Global Encoder Market Opportunities 2025

Global encoder market was valued at around $ 1.6 billion in 2019 and is projected to reach $ 2.4 billion by 2025.

Anticipated growth in the market can be attributed to the growing demand for industrialization and automation coupled with the implementation of Industry 4.0.

The market is expected to witness robust growth during the forecast period owing to increasing penetration of sophisticated automation equipment in industries such as automotive, electronics, etc.

An encoder is a sensor of mechanical motion that interprets information and converts it into a code while possessing the capacity to convert that code back to its source.

As an electro-mechanical device, an encoder is able to provide motion control system users with information concerning position, velocity and direction.

In addition to this, the ability of encoders to provide real-time data is aiding the industries to bring accuracy in workflow, enhance operational speed and ease process control.

Consequently, the high productivity solutions offered by encoders is going to propel the growth of the global encoders market through 2025.

The global encoder market has been categorized into type, technology, end user industry and region.Based on type, the market is segmented into rotary encoder and linear encoder.

The rotary encoder segment is expected to dominate the market during the forecast period due to their widespread adoption in industrial and commercial designs owing to their high durability and performance.

Based on technology, the global encoder market is categorized into optical, magnetic, and others.

Among them, the optical technology-based encoders are anticipated to witness the highest growth through 2025 as they are widely being used in automation in the industrial, textile, paper, rubber, plastic, wood, metal, and consumer electronics industries.

In terms of End-user Industry, the global encoder market can be categorized into industrial, consumer electronics, textiles, automobile, packaging, food & beverages, & others.

The industrial and consumer electronics end user segments are expected to be leading the market owing to rapidly growing adoption of upcoming technologies such as robotics, drones, automation & smart manufacturing, etc.

Asia Pacific is expected to dominate the global encoder market through 2025, followed by North America.

Significant growth in industrial, consumer electronics, automotive & textile industries and adoption of Industry 4.0 will propel the demand for encoders in in Asia Pacific region during the forecast period.

However, the global economic slowdown and spread of COVID-19 pandemic poses a major threat for the global encoder market in the near future.

Some of the major players operating in the global encoder market include Omron Automation, Rockwell Automation, Sensata Technologies, Baumer Group, Dynapar Corporation, Faulhader Group, Posital-Fraba Inc., Heidenhain GmbH, Elco Industrie Automation GmbH and Maxon Motor Ag.

Leading companies are increasingly focusing on new product launches to gain a larger share in the global encoder market.

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