According to a latest study, encoder market is anticipated to reach a market value of $3.9bn by 2030 expanding with a CAGR of 7.5%. The study offers market analysis and forecast for a period of ten years, tracking market growth and analysis in over 20+ countries.
Key Takeaways of Encoder Market Study
The optical sensing encoders segment is expected to witness notable growth rate, owing to increasing demand for enhanced resolution and accuracy for optical technologies
South Asia & Pacific is expected to create lucrative growth opportunities for players in the encoder market, attributed to rapid growth of automobile and manufacturing industry in the region
The market concentration in the global market is consolidated, over half of the market share is expected to be hold by top 10-12 manufacturers
Key players in the market are focusing on acquisitions to complement their product portfolio to cater to the needs of a variety of customers. Market participants are also focusing on providing products directly to end users to improve direct customer relations
“Encoder manufacturers can improve revenues by upgrading existing facilities to improve operational efficiency, reduced operating cost, and offering advanced features such as programmable resolution, voltage and waveforms. Encoder manufacturers more focused on continuous developments and implementation of new technologies such as optical technology-based encoders and surface mount technology (SMT) processes in encoder devices, which are creating opportunities for growth for the encoder market.” says a report analyst.
Encoder Market Landscape
The global encoder market is highly competitive due to presence of a large number of medium- and large-sized encoder manufacturers and service providers.
Tier-I participants in the encoder market are estimated to hold around 45%-55% of the market share. Product development and innovation is the key strategy of encoder manufacturers in the encoder market to increase their market presence and enhance end user experience.
For instance, June 2020, FRABA B.V. introduced an inexpensive and flexible alternative for safety-critical motion control systems. It provides various application for new safety-ready encoders range from heavy construction equipment and mobile machines.
This report provides valuable insights at the company level, focusing on product innovation in the encoder market, along with business and marketing strategies of emerging market players.
Some market players included in the report are OMRON Corporation, Baumer Electric AG, Schneider Electric, Panasonic Corporation, Renishaw plc, Honeywell International, Inc., Rockwell Automation, Inc., and amongst others.
Impact of COVID-19 on Encoder Market
The worldwide spread of COVID-19 pandemic in Q1, 2020 has impacted the production of encoder products such as linear encoders, and rotary encoders and has also disrupted the encoder products industry and supply chain during the lockdowns. The majority of the end-use industries manufacturing facilities have been shut down for the preventive measures against the COVID-19 epidemic.
Moreover, in 2020, the production is expected to witness a slowdown, and the majority of manufacturers are expected to maintain the inventory level.
Before COVID-19, the global market for encoder was anticipated to increase at 7.5%-8% market growth in 2019, whereas post-COVID-19 scenario, the market for encoder is projected to declining growth of -1.5% as compared to original forecast 2019.
The COVID-19 crisis is expected to add to an uncertain long term impact on the global market. The global encoder market is expected to witness rebound from the first to the second quarter of 2021.
Future Outlook for Encoder Market
Encoder products are used in different industries applications such as automotive, consumer electronics, aerospace & defense, healthcare & medical devices, industrial and among others.
Increasing usage of the encoder in industrial applications due to the adoption of upcoming technologies such as automation, robotics, and smart manufacturing is expected to offer lucrative growth opportunities in the encoder market.
A major growth driver of the global encoder market is the increasing number of orders placed for advanced and expanding applications, along with transition of traditional and manual controls to automation.
