Global Magnetic Encoder Chip Market Growth 2026-2032
Description
The global Magnetic Encoder Chip market size is predicted to grow from US$ 268 million in 2025 to US$ 395 million in 2032; it is expected to grow at a CAGR of 5.8% from 2026 to 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.
LP Information, Inc. (LPI) ' newest research report, the “Magnetic Encoder Chip Industry Forecast” looks at past sales and reviews total world Magnetic Encoder Chip sales in 2025, providing a comprehensive analysis by region and market sector of projected Magnetic Encoder Chip sales for 2026 through 2032. With Magnetic Encoder Chip sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Magnetic Encoder Chip industry.
This Insight Report provides a comprehensive analysis of