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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

An optical encoder is an electromechanical device with mechanical input and electrical output, which provides multiple digital signals proportional to the regular displacement of the input shaft. There are two types of optical encoder namely incremental encoder and absolute encoder. Incremental encoders are commonly used incremental encoder utilizes two sensing channels (A and B) to sense the angular position of the shaft, generates square waves corresponding to each incremental rotation of the shaft. Furthermore, the absolute encoder is positioning encoder provides absolute positional information and periodic information of the disc, holds the positional information when the power is switched off. An absolute encoder is classified into two types, single-turn absolute encoder, and multi-turn absolute encoder.

The global optical encoder market is estimated to be valued at US$ 2,184.3 million in 2021 and is expected to exhibit a CAGR of 8.7% over the forecast period (2021-2028).

Recent Developments:

  1. US Digital, U.S based company, designs and manufactures optical encoders, inclinometers & motion control components. On 16 September 2020, the company has launched the new E16 Micro Optical Kit Encoder has a 10mm bolt circle, fits 1.5mm (0.059″) and 2mm (0.079″) shafts and provides A, B and Index digital quadrature signals.
  2. Renishaw plc, based in Wotton-under-Edge, England is one of the world's leading engineering and scientific technology company. On December 2019, the company has launched “TONiC” a new super-compact non-contact optical encoder that offers speeds up to 10 m/s and resolutions down to 5 nm for both linear and rotary applications.
  3. In March 2020, Renishaw plc, based in Wotton-under-Edge, England is one of the world's leading engineering and scientific technology company has introduced a new range of encoder solutions for partial arc measurement applications.

Figure 1. Global Optical encoder Market Value (US$ 584.9 Mn), by Region, 2020

Optical Encoder  | Coherent Market Insights

North America held dominant position in the global optical encoder market in 2020, accounting for 10.1% share in terms of volume, followed by Asia Pacific (excluding Japan) and Western Europe, respectively.

Global Optical Encoder Market: Drivers

Increasing adoption of advanced motion control systems is expected to drive growth of the global optical encoder market during the forecast period. Advanced motion control system is being adopted in numerous sectors including offshore equipment, construction machinery, automotive, military & aerospace, and alternative energy systems. This demand is attributed to increasing need for reliable operation under extreme conditions. Furthermore, next-generation encoders that haven been developed use solid-state electronics instead of delicate mechanical systems, in order to cater to increasing demand for application in these sectors and industries.

Growing need for improved automation is expected to propel the global optical encoder market growth over the forecast period. Increasing number of orders placed for advanced and expanding applications combined with traditional and manual controls for state-of-the-art automation. There is a robust demand for automated controls for industrial applications, in order to enhance performance, productivity, and reduce cost. Moreover, advent novel features such as advanced diagnostic capabilities are expected to propel the global optical encoder market growth in the near future.

Global Optical Encoder Market: Opportunities

Signal-on-demand in hybrid absolute rotational encoders can present major business opportunities. Currently, a major proportion of position encoding applications deploy absolute or incremental rotational encoders. ‘Signal on-demand’ in hybrid absolute or incremental rotational encoders is increasingly gaining popularity for application in various industries.

Signal-on-demand in hybrid absolute rotational encoders can present major business opportunities. Currently, a major proportion of position encoding applications deploy absolute or incremental rotational encoders. ‘Signal on-demand’ in hybrid absolute or incremental rotational encoders is increasingly gaining popularity for application in various industries.

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Optical Encoder Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 2184.3 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 8.7% 2028 Value Projection: US$ 3983.9 Mn
Geographies covered:
  • Regions: North America, Latin America, Western Europe, Eastern Europe, Asia Pacific (Excluding Japan), Japan, Middle East and Africa
Segments covered:
  • By Configuration: Shafted, Hollow Shaft, Absolute Single Turn, Multi-turn, Incremental
  • By Output Signal Format: Analog, Digital
  • By Application: Healthcare Equipment, Metalworking Equipment, Consumer Electronics and Semiconductor Manufacturing Equipment, Communication System, Test and Measurement Equipment, Assembly and Robotics Equipment, Others
  • By End User: Public Sector, Manufacturing Industry, IT and Telecommunication Industry, Others
  • By Manufacturing End User: Space and Aviation Industry, Consumer Electronics Industry, Instrumentation, Test and Measurement Equipment Industry, Automobile Industry, Rest of Manufacturing Industry
Companies covered:

Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. 

