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Optical Encoder Market is Expected to Surpass US$ 3983.9 Mn by 2028

Optical Encoder Market is Expected to Surpass US$ 3983.9 Mn by 2028 - Coherent Market Insights

Publish In: Nov 23, 2021

Optical encoder consists of various devices which include shaft & disc, LED light unit, photo detector, and signal processor. The encoder shaft is mechanically coupled with the input driver which rotates the shaft and the disc, the disc has various unique patterns with transparent segments to measure the angular displacement. The light from the LED source reaches the photo detector through various patterns of the disc, which creates an analog signal by nature. The analog signal from the receiver is amplified and converted into digital form and finally transferred for digital processing.

Market Statistics:

The global optical encoder market is expected to surpass US$ 3983.9 Mn in terms of value by the end of 2028.

Global Optical Encoder Market: Drivers

Increasing demand for high-quality assurance in SMR replacement processes is expected to propel the global optical encoder market growth over the forecast period. The demand for high-quality assurance in the surface mounting technology (SMT) processes is increasing, owing to growing electronic product complexity. Modern machines in SMT processes are being installed with high-resolution verification cameras and fine adjustment systems through accurate linear encoders on each axis. This, in turn, enables quick and precise placement of electronic components on the printed circuit board (PCB), which in turn, increases the speed of each axis. As a result of this, machine throughput is increased to higher levels.

Global Optical Encoder Market: Opportunity

Massive shift towards absolute encoders across product lines can present lucrative growth opportunities. Numerous players in the automation industry who have used incremental encoder solutions in the past are shifting towards absolute encoders. This is typically due to the fact that absolute encoder offers enhanced information to the control system, utilizing fewer wires over a serial bus. Increased encoder cost is offset by simplified interconnect and reduced cable costs. For instance, a conveyor system might or might not benefit from absolute position feedback.

Global Optical Encoder Market: Recent Developments

  1. Key companies in the market are focused on product development, in order to enhance product portfolio. For instance, in November 2018, Renishaw plc introduced QUANTiC, a linear optical incremental encoder with enhanced diagnostics compatibility.
  2. In June 2019, Renishaw, a world-leading metrology company launched its smallest incremental optical encoder with digital output direct from the readhead, eliminating the need for bulky interfaces.

Global Optical Encoder Market: Restraint

Major issues associated with security are expected to hinder the global optical encoder market growth over the forecast period. Optical encoders are comprised of LEDs, integrated circuits, and photo detectors, which makes them vulnerable to damage in case of electrical disturbances. This vulnerability makes them less tolerant of mechanical misuse and also confines their temperature limits. This mechanical fragility is probably the biggest drawback of optical encoders.

Global Optical Encoder Market - Impact of Coronavirus (Covid-19) Pandemic

Similar to other industries and markets, the global optical encoder market witnessed a massive negative impact of the COVID-19 pandemic outbreak. The adoption of nationwide lockdown policies and temporary shutdown in international travels have resulted in major disruptions in the global supply chain industry, thereby extending the economic impact. Furthermore, China is home to the key suppliers of raw materials and since the COVID-19 emerged in China, the production of different types of consumer electronic products has halted. As a matter of fact, the lockdown imposed by the government has shut down numerous manufacturing facilities across China. However, gradual relaxations in lockdown regulations in many countries are expected to aid the market to recover from the early loss.

To know the latest trends and insights prevalent in this market, click the link below:

Key Takeaways:

  • The global optical encoder market was valued at US$ 2010.8 Mn in 2020 and is forecast to reach a value of US$ 3983.9 Mn by 2028 at a CAGR of 8.7% between 2021 and 2028.
  • The Multi-turn segment held dominant position in the market and accounted for 11.5% share in the global optic encoder market in 2020. The segment is expected to reach US$ 166.4 million in 2028.

Market Trends

Reflective encoders are gaining popularity among portable medical device manufacturers. These device manufacturers are striving to offer cost-effective products having high precision, smaller size, lower weight, and lower power consumption in order to sustain in the health care devices market. These motion control feedback devices with reflective encoders offer greater resolution and higher accuracy than devices with magnetic-based encoder, with reduced cost and power dissipation.

Encoder offerings are becoming diverse, owing to increasing variability of encoder applications. This is prompting optical encoder manufacturers to offer configurable and more versatile products, which are backward compatible with the installed base. This flexibility is achieved in encoders with advanced features such as programmable resolution, voltage, and waveforms. Moreover, the trend in the consumer market towards online purchasing is drifting to the B2B marketplace. Optical encoders have always been customizable to a certain extent, which restricts manufacturers and distributors from offering them to customers or end-users through direct channels.

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.

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