Encoder Market Trends

Statistics for the 2023 & 2024 Encoder market trends, created by Mordor Intelligence™ Industry Reports. Encoder trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

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Market Trends of Encoder Industry

Industrial Sector is Expected to Hold Major Market Share

  • Encoders are utilized in multiple industrial applications, such as linear measurement, registration mark timing, web tensioning, backstop gauging, conveying, filling, and more. The most standard application is providing feedback on the motion control of electric motors. In the industrial sector, a significant amount of electricity goes to electric power motors. Most of these motors have encoders incorporated into them.
  • Robots are experiencing a growing number of application areas, especially for operations like welding, material handling, assembly, and grinding. Since there is typically limited human oversite or monitoring, these robots must have reliable encoders to help guide their movement.
  • As per the IFR, China's massive investment in industrial robotics in recent years has moved its position up among various other countries for robot density, surpassing the United States for the first time. The number of operational industrial robots relative to the number of workers reached 322 units per 10,000 employees in the manufacturing industry in China. South Korea, Singapore, Japan, Germany, and China are the world's top five most automated manufacturing countries. Such an increase in the adoption of automation in the industries is expected to further fuel the demand for encoders in the market.
  • Companies, such as Strausak AG, are exploring industrial robotics, specifically in terms of the ways it can accelerate operator-free grinding and re-sharpening tools. In this application, a gripper arm is used to pick small tools from tightly loaded pallets into the fixture and back. Every axis of the arm includes HEIDENHAIN's inductive EQI 1100 rotary encoder. This encoder allows the accuracy of 50 µm at the tip of its gripper for the safe, quick, and precise placement of tools with diameters as small as 10 mm.
Encoder Market : Industrial Robots - Worldwide Shipments, in 1000 units, 2014 -2024

Asia-Pacific to Register Fastest Growth

The growing industrialization and demand for better solutions for manufacturing processes are driving the growth of the market at a rapid pace. As Asia is home to large industrial hubs, such as Japan, China, and India, the increasing production facilities and service agreements with businesses are also propelling industry growth. Increasing market rivalry has resulted in the introduction of new items to the market, which has boosted the market’s growth.

  • According to a report by the IFR (International Federation of Robotics), Asia is the world’s largest market for industrial robots; 74 percent of all newly deployed robots in 2021 were installed in Asia, compared to 70 percent in the previous year. Installations for the region’s largest adopter, China, increased by 51 percent, with 268,195 units shipped.
  • As per the report, Japan followed China as the largest market for industrial robots; installations increased by 22 percent in 2021, with 47,182 units. Moreover, the country is the world’s predominant robot manufacturing country, with exports of Japanese industrial robots achieving a new peak level of 186,102 units. Both standard and custom rotary and linear encoders are effectively utilized in electro-medical and laboratory equipment, such as operating and examination tables, Gamma Knife and X-ray, Scanners, and many more.
  • According to the Indian Brand Equity Foundation 2021, to promote the medical industry, the Government of India (GOI) launched several programs to strengthen the medical device sector, focusing on research and development (R&D) and 100 percent FDI for medical devices. Between April 2000 and June 2021, FDI in the medical and surgical appliances industry totaled USD 2.23 billion.​ Such huge investments by the government in the medical sector will drive the market for encoders.
  • The automotive industry in the region also accounts for a significant share of the total demand for encoders. For instance, according to the China Association of Automobile Manufacturers, around 210,000 commercial vehicles and 996,000 passenger cars were produced in China in April 2022.
  • Moreover, South Korea has maintained its position as one of the world’s top automotive manufacturing countries and one of the largest automotive exporters, owing to the presence of many major car makers in the country. Additionally, the trends toward electrification in the region are unlocking new opportunities for the market.
Encoder Market - Growth Rate by Region

Encoder Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)