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Report Overview
The global encoder market was valued at USD 2.61 Billion in 2025. The industry is expected to grow at a CAGR of 8.00% during the forecast period of 2026-2035 to reach a value of USD 5.63 Billion by 2035. The market growth is mainly attributed to the growing focus on renewable energy infrastructure is creating significant opportunities, as advanced monitoring and control systems depend on high-precision feedback devices.
Solar, wind, and storage projects require encoders to provide real-time data for positioning, speed, and performance, ensuring efficiency and reliability across energy portfolios. The demand of the global encoder market is further reinforced by technological advancements such as WATTMORE’s AI-powered Intellect EnFORM solar monitoring platform, launched in September 2025. This solution reflects the rising need for accurate data acquisition and optimization tools in the clean energy sector, highlighting how encoders contribute to seamless system integration and predictive maintenance.
A practical example of this can be seen at the Andasol Solar Power Station in Spain, where magnetic rotary encoders are deployed to maintain the angular positioning of parabolic mirrors. These encoders are engineered to withstand high vibrations and extreme temperatures, enabling precise alignment for effective steam generation and consistent power output.
Such applications illustrate how the global encoder market growth is closely linked with the expansion of renewable energy systems, as encoders remain indispensable for improving performance, reliability, and operational efficiency in sustainable power generation projects.
2025
Base Year
2019-2025
Historical Period
2026-2035
Forecast Period
Competitive Landscape
Top global encoder market players are focusing on innovation and technological advancement to maintain a competitive edge. Efforts include enhancing rotary and linear encoder portfolios to meet growing demands in industrial automation and precision manufacturing. Companies are investing in research & development, improving product performance, and expanding manufacturing capacity to address evolving customer requirements. Strategic collaborations and technological upgrades are helping market players stay ahead in a rapidly advancing market while ensuring efficient, reliable, and high-precision solutions across multiple end-use sectors.
Apart from this, leading encoder companies across the world are involving partnerships, acquisitions, and regional expansion to capture emerging opportunities. Players are developing high-precision optical, magnetic, and linear encoders to serve growing industrial, automotive, and electronics applications. Focus on energy-efficient and smart automation solutions is increasing, along with expanding presence in high-growth regions. These initiatives help companies strengthen market position, enhance revenue streams, and ensure long-term sustainability, while simultaneously catering to evolving customer demands for advanced, reliable, and accurate motion control technologies.
Key Players
OMRON Corporation
Headquartered in Kyoto, Japan, OMRON was founded in 1933 and is a leading provider of automation and control technologies. The company enhances efficiency and precision across industrial, healthcare, and electronics sectors. Its solutions are widely used to improve manufacturing processes globally.
Schneider Electric
Schneider Electric, established in 1836 and based in Rueil-Malmaison, France, focuses on automation and energy management solutions. Serving industries, data centers, and buildings worldwide, it emphasizes sustainable technology integration. The company is recognized for driving smart and efficient operations.
Rockwell Automation, Inc.
Founded in 1903 and headquartered in Milwaukee, Wisconsin, the United States, Rockwell Automation delivers advanced industrial automation and digital transformation solutions. The company supports global smart manufacturing initiatives. It helps industries improve operational efficiency through innovative technologies.
Panasonic Corporation
Based in Osaka, Japan, Panasonic was founded in 1918 and develops automation, electronics, and energy solutions. Its products cater to industrial, professional, and consumer markets. The company focuses on driving innovation for productivity and sustainability worldwide.
Other players in the global encoder market include Sensata Technologies, Inc., Baumer Group, and several others.
Encoder Market Report Snapshots
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2025, the market reached an approximate value of USD 2.61 Billion.
The market is projected to grow at a CAGR of 8.00% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach nearly USD 5.63 Billion by 2035.
Key strategies driving the market include technological innovation, product portfolio expansion, strategic partnerships, and regional market penetration.
The key trends guiding the market include the surging popularity of automated cars, the digitisation of the healthcare sector, and the rising demand for encoders in precise portable medical devices.
The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major types of encoder include rotary encoder and linear encoder.
The various technologies of encoder are optical, magnetic, and photoelectric, among others.
The leading end uses of encoder are automotive, electronics, textile, printing machinery, industrial, and pharmaceuticals, among others.
The key players in the market include OMRON Corporation, Schneider Electric, Rockwell Automation, Inc., Panasonic Corporation, Sensata Technologies, Inc., Baumer Group, and others
Asia Pacific holds the largest share of the global encoder market due to rapid industrial growth, expansion of robotics and automation, increasing adoption of advanced medical and manufacturing equipment, and strong government support for technology development.
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