Optical Encoder Market Size & Growth Analysis to 2030

The global optical encoder market size was estimated at around USD 2.5 billion in 2022 and expected to maintain a significant CAGR of over 9% during the forecast period from 2023 to 2030. The increasing demand for advanced signal processing algorithms in various applications, growing demand for condition monitoring in the automation sector, and the fast adoption of the product in the robotics industry are some major factors driving the industry growth. Absolute optical encoders and shaft optical encoders are increasingly adopted in the robotics industry, which is anticipated to propel the growth of the industry. Furthermore, the growing adoption of advanced motion control systems and the continuous development in optical technologies are further anticipated to fuel the market. for instance, in Sep 2020, US Digital, US based company, launched the new E16 Micro Optical Kit encoder which features a 10mm bolt circle, fits 1.5mm (0.059″) and 2mm (0.079″) shafts, and provides A, B, and index digital quadrature signals.

Market Snapshot:

Market Drivers:

Automation and Robotics: The increasing adoption of automation and robotics across various industries, including manufacturing, automotive, aerospace, and healthcare, drives the demand for optical encoders. Optical encoders are used to provide precise position, speed, and motion control feedback in automated systems. They enable accurate positioning, motion control, and feedback loops, ensuring the efficiency and reliability of automated processes. The growth of automation and robotics fuels the demand for optical encoders.

Industrial Internet of Things (IIoT): The Industrial Internet of Things (IIoT) refers to the integration of sensors, devices, and machines with internet connectivity in industrial settings. Optical encoders play a crucial role in IIoT applications by providing accurate position and motion data, which is essential for monitoring, control, and optimization of industrial processes. The IIoT revolution drives the demand for optical encoders as a key component in connected industrial systems.

Demand for High-Precision and Reliable Motion Control: Industries such as robotics, machine tools, printing, packaging, and semiconductor manufacturing require high-precision and reliable motion control systems. Optical encoders offer excellent resolution, accuracy, and repeatability, enabling precise control of position, speed, and rotation in these applications. The demand for high-precision motion control drives the adoption of optical encoders.

Growing Automotive Industry: The automotive industry is a major consumer of optical encoders. Optical encoders are used in various automotive applications, including motor control, steering systems, throttle position sensing, and transmission control. The increasing production of vehicles, advancements in electric and autonomous vehicles, and the need for precise motion control in automotive systems contribute to the demand for optical encoders.

Advancements in Optical Encoder Technology: Technological advancements in optical encoder design, manufacturing, and integration have led to improved performance, compact size, and increased durability. Optical encoders now offer higher resolution, faster response times, and enhanced reliability. These advancements expand the application scope of optical encoders and drive their adoption in various industries.

Medical and Healthcare Applications: Optical encoders find application in medical and healthcare equipment, such as medical imaging devices, diagnostic equipment, robotic surgery systems, and patient monitoring systems. They provide precise position and motion control feedback in these critical healthcare applications, ensuring accuracy and safety. The growth of the medical and healthcare sector contributes to the demand for optical encoders.

Aerospace and Defense Industry: The aerospace and defense industry requires highly accurate and reliable motion control systems for applications such as aircraft controls, navigation systems, satellite tracking, and unmanned aerial vehicles (UAVs). Optical encoders offer the necessary precision and reliability in these demanding environments, leading to their increased adoption in the aerospace and defense sector.

Increasing Demand for Energy-Efficient Solutions: With growing concerns about energy consumption and environmental sustainability, there is an increasing demand for energy-efficient solutions in various industries. Optical encoders are known for their high efficiency and low power consumption, making them an attractive choice for energy-conscious applications. The focus on energy efficiency drives the adoption of optical encoders.

