Global Magnetic Encoder Chip Supply, Demand and Key Producers, 2026-2032
Description
The global Magnetic Encoder Chip market size is expected to reach $ 407 million by 2032, rising at a market growth of 5.5% CAGR during the forecast period (2026-2032).
A Magnetic Encoder Chip is a semiconductor sensor device that measures rotation angle, position, or speed by detecting changes in a magnetic field. Instead of using optical signals (as in optical encoders), a magnetic encoder chip uses Hall-effect, AMR, GMR, or TMR magnetic sensing technologies to track the movement of a magnet attached to a motor shaft or linear mechanism.
In 2024, global Magnetic Encoder Chip sales volume reached approximately 53.15 million units, with an average global market price of around 4.9 US$ per unit.
1. Rapid Growth of Electric Motors, Robotics, and Precision Automation
A major driver of the magnetic encoder chip market is the global expansion of electric motors and automated machinery across industries such as robotics, industrial automation, e-mobility, HVAC, consumer electronics, and smart manufacturing. Magnetic encoder chips provide compact, cost-effective, and highly reliable position and angle sensing inside BLDC, PMSM, and stepper motors—components that are increasingly used in robots, AGVs/AMRs, servo systems, drones, and factory automation equipment. As Industry 4.0 and industrial robotics adoption accelerate, the demand for integrated motor-feedback solutions grows sharply. Magnetic encoder chips have become the preferred sensing technology because they offer high resolution, contactless operation, and resilience to dust, oil, vibration, and mechanical wear, making them ideal for harsh industrial and automotive environments.
2. Rising Adoption of Automotive Electrification and Advanced Driver Assistance Systems (ADAS)
Automotive electrification—including EV traction motors, e-steering, brake-by-wire, and electronically controlled actuators—creates strong demand for magnetic encoder chips that provide high-accuracy angle, speed, and position information. Modern vehicles incorporate dozens of position sensors for steering angle, throttle position, pedal sensing, transmission control, mirror and seat motors, and thermal management systems. Magnetic encoder chips, especially AMR, GMR, and TMR technologies, are increasingly selected because they offer high precision, high temperature tolerance, and long-term stability that meets automotive safety requirements (ASIL-B/D). As ADAS and autonomous driving systems require more accurate and redundant position sensing, magnetic encoder chips play a critical role in ensuring safe and reliable motor control, thereby driving significant market growth in the automotive sector.
3. Transition Toward High-Resolution, Low-Power, and Integrated Sensor Solutions
A third major market driver is the technological shift toward higher-resolution, lower-power, and fully integrated sensing solutions that reduce system size and cost. New magnetic encoder chips combine advanced sensing technologies—such as TMR, GMR, and high-precision Hall arrays—with on-chip analog-to-digital conversion, DSP interpolation, self-calibration, and digital interfaces like SPI, I²C, SENT, and ABI. This level of integration allows encoder chips to replace bulkier optical encoders and mechanical position sensors, enabling compact motor designs for drones, gimbals, medical devices, home appliances, and consumer electronics. Furthermore, low-power magnetic encoders support battery-driven devices and emerging IoT applications. As design engineers prioritize compactness, reduced BOM cost, and high performance, integrated magnetic encoder chips continue to gain market share across multiple industries.
This report studies the global Magnetic Encoder Chip production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Magnetic Encoder Chip 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 Magnetic Encoder Chip that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Magnetic Encoder Chip total production and demand, 2021-2032, (K Units)
Global Magnetic Encoder Chip total production value, 2021-2032, (USD Million)
Global Magnetic Encoder Chip production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (K Units), (based on production site)
Global Magnetic Encoder Chip consumption by region & country, CAGR, 2021-2032 & (K Units)
U.S. VS China: Magnetic Encoder Chip domestic production, consumption, key domestic manufacturers and share
Global Magnetic Encoder Chip production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (K Units)
Global Magnetic Encoder Chip production by Type, production, value, CAGR, 2021-2032, (USD Million) & (K Units)
Global Magnetic Encoder Chip production by Application, production, value, CAGR, 2021-2032, (USD Million) & (K Units)
This report profiles key players in the global Magnetic Encoder Chip 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, TE Connectivity, Allegro MicroSystems, Magntek, Asahi Kasei Microdevices, iC-Haus GmbH, Melexis, MultiDimension Technology, SEMIMENT, 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 Magnetic Encoder Chip market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (K Units) and average price (US$/Unit) by manufacturer, by Type, and by Application. Data is given for the years 2021-2032 by year with 2025 as the base year, 2026 as the estimate year, and 2027-2032 as the forecast year.