Growth Drivers:
  • Increasing adoption of advanced motion control systems
  • Growing need for improved automation 
Restraints & Challenges:
  • Major concerns regarding security
  • Declining prices of encoders due to OEM pressures in developed economies

Market Trends

Encoder manufacturers are focused on the standardization of output drivers on a common set that is electrically protected, more robust, and have higher drive capabilities compared to those of the past. Moreover, optical encoders are becoming increasingly compatible with buses either existing fieldbuses or emerging Ethernet-based buses. The development of intelligence within the rotary encoder is one of the major trends in the market. Optical encoders are becoming increasingly versatile in operations, owing to development of programing and diagnostic capabilities.

Currently, incorporating optical encoders and advanced motion control systems are begin increasingly adopted, particularly in industries such as offshore equipment, construction, military & aerospace, and alternative energy systems. Furthermore, manufacturers are developing advanced optical encoders and other motion sensors, in order to cater to demand reliable operations under extreme conditions (dirty, wet, and very hot and cold) coming from these sectors. Increasing deployment of magic encoders in high-volume industries such as household appliances, automotive and fitness equipment is another major trend in the market.

Figure 2. Global Optic Encoder Market Share, By Output Signal Format, 2020

Optical Encoder  | Coherent Market Insights

  • The Digital segment accounted for the largest share of 9.3% in the global optical encoder market in 2020. The segment is expected to reach US$ 3,419.9 million by 2028 owing to increase in demand of advanced technologies such as audio and speech processing, sonar, radarand other sensors.
  • The Healthcare Equipment segment accounted for the largest share of 10.1% in the global optical encoder market in 2020. The segment is expected to reach US$ 751.9 million by 2028 owing to increase in demand for encoders and angle sensors for medical technology.

Global Optical Encoder Market: Restraints

Major concerns regarding security are expected to restrain growth of the global optical encoder market during the forecast period. Optical encoders are complex electronic devices equipped with integrated circuits, photo detectors, and LED, which makes them vulnerable to damage in case of electrical disturbances. This susceptibility makes them less tolerant of mechanical misuse and also constraints their temperature limits. In fact, the mechanical fragility is probably the biggest drawback of optical encoders. The main component of optical encoders is a thin glass disk, which is susceptible to damage due to excessive shock or vibration.

Major concerns regarding security are expected to restrain growth of the global optical encoder market during the forecast period. Optical encoders are complex electronic devices equipped with integrated circuits, photo detectors, and LED, which makes them vulnerable to damage in case of electrical disturbances. This susceptibility makes them less tolerant of mechanical misuse and also constraints their temperature limits. In fact, the mechanical fragility is probably the biggest drawback of optical encoders. The main component of optical encoders is a thin glass disk, which is susceptible to damage due to excessive shock or vibration.

Competitive Section

Major companies involved in the global optical encoder market are Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc.

Global Optical Encoder Market: Key Developments

  1. Major companies in the market are focused on product launches, in order to enhance the market presence. For instance, in January 2017, Renishaw plc introduced RESOLUTE FS, an absolute open-optical encoder system for rotary and linear axis applications.
  2. Key players are involved in product development, in order to expand the product portfolio. For instance, in March 2020, US Digital introduced EC 35 communication encoder at 60,000 CPR.

An optical encoder is an extremely useful type of movement-sensing device. It is used in a variety of applications from military surveillance to industrial automation, and it is often the mechanism behind the encryption used in such systems as ATM card readers and credit card machines. These devices are often built right into large LCD displays and can be controlled over a wide range of frequencies. As the encoders change their state from state A to state B, the display will alter accordingly. This means that the display can be completely reprogrammed for any desired display configuration at any time, making this technology highly flexible. The key advantages of using an optical encoder are cost-effectiveness and flexibility. Encoders are constructed from a variety of components, including optical tubes, resistors and contacts, and the laser itself. Each component has its own advantages and disadvantages. For instance, some types of optical tube assemblies have very narrow beamwidth, which makes them less efficient than other types of assemblies.

Market Dynamics

Rising demand for consumer electronics is expected to boost the global optical encoder market growth over the forecast period. Optical encoders detect the optical pulse signals that have passed through the slit and converts them into electrical signals. With growing demand for consumer electronic products such as smartphones, tablets, laptops, and more. Furthermore, the consumer electronics industry witnessed massive growth in both developed and emerging economies such as India, China, which in turn, has increased the demand for optical encoders. According to the India Brand Equity Foundation (IBEF), the Indian appliance and consumer electronics (ACE) market was valued at US$ 10.93 billion in 2019 and is expected to reach US$ 21.18 billion by 2025.

