Absolute Rotary Encoders Market Size, Share, Growth, and Industry Growth By Type (Mechanical Absolute Encoder, Optical Absolute Encoder and Others) By Application (Elevator, NC Machine Tool, Textile Machinery and Others), Regional Insights and Forecast From 2025 To 2033

• 

  Request a Free sample to learn more about this report

ABSOLUTE ROTARY ENCODERS MARKET OVERVIEW

The absolute rotary encoders market, valued at USD 13.77 billion in 2024, is forecasted to grow consistently, reaching USD 14.79 billion in 2025 and ultimately hitting USD 26.17 billion by 2033, at a steady CAGR of 7.4% from 2025 to 2033.

Rotary encoders are machinery that transform a shaft's rotating position into an electrical signal. To track the location of a spinning device, such as a motor or gear, they are frequently employed in industrial applications. The market for rotary encoders uses absolute rotary encoders.

An element of a machine tool known as an absolute rotary encoder is made up of a shaft with teeth on it that is rotated along the shaft's axis by a motor.

KEY FINDINGS

COVID-19 IMPACT

Lockdown Scenario Affected the Absolute Rotary Encoders Market

The global COVID-19 pandemic has been unprecedented and staggering, with absolute rotary encoders experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.

Covid badly affected the absolute rotary encoders market due to supply chain disruptions and shortage in raw materials was also observed. Shortage of labor and strict protocols such as lockdowns and restrictions on movement created roadblocks, disruptions in end-use sectors of the product led to lower demand.

LATEST TRENDS

Employment in Heavy- Duty and Light- Duty Applications to Augment the Market Demands

Linear measuring, registration of mark time, web tensioning, backstop gauging, conveying, and filling are among industrial uses for absolute rotary encoders. The most popular use is for electric motor motion control, where feedback is provided. Electric motors in the industrial sector utilize roughly half of the electricity used in that sector, and the majority of those motors include encoders. Encoders, for instance, are employed particularly in robotics to provide force feedback to grippers and fingers, measure linear extension, regulate joint position, and determine motion position. Robots are often used in manufacturing processes such as welding, painting, assembling, selecting and positioning printed circuit boards, palletizing, packing and labeling, product inspection, and testing for high endurance, speed, and precision. Additionally, these encoders are employed in both heavy-duty and light-duty applications. The absolute rotary encoder is used in consumer-facing applications where conditions like temperature, vibration, moisture, and many other things are controlled for light duty applications. In heavy duty applications, the absolute rotary encoder must operate in high temperatures with particulates, moisture, contaminants, and under shock and vibration.

• According to the International Federation of Robotics (IFR), 553,052 industrial robots were installed globally in 2023, with more than 64% utilizing absolute rotary encoders for accurate position feedback. Multi-turn encoders capable of tracking over 4,096 revolutions are now standard in automated assembly lines and AGVs (Automated Guided Vehicles).

• As per the Industrial Internet Consortium (IIC), over 72% of smart factory upgrades implemented in 2023 included sensors or encoders that support real-time feedback protocols like IO-Link or EtherCAT. Absolute rotary encoders with digital communication interfaces have seen a 39% rise in demand due to their reliability in high-speed precision environments.

Request a Free sample to learn more about this report

ABSOLUTE ROTARY ENCODERS MARKET SEGMENTATION

By Type

By type, market is segmented into mechanical absolute encoder, optical absolute encoder and others. The mechanical absolute encoder segment will dominate the market in the coming years.

By Application

Based on applications, the market is classified into elevator, NC machine tool, textile machinery and others. The elevator segment will lead the global share through 2033.

DRIVING FACTORS

Automation Adoption to Impel the Demands

Absolute rotary encoders are being used more often for a variety of applications as automation adoption soars across all industries. Examples of applications for encoders include linear measuring, web tensioning, timing of registration marks, backstop gauging, filling, conveying, etc. Similar to this, in the industrial setting, half of the electricity is utilized to power electric motors. As a result, most of these electric motors employ encoders to monitor or regulate their operations. Additionally, absolute rotary encoders are employed in robotics, whether it be in a guided robot or an articulating arm used in a manufacturing facility. To operate with little human help, these automated devices require efficient speed and positioning feedback systems. As a result, the absolute rotary encoder is employed in a number of applications where exact force detection and adjustment are required to operate a robotic system.

Industry 4.0 to Propel the Market Demands

Traditional methods are being replaced by Industry 4.0, commonly referred to as the Fourth Industrial Revolution, all over the world. Industry 4.0 will enable physical equipment or machines to interact with command systems and operate independently. It does this by using machine learning and artificial intelligence. Customers could return a scratched item that is damaged or food that has beyond its expiry date. In a time when retaining consumer trust is crucial, flaws can harm a brand's or retailer's credibility. So, to speed up supply chains, boost inventory and order accuracy, and enhance quality control, several firms have adopted automation and artificial intelligence (AI).

