Global Encoder IC Supply, Demand and Key Producers, 2026-2032
Description
The global Encoder IC market size is expected to reach $ 799 million by 2032, rising at a market growth of 5.8% CAGR during the forecast period (2026-2032).
An encoder is a sensing device that provides feedback. Encoders convert motion to an electrical signal that can be read by some type of control device in a motion control system, such as a counter or PLC. The encoder sends a feedback signal that can be used to determine position, count, speed, or direction. A control device can use this information to send a command for a particular function.
An Encoder IC (Integrated Circuit) is a digital logic IC designed to convert one digital code to another, commonly used to translate a set of inputs into a unique binary code. These ICs take multiple input lines and produce a corresponding multi-bit output, often translating decimal values to binary or converting parallel data to serial, particularly in applications like remote control systems, security alarms, and position sensing.
The Encoder IC (Integrated Circuit) market is experiencing significant growth, driven by the increasing adoption of automation, robotics, and smart electronics across various industries. Encoder ICs—essential components for motion control and feedback systems—translate mechanical motion into electrical signals for precise position, speed, or direction sensing. These chips are essential in everything from factory automation and robotics to consumer electronics, automotive systems, and medical devices.
1. Rising Demand in Industrial Automation
One of the most significant drivers of encoder IC market growth is the rapid expansion of Industry 4.0 and the global shift toward smart factories. Encoder ICs are key elements in motor control systems used in conveyor belts, robotic arms, CNC machinery, and elevators. The need for real-time feedback, precision motion control, and reduced downtime in automated systems is fueling the demand for high-performance encoders—especially optical and magnetic encoder ICs.
2. Automotive Sector Expansion
Modern vehicles increasingly rely on encoder ICs for steering angle detection, throttle control, pedal position sensing, gearbox feedback, and electric motor synchronization. With the rise of electric vehicles (EVs), ADAS (Advanced Driver Assistance Systems), and autonomous driving, the demand for reliable and compact encoder ICs with high-resolution capabilities is expanding rapidly. Automotive-grade encoder ICs also require high durability in harsh environments, boosting demand for magnetic and capacitive types.
3. Miniaturization and Integration
As devices become smaller and smarter, there is a trend toward miniaturized encoder ICs that integrate additional functionality such as signal processing, I2C/SPI communication, or embedded diagnostics. This trend supports the development of compact medical devices (like infusion pumps or robotic surgical systems) and precision tools in consumer electronics (like drones, cameras, and 3D printers).
This report studies the global Encoder IC production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Encoder IC and provides market size (US$ million) and Year-over-Year (YoY) Growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Encoder IC that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Encoder IC total production and demand, 2021-2032, (Million Pcs)
Global Encoder IC total production value, 2021-2032, (USD Million)
Global Encoder IC production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs), (based on production site)
Global Encoder IC consumption by region & country, CAGR, 2021-2032 & (Million Pcs)
U.S. VS China: Encoder IC domestic production, consumption, key domestic manufacturers and share
Global Encoder IC production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (Million Pcs)
Global Encoder IC production by Type, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs)
Global Encoder IC production by Application, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs)
This report profiles key players in the global Encoder IC market based on the following parameters - company overview, production, value, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Broadcom, AMS, Melexis, TE Connectivity, IC-Haus, SEIKO NPC, RLS, ams OSRAM, Hamamatsu, Nisshinbo Micro Devices, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the World Encoder IC market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (Million Pcs) and average price (USD/Pcs) by manufacturer, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Encoder IC Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Encoder IC Market, Segmentation by Type:
Magnetic Encoder IC
Optical Encoder IC
Global Encoder IC Market, Segmentation by Application:
Automotive
Medical
Consumer Electronics
Industrial Automation
Aerospace & Defense
Other
Companies Profiled:
Broadcom
AMS
Melexis
TE Connectivity
IC-Haus
SEIKO NPC
RLS
ams OSRAM
Hamamatsu
Nisshinbo Micro Devices
Magntek
Key Questions Answered:
1. How big is the global Encoder IC market?
2. What is the demand of the global Encoder IC market?
3. What is the year over year growth of the global Encoder IC market?
4. What is the production and production value of the global Encoder IC market?
5. Who are the key producers in the global Encoder IC market?
6. What are the growth factors driving the market demand?
An encoder is a sensing device that provides feedback. Encoders convert motion to an electrical signal that can be read by some type of control device in a motion control system, such as a counter or PLC. The encoder sends a feedback signal that can be used to determine position, count, speed, or direction. A control device can use this information to send a command for a particular function.
