Optical Encoders

Optical Encoders

Global Optical Encoders Market to Reach US$5.0 Billion by 2030

The global market for Optical Encoders estimated at US$2.7 Billion in the year 2023, is expected to reach US$5.0 Billion by 2030, growing at a CAGR of 9.2% over the analysis period 2023-2030. Absolute Encoder, one of the segments analyzed in the report, is expected to record a 9.7% CAGR and reach US$3.5 Billion by the end of the analysis period. Growth in the Incremental Encoder segment is estimated at 8.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$612.1 Million While China is Forecast to Grow at 11.4% CAGR

The Optical Encoders market in the U.S. is estimated at US$612.1 Million in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$982.5 Million by the year 2030 trailing a CAGR of 11.4% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 7.6% and 8.9% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.9% CAGR.

Global Optical Encoders Market - Key Trends and Drivers Summarized

Optical encoders are advanced electromechanical devices that rely on light pulses for converting mechanical motion or movement into digital pulses, which are interpreted by integrated control electronics. The data is analyzed for gaining relevant information about desirable variables like velocity, position and direction. Encoders are commonly connected to direct current (DC) motor for converting information in one format to another for standardization, safety control and speed adjustment. Optical encoders are commonly used in small household appliances, robotics and industrial applications requiring angular measurement. These devices are anticipated to garner considerable traction owing to the miniaturization trend for supporting development of innovative, lightweight and more powerful products.

 Miniaturized devices are expected to present new opportunities for design engineers to pack additional features into compact packages. In contrast to conventional encoders that are not scalable for miniaturization, optical encoders are flexible and address the requirement. The availability of miniaturized encoders is likely to play an important role in achieving higher resolutions in smaller packages without compromising over signal quality. The advancement in optical encoder technology is closely tied to developments in optoelectronics and digital signal processing. Modern optical encoders utilize state-of-the-art photodetectors and microprocessor-based signal processors that improve accuracy and speed of data conversion. The integration of these encoders into more compact and robust designs has enhanced their adaptability to harsh environments, characterized by dust, vibration, and temperature extremes. Moreover, the trend towards industrial digitization, often referred to as Industry 4.0, has spurred the integration of more sophisticated diagnostic capabilities in optical encoders, enabling predictive maintenance through real-time data analytics. This has opened new applications in sectors that are moving towards smart manufacturing systems and require high levels of automation and data integration.

The growing deployment of automated systems in industrial applications to save on cost, time and effort is poised to create new avenues for market growth. Another prominent factor favoring the market expansion is increasing use of drones in several industries including retail, defense and aerospace. These drones are operated using laser detection and ranging (LiDAR) systems that rely on optical encoders for desirable performance. Regulatory pushes for enhanced energy efficiency in industrial operations also play a crucial role, as optical encoders contribute significantly to optimizing processes and reducing energy consumption. Furthermore, the shift towards renewable energy sources, particularly in wind turbines which require precise position sensing for optimal performance, underscores the growing significance of optical encoders in green technology applications.

Select Competitors (Total 70 Featured) -

• Bourns, Inc.
• Hans Turck GmbH & Co. KG
• CTS Corporation
• Allied Motion Technologies, Inc.
• Baumer Electric AG
• FSI Technologies, Inc.
• Exxelia Group
• Grayhill, Inc.
• Anaheim Automation, Inc.
• Dr. Fritz Faulhaber GmbH & Co. KG
• FRABA BV (POSITAL)
• Dynapar Corporation
• Celera Motion
• Encoder Products Co., Inc.
• Eltra S.p.a.

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