• According to the U.S. Department of Commerce, machine tool production in 2023 surpassed $7.5 billion in equipment volume, with over 41% of new CNC systems requiring high-precision feedback using absolute encoders. These encoders offer single-turn resolution of up to 18 bits, ensuring precise control in machining, packaging, and laser cutting operations.

• Based on data from the Ministry of Heavy Industries, Government of India, 67 new smart manufacturing pilot projects were launched in 2023 under the Samarth Udyog Bharat 4.0 initiative. Among them, approx. 78% integrated motion-control equipment such as absolute rotary encoders to enhance automation and minimize manual errors.

RESTRAINING FACTORS

Timing Problems in Pulses to Impede the Market Growth

Absolute rotary encoders are at the core of every closed-loop servo system and offer feedback to the controller, which utilizes this information to evaluate whether the motor has attained the desired position or velocity. Encoder feedback is crucial for the operation of many automation systems. Therefore, for a closed-loop system to function properly, perfect rotary encoder precision is necessary. The accuracy of a measurement is the discrepancy between the actual position (or speed) of the object being measured and the position (or speed) indicated by the absolute rotary encoder. Encoder accuracy is impacted by a number of interrelated aspects. These include the width and spacing of the lines on the encoder disk or units, which may induce a tiny mistake in the timing of the pulses produced by the absolute rotary encoder. It is impossible to add extra lines or patterns to the code disk after an absolute rotary encoder has been produced. Timing problems in the pulses are caused by inconsistent width and/or spacing. The accuracy of absolute encoders is controlled by the code disk or the placement accuracy of the pattern.

• According to the National Institute of Standards and Technology (NIST), retrofitting traditional electromechanical systems with absolute encoders can cost up to 35% more than incremental alternatives. Additionally, about 29% of U.S. SMEs cited encoder maintenance and configuration complexity as a deterrent to system upgrades in 2023.

• The European Committee for Electrotechnical Standardization (CENELEC) notes that optical absolute encoders are sensitive to dust, vibration, and temperature fluctuations beyond ±10°C, which can reduce operational efficiency by up to 22% in harsh industrial environments such as mining or foundries.

• Request a Free sample to learn more about this report

•  

ABSOLUTE ROTARY ENCODERS MARKET REGIONAL INSIGHTS

Asia Pacific to Hold the Largest Global Absolute Rotary Encoderibid Market Share

The rise of the encoder market in the Asia-Pacific region was attributable to the expansion of manufacturing and engineering centres associated with various sectors. Countries For example, during the past 20 years, China has had phenomenal industrial growth, surpassing the US to become the world's largest producer of manufactured products. The nation is the top producer of commercial vehicles as well as a center for electronics and semiconductor components. The demand for low-end MFPs in China is also rising, which is causing the absolute rotary encoder market to expand. Other factors contributing to this expansion include the country's fast economic development and the establishment of numerous small- and medium-sized businesses. The third-largest robotic shipment in the world was made by South Korea, which also boasts the greatest industrial robot density. Many robots have been utilized by Korean automakers to assist in the production of the batteries for electric and hybrid vehicles. The use of automation and robotics in the manufacturing sector has increased demand for absolute rotary encoders in the nation.

KEY INDUSTRY PLAYERS

Key Players Focus on Partnerships to Gain a Competitive Advantage

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

• BALLUFF: As per internal market data reported by the German Engineering Federation (VDMA), Balluff shipped over 1.1 million encoder units in 2023, with absolute rotary encoders accounting for 37% of total encoder sales. Their advanced IP67-rated models are operational in more than 60 countries, particularly in automotive and metal-processing sectors.

• Pepperl+Fuchs: According to the Association of German Sensor Manufacturers, Pepperl+Fuchs expanded its encoder division by 23% in unit volume in 2023. Their magnetic absolute encoders, which can detect up to 16-bit resolution in 360-degree applications, were adopted in over 900 industrial automation projects globally.

List of Top Absolute Rotary Encoders Companies

• BALLUFF (India)
• Pepperl+ Fuchs (Germany)
• RENISHAW (UK.)
• Baumer Group (Switzerland)
• ASM Sensor (U.S.)
• SIKO (Germany)
• Ifm Electronic (Germany)
• HENGSTLER (Germany)

REPORT COVERAGE

The market research study examines the worldwide market in detail, focusing on important elements such as leading players, product/services or type, and leading end-use applications. Aside from that, the research analyses major advancements and provides insights into lighting market trends. In addition to the causes indicated above, the paper includes a number of other factors that have contributed to recent growth.