Encoder ICs Market Segmented By Linear Encoder IC and Rotary Encoder IC used in Automotive, Medical Devices, Industrial and Consumer Electronics
Industry: Semiconductor Electronics
Format: PPT*, PDF, EXCEL
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Report Type: Ongoing
Report ID: PMRREP32424
In digital electronic projects, encoders plays very crucial role. Encoders are digital ICs and are used for encoding. Encoding, means generating a digital binary code for every input. An Encoder IC generally consists of an enable pin which is usually set high to indicate the working.
Some of the Encoder ICs also feature extra inputs and outputs that allow several ICs to be connected together to achieve more flexibility in the numbers of input and output lines available.
Despite higher number of numerous encoders being sold worldwide, the encoder ICs will continue to hold a significant revenue share in global market. The demand is notably high in commercial as well as industrial landscapes owing to their superior performance and excellent durability over the rest of counterparts. The increasing adoption of IoT devices has increased the demand for global encoder ICs.
In communication systems, encoders are used for transmitting the digital information. There, the encoders reduces the number of bits needed to represent digital information, so that, the transmission link could transfer the encoded information using fewer lines that helps in increasing the bit rate per unit bandwidth in digital cellular telecommunications systems.
Moreover, encoder ICs have become a vital source for many applications requiring feedback information. Whether an application is concerned with speed, direction or distance, an encoders vast capability allow users to utilize this information for precise control.
Today, encoder applications are all around us. They are utilized in printers, automation, medical scanners, and scientific equipment. In the automotive industry rotary encoders are widely used for the purpose of velocity control, temperature control, position sensing, and volume control.
The encoder ICs provide electrical outputs relative to shaft rotation and accurately measure the angles. These ICs are used for several purposes in automotive sector including steering wheel position, throttle position, and gear position. Thus, the increasing adoption of encoder ICs in automotive sector is fueling the growth of encoder ICs market.
The Industrial Internet of Things (IIoT) refers to interconnected sensors, instruments, and other network devices together with computers industrial applications, including manufacturing and energy management. The technology provides the ability to harness sensor data, machine-to-machine (M2M) communication and automation technologies that are revolutionizing the way machines capture and communicate data.
Encoders ICs are the vital components of IIoT systems. It providers the motion-control feedback loop of industrial, robotic, aerospace, energy and automation applications.
Encoder ICs provide long-term reliability, durability and high performance despite often working in severe conditions that include dust, dirt, grease, fluctuating temperatures and heavy vibration. With the recent explosion of IoT devices in industrial sector, the need for faster, more precise, more efficient and more intelligent encoders has been increased dramatically.
Usage of encoder ICs offers the solution for motion control in industrial automated systems applications is driving the growth of the encoder ICs market. Encoder ICs offers the different feature such as reliability, speed, and endurance for factory automation.
The reliability of such features drives the encoder ICs market growth during the forecast period. There is growing demand for improved automated controls for industrial applications to improve performance, reduce costs, improve productivity etc. Further aiding this growth is the introduction of additional features such as advanced diagnostic capabilities.
Mechanical fragility of encoders is the major challenge in the growth of encoder ICs market. Encoders are complex electronic devices having integrated circuits, LEDs and photo detectors, making them susceptible to damage in case of electrical disturbances. This vulnerability makes them less tolerant to mechanical misuse and also confines their temperature limits. This mechanical fragility is probably the biggest drawback of encoder ICs market.
Based on Type, the Encoder ICs market has been segmented as
Based on Application, the Encoder ICs market has been segmented as
Based on the region, the Encoder ICs market has been segmented as
Key players such as
are actively involved in offering Encoder ICs for wide range of applications.
The major vendors involved in the manufacturing and development of encoder ICs are carrying out different organic and in-organic growth strategies to increasing their market share in the global market. Key players are focusing towards the expanding their global presence and upgrading their existing products by incorporating advanced computing technologies to stay competitive in the market.
In October 2019, iC-Haus has announced the expansion of its production capacity in Bodenheim, Germany, with its fifth building section. It will focus on development, production, qualification, testing, and sales of semiconductor products including twin-encoder chips, reflective absolute encoders, optical sensors and others.
In April 2018, Haivision, a market leader in video networking and streaming solutions, has announced a new video streaming appliance in the KB Series, the KB Max portable video encoder for 4K UHD, 360 VR and HD internet streaming at NAB 2018.
Continuous developments and implementation of new technologies such as optical technology-based encoders and Surface Mount Technology (SMT) processes in encoder devices are creating opportunities for growth for the encoder ICs market.
Advantages and benefits such as high sensitivity, low cost, and high precision in electromagnetic immunity as well as the ability to integrate with various electronic devices are the primary factors resulting in an increasing number of encoder IC manufacturers adopting optical technology-based encoders in new and innovative products. The demand for high quality assurance in the SMT processes is increasing, owing to increasing electronic product complexity.
U.S. is expected to hold the largest share in the North America encoder ICs market. Several industrial and manufacturing organizations have deployed advanced encoders in their systems to automate their industrial processes. The country has always been at the forefront in terms of technological advancements, and their adoption in the industrial sector is not an exception.
Moreover, U.S. is home to multiple encoder ICs manufacturers, such as Vishay, Sensata, Broadcom Limited, and among others. These companies are targeting higher revenue and business expansions due to high competition and demand prevailing across the region. Organizations in U.S. focus on innovations to keep pace with the latest advancements in the market.
China is among the major industrial areas in the world. The majority of the haptic hardware devices are manufactured in China. Enterprises in China are adopting the latest technologies to sustain in the global market competition. Government policies in China are also promoting the adoption of IoT solutions in manufacturing and industrial sectors.
Moreover, China is the world largest automobile production country and one of the largest markets for electric vehicles, and it has scaled up the production by implementing new policies and subsidies aimed at automobiles, particularly new energy vehicles. In May 2020, the government announced the extension of NEV subsidies and tax policies by about 2 years, along with high capital investment for battery charging infrastructure by about USD 38 million.
The widespread impact of novel coronavirus pandemic is revealing a significant vulnerability in supply chains. Business process functions across most industries are severely disrupted due to the immense pressure of the pandemic crisis. This has rapidly hampered the production of consumer electronics products. However, in the earlier quarters of 2020, the shipments of encoder ICs had fallen due to the strict lockdowns.
During the outbreak, the production of encoder ICs decline by nearly 5%-7% in Q1-Q2 2020, due to plunging production across China’s factories, as they are one of the world’s major semiconductors manufacturers and suppliers. However, according to estimates, the production of encoder ICs has become quite stable in the last quarter of 2020 and the demand has started to gain traction again.
NOTE - All statements of fact, opinion, or analysis expressed in reports are those of the respective analysts. They do not necessarily reflect formal positions or views of the company.
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