Market Study on Optical Encoders: Demand for Precise Operation of Electric Motors in Manufacturing of Autonomous Vehicles to Push Demand for Optical Encoders through 2033!
Industry: IT and Telecommunication
Published Date: May-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 250
Report ID: PMRREP33455
Global optical encoders sales revenue totaled US$ 2.2 billion in 2022. Over the projection period (2023 to 2033), optical encoder demand is forecast to rise at 9.2% CAGR. The global optical encoders market size is expected to increase from US$ 2.5 billion in 2023 to US$ 5.9 billion by 2033.
Usage of optical encoders is likely to remain high in consumer electronics & semiconductors. As per Persistence Market Research (PMR), the target segment is forecast to thrive at 5.7% CAGR through 2033. It will generate lucrative revenue-generation opportunities for optical encoder manufacturers.
Key Trends Shaping the Market:
Several electromechanical devices can operate on a light source, photo sensors or photosensitive detectors. Upon integration with an optical grating system to convert linear or rotary position to an electrical signal, it is known as an optical encoder. It is a transducer that is widely used for measuring rotational motion.
Optical encoders detect optical pulse signals, convert them into electrical signals, and then provide outputs. They are easier and ideal to improve accuracy and resolution than magnetic encoders.
Optical encoders are motion sensing devices that can be used in applications where a strong magnetic field is generated. They translate linear or rotary motion into a digital signal that is then sent to a controller. The controller uses this signal to monitor motion parameters such as speed, distance, direction, rate, or motion.
Depending on the format of the output signal, optical encoders are categorized into two types. These include absolute encoders and incremental encoders.
Usually, inexpensive infrared LEDs are used as light-emitting devices in optical encoders. However, to suppress light diffusion, colored LEDs are sometimes used. Similarly, for applications that require high performance and high resolution, expensive laser diodes are utilized.
From office equipment, medical devices, and machine tools to robots and automated vehicle guidance, the applications area of optical encoders is widening rapidly.
Key advantages of optical encoders:
Thanks to these advantages, optical encoders are being increasingly used for servo control and hollow through shaft type motor control that requires high precision. They also find usage in devices and systems that use large-diameter motors.
One of the key applications of optical encoders is for the control of speed & direction of electric motors.
Right from small motors used in electronics or machines to large industrial motors, optical encoders are becoming crucial components. High usage in electric motors will create lucrative opportunities for optical encoder manufacturers.
Increasing popularity of autonomous vehicles and mobile robots globally is likely to power up optical encoder sales.
In recent years, robots and robotics have become important for industries to improve their productivity and reduce overall costs. Automated machines such as automated mobile robots (AMR) and automated guided carts (AGC) are gaining wider popularity.
In order to ensure precision, automated machines must do their jobs correctly. Optical encoders are being increasingly used in these machines as they provide controllers with accurate and reliable motion feedback.
Optical encoders provide motion feedback in autonomous motion applications such as lift control, steering assembly, drive motor, and redundancy.
As per Oxford Economics, robots are expected to replace about 20 million jobs by 2030, with nearly 14 million in China alone. High adoption of robots or automated machines will continue to create a high demand for optical encoders.
Rising applications of optical encoders in aerospace industry is expected to boost optical encoder demand.
In the aerospace sector, optical encoders are used to provide feedback in functions such as:
Advancements in robotic surgery and development of new innovative optical encoders will further expand the global optical encoders industry during the projection period.
Key optical encoder companies are investing rigorously in state-of-the-art production technology and processing to manufacture new and innovative products that can become industry standards. This will help them to increase their sales and solidify their position in the market.
| Attributes | Key Insights |
|---|---|
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Estimated Global Optical Encoders Market Size (2023) |
US$ 2.5 billion |
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Projected Optical Encoders Market Value (2033) |
US$ 5.9 billion |
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Value-based CAGR (2023 to 2033) |
9.2% |
As per Persistence Market Research’s (PMR) analysis, historically, from 2018 to 2022, global sales of optical encoders grew at around 12.0% CAGR. Total market value in 2022 reached around US$ 2.2 billion.
For the next ten years (2023 to 2033), the global market for optical encoders is projected to expand at a CAGR of 9.2%, generating an absolute $ opportunity of US$ 3.4 billion.
Rising applications of optical encoders in consumer electronics, machine tools, healthcare devices, and assembly equipment is providing impetus for the expansion of the optical encoders industry.
Optical encoders are being widely used in a variety of applications that require control or monitoring, or both, of mechanical systems. These applications include:
High adoption of automation and robotics is emerging as a key factor that will fuel optical encoder demand.
Amid rising labor costs, industries are embracing robots to improve productivity and reduce labor costs. Today, numerous industries are using robotics to improve production quality and accuracy as well as to reduce costs.
