by The global Optical Encoder Market is estimated to be valued at US$ 2580.9 Mn in 2023 and is expected to exhibit a CAGR of 8.7% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Optical encoders are electromechanical devices that convert the angular position or linear position of a shaft into a digital or analog output signal. They can provide incremental or absolute position feedback and have high resolution with ability to operate without the need for brushes, slip rings, or contact points. Optical encoders are used extensively in industrial automation solutions to provide accurate feedback from motions and positions of instruments, machines, motors etc. They are used in automation sectors like factory automation, robotics, packaging machinery and CNC/machine tools due to their high accuracy and reliability. Optical encoders offer advantages like non-contact sensing, high accuracy, high resolution, longer life and immunity to electromagnetic interference.
Market key trends:
One of the key trends in the optical encoder market is growing adoption of incremental encoders. Incremental encoders provide an output pulse for every movement or degree of rotation/position which make them suitable for high speed applications. Their low cost make them a preferred choice for general motion control over absolute encoders. Another trend is rising demand for contactless encoders. Contactless encoders reduce mechanical wear and have longevity making them ideal for harsh industrial environments. They also offer advantages like maintenance-free use and immunity to oil, dirt and dust contamination. The third trend is increasing demand for high resolution encoders. Companies are developing optical encoders with resolutions exceeding 13 bits which are finding applications in motion control feedback loops that require high precision.
Porter’s Analysis
Threat of new entrants: The optical encoder market requires high initial costs for R&D, manufacturing facilities, skilled labour etc. which poses a moderate threat of new entrants.
Bargaining power of buyers: The global optical encoder market consists of numerous buyers belonging to different industries. Hence, individual buyers have low bargaining power.
Bargaining power of suppliers: A few large players dominate the supply side. However, availability of substitute components acts as a check on suppliers’ bargaining power.
Threat of new substitutes: Emerging disruptive technologies like magnetic and piezoelectric encoders pose a threat to the incumbent optical encoder technology.
Competitive rivalry: The market consists of well-established players competing on the basis of product innovation, quality and price.
Key Takeaways
Global Optical Encoder Market Demand is expected to witness high growth, exhibiting CAGR of 8.7% over the forecast period, due to increasing demand for optical encoders from automation and various industries. The optical encoder market size for 2023 is estimated at US$ 2580.9 Mn.
Regional analysis: Asia Pacific dominates the global optical encoder market and is expected to continue its dominance, owing to extensive manufacturing activity in major economies like China and India. North America and Europe hold a significant share as well, due to the presence of key players and growing factory automation.
Key players operating in the optical encoder market are Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. Key players are focusing on new product developments and expansion to existing applications to gain higher market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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