Rotary Encoder Market Size, Share, Growth, And Industry Analysis By Type (Incremental Encoders, Absolute Encoders) By Application (Metal Forming & Fabrication, Servo motor, Elevator Industry, Machine Tool, Material Handling), Regional Insights, and Forecast To 2031

Updated On: 08 April 2024

ROTARY ENCODER MARKET REPORT OVERVIEW 

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The global rotary encoder market size is expected to be USD 2137.55 million in 2021 and the market is projected to touch USD 5001.1 million by 2031, exhibiting a Compound annual growth rate (CAGR) of 8.87% during the forecast (2024-2031). In the market study, our analysts have considered rotary encoder players such as Turck Holding GmbH, FAULHABER Group (Germany), BEI Sensors, Renishaw plc., Baumer Group, OMRON Corporation, Dynapar, maxon motor ag, Hengstler GmbH, SIKO GmbH, Ifm electronic, Pilz GmbH & Co. KG, Rockwell Automation, Inc. and Dr. Johannes Heidenhain GmbH.

A shaft encoder is another name for a rotary encoder. It is described as an electromechanical switch that transforms the angular motion and axle position into a digital signal or advanced encoding output. A rotary encoder produces an electrical signal, either analogue or digital, based on the rotating movement.

Due to emerging technologies like robots and smart manufacturing, demand for rotary encoders in industrial end-use applications like manufacturing is rising quickly. The path of the permanent magnet motor shaft is frequently monitored by a rotary encoder in the context of CNC machines (industrial software and robotics).

COVID-19 Impact: COVID-19 Health Catastrophe Inhibit Market Growth

The severe health catastrophe brought on by the coronavirus (COVID-19) is still spreading and affecting people all over the world. The COVID-19's possible effects, which could include delays in the ongoing and planned construction schedule, significant supply chain disruptions, labour problems, a delay in obtaining necessary permissions, and the availability of funding.

The pandemic has a significant negative impact on several industries, including the transportation, aviation, and tourism sectors. For instance, according to the World Travel and Tourism Council, the crisis will cost the travel and tourism industry at least USD 22 billion and up to 25% of its 2020 revenue, which will result in the loss of 50 million jobs.

Latest Trends

"High Accuracy And Technological Advancements May Leads To Enhance Market Growth"

If 3D printers significantly improve their accuracy, the technology might advance and eventually result in a better scale. This result in lower particle sizes and dimensions with shorter processing times, which can increase the use of magnetic encoders in applications involving large volumes of data.

The use of the 36mm and 58mm encoders is predicted to increase with interface standardization. Due to this, their functionality will be varied from very low and somewhat less in comparison to those of the competitors' products.

ROTARY ENCODER MARKET SEGMENTATION 

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• By Type Analysis

According to type, the market can be segmented into Incremental Encoders, Absolute Encoders. Incremental Encoders will be the leading segment.

• By Application Analysis

Based on application, the market can be divided into Metal Forming & Fabrication, Servo motor, Elevator Industry, Machine Tool, and Material Handling. Metal Forming & Fabrication will be the dominating segment.

Driving Factors

"Strong Robotics Industry Supporting Encoder Industry Growth"

Encoders are widely utilized in a variety of sectors to speed up production and guarantee accuracy. They are employed for filling, conveying, motor feedback, x-y positioning, and registration mark timing, among other things, in the thriving food and beverage industry, which is assisting market expansion. Encoders are also used to implement the Internet of things (IoT), which allows devices to receive position and information, hence accelerating market expansion. Moreover, the industry for encoders is being boosted by the growing usage of computer numerical control (CNC) machines. The market is expanding due in part to the robust growth of the robotics sector and the extensive usage of encoders within it.

Growing computing and technology research and development (R&D) has made upkeep and installation possible.

"Expanding Automotive Sector Leading Market Growth"

A position sensor known as a rotary encoder is utilized to deliver electrical outputs that are related to shaft rotation, precisely measuring angles and pedal position. These sensors are utilised in the automobile industries for a variety of controls, including those for the rotary switch, mode selection, volume control, wiper motor, headlight position control, seat position motor, side mirror, and throttle position control. The International Energy Agency estimates that 3.29 million electric vehicles were in use worldwide in 2018 and that number will rise to 125 million by 2030. As a result, the expansion of the automotive sector will fuel the growth of the rotary encoder market.

Restraining Factors

"Product Distinction Is Lacking, Hampering The Market Expansion"

The lack of product differentiation is one of the factors restricting growth in the market for rotary encoders. Since rotary encoders are used in such large quantities in the electronics, aerospace, automotive, and other industries, consumers purchase these goods in bulk. Rotary encoders have a wide range of applications and potential uses. Since many major businesses provide comparable technological products, customers have a wide range of possibilities. In order to compete with big manufacturers for the vast volume of these products, pricing pressure is put on manufacturers. The pressure on manufacturers' prices as a result presents a problem.

ROTARY ENCODER MARKET REGIONAL INSIGHTS 

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"Asia Pacific To Grow At The Highest CAGR During Forecast Period"

The desire for better manufacturing process solutions and increased industrialization are helping the industry expand quickly. Large industrial centers like those in Japan, China, and India are centered in Asia. Increased production capacity and service contracts with enterprises are other factors driving industry expansion. The entry of new products into the market as a result of increased market competition has accelerated market growth.

Programs of the Chinese government, such the Made in China 2025 plan, encourage the use of R&D in factory automation and technologies, 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 equipment because the majority of automation equipment is imported from Germany and Japan. The market under study will be driven by initiatives taken by the government in the automation industry.

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 of 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 portfolios.

List of Market Players Profiled

• Turck Holding GmbH (Germany)
• FAULHABER Group (Germany)
• BEI Sensors (France)
• Renishaw plc. (U.K.)
• Baumer Group (Switzerland)
• OMRON Corporation (Japan)
• Dynapar (U.S.)
• maxon motor ag (Switzerland)
• Hengstler GmbH (Germany)
• SIKO GmbH (Germany)
• Ifm electronic (Germany)
• Pilz GmbH & Co. KG (Germany)
• Rockwell Automation, Inc. (U.S.)
• Dr. Johannes Heidenhain GmbH

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.