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Encoder Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global encoder market was valued at USD 2,479. 1 million in 2021, and it is expected to reach a value of USD 3848. 7 million by 2027, registering a CAGR of 7. 72% over the forecast period 2022-2027.
New York, April 22, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Encoder Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06271898/?utm_source=GNW
Key Highlights
The need for high-end automation and industry 4.0 are the major factors behind the growth of the market. Industry 4.0 describes the fourth industrial revolution, a new world where factory automation moves beyond manufacturing plants controlled by conventional information technology systems to a cloud-based infrastructure that permits Big data analytics and the virtualization of production processes.
This vision is much more than just an Industrial IoT (IIoT), and yet, while it might have ambitions to facilitate intelligence through cognitive behavior like self-configuration and autonomous optimization, the founding principle of any control system involves feedback that depends on sensing its own condition and the environment around it.
For the fourth industrial revolution, modern intelligent drives are a key technology because they enable the coordinated operation of networked, decentralized, and autonomous production processes.
One of the biggest limitations of encoders is that they can be reasonably complex and comprise some delicate parts. This makes them less tolerant of mechanical abuse and restricts their allowable temperature. One would be hard-pressed to find an optical encoder that will survive beyond 120ºC.
Industry 4.0 and automation have driven the demand for encoders. The COVID-19 outbreak is speeding up the adoption of Industry 4.0, leading enterprises across industries into a more sophisticated state of IoT technology and workflow. The COVID-19 crisis affected every manufacturer in some way, and for many, this poses an existential threat.
Key Market Trends
Rotary Encoders to Drive the Market Growth
The rapid increase in industrial automation in numerous industries like aerospace, healthcare, automotive, packaging, and electronics drives the demand for rotary encoders as they measure the rotation, angular speed, and position of moving parts in a broad range of applications.
These types of encoders are widely used in applications that need monitoring or control of mechanical systems. Some of the common applications for encoders include motor feedback, filling applications, conveying, cut-to-length applications, lift industry applications, and robotics applications, among others.
The increasing use of rotary encoders in the automobile sector is the main factor in boosting the demand for rotary encoders worldwide. In the automotive industry, these are used in throttle position, steering wheel position, and gear position. Another factor augmenting the market is the adoption of rotary encoders in the aerospace industry, as these are used for automation in the aerospace sector.
The growing demand for temperature control, velocity control, volume control, and position sensing across numerous applications like motors paired with drives and automated machinery in consumer electronics, elevators, conveyor speed monitors, industrial machines, and robotics is driving the market’s growth.
Industrial robotic applications would be one of the significant opportunities in the rotary encoders. Automation in different sectors will create demand for robotics, which will generate demand for rotary angle sensors. Moreover, the electronic industry is also a crucial sector where opportunities are expected during the forecast period.
Asia Pacific To Account for Highest Market Growth
The growing industrialization and demand for better solutions for manufacturing processes are assisting the market is growing at a rapid pace. Because the Asia region is a hub to large industrial hubs such as Japan, China, and India. Rising production facilities and service agreements with businesses are also propelling industry growth. Increasing market rivalry has resulted in introducing new items to the market, which has boosted the market growth.
The Chinese government’s programs, such as the Made in China 2025 plan, promote the use of R&D in factory automation and technologies and its investments. Also, as most of the automation equipment is imported from Germany and Japan, the ’Made in China’ initiative aims to expand the country’s domestic production of automation hardware and equipment. ?Initiatives by the government in the automation sector will drive the studied market.
In Feb 2022, Volkswagen Group’s Audi premium brand and its Chinese state-owned partner FAW Group have received approval from Chinese authorities to start construction on their USD 3.3 billion electric vehicles joint venture plant. According to the regulator, the plant will start production in December 2024 and can manufacture 150,000 cars a year. Such new production units of automobiles in regions will create an opportunity for the local encoder firms to increase their production and meet the market demand.
In country-specific, according to IFR (International Federation of Robotics), in 2021, industrial robot shipments are expected to amount to around 310 thousand units in China. Japan is anticipated to install around 64 thousand units in 2021, which is less than a quarter of what China is expected to install in 2021. The United States and South Korea ranked third with projected shipments of around 46 thousand units each.?
Rotary encoders, linear encoders, both standard, and custom, are effectively utilized in electro-medical and laboratory equipment such as operating and examination tables, Gamma Knife and X-ray, Scanners, and many more.
Competitive Landscape
The degree of competition depends on various factors affecting the market, such as brand identity, powerful competitive strategy, and degree of transparency. The players are trying to gain a competitive edge by updating their product portfolios and strengthening their distribution channels and presence.
March 2021- The Maxon Group unveiled its plan to invest EUR 10 million in an innovation and production center for its sales company Maxon France in Beynost near Lyon. The investment in this new facility offers numerous opportunities for the local market. Maxon is pursuing the ambitious goal of achieving sales of EUR 40 million in France by 2030.
July 2021 - APS signed a national distribution agreement with Baumer Group. Through this partnership, APS will now have access to Baumer products, such as encoders, object detection and distance measurement sensors, process sensor, smart vision system, and others. This partnership will further enhance Baumer’s local customer experience.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Read the full report: https://www.reportlinker.com/p06271898/?utm_source=GNW
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