Furthermore, the rapid adoption of Industry 4.0 is expected to propel the global optical encoder market growth over the forecast period.

Key features of the study:

  • This report provides in-depth analysis of the optical encoder market, and provides market size (US$ 2010.8 Million) and compound annual growth rate (8.7%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global optical encoder market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global optical encoder market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global optical encoder market

Detailed Segmentation:

  • Global Optical Encoder Market, By Configuration
    • Shafted
    • Hollow Shaft
    • Absolute Single Turn
    • Multi-turn
    • Incremental
  • Global Optical Encoder Market, By Output Signal Format
    • Analog
    • Digital
  • Global Optical Encoder Market, By Application
    • Healthcare Equipment
    • Metalworking Equipment
    • Consumer Electronics and Semiconductor Manufacturing Equipment
    • Communication System
    • Test and Measurement Equipment
    • Assembly and Robotics Equipment
    • Others
  • Global Optical Encoder Market, By End User
    • Public Sector
    • Manufacturing Industry
    • IT and Telecommunication Industry
    • Others
  • Global Optical Encoder Market, By Manufacturing End User
    • Space and Aviation Industry
    • Consumer Electronics Industry
    • Instrumentation, Test and Measurement Equipment Industry
    • Automobile Industry
    • Rest of Manufacturing Industry
  • Global Optical Encoder Market, By Region
    • North America
    • Latin America
    • Western Europe
    •  Eastern Europe
    • Asia Pacific (Excluding Japan)
    • Japan
    • Middle East and Africa
  • Company Profiles
    • Panasonic Corporation*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Honeywell International Inc.
    • Renishaw plc,
    • Sensata Technologies, Inc.
    • US Digital
    • Rockwell Automation, Inc.
    • Allied Motion Technologies Inc.
    • Grayhill Inc.

*Browse all the market data tables and figures on “Global Optical Encoder Market - Forecast to 2028”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Configuration
      • Market Snippet, By Output Signal Format
      • Market Snippet, By Application
      • Market Snippet, By End user
      • Market Snippet, By Manufacturing End user
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global Optical Encoder Market, By Configuration, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Shafted
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Hollow Shaft
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Absolute Single Turn
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Multi-turn
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Incremental
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  5. Global Optical Encoder Market, By Output Signal Format, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Analog
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Digital
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  6. Global Optical Encoder Market, By Application, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Healthcare Equipment
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Metalworking Equipment
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Consumer Electronics and Semiconductor Manufacturing Equipment
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Communication System
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Test and Measurement Equipment
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Assembly and Robotics Equipment
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  7. Global Optical Encoder Market, By End user, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Public Sector
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Manufacturing Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • IT and Telecommunication Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  8. Global Optical Encoder Market, By Manufacturing End user, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Space and Aviation Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Consumer Electronics Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Instrumentation, Test and Measurement Equipment Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Automobile Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Rest of Manufacturing Industry
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  9. Global Optical Encoder Market, By Region, 2017-2028  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.S.
        • Canada
    • Western Europe
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Rest of Europe
    • Eastern Europe
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Poland
        • Russia
        • Rest of Eastern Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Configuration, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Output Signal Format, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By End User, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Manufacturing End User, 2017–2028 (US$ Million)
      • Market Share Analysis, By Country, 2020 and 2028 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  10. Competitive Landscape
    • Company Profiles
      • Panasonic Corporation
        •  Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Honeywell International Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Renishaw plc Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Sensata Technologies, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • US Digital
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Rockwell Automation, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Allied Motion Technologies Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Grayhill Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  11. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “Global Optical Encoder Market -forecast to 2028”.

FAQgrowicon

Frequently Asked Questions

The global optical encoder market is estimated to be valued at US$ 2184.3 million in 2021 and is expected to exhibit a CAGR of 8.7% over the forecast period (2021-2028).
Increasing adoption of advanced motion control systems is expected to drive growth of the market.
Major concerns regarding security are expected to restrain growth of the market.
Emergence of quantum dots can provide lucrative growth opportunities in the market in the near future.
Encoder manufacturers are focused on the standardization of output drivers on a common set that is electrically protected, more robust, and have higher drive capabilities compared to those of the past, which is an emerging trend.
Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. are major market players.
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