Optical Encoder Market Outlook - 2027

An optical encoder is an electromechanical device with mechanical input and electrical output. Corresponding to the angular displacement of the input shaft, it gives various digital signals. It is mostly used to control and monitor motion parameters such as direction, position, distance, speed and rate. Thus, it finds its application in communication systems, assembly & robotics equipment, healthcare equipment, metalworking equipment, test & measurement equipment and other end uses such as consumer electronics, manufacturing, automobile, IT & telecommunication, space & aviation, healthcare, and others. Innovations in the electronic systems industry paves the way for better and improved optical encoder market.

The global Optical Encoder Market is segmented on the basis of Configuration, Output signal format, Application, End User, and Region. Based on Configuration, the Optical Encoder Market is divided into Incremental, Absolute Single Turn, Multi Turn, Shafted, and Hollow Shafted, and others. On the basis of Output signal format, the market is categorized into Analog and Digital, and others. On the basis of Application into Communication Systems, Assembly & Robotics Equipment, Healthcare Equipment, Metalworking Equipment, Test & Measurement Equipment, and Others On the basis of End Users into Consumer Electronics, Manufacturing, Automobile, IT & Telecommunication, Space & Aviation, Healthcare, and Others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global optical encoder industry include GrayHill Inc., Sensata technologies India Pvt. Ltd., Rockwell Automation, Renishaw, Honeywell, Allied Motion Technologies, Dynapar, Codechamp SA, US Digital, Bourns Inc., and Others. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global market. 

COVID-19 Scenario Analysis: 

• The global optical encoder market size has been significantly impacted by the COVID-19 outbreak. 
• The global factories have struggled to manufacture optical encoder in this COVID-19 pandemic and have also struggled in developing or improving the current optical encoder due to lack of workforce.
• The supply chain has been disrupted and market will be less impacted compared to many other markets because even in this COVID-19 situation optical encoders are used in various medical applications.
• So, during the meantime, this would be an opportunity for the companies to research and improve their product, develop ways to increase production of optical encoders.

Top impacting factors: Optical Encoder Market Trends, Scenario Analysis, Drivers and Impact Analysis

The major drivers for the growth of the market are increase in requirement for upgraded automation, surge in adoption of cutting edge motion control systems, and rise in interests for high quality in surface mount technology (SMT) placement forms. But, complex construction of encoders and delicate parts involved in optical encoders may hinder the market growth. Moreover, rise in demand from medical diagnostics, robotics, elevators, and machine controls are expected to further boost the market growth.

New product launches to flourish the optical encoder market

The launch of new products that contain improved capabilities have been launched by leading market players. They have taken necessary steps to improve accuracy of devices and overall functionality as well. New generation position encoders for harsh environments were launched by Renishaw recently. They are essential components in motion control systems. These are high performance position optical encoders which have increased features without increased robustness. They can be installed on OEM systems, have high tolerances to environmental contamination and are available at lower cost and thus this encoder flourished the optical encoder market growth.

Surge in usage in Healthcare industry

The surgeon moves the master manipulator with encoders and servos to command the robot arm performing surgery. High resolution rotary optical encoders are thus preferred for the velocity and position sensing in better controlling and detecting fine movements in the joints. These encoders ensure higher accuracy, precision, large through diameters on the rotary scale, durability and safety of operation. Thus, for safe and effective control of robotic systems, encoder feedbacks are extremely important. Moreover, due to the advancements in robotic surgery and evolving encoders, there is surge in the usage of optical encoders in the healthcare industry.

Key segments covered:

Key benefits of the report:

• This study presents the analytical depiction of the global optical encoder industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global optical encoder market share.
• The current market is quantitatively analyzed from 2020 to 2027 to highlight the global optical encoder market scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides a detailed global optical encoder market analysis based on competitive intensity and how the competition will take shape in coming years.

Market scope and structure analysis:

Questions answered in the Optical Encoder Market research report:

• What are the leading market players active in the optical encoder market forecast?
• What the current trends will influence the market in the next few years?
• What are the driving factors, restraints, and opportunities in the market?
• What are the projections for the future that would help in taking further strategic steps?