Increasing adoption of automation in manufacturing processes is anticipated to boost the Rotary Encoder market during the forecast period 2020-2025. The market for Rotary Encoder is forecast to reach $1,101.08 million by 2025, growing at a CAGR of 4.7% from 2020 to 2025.
Rotary encoders are mostly used to monitor the motor shaft path on permanent magnet motors, which are often used in robots, CNC machines and various industrial applications. Developments in computing power and networking technologies have made installing and maintaining robots cost-efficient and faster. Such factors and their impact on the growth of the robotics industry inturn contributing to the growth of rotary encoder market. The robotics segment is analysed to grow at significant rate owing to the high adoption rate and increasing demand. As stated by International Federation of Robotics (IFR), from 2020 to 2022, around 2 million units of industrial robots are anticipated to be installed in factories around the world. These factors are set to boost the demand for rotary encoders owing to their high deployment in robots.
Manufacturing industry held the largest share in the rotary encoders market in 2019 and is growing at a CAGR of 4.99% during the forecast period. Manufacturing applications have encoders that are constantly subject to humidity, dust, or liquid. Encoder housings that resist chemical and corrosive materials are suitable for use in manufacturing. They require stainless steel housings and temperature resistance. Production lines require encoders for their machinery to deliver accuracy, reliability, compactness and compatibility with various upgraded machines. Adding to this, the significant deployment of rotary encoders in the automotive sector for speed control applications is set to further escalate the market growth rate. The significant rise in the expansions is set to boost the market growth rate. In January 2020, Toyota has announced to invest $700M in the expansion of its production plant in US. In September 2019, Toyota Motor Corporation has announced to expand its facility in Brazil with an investment of $190M to increase the production.
In 2018, APAC dominated the Rotary Encoder market, followed by North America and Europe. The economy of APAC is majorly influenced by the major countries such as China and India. In 2018, China's annual vehicle production accounted for more than 30 percent of the world's vehicle production, which exceeds that of the European Union, or the United States and Japan combined. India's food & grocery market is the sixth biggest in the country. Food & Grocery retail in India also accounts for nearly 65% of India's total retail market. The Government of India is also taking all necessary measures through the Ministry of Food Processing Industries (MoFPI), to raise investment in the food processing industry. The Government has approved 39 Mega Food Parks (MFPs) under the Mega Food Park Scheme. Therefore the significant deployment of the rotary encoders in the packaging applications is set to impact on the market growth rate during the forecast period 2020-2025.
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Rotary Encoder Market Growth Drivers:
- Increasing industrial automation
Digitization and Industry 4.0 revolution have significantly stimulated the adoption of automation among various industries, by necessitating the use of smarter and automated solutions, such as robotics and control systems, to improve production processes. Factory automation reduces production, operation, and labour costs. Therefore, its implementation in various industries has increased such as automotive, aerospace, packaging, healthcare, electronics, and others. Further, the Chinese government’s programs, such as the Made in China 2025 plan, are promoting technology R&D in factory automation and their investments.
- Growing automotive industry
Rotary encoder is a type of position sensor which is used in providing electrical outputs which are relative to shaft rotation which measures the angles precisely, pedal position. In automotive industries, these sensors are used in throttle position control, steering wheel position control, gear position control, wiper motor control, headlamp position control, seat position motor, side mirror control, compact input device (mode selector, control volume), rotary switch and others. According to International Energy Agency, in 2018, 3.29 million electric vehicles deployed globally, and the number will increase up to 125 million by 2030. Therefore, the growth in automotive industry will drive rotary encoder market growth.
- In November 2019, Renishaw PLC has launched two new encoders for both linear and rotary applications.
- In July 2019, Nemicon Corp., launched N33MA, N35ST, N35MA series of absolute encoders.
The Major Players in this Market Include
The major companies in the Rotary Encoder market include Honeywell International Inc., Renishaw PLC, TE Connectivity, Bourns, Dr. Johannes Heidenhain GmbH, Hans Turck GmbH & Co. KG, Kubler group, Baumer Electric AG, Nemicon Corp., Pepperl+Fuchs among others.
In November 2018, Renishaw, the world-leading metrology company, launched a rotary version of its QUANTiC™ linear optical incremental encoder featuring exceptionally wide installation and operating tolerances, in addition to enhanced diagnostics compatibility.
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