An Encoder IC (Integrated Circuit) is a digital logic IC designed to convert one digital code to another, commonly used to translate a set of inputs into a unique binary code. These ICs take multiple input lines and produce a corresponding multi-bit output, often translating decimal values to binary or converting parallel data to serial, particularly in applications like remote control systems, security alarms, and position sensing.
The Encoder IC (Integrated Circuit) market is experiencing significant growth, driven by the increasing adoption of automation, robotics, and smart electronics across various industries. Encoder ICs—essential components for motion control and feedback systems—translate mechanical motion into electrical signals for precise position, speed, or direction sensing. These chips are essential in everything from factory automation and robotics to consumer electronics, automotive systems, and medical devices.
1. Rising Demand in Industrial Automation
One of the most significant drivers of encoder IC market growth is the rapid expansion of Industry 4.0 and the global shift toward smart factories. Encoder ICs are key elements in motor control systems used in conveyor belts, robotic arms, CNC machinery, and elevators. The need for real-time feedback, precision motion control, and reduced downtime in automated systems is fueling the demand for high-performance encoders—especially optical and magnetic encoder ICs.
2. Automotive Sector Expansion
Modern vehicles increasingly rely on encoder ICs for steering angle detection, throttle control, pedal position sensing, gearbox feedback, and electric motor synchronization. With the rise of electric vehicles (EVs), ADAS (Advanced Driver Assistance Systems), and autonomous driving, the demand for reliable and compact encoder ICs with high-resolution capabilities is expanding rapidly. Automotive-grade encoder ICs also require high durability in harsh environments, boosting demand for magnetic and capacitive types.
3. Miniaturization and Integration
As devices become smaller and smarter, there is a trend toward miniaturized encoder ICs that integrate additional functionality such as signal processing, I2C/SPI communication, or embedded diagnostics. This trend supports the development of compact medical devices (like infusion pumps or robotic surgical systems) and precision tools in consumer electronics (like drones, cameras, and 3D printers).
This report studies the global Encoder IC production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Encoder IC and provides market size (US$ million) and Year-over-Year (YoY) Growth, considering 2025 as the base year. This report explores demand trends and competition, as well as details the characteristics of Encoder IC that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Encoder IC total production and demand, 2021-2032, (Million Pcs)
Global Encoder IC total production value, 2021-2032, (USD Million)
Global Encoder IC production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs), (based on production site)
Global Encoder IC consumption by region & country, CAGR, 2021-2032 & (Million Pcs)
U.S. VS China: Encoder IC domestic production, consumption, key domestic manufacturers and share
Global Encoder IC production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (Million Pcs)
Global Encoder IC production by Type, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs)
Global Encoder IC production by Application, production, value, CAGR, 2021-2032, (USD Million) & (Million Pcs)
This report profiles key players in the global Encoder IC market based on the following parameters - company overview, production, value, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Broadcom, AMS, Melexis, TE Connectivity, IC-Haus, SEIKO NPC, RLS, ams OSRAM, Hamamatsu, Nisshinbo Micro Devices, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the World Encoder IC market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (Million Pcs) and average price (USD/Pcs) by manufacturer, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Encoder IC Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Encoder IC Market, Segmentation by Type:
Magnetic Encoder IC
Optical Encoder IC
Global Encoder IC Market, Segmentation by Application:
Automotive
Medical
Consumer Electronics
Industrial Automation
Aerospace & Defense
Other
Companies Profiled:
Broadcom
AMS
Melexis
TE Connectivity
IC-Haus
SEIKO NPC
RLS
ams OSRAM
Hamamatsu
Nisshinbo Micro Devices
Magntek
Key Questions Answered:
1. How big is the global Encoder IC market?
2. What is the demand of the global Encoder IC market?
3. What is the year over year growth of the global Encoder IC market?
4. What is the production and production value of the global Encoder IC market?
5. Who are the key producers in the global Encoder IC market?
6. What are the growth factors driving the market demand?
Table of Contents
130 Pages
- 1 Supply Summary
- 2 Demand Summary
- 3 World Manufacturers Competitive Analysis
- 4 United States VS China VS Rest of the World
- 5 Market Analysis by Type
- 6 Market Analysis by Application
- 7 Company Profiles
- 8 Industry Chain Analysis
- 9 Research Findings and Conclusion
- 10 Appendix
Pricing
Currency Rates
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