As per the International Federation of Robotics (IFR), around 3 million industrial robots were operating in factories globally in 2021. This number is likely to further increase and will eventually create high demand for optical encoders.
How is the Demand Outlook for the United States Optical Encoders Market Shaping?
The United States optical encoders market is poised to exhibit a CAGR of 9.1% during the assessment period. Overall optical encoder sales in the country are likely to soar at a robust pace. As per the latest analysis, the United States market is expected to reach a valuation of US$ 1.0 billion.
Rising penetration of automation and robotics across diverse industries is a key factor driving the market for optical encoders in the United States.
The United States is leading from the forefront when it comes to the adoption of automation. Several businesses across the country are embracing automation to improve productivity and reduce labor costs. This in turn is creating a favorable environment for the development of the optical encoders market.
Rising popularity of robotic surgery and heavy presence of leading optical encoder manufacturers are also positively impacting the United States market.
What Makes China a Prominent Optical Encoders Market?
According to Persistence Market Research (PMR), China will emerge as the most dominant market for optical encoders during the projection period. This is due to high adoption of robotics and booming consumer electronics and semiconductor sectors.
From 2018 to 2022, optical encoder sales in China grew at 12.1% CAGR. Over the next decade (2023 to 2033), demand for optical encoders in the country is expected to surge at 9.1% CAGR. Total market value in China at the end of 2033 is projected to reach US$ 1.3 billion.
Rising usage of robots in manufacturing sector along with growing popularity of factory automation is expected to elevate optical encoder demand in China through 2033.
It is estimated that there were around 243,000 units of industrial automation robots installed in China in 2021. Over the next ten years, number of robot installations is expected to witness a sharp increase. This in turn will create demand for optical encoders as they have become crucial components in robotics.
Which is the Highly Sought-after Product Type in the Market?
Based on product type, the global market is segmented into absolute encoders and incremental encoders. Among these, demand is likely to remain high for absolute encoders globally. As per Persistence Market Research (PMR), absolute encoders segment is expected to thrive at 5.9% CAGR through 2033.
Growth of the target segment is due to rising usage of absolute optical encoders for applications, such as robotics and machine tools, that require precise movement control.
Devices that use an encoder wheel to calculate the position of a moving object relative to a fixed reference point are known as absolute encoders. These encoders output unique words or bits for each position in comparison to incremental ones that output a continuous stream of ubiquitous pulses.
Rising adoption of absolute encoders in industrial applications where accuracy and repeatability are crucial will fuel growth of the target segment. This includes microelectronics, photonics, surgical robotics, factory automation, industrial robotics, etc.
Similarly, growing popularity of absolute rotary encoders will create opportunities for optical encoder companies. To maximize their profits, companies are likely to expand their absolute encoder product portfolios.
Which End Use Segment is Likely to Create High Demand for Optical Encoders?
As per Persistence Market Research (PMR), consumer electronics & semiconductors segment is expected to create high demand for optical encoders during the next ten years. This is due to increasing importance of optical encoders in modern electronic devices and semiconductors.
The consumer electronics & semiconductors segment grew at a CAGR of 6.8% CAGR from 2018 to 2022. Over the next decade (2023 to 2033), it is anticipated to register a CAGR of 5.7% CAGR.
Rising demand for improved automated controls for consumer electronics applications for increasing productivity, improving performance, & reducing costs will further boost the target segment.
Leading manufacturers of optical encoders profiled in the report include 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., and Dr. Fritz Faulhaber GmbH & Co. KG.
These companies are focusing on introducing novel solutions to expand their portfolios and meet changing end user demand. They are heavily investing in research & development as well as employing strategies such as acquisitions, mergers, partnerships, acquisitions, and agreements to gain a competitive edge in the market.
Recent developments:
| Attribute | Details |
|---|---|
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Market Value in 2023 |
US$ 2.5 billion |
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Projected Market Value (2033) |
US$ 5.9 billion |
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Anticipated Growth Rate (2023 to 2033) |
9.2% CAGR |
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Historical Data |
2018 to 2022 |
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Forecast Period |
2023 to 2033 |
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The global market for optical encoders was valued at US$ 2.2 billion in 2022.
The global optical encoders market is estimated to reach US$ 2.5 billion in 2023.
The worldwide optical encoders industry is anticipated to reach a valuation of US$ 5.9 billion by 2033.
The worldwide market for optical encoders exhibited a CAGR of 12.0% from 2018 to 2022.
Global optical encoder demand is projected to rise at 9.2% CAGR through 2033.
Consumer electronics & semiconductor segment is expected to create lucrative opportunities for companies.
Optical encoder demand across South Korea and Japan is likely to surge at 9.0% CAGRs.