Global Magnetic Encoder Chip Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Magnetic Encoder Chip Market, Segmentation by Type:
Magnetoresistive Type
Hall Type
Global Magnetic Encoder Chip Market, Segmentation by Product:
Incremental Type
Absolute Type
Global Magnetic Encoder Chip Market, Segmentation by Function:
Rotary Type
Linear Type
Angle Type
Global Magnetic Encoder Chip Market, Segmentation by Application:
Automotive
Medical
Industrial Equipment
Consumer Electronics
Other
Companies Profiled:
Broadcom
AMS
TE Connectivity
Allegro MicroSystems
Magntek
Asahi Kasei Microdevices
iC-Haus GmbH
Melexis
MultiDimension Technology
SEMIMENT
RLS
Xi'an Zhongke Alpha Electronic Technology
Key Questions Answered:
1. How big is the global Magnetic Encoder Chip market?
2. What is the demand of the global Magnetic Encoder Chip market?
3. What is the year over year growth of the global Magnetic Encoder Chip market?
4. What is the production and production value of the global Magnetic Encoder Chip market?
5. Who are the key producers in the global Magnetic Encoder Chip market?
6. What are the growth factors driving the market demand?
A Magnetic Encoder Chip is a semiconductor sensor device that measures rotation angle, position, or speed by detecting changes in a magnetic field. Instead of using optical signals (as in optical encoders), a magnetic encoder chip uses Hall-effect, AMR, GMR, or TMR magnetic sensing technologies to track the movement of a magnet attached to a motor shaft or linear mechanism.
In 2024, global Magnetic Encoder Chip sales volume reached approximately 53.15 million units, with an average global market price of around 4.9 US$ per unit.
1. Rapid Growth of Electric Motors, Robotics, and Precision Automation
A major driver of the magnetic encoder chip market is the global expansion of electric motors and automated machinery across industries such as robotics, industrial automation, e-mobility, HVAC, consumer electronics, and smart manufacturing. Magnetic encoder chips provide compact, cost-effective, and highly reliable position and angle sensing inside BLDC, PMSM, and stepper motors—components that are increasingly used in robots, AGVs/AMRs, servo systems, drones, and factory automation equipment. As Industry 4.0 and industrial robotics adoption accelerate, the demand for integrated motor-feedback solutions grows sharply. Magnetic encoder chips have become the preferred sensing technology because they offer high resolution, contactless operation, and resilience to dust, oil, vibration, and mechanical wear, making them ideal for harsh industrial and automotive environments.
2. Rising Adoption of Automotive Electrification and Advanced Driver Assistance Systems (ADAS)
Automotive electrification—including EV traction motors, e-steering, brake-by-wire, and electronically controlled actuators—creates strong demand for magnetic encoder chips that provide high-accuracy angle, speed, and position information. Modern vehicles incorporate dozens of position sensors for steering angle, throttle position, pedal sensing, transmission control, mirror and seat motors, and thermal management systems. Magnetic encoder chips, especially AMR, GMR, and TMR technologies, are increasingly selected because they offer high precision, high temperature tolerance, and long-term stability that meets automotive safety requirements (ASIL-B/D). As ADAS and autonomous driving systems require more accurate and redundant position sensing, magnetic encoder chips play a critical role in ensuring safe and reliable motor control, thereby driving significant market growth in the automotive sector.
