Global Optical Encoders Market to Reach $3.1 Billion by 2026

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Aug 08, 2022, 13:45 ET

DUBLIN, Aug. 8, 2022 /PRNewswire/ -- The "Optical Encoders - Global Market Trajectory & Analytics" report has been added to ResearchAndMarkets.com's offering.

Global Optical Encoders Market to Reach $3.1 Billion by 2026
Optical encoders are electromechanical devices intended to directly convert an angular displacement of input shaft into an analog or digital electric output using a light sources, light detectors and optical grating. These devices are commonly used to monitor and control various parameters like position, direction, speed, distance and rate. Optical encoders are widely used in communication equipment, healthcare systems, assembly and robotics equipment, test and measurement equipment, and metalworking equipment.

Demand for optical encoders is being propelled by expansion of the printed circuit board market, the miniaturization trend and increasing sales of consumer electronics items. Increasing adoption of sophisticated motion control systems coupled with the need for superior assertion in placement related to surface mount technology also boosts demand in the market. Optical encoders are benefitting from increasing adoption of control systems and automation equipment due to their ability to deliver real-time data, high productivity and high accuracy. Latest IoT-powered optical encoders launched on the market present effective diagnostic systems capable of delivering diagnostic and condition monitoring information.

Amid the COVID-19 crisis, the global market for Optical Encoders estimated at US$2.1 Billion in the year 2022, is projected to reach a revised size of US$3.1 Billion by 2026, growing at a CAGR of 8.5% over the analysis period.

The U.S. Market is Estimated at $566.36 Million in 2022, While China is Forecast to Reach $639.2 Million by 2026
The Optical Encoders market in the U.S. is estimated at US$566.3 Million in the year 2022. The country currently accounts for a 26.22% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$639.2 Million in the year 2026 trailing a CAGR of 10.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.2% and 8.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.4% CAGR while Rest of European market (as defined in the study) will reach US$704.5 Million by the end of the analysis period. Asia-Pacific represents a key market, owing to rapid industrialization in developing economies and increasing adoption of sophisticated equipment to save on manufacturing costs. The region is a major hub of electronic component manufacturing and witnessing high demand for optical encoder from manufacturers for specific benefits like enhanced efficiency. The presence of numerous healthcare and manufacturing facilities in the US drives growth in North America region.

Key Topics Covered:

I. METHODOLOGY

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW

2. FOCUS ON SELECT PLAYERS

3. MARKET TRENDS & DRIVERS

Machine Health Monitoring Made Easier with Optical Encoders
Sustained Emphasis on Industrial Automation to Drive Demand
Major Industry 4.0 Technologies: Global Market Size (US$ Billion) for Internet of Things (IoT), Big Data, Smart Factory, Advanced Analytics, Service Robotics, and Smart Machines for 2020
Growing Uptake of Industrial Robotics Bodes Well
Rising Footprint of Robotics in Automotive Sector to Underpin Revenue Growth
Machine Tools: An Established Market for Optical Encoders
Rising Demand for SMT Equipment Promotes Growth
SMT: Key Applications in Select End-Use Sectors
Prevailing Trends in the SMT Equipment Domain Influence Market Prospects
Consumer Electronics & Semiconductors: Key End-Use Segment
Encoders Essential for Accurate Positioning in Medical Equipment
Market to Gain from Growing Importance of IoT
Encoders with Advanced Signal Processing Algorithms & Miniature Designs Seek to Widen the Footprint