Market Insights:

By output signal, the digital signal segment dominated the global optical encoder market in the benchmark year

The global optical encoder market is bifurcated into configuration, output signal, application, and geography. On the basis of the output signal, the market is further segmented into analog and digital signal. The digital segment dominated the global market in 2022 and is expected to maintain its dominance over the forecast period. The growing demand for enhanced resolution and higher accuracy for optical technologies is a major factor driving segment growth. Furthermore, the increasing demand for advanced technologies such as audio and speech processing, sonar, radar, and other sensors is further anticipated to fuel the segment growth over the forecast period.

By application, the consumer electronics & semiconductor segment is expected to hold the largest market share of ~ 1/3 share by 2030

On the basis of application, the market is segmented into consumer electronics and semiconductors, robotics and assembly, healthcare, and others. The consumer electronics & semiconductor segment is accounted to dominate the global optical encoder market in the benchmark year and is estimated to hold the largest revenue share of around 1/3 market share by the end of the analysis period. The growing consumption of consumer electronics around the world is a prominent factor driving the segment growth significantly. Furthermore, the increasing demand for advanced automated controls for consumer electronics to improve productivity and performance, and reduce cost is further anticipated to propel the segment growth over the forecast period.

To know more about the research papers, request sample papers

The global optical encoder market report explores the critical analysis of the industry using key parameters. The report covers investment strategies, need for investment in the industry, and several benefits for the investors. Significantly, this report sets out major changes in the global technical regulations for the market, as well as how economic and non-economic constraints are helping the market to grow. Furthermore, the report analyzes the historical and forecasted market size at the global, regional, and country-level. The report also provides a comprehensive analysis of key investment proposals, competitor’s position, SEOT analysis, porter’s five force analysis, pestel analysis, value chain analysis etc.

The optical encoder market research report presents the analysis of each segment from 2020 to 2030 considering 2022 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2023 to 2030.

Historical & Forecast Period

• 2020-21 – Historical Year
• 2022 – Base Year
• 2023-2030 – Forecast Period

Market Segmentation:

By Configuration:

• Shafted
• Hollow Shaft
• Absolute Single Turn
• Multi-turn
• Incremental

By Output Signal:

• Analog
• Digital

By Application:

• Healthcare
• Consumer Electronics and Semiconductor
• Communication System
• Test and Measurement
• Robotics and Assembly
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

By region, the Asia Pacific dominated the global market in the benchmark year

On the basis of region, the Asia Pacific dominated the global optical encoder market in 2022 and is expected to maintain its dominance over the forecast period. The increasing number of manufacturers and engineering hubs especially in China is a prominent factor driving the market growth in the region. Furthermore, the considerable growth in industrial automation, consumer electronics, and automotive in developing economies, especially in India is further anticipated to fuel the industry growth in the Asia Pacific. Moreover, the increasing adoption of new technologies in the manufacturing sector to reduce cost and improve product quality is anticipated to propel the market over the forecast year.

Geographically, the optical encoder market report comprises dedicated sections centering on the regional market revenue and trends. The optical encoder market has been segmented on the basis of geographic regions into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The optical encoder market has been extensively analyzed on the basis of various regional factors such as demographics, gross domestic product (GDP), inflation rate, acceptance, and others. Optical encoder market estimates have also been provided for the historical years 2020 & 2021 along with forecasts for the period from 2023 – 2030.

Competitive Assessment:

Some of the major market players operating in the global optical encoder market are Honeywell International, Rockwell International, Renishaw PLC, Allied Motion Technologies, and Sensata Technologies. Companies are exploring markets through expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• Honeywell International
• Rockwell International
• Renishaw PLC
• Allied Motion Technologies
• Sensata Technologies
• US Digital
• Bourns Inc.
• Dynapar(Danaher Corporation)
• GrayHill
• CodeChamp

Key Questions Answered by Optical Encoder Market Report

• Global optical encoder market forecasts from 2023-2030
• Regional market forecasts from 2023-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2023-2030 covering 15 major countries from the regions as mentioned above
• Optical encoder submarket forecasts from 2023-2030 covering the market by configuration, output signal, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level optical encoder markets from 2023-2030
• Competitive Landscape and market positioning of the top 10 players operating in the market