More than 30 Million Optical Encoder Units to be Sold in 2029
Industrial applications of optical encoders have surged significantly in the recent past, which is primarily attributed to the recent advancements in optical technology. In 2018, over 11.5 million units of optical encoders were sold across the global industrial landscape, and the number is expected to surpass 30 million units by the end of 2029. In terms of revenue, the market has been projected for a strong CAGR during the forecast period, on the back of rapidly broadening range of industrial applications of high-tech optical encoders. Advancements in optical technology that allow for enhanced accuracy and efficiency of optical encoders will further complement the incremental growth of market.
Key Factors Shaping Optical Encoder Market
Increasing Use of Advanced Signal Processing Algorithm
Manufacturers are incorporating embedded microprocessors and advanced signal-processing algorithms in encoders to improve reliability in operations. This reduces mechanical complexity and vulnerability of conventional absolute optical encoders when used in harsh conditions. Additionally, microprocessor-based instruments enable engineers to alter measurement characteristics through software such as update resolution, zero-point location and measurement direction, without making any mechanical or physical alterations.
Miniature Optical Reflective Encoders Gaining Traction in Healthcare Applications
Optical reflective encoders are gaining popularity among portable medical devices manufacturers. Optical reflective encoders are used with several assembly methods. One common example is mounting the optical reflective encoder at the rear of the motor. Based on the motion (rotation) of the motor shaft, the sensor provides feedback data. These motion control feedback devices with optical reflective encoders offer greater resolution and higher accuracy than devices with magnetic-based encoder, with reduces cost and low power dissipation.
Manufacturers of portable medical devices strive to offer cost-effective products with high precision, smaller size, lightweight, and lower power consumption in order to sustain their position in the healthcare devices market. Therefore, leading manufacturers of portable medical devices are incorporating optical reflective encoder sensors to enhance their offerings.
Implementation of IoT in Optical Encoders for Condition Monitoring
With the introduction of IoT in all industries, companies expect more information from optical encoders apart from position. Using IoT in optical encoders can provide information about the environment, time in motion analysis, and diagnosis of collected data to end users. This creates new opportunities for manufacturers of optical encoders, especially in the automation industry.
- Heidenhain introduced Leine & Linde brand optical encoder devices, which consist of advanced diagnostic system that provides condition monitoring and diagnostic information through Ethernet communication. With this information, users are able to analyse the aspects of optical encoders that affect performance.
APEJ Presenting Lucrative Opportunity
Optical Encoder solution providers are focusing on increasing their business opportunities across countries in Asia Pacific excluding Japan (APEJ), attributable to the substantial growth of automotive, consumer electronics and industry automation in emerging economies like India, South Korea in APEJ. Thus, manufacturers are adopting new techniques in their manufacturing processes to improve product quality as well as reduce time and cost.
Increasing Adoption of Absolute Optical Encoders in Robotics
Absolute optical encoder is capable of providing unique position value from the moment it is switched on, and ensures efficiency of robots and its movements after the robot faces power failure. Additionally, maintenance and increased interaction with humans during operations require absolute optical encoders that are certified for functional safety and do not increase system costs.
Mechanical Fragility - Still a Challenge
Optical encoders are complex electronic devices with integrated circuits, LEDs and photo detectors, making them susceptible to damage in case of electrical disturbances. The main component of optical encoder is a thin glass disk, which is susceptible to damage due to excessive shock or vibration. This vulnerability makes optical encoders less tolerant to mechanical misuse and also confines their temperature limits. All these drawbacks of optical encoders limit their application.
Optical Encoder Market Structure Analysis
- The global optical encoder market represents a fragmented competition landscape, where prominent key players focus on the development of new high precision optical encoders and absolute open-optical encoders.
- Majority of key players in the global optical encoder market are strategically focusing on new product innovation, mergers & acquisitions, strategic partnerships, and collaborations to gain a strong global footprint.
- Leading optical encoder solution providers account for more than 30% of the overall market. Key participants such as Honeywell international, Rockwell Automation, Siemens. TE Connectivity, and Sensata Technologies Inc., are among the largest and most experienced companies in the optical encoder market, with a significant regional coverage across the globe.
