Linear Encoders Market Forecast 2023 - 2030

By Type :

Based on the type, the market is segregated into optical encoder, magnetic encoder, capacitive, inductive, eddy current encoder, incremental linear encoders, and absolute capacitive linear encoder. The optical linear encoder segment accounted for the largest revenue share in the year 2022. Optical linear encoders consist of a light source, a scale, and a photoelectric sensor that detects the light passing through the scale. Optical linear encoders provide high-resolution, high-accuracy and flexibility in mounting options such as hollow-shaft, shafted, and hub-shaft. Therefore, the application of optical linear encoders in industrial automation is driving the growth of the market.

The incremental linear encoders segment is anticipated to emerge as the fastest-growing segment during the forecast period. Incremental linear encoders provide position feedback by generating incremental signals as the position changes. Incremental linear encoders comprise of A and B quadrature signals that provides information about both direction and magnitude of movement. Thus, the application of incremental linear encoders in machine tools, CNC machining centers, semiconductor manufacturing equipment is propelling the growth of the market.

By Output :

Based on the output, the market is bifurcated into analog and digital. Analog segment accounted for the largest revenue share in the year 2022. Analog linear encoders produce output in the sine and cosine quadrature signals. The signals are monitored using an oscilloscope in XY mode to monitor the movements of a wide variety of industrial machines. For instance, in November 2020, Renishaw plc. launched new linear encoder called QUANTiC with analogue output option in encoder read heads that allows signal manipulation inside the electronics devices coupled with built-in calibration options. Moreover, the lower bandwidth of analog signals minimizes Electromagnetic compatibility (EMC) emissions, resulting in market growth.

The digital segment is expected to witness the fastest CAGR growth during the forecast period. The high measurement accuracy, improved noise immunity, and low latency of digital signals are propelling the growth of this segment. The digital signals produced by linear encoders divide the sine and cosine output of analog signals into precise scale periods, thereby providing a high measurement resolution. Consequently, the signals are processed digitally, thereby improving noise immunity. Therefore, the increasing adoption of built-in digital signal processing in incremental encoders for providing information about the position of electronics is driving the growth of the market.

By Application :

Based on the application, the market is separated into coordinate measuring machines, machine tools, laser scanners, digital read outs (DROs), wire bonders, printers and digital presses, and others. Printers and digital presses segment accounted for the largest revenue share in the year 2022. Linear encoders in printers are used to monitor the position of print-head as it moves along the page. Consequently, the information stored in the printers' control software is used to ensure that the image and text is printed in the correct location. Thus, the application of linear encoders to monitor the location of print-head is propelling the growth of the market.

The machine tools segment is anticipated to witness the fastest CAGR growth during the forecast period. The advancements in machine tool technology and the increasing demand for high productivity in industries is driving the growth of the market. Precision machining tools such as CNC machining centers, milling machines, and grinding machines are deployed with linear encoders to provide precise position feedback for tool positioning, workpiece movement, and overall machine control. Moreover, the ability of linear encoders to function in diverse industrial environments is driving the growth of the market.

By End-User :

Based on the end-user, the market is segregated into healthcare, research labs, semiconductor manufacturing, industrial processes, metallurgy, and others. The semiconductor manufacturing segment accounted for the largest revenue share of 31.3% in the year 2022. Linear encoders play a crucial role in semiconductor manufacturing industry for wafer handling and inspection systems. Linear encoders ensure accurate alignment and positioning of semiconductor wafers and components, contributing to the production of high-quality integrated circuits and semiconductor devices. Consequently, the application of linear encoders for manufacturing semiconductor devices of accurate shapes and sizes is accelerating the growth of the market.

The industrial segment is anticipated to emerge as the fastest growing segment during the forecast period. The increasing adoption of linear encoders in manufacturing and packaging purposes is driving the growth of industrial segment. Linear encoders play a crucial role in machine tools, robotics, automated assembly systems, and other industrial machinery to provide accurate position feedback, thereby improving the productivity of the industrial operations. For instance, in May 2023, Heidenhain announced to showcase encoders for robotics applications combining motor speed and position in a single product. Thus, the adoption of linear encoders to automate measurement processes in manufacturing industries is contributing to the growth of the market.

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By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

The Asia-Pacific region accounted for the largest revenue share of USD 292.38 million in 2022 and is expected to reach USD 564.64 million in 2030, registering a CAGR of 8.9% during the forecast period. Additionally, in the region, China accounted for the largest revenue share of 32.56% in the year 2022. The increasing number of industrial activities in sectors including automotive, electronics, and machinery is driving the growth of the market. Manufacturers are increasingly deploying linear encoders to support precision positioning, automation, and quality control in manufacturing processes. Moreover, the Asia-Pacific region is anticipated to emerge as the fastest growing segment during the forecast period. The rapidly growing semiconductor industry in Asia-Pacific region is driving the demand for linear encoders for precise measurements and control. For instance, according to Malaysian Investment Development Authority (MIDA), Global semiconductor industry sales rose by 21.1% in 2022 from USD 42 billion to USD 50.9 billion. As a result, the demand for linear encoders for accurate alignment and positioning during manufacturing of semiconductors is driving the growth of the regional market.