Global Optical Encoders Industry

Global Optical Encoders Industry

  • February 2022 •
  • 315 pages •
  • Report ID: 5957589 •
  • Format: PDF

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Global Optical Encoders Market to Reach $3.1 Billion by 2026

Optical encoders are electromechanical devices intended to directly convert an angular displacement of input shaft into an analog or digital electric output using a light sources, light detectors and optical grating. These devices are commonly used to monitor and control various parameters like position, direction, speed, distance and rate. Optical encoders are widely used in communication equipment, healthcare systems, assembly and robotics equipment, test and measurement equipment, and metalworking equipment. Demand for optical encoders is being propelled by expansion of the printed circuit board market, the miniaturization trend and increasing sales of consumer electronics items. Increasing adoption of sophisticated motion control systems coupled with the need for superior assertion in placement related to surface mount technology also boosts demand in the market. Optical encoders are benefitting from increasing adoption of control systems and automation equipment due to their ability to deliver real-time data, high productivity and high accuracy. Latest IoT-powered optical encoders launched on the market present effective diagnostic systems capable of delivering diagnostic and condition monitoring information.

Amid the COVID-19 crisis, the global market for Optical Encoders estimated at US$1.9 Billion in the year 2020, is projected to reach a revised size of US$3.1 Billion by 2026, growing at a CAGR of 8.5% over the analysis period. Absolute Encoder, one of the segments analyzed in the report, is projected to grow at a 9% CAGR to reach US$2.3 Billion by the end of the analysis period. After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Incremental Encoder segment is readjusted to a revised 7.4% CAGR for the next 7-year period. This segment currently accounts for a 33.1% share of the global Optical Encoders market. Absolute optical encoder segment dominates market share due to increasing adoption of these devices in diverse applications requiring high resolution, accuracy and system reliability. In the recent years, absolute encoders have gained increasing traction in applications related to advanced mechanical systems like industrial automation, robotics automation, computer input devices, rotating radar platforms, controlled stress rheometers and photographic lenses. Incremental encoders are intended to determine the position angle on the basis of incremental calculations, with each position depicting a unique value. These devices are used in various commercial applications and electric consumer items.

The U.S. Market is Estimated at $527.6 Million in 2021, While China is Forecast to Reach $639.2 Million by 2026

The Optical Encoders market in the U.S. is estimated at US$527.6 Million in the year 2021. The country currently accounts for a 26.22% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$639.2 Million in the year 2026 trailing a CAGR of 10.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.2% and 8.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.4% CAGR while Rest of European market (as defined in the study) will reach US$704.5 Million by the end of the analysis period. Asia-Pacific represents a key market, owing to rapid industrialization in developing economies and increasing adoption of sophisticated equipment to save on manufacturing costs. The region is a major hub of electronic component manufacturing and witnessing high demand for optical encoder from manufacturers for specific benefits like enhanced efficiency. The presence of numerous healthcare and manufacturing facilities in the US drives growth in North America region.

Select Competitors (Total 70 Featured) -
  • Allied Motion Technologies Inc.
  • Bourns Inc.
  • Broadcom Ltd.
  • Codechamp SA.
  • Dynapar Corporation
  • GrayHill Inc.
  • Honeywell International, Inc.
  • Panasonic Corporation
  • Renishaw PLC
  • Rockwell Automation Inc.
  • Sensata Technologies, Inc.
  • Siemens
  • TE Connectivity
  • Tokyo Sokuteikizai Co., Ltd.
  • US Digital