Optical Shaft Encoders and Incremental Encoders Top Selling
Despite higher number of incremental encoders being sold worldwide, the optical shaft encoders (or rotary encoders) will continue to hold a significant revenue share in global market. The demand for latter is notably high in commercial as well as industrial landscapes owing to their superior performance and excellent durability over the rest of counterparts. Sales of absolute encoders would rise at an exponential rate in the following years. This sales hike is attributed to the fact that its high-resolution wheel can calculate the fractional rotation, while the lower-resolution wheels record the number of whole revolutions of the shaft - more accurately than their other counterparts.
APEJ Set to Outgrow North America by 2029
In 2018, North America accounted for more than one-fourth volume share of the global market, while the sales remained significantly lower in Asia Pacific excluding Japan (APEJ). However, with the increasing industrial growth in developing economies, coupled with end users’ need to reduce manufacturing costs with state-of-the-art equipment, the sales of optical encoders are increasing in developing regions. Optical encoder sales in developing regional markets will thus thrive at a higher CAGR than that in developed economies. There are strong indications of APEJ’s market superseding that of North America in terms of volume share, by 2029.
Miniaturization Trend to Gain Momentum
Leading market players are focusing on introduction of miniaturised designs of their products to sync with changing trends in end-use industries. As consumer electronics industry and robotics equipment are prominently observing the growth of this miniaturization trend, demand for smaller devices such as miniaturised drive and robots will see a significant boost in the near future. Leading market stakeholders are thus maintaining focus on advanced technologies such as chip-on-board technology, that are crucial in miniaturization.
Shafted optical encoders hold leading revenue share
Absolute optical encoders to exhibit significant CAGR
Digital remains preferred
Analog garnering more attention
Consumer electronics remain top application area
Healthcare equipment to generate high demand
How Growth will Unfold
In 2018, more than 3 in 10 optical encoders sold were used in consumer electronics and semiconductor manufacturing equipment, which holds a significant revenue share in global market. However, demand will be more prominent in the field of healthcare equipment, over the following years. A large number of market players in the optical encoder landscape are investing in R&D of technologically advanced products that suit the specific requirements of medical industry and laboratory equipment operators.
* This data is only a representation. Actual data may vary and will be available in report.
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Overview
Optical Encoder Market Analysis 2019-2029
A recent market study published by Future Market Insights on the optical encoder market includes a global industry analysis for 2014-2018 and an opportunity assessment for 2019-2029, and delivers a comprehensive assessment of the most important market dynamics. After conducting thorough research on the historical and current growth parameters, growth prospects of this market are obtained with maximum precision.
Optical Encoder Market Taxonomy
The global optical encoder market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to readers.
Configuration
- Shafted
- Hollow-Shaft
- Absolute
- Multi-turn
- Incremental
Output Signal Format
- Analog
- Digital
Application
- Healthcare Equipment
- Consumer Electronics and Semiconductor Manufacturing Equipment
- Robotics Equipment
- Test & Measurement Equipment
- Others
Region
- North America
- Latin America
- Western Europe
- Eastern Europe
- Asia Pacific Excluding Japan
- Japan
- Middle East & Africa
What's Included
The report begins with the executive summary of the optical encoder market, which includes a summary of key findings and statistics of the market. It also includes demand and supply-side trends pertaining to this market.
Readers can find the definition and a detailed taxonomy of the optical encoder market in this chapter, which will help them to understand basic information about the market. Along with this, comprehensive information pertaining to optical encoders and its properties is provided in this section. This section also highlights the inclusions and exclusions, which help readers to understand the scope of the optical encoder market report.
The optical encoder market report provides key market trends that are expected to significantly impact market growth during the forecast period. Detailed industry trends are also provided in this section.
This section explains the value and volume analysis for the global optical encoder market for the forecast period of 2019-2029. This chapter includes a detailed analysis of the historical optical encoder market, along with an opportunity analysis of the future. Readers can also find the absolute $ opportunity for the current year (2019), and incremental $ opportunity for the forecast period (2019–2029).
