Market Trends of Encoder Industry
The Industrial Sector is Expected to Hold a Major Share in the Market
- The use of encoders is rapidly growing in multiple industrial applications, such as linear measurement, registration mark timing, web tensioning, backstop gauging, conveying, and filling. The most standard application is providing feedback on the motion control of electric motors. In the industrial sector, a significant amount of electricity goes to electric power motors, most of which incorporate encoders.
- Robots are experiencing a growing number of application areas, especially for operations like welding, material handling, assembly, and grinding. Since there is typically limited human oversite or monitoring, these robots must have reliable encoders to help guide their movement. In robotics, encoders are essential for controlling robotic arms' and mobile robots' position and movement.
- According to IFR’s World Robotics 2023 report, about 553,052 industrial robots were installed in factories across the world. Among the total installed industrial robots, 73% of all newly deployed robots were installed in Asia, 15% in Europe, and 10% in the Americas. China, Japan, the United States, the Republic of Korea, and Germany are among the top countries with a greater number of annual installations of industrial robots in key industries, including electrical/electronics, automotive, and metal and machinery. Such a rise in the adoption of automation in industries is expected to further fuel the demand for encoders in the market.
- As industrial automation rapidly gains momentum, the demand for encoders in various industrial applications is growing. Thus, to cater to this demand, vendors operating in the market are introducing new encoders for industrial applications. For instance, in June 2023, SICK launched a new linear encoder product family for high-precision detection of piston positions in hydraulic cylinders and monitoring linear movements in machines. This new linear encoder product line offers flexibility for countless industrial applications.
Understand The Key Trends Shaping This Market
Download PDF
Asia-Pacific is Expected to Register the Fastest Growth
- Countries like China, India, and other Southeast Asian countries are experiencing rapid industrialization and expansion of their manufacturing bases, translating to a surge in demand for encoders used in industrial automation for precise positioning and control in robots, CNC machines, and assembly lines and factory machinery that used to improve productivity in various industrial equipment like conveyors and packaging machines.
- Governments across Asia-Pacific are actively promoting automation and Industry 4.0 initiatives, including China’s “Made in China 2025” to reduce dependence on foreign technology imports and invest in innovations and India’s “National Strategy for Manufacturing” to advocate self-reliance through the technological transformation of the production paradigm. Such initiatives are expected to fuel industrial activities with increased use of automation, creating the need for encoders in various applications.
- Moreover, the rapid expansion of the automotive industry is likely to propel the demand for encoders during the forecast period. The region has the presence of major global automotive manufacturers. Encoders are increasingly used in the manufacturing processes of automotive components and assembly lines. The rise in the production of electric vehicles in the region is expected to drive demand for encoders, as they are essential in advanced motor control and battery management systems.
- In January 2024, Suzuki Motor Corp. announced its plan to expand its operations in Gujarat, India, to nearly double its automotive manufacturing capacity, seeking to roll 4 million units off the assembly lines annually. The plant is planned to start operations in fiscal 2028 and is expected to increase its production capacity to 1 million units annually. Such growth in the automotive manufacturing plant expansion drives demand for encoders by necessitating increased automation, precision control in production lines, enhanced quality control systems, and optimized supply chain management.
Get Analysis on Important Geographic Markets
Download PDF
