example is the unveiling of the new HOG800 series at SPS 2024 by Baumer in October 2024. The technology is capable of responding in 10 ms, using a minimal blind zone (10 mm) and performing smart filter functions.

Technology Segment Analysis

The magnetic segment is expected to register rapid growth by the end of 2036, due to cost-effectiveness and improvements in the accuracy of the technology. Moreover, the widespread availability of magnetic technology facilitates its higher utilization in rotary encoders. Governments are also active in influencing the production of the technology. As revealed by the India Brand Equity Foundation (IBEF) in June 2023, the government is set to launch a scheme worth USD 404.4 million and focused on fueling the production of rare earth materials and magnets. This was an initiative to reduce the dependency of the country on China.

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