Rotary Encoder Market Size, Share, Opportunities, And Trends By Type (Incremental, Absolute), By Technology (Mechanical, Optical, Magnetic (On-Axis, Off-Axis)), By Application (Robotics, Packaging, Assembling & Testing Machines, Material Handling, Others), And By Geography - Forecasts From 2023 To 2028

Rotary encoders are electromechanical devices that convert the rotation of a shaft into an electronic signal that can be read by another electronic device. The rotary encoder market is driven by the growing demand for automation and robotics in various industries, including automotive, aerospace, and manufacturing. The global rotary encoder market is expected to continue to grow in the coming years due to the increasing adoption of automation and the rise of Industry 4.0.

Demand for automation and Industry 4.0 will boost the rotary encoder market growth.

The rotary encoder plays an important role in many industries where precise measurement of angular position, velocity, and acceleration is critical. Rotating encoders generate digital output, which is more precise and noise-resistant than analogue output and it is also more reliable and durable than other kinds of sensors as it has no moving components and is not impacted by wear and tear. Rotary encoders are widely used in automation and control applications, such as CNC machines, robotics, and factory automation. The growing efforts to promote industrial automation will boost the rotary encoder market growth. In 2020, the International Federation of Robotics (IFR) found that global sales of industrial robots increased by 12% in 2019, with a total of 373,000 units sold. According to the Institute for Robotic Process Automation and Artificial Intelligence (IRPA AI), the global market for robotic process automation (RPA) is expected to reach $7.2 billion by 2025. Industry 4.0, also known as the fourth industrial revolution, is the digital transformation of manufacturing processes through the integration of advanced technologies such as automation, robotics, the Internet of Things (IoT), and data analytics. The demand for rotary encoders in manufacturing processes is likely to be driven by Industry 4.0's growing focus on automation. In 2021, the World Economic Forum estimated that Industry 4.0 could create up to $3.7 trillion in value for the global economy by 2025. The International Labour Organization (ILO) in 2020 stated that the adoption of Industry 4.0 technologies could help mitigate the economic impact of the COVID-19 pandemic and promote sustainable recovery. The rotary encoder market is expected to experience significant growth in the coming years, driven by the increasing demand for automation and Industry 4.0.

During the forecast period, the Asia Pacific region is expected to hold a significant market share.

Asia Pacific region is expected to dominate the rotary encoder market as it is home to several major economies, such as China, Japan, and India. The rise of Industry 4.0 and the increasing demand for automation in the manufacturing industry are expected to drive the demand for rotary encoders in Asia Pacific. The Japanese government launched the "Connected Industries" initiative in 2020 which aims to promote the adoption of advanced technologies such as IoT, big data, and AI in the country's manufacturing industry. The Indian government launched the "National Programme on Advanced Manufacturing" in 2021, which aims to promote the adoption of advanced technologies such as robotics, artificial intelligence, and the IoT in the country's manufacturing industries sector. These initiatives are expected to drive the demand for rotary encoders in the Asia Pacific region.

Key Developments

• October 2021: Renishaw launched a new range of miniature encoders called the RLE10, designed for high-volume linear encoder applications.
• June 2021: Heidenhain announced its new rotary encoders which were designed to offer high precision, reliability, and flexibility in a compact and modular form factor.
• January 2021: BEI Sensors, a brand of Sensata Technologies, launched its new Model MA17 absolute encoder, designed for use in harsh industrial environments.

Rotary Encoder Market Scope:

 

Report Metric	Details
Growth Rate	CAGR during the forecast period
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Type, Technology, Application, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	Autonics Corporation, Baumer, CUI Devices, Dynapar, Hengstler GmbH, OMRON Corporation, Pepperl +Fuchs SE, RLS, Tamagawa Seiko Co. Ltd, TE Connectivity
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Type
  • Incremental
  • Absolute
• By Technology
  • Mechanical
  • Optical
  • Magnetic

• • • On-Axis
    • Off-Axis

• By Application
  • Robotics
  • Packaging
  • Assembling & Testing Machines
  • Material Handling
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Other

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

3. EXECUTIVE SUMMARY

3.1. Research Highlights

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Market Opportunities

4.4. Porter’s Five Force Analysis

4.4.1. Bargaining Power of Suppliers

4.4.2. Bargaining Power of Buyers

4.4.3. Threat of New Entrants

4.4.4. Threat of Substitutes

4.4.5. Competitive Rivalry in the Industry

4.5. Industry Value Chain Analysis

5. ROTARY ENCODER MARKET ANALYSIS, BY TYPE

5.1. Introduction

5.2. Incremental 

5.3. Absolute

6. ROTARY ENCODER MARKET ANALYSIS, BY TECHNOLOGY

6.1. Introduction

6.2. Mechanical

6.3. Optical

6.4. Magnetic

6.4.1. On-Axis

6.4.2. Off-Axis

7. ROTARY ENCODER MARKET ANALYSIS, BY APPLICATION

7.1. Introduction

7.2. Robotics

7.3. Packaging

7.4. Assembling & Testing Machines

7.5. Material Handeling

7.6. Others

8. ROTARY ENCODER MARKET ANALYSIS, BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. USA

8.2.2. Canada

8.2.3. Mexico

8.3. South America

8.3.1.  Brazil

8.3.2. Argentina

8.3.3. Others

8.4. Europe

8.4.1. Germany

8.4.2. UK

8.4.3. France

8.4.4. Spain

8.4.5. Others

8.5. Middle East and Africa

8.5.1. Saudi Arabia

8.5.2. UAE

8.5.3. Others

8.6. Asia Pacific

8.6.1. China

8.6.2. Japan

8.6.3. South Korea

8.6.4. India

8.6.5. Australia

8.6.6. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

10. COMPANY PROFILES

10.1. Autonics Corporation

10.2. Baumer

10.3. CUI Devices

10.4. Dynapar

10.5. Hengstler GmbH

10.6. OMRON Corporation

10.7. Pepperl +Fuchs SE

10.8. RLS

10.9. Tamagawa Seiko Co. Ltd

10.10. TE Connectivity

Autonics Corporation

Baumer

CUI Devices

Dynapar

Hengstler GmbH

OMRON Corporation

Pepperl +Fuchs SE

RLS

Tamagawa Seiko Co. Ltd

TE Connectivity