3. Transition Toward High-Resolution, Low-Power, and Integrated Sensor Solutions
A third major market driver is the technological shift toward higher-resolution, lower-power, and fully integrated sensing solutions that reduce system size and cost. New magnetic encoder chips combine advanced sensing technologies—such as TMR, GMR, and high-precision Hall arrays—with on-chip analog-to-digital conversion, DSP interpolation, self-calibration, and digital interfaces like SPI, I²C, SENT, and ABI. This level of integration allows encoder chips to replace bulkier optical encoders and mechanical position sensors, enabling compact motor designs for drones, gimbals, medical devices, home appliances, and consumer electronics. Furthermore, low-power magnetic encoders support battery-driven devices and emerging IoT applications. As design engineers prioritize compactness, reduced BOM cost, and high performance, integrated magnetic encoder chips continue to gain market share across multiple industries.
This report studies the global Magnetic Encoder Chip production, demand, key manufacturers, and key regions.
This report is a detailed and comprehensive analysis of the world market for Magnetic Encoder Chip 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 Magnetic Encoder Chip that contribute to its increasing demand across many markets.
Highlights and key features of the study
Global Magnetic Encoder Chip total production and demand, 2021-2032, (K Units)
Global Magnetic Encoder Chip total production value, 2021-2032, (USD Million)
Global Magnetic Encoder Chip production by region & country, production, value, CAGR, 2021-2032, (USD Million) & (K Units), (based on production site)
Global Magnetic Encoder Chip consumption by region & country, CAGR, 2021-2032 & (K Units)
U.S. VS China: Magnetic Encoder Chip domestic production, consumption, key domestic manufacturers and share
Global Magnetic Encoder Chip production by manufacturer, production, price, value and market share 2021-2026, (USD Million) & (K Units)
Global Magnetic Encoder Chip production by Type, production, value, CAGR, 2021-2032, (USD Million) & (K Units)
Global Magnetic Encoder Chip production by Application, production, value, CAGR, 2021-2032, (USD Million) & (K Units)
This report profiles key players in the global Magnetic Encoder Chip 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, TE Connectivity, Allegro MicroSystems, Magntek, Asahi Kasei Microdevices, iC-Haus GmbH, Melexis, MultiDimension Technology, SEMIMENT, 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 Magnetic Encoder Chip market
Detailed Segmentation:
Each section contains quantitative market data including market by value (US$ Millions), volume (production, consumption) & (K Units) and average price (US$/Unit) 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 Magnetic Encoder Chip Market, By Region:
United States
China
Europe
Japan
South Korea
ASEAN
India
Rest of World
Global Magnetic Encoder Chip Market, Segmentation by Type:
Magnetoresistive Type
Hall Type
Global Magnetic Encoder Chip Market, Segmentation by Product:
Incremental Type
Absolute Type
Global Magnetic Encoder Chip Market, Segmentation by Function:
Rotary Type
Linear Type
Angle Type
Global Magnetic Encoder Chip Market, Segmentation by Application:
Automotive
Medical
Industrial Equipment
Consumer Electronics
Other
Companies Profiled:
Broadcom
AMS
TE Connectivity
Allegro MicroSystems
Magntek
Asahi Kasei Microdevices
iC-Haus GmbH
Melexis
MultiDimension Technology
SEMIMENT
RLS
Xi'an Zhongke Alpha Electronic Technology
Key Questions Answered:
1. How big is the global Magnetic Encoder Chip market?
2. What is the demand of the global Magnetic Encoder Chip market?
3. What is the year over year growth of the global Magnetic Encoder Chip market?
4. What is the production and production value of the global Magnetic Encoder Chip market?
5. Who are the key producers in the global Magnetic Encoder Chip market?
6. What are the growth factors driving the market demand?
Table of Contents
128 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 Product
- 7 Market Analysis by Function
- 8 Market Analysis by Application
- 9 Company Profiles
- 10 Industry Chain Analysis
- 11 Research Findings and Conclusion
- 12 Appendix
Pricing
Currency Rates
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