Encoder Market Size, Share, Growth Analysis, By Type (Rotary, Linear), By Signal, By Technology, By Application, By Region - Industry Forecast 2025-2032

Encoder Market size was valued at USD 3 Billion in 2023 and is poised to grow from USD 3.33 Billion in 2024 to USD 6.9 Billion by 2032, growing at a CAGR of 11% during the forecast period (2025-2032).

Given how quickly new technologies are adopted and the existence of numerous consumer electronics behemoths, it is anticipated that consumer electronics will have a larger share of the global encoder industry. As automation technology is being used so widely in a variety of industries, including consumer electronics, automobiles, and manufacturing, the global encoder market is expanding rapidly. In the present era of Industry 4.0, an encoder is essential for ensuring accurate and precise control of motion. It is projected that the global encoder market will benefit from the growth of the global automotive market, the rising demand for advanced automation across sectors, and the increased adoption of Industry 4.0 over the forecasted period of five years.

Since encoders are needed in automation to provide accurate speed and direction to ensure that whatever the motor is driving runs safely and smoothly, manufacturers across industries have required automation, which has been the main driver of demand for encoders. Its objective is to prevent frequent burnout of motors or abrupt cut off of operations by providing a precisely tracked motor speed that ensures optimal performance of the machine all through its operation. Therefore, encoders track the energy and the performance parameters of machines in Automation, which aids in improving overall equipment effectiveness (OEE). In the chemical, food and beverage, pharmaceutical, and automotive industries, having constant access to manufacturing lines is also essential.