According to Future Market Insights (FMI), encoders are seeing surging demand in the global automotive and electronics industries. This demand is primarily responsible for reduction in prices of encoders, and according to a new research study, price optimization is expected to benefit overall growth of the global encoder market. FMI projects more demand for encoders in the wake of advancements in industrial activities and expansion of the global infrastructure sector.
The report forecasts that global revenue from the sales of encoders is estimated to stand at $2,189.1 million by the end of 2018. The global encoder market is expected to register a CAGR of 12.3 percent during the period from 2018 to 2027. FMI’s report tracks the demand scenario of linear and rotary encoders and also studies the adoption of encoders across key industries.
According to FMI, one of the main drivers of the market is rising vehicle electrification in hybrid and electric vehicles. Automakers are integrating Bluetooth and other cellular technologies in their vehicles to cater to an increasing consumer demand. These advanced vehicle features require sensors and semiconductors for distributing and controlling power within the vehicle. This is boosting growth in revenue of the global encoder market. Further, growing incorporation of in-vehicle safety measures such as automatic emergency braking (AEB) is expected to grow sales.
Sales of rotary encoders are estimated to outpace linear encoders in the coming years. FMI estimates sales revenue of rotary encoders to cross 50 percent of the global market share by the end of 2018.
Among the end-use industries using encoders, the automotive sector is projected to display a heightened demand and adoption scenario, primarily owing to increasing demand from automotive OEMs.