Magnetic Encoder Market Size, Share, Growth, and Industry Growth by Type (Instrumental Magnetic Encoder and Absolute Magnetic Encoder); By Application (Automobiles, New Energy Vehicles, Elevator Industry, Machine Tool, Motor, Food and Packaging, and Other), Regional Forecast To 2031

Updated On: 08 April 2024

Magnetic Encoder Market REPORT OVERVIEW

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The global magnetic encoder market size was USD 1550 million in 2021 and is projected to touch USD 3157.91 million by 2031, exhibiting a CAGR of 7.4% during the forecast period.

Encoders are widely utilized in a variety of sectors to speed up production and guarantee accuracy. They are utilised for conveying food and packaging, motor feedback, and register mark timing, among other things, in the expanding food and beverage sector. They are also used for filling, vehicles, new energy vehicles, elevators, machine tools, and motors. Encoders are also used to build the Internet of Things (IoT), which allows devices to receive position and information, hence accelerating market growth. Moreover, the industry for encoders is being boosted by the growing usage of Computer Numerical Control (CNC) equipment.

In even the toughest application situations, a magnetic encoder generates dependable digital feedback. Magnetic encoders employ changes in magnetic fields as the detecting technique, making them significantly more dependable in polluted settings than optical encoders, where the optical code disc might become contaminated by dirt or moisture. While offering output signal dependability and downtime reduction, magnetic encoders thrive in applications that need a wide range of temperature tolerances, strong shocks and vibrations resistance, strong sealing, and contamination protection. Both position and velocity feedback are common uses for magnetic encoders in steel, pulp, paper, and lumber industries. The market is expanding due in part to the rapid expansion of the robotics sector and the significant usage of encoders within it. The market growth for encoders has been accelerated by increased Research and Development (R&D) in computers and technologies that have made robot installation and maintenance simpler and more affordable.

COVID-19 Impact: Impact: Halt on Demand, Supply, and Manufacturing Operations to Impede Market Growth

The worldwide economy and all global industries have been negatively influenced by COVID-19. Global supply chain disruptions are the result of lockdowns being implemented and the temporary suspension of local and international travel. Due to the sharp drop in product demand, economies all around the world have suffered. The pandemic-related lack of raw materials has curtailed output across many industries. Many companies have been compelled to close their production facilities as a result. The main causes of the output reduction are the fall in shipments and the supply chain interruptions. Therefore, COVID-19 is having an impact on the encoder industry. As a result, the predicted annual market growth rate experienced a decrease during the COVID-19 pandemic.

LATEST TRENDS

"Rising Automation Across Industries to Accelerate Magnetic Encoder Demand "

The key driver for magnetic encoder market growth is the need for automation across industries. In order to avoid motor burnout or machine shutdown, accurate motor speed tracking provides optimal machine efficiency and operation. Encoders in automation therefore monitor machine energy and operating characteristics to assist increase Overall Equipment Effectiveness (OEE). A crucial necessity for the food and beverage, pharmaceutical, automotive, and chemical sectors is constant communication to manufacturing lines. Magnetic encoders are being widely used for better asset utilization, final product quality control, and error reduction as mid-sized and big manufacturing plants deploy automation systems.

Magnetic Encoder Market SEGMENTATION

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• By type

Depending on the use magnetic encoders is categorized such as Incremental Magnetic Encoder and Absolute Magnetic Encoder. The absolute magnetic encoder segment will capture the maximum market share through 2031.

• By Application

The market is divided into automobile, new energy vehicle, elevator industry, machine tool, motor, food and packaging and others categories based on application. The automobile and new energy vehicle segment will dominate the market share during 2031.

DRIVING FACTORS

"Increasing Need for AI-Powered Systems to Boost Product Application"

Industrial machines are being implemented with artificial intelligence to carry out activities more effectively than people, enabling them to function in demanding situations around-the-clock. Additionally, by using less energy, encoders are employed to regulate and commutate the rotor's movement at any moment. Future mobile robots will place more emphasis on energy-efficient encoders since mobility is pushing the demand for battery-powered operations. Rotary encoders are thereby improving mobile robots by utilising capacitive technology. Additionally, they may assist developers of a variety of apps in adhering to new efficiency standards, making it simple for mobile robotics users to use those programmes.