This chapter explains the key macroeconomic factors that are expected to influence growth of the optical encoder market over the forecast period. Along with macroeconomic factors, this section also highlights the value chain, supply chain, forecast factors, and value chain analysis of the optical encoder market. Moreover, in-depth information about market dynamics and their impact analysis on the market have been provided in the successive section.
Based on configuration, the optical encoder market is segmented into shafted, hollow-shaft, absolute, multi-turn and incremental. In this chapter, readers can find information about key trends and developments in the optical encoder market and market attractiveness analysis by configuration.
Based on output signal format, the optical encoder market is segmented into analog and digital. In this chapter, readers can find information about developments and key trends in the optical encoder market by output signal format.
Based on application, the optical encoder market is segmented into healthcare equipment, consumer electronics and semiconductor manufacturing equipment, robotics equipment, test & measurement equipment, and others. In this chapter, readers can find information about key trends and developments in the optical encoder market and market attractiveness analysis by application.
This chapter explains how the optical encoder market is anticipated to grow across various geographic regions such as North America, Latin America, Western Europe, Eastern Europe, APEJ (Asia-Pacific excluding Japan), Japan, and the Middle East & Africa.
This chapter includes a detailed analysis on growth of the North America optical encoder market, along with a country-wise assessment including the U.S. and Canada. Readers can also find pricing analysis, regional trends, volume analysis, and market growth configuration, and application, and countries in North America.
This chapter provides the growth scenario of the optical encoder market in countries in Latin America such as Brazil, Mexico, and the Rest of Latin America. Along with this, assessment of the market across target segments has been provided.
Important growth prospects of the optical encoder market in several countries such as Germany, the U.K., France, Spain, Italy, BENELUX, and the Rest of Western Europe are included in this chapter.
This chapter provides the growth scenario of the optical encoder market in Eastern Europe countries such as Russia, Poland, and the Rest of the Eastern Europe.
This chapter highlights the growth of the optical encoder market in APEJ by focusing on China, Australia & New Zealand, India, ASEAN, and the Rest of APEJ. This section also helps readers understand key factors responsible for the growth of the optical encoder market in APEJ.
This section helps readers understand key factors responsible for the growth of the optical encoder market in Japan.
This chapter provides information about how the optical encoder market is anticipated to grow in major countries in the Middle East & Africa region, such as GCC Countries, Turkey, Northern Africa, South Africa, and the Rest of Middle East & Africa, during the forecast period of 2019-2029.
In this chapter, readers can find detailed information about the tier analysis and market concentration of key players in the optical encoder market, along with their market presence analysis by region and product portfolios.
In this chapter, readers can find a comprehensive list of prominent stakeholders in the optical encoder market, along with detailed information about each company, which includes the company overview, revenue shares, strategic overview, and recent developments. Some of the market players included in the report are Honeywell International, Grayhill Inc., US Digital, Bourns Inc., Rockwell Automation, Renishaw PLC, Allied Motion Technologies Inc., Sensata Technologies Inc., and Dynapar.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the optical encoder market report.
This chapter helps readers understand the research methodology followed to obtain various conclusions, as well as important qualitative and quantitative information, about the optical encoder market.
How the research was conducted?
Primary Research
- C - Level Executives
- Marketing Directors
- Sales Heads
- Sales Executives
- Technical Advisors
- Optical Encoder Solution Providers
- Distributors
- Industry Experts
- End Users
- Current Market Dynamics and Challenges
- Market Characteristics
- Market Performance and Growth Quadrants
- Competition Structure and Market Structure
- Strategic Growth Initiatives
- Near-term and Long-term Market Growth Prospects
- Market Segment Splits and Authenticity
- Opinions on Market Projections and Validity of Assumptions
Secondary Research
- Company White Papers
- Annual Reports and Investor Presentations
- Research Papers
- Company Press Releases
- Government Websites and Publications
Primary Interview Splits
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