Global Industrial Encoders Market Growth 2025-2031

Global Industrial Encoders Market Growth 2025-2031

The global Industrial Encoders market size is predicted to grow from US$ 3565 million in 2025 to US$ 5103 million in 2031; it is expected to grow at a CAGR of 6.2% from 2025 to 2031.

An encoder is actually a sensor. It is a device that converts input signals or data into digital signals or coded signals through physical effects (such as light, magnetism, capacitance/inductance, mechanics, etc.). According to the detection principle, there are optical, magnetic, and capacitance/inductance types; according to its encoding method, there are absolute and incremental types; according to the measurement method, there are rotary encoding and linear encoding. Encoders can provide high-precision feedback information such as position and speed in application fields such as industrial automation to meet the needs of precision measurement and control.

The statistical scope of this article is rotary and linear encoders. Including incremental, absolute, optical, magnetic and other rotary and linear encoders.

Depending on the type of downstream measurement, there are different types of encoders, such as measuring angle/speed/position = rotary encoder; measuring distance = linear encoder. The reference grating of the rotary encoder is a glass disk with uniform scale, while the linear encoder is a glass scale. The linear encoder consists of a reader and an inductive scale. It works based on measurement principles such as induction principle, optical principle or magnetic principle, detects the absolute position through a unique code, and transmits the information directly to the electronic evaluation device without reference operation. Rotary encoders are available in optical and magnetic types, as well as incremental and absolute types. They measure the speed, angle, displacement and other physical quantities of an object and convert them into electrical signals that can be recognized and calculated by the host computer, thereby achieving automated motion control functions.

As a sensor, encoders have significant differences in different application scenarios. For example, rotary encoders have a larger measurement range, while linear encoders have a shorter measurement range and are suitable for short-distance linear measurement applications.

Linear and rotary encoders are divided into incremental and absolute encoders. The biggest difference between the two is that after power failure, absolute encoders can still maintain absolute position information, while incremental encoders cannot. From the perspective of downstream applications of encoders, encoders are just a part of various types of equipment, mainly used directly on motors, such as stepper motors and servo motors. The downstream of motors involves all walks of life. At present, the machine tool market accounts for the largest share. Another is the robot market. In recent years, with the development of high-tech equipment such as industrial robots, AGV/AMR mobile robots, semiconductor manipulators, and medical robots, the demand for encoders has greatly increased. With the accelerated advancement of new industrialization, encoders, as core components of robots, will further increase their market share in the future. Global encoder companies are mainly distributed in Germany, the United States, Japan, China, etc., of which German encoders account for more than 35%, and the entire European encoder companies account for more than 60%. Core companies include Heidenhain, Tamagawa Seiki, Sick, Renishaw, Pepperl+Fuchs, Dynapar, Baumer, Sensata Technologies, Broadcom, Omron, TR Electronic, Balluff, Rockwell Automation, Bourns, Zhejiang Reagle Sensing, etc., among which the top five have a market share of nearly 45%.

LP Information, Inc. (LPI) ' newest research report, the “Industrial Encoders Industry Forecast” looks at past sales and reviews total world Industrial Encoders sales in 2024, providing a comprehensive analysis by region and market sector of projected Industrial Encoders sales for 2025 through 2031. With Industrial Encoders sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Industrial Encoders industry.

This Insight Report provides a comprehensive analysis of the global Industrial Encoders landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Industrial Encoders portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Industrial Encoders market.

This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Industrial Encoders and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Industrial Encoders.

This report presents a comprehensive overview, market shares, and growth opportunities of Industrial Encoders market by product type, application, key manufacturers and key regions and countries.

Segmentation by Type:
Rotary Encoder
Linear Encoder

Segmentation by Application:
Machine Tools
Robots
Packaging Equipment
Conveyor
Textile Machinery
Construction Mchinery
Medical Equipment
Elevators
Automotive
Others

This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries

The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
Heidenhain
Tamagawa Seiki
Sick
Renishaw
Pepperl+Fuchs
Dynapar
Baumer
Sensata Technologies
Broadcom
Omron
TR Electronic
Balluff
Rockwell Automation
Bourns
Zhejiang Reagle Sensing
TE Connectivity
Fagor Automation
Kubler
SIKO
JTEKT Electronics
POSITAL (FRABA)
Changchun Yuheng Optics
Lenord+Bauer
Faulhaber
Lika Electronic
Gurley Precision Instruments
Mitutoyo
Citizen Micro Co., Ltd
ELCO Industrie Automation GmbH
Weihai Idencoder Electronic Technology
Autonics Corporation
Precizika Metrology
Givi Misure srl
Advanced Micro Controls Inc (AMCI)
Allient Inc
Elap srl
Pilz GmbH & Co. KG
ifm electronic
Encoder Products Company
Quantum Devices
Netzer
Contelec AG
ELGO Electronic GmbH & Co. KG
Beijing KingKong Technology

Key Questions Addressed in this Report

What is the 10-year outlook for the global Industrial Encoders market?

What factors are driving Industrial Encoders market growth, globally and by region?

Which technologies are poised for the fastest growth by market and region?

How do Industrial Encoders market opportunities vary by end market size?

How does Industrial Encoders break out by Type, by Application?

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