The need to combine specialized knowledge, abilities, and expertise with new technologies is growing as a result of the healthcare sector's digitization and the rising need for medical experts. Encoders assist in the development of novel lab techniques in addition to lowering the danger of medical mistakes. The market expansion is also being aided by the usage of rotary encoders in accurate medical imaging via CT and MRI equipment. Encoders are also used in radiation therapy, which further stimulates market expansion because it calls for linear and angular technology. In addition, it is projected that the usage of encoders in sophisticated portable medical equipment with high resolution and precision would fuel the magnetic encoder market share throughout the projected period

"Increasing Automation to Support the Magnetic Encoder Market Growth"

The market is expanding as a result of the rapid adoption of automation in a number of sectors, including aerospace, automotive, healthcare, food and beverage, electronics, and packaging, among others. Encoders are widely employed in several automated applications because they translate motion into electrical feedback signals to monitor speed, counts, direction, and linear distance. Encoders are being used more and more in the automobile sector to boost efficiency, production, and cut costs. Encoders are used to determine position and proximity prompts in automotive vehicles, particularly in cars, and their development and increasing production is expected to support market growth during the forecast period. These vehicles, particularly cars, are equipped with advanced technology and features like Bluetooth and cellular technology. Increasing levels of automation will create favorable opportunities for market growth.

RESTRAINING FACTORS

"Mechanical Breakdowns in Challenging Conditions Could Restrict the Market Growth"

Encoders are frequently employed in demanding or hostile conditions, including those found in the production of specialist vehicles, heavy equipment, and food and beverage processing. Encoder failure rates can potentially be accelerated by changes in the surrounding temperature. Encoders can operate normally in temperatures between -30°C and +100°C. To address this issue, some manufacturers have begun conducting EMC (electromagnetic compatibility) diagnostics on encoders, which involves subjecting them to vibration, consistent shock, dust protective measures, and water jet testing. This testing is done to make sure that the erosive inadequacies that occur in standard encoders won't happen when they are used in harsh environments. These factors may impact the market growth to some extent in the future.

Magnetic Encoder Market REGIONAL INSIGHTS

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"Asia Pacific Is Expected to Experience the Fastest Market Growth"

The market in Asia Pacific is expanding quickly due to the increasing industrialization and need for improved manufacturing process solutions. Because major industrial centers like Japan, China, and India are centered in the region. Increased manufacturing capacity and service contracts with enterprises are other factors driving industry expansion. Growing market competition has led to the launch of new products, which has accelerated market expansion. Programs of the Chinese government, such as Made in China 2025 plan, encourage the use of R&D in industrial automation and technology, as well as the investments made therein.

Additionally, the "Made in China" project intends to increase the nation's domestic manufacturing of automation hardware and machinery because the majority of industrial automation is imported from Germany and Japan. The market under study will be driven by government initiatives in the automation industry. IFR (International Federation of Robotics) estimates that sales of industrial robots to China will reach over 310 thousand units in 2021. Less than a fourth of what China is planned to install in 2021 will be installed in Japan, which is slated to install about 64 thousand units.

KEY INDUSTRY PLAYERS

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.

List of Market Players Profiled

• Heidenhain (Germany)
• Dynapar (U.S.)
• Tamagawa (Japan)
• Baumer (Switzerland)
• Pepperl+Fuchs (Germany)
• Renishaw (U.K.)
• Broadcom (U.S.)
• Sensata Technologies (U.S.)
• Freudenberg Sealing Technologies (Germany)
• KACO (Germany)
• Bourns (U.S.)
• Balluff (India)
• TE Connectivity (Switzerland)
• Hutchinson (France)
• Kubler (Germany)
• TR-Electronic (Germany)

Notable Industry Developments

April 2021: The smallest rotary encoder from the MARGES EAM series with a CANopen interface, the EAM300, was introduced by Baumer. Due to its small size, machine designs can be more flexible, and certain variations allow for more design flexibility. It is primarily intended for mobile automation and medical technologies.

April 2021: The absolute modular magnetic angle encoder, model number ECM 2400, was introduced by HEIDENHAIN. It is a reliable encoder with average accuracy. It is appropriate for applications requiring high rotating speeds, angular accelerations, and limited space.

January 2021: Renishaw plc introduced the FORTiS enclosed linear absolute encoder series. The series may be employed in challenging conditions and is based on RESOLUTE encoder technology. Additionally, because of a sophisticated non-contact schematic engineering that eliminates the need for a mechanical guide carriage, it offers

REPORT COVERAGE

The report offers a thorough overview and information on the significant study on the magnetic encoder market. The analysis of the present scenario, which shows the market's decline, includes the following tactics and compares them to those of the major competitors. The objective is to offer a resolution. This study also aids novices in better decision-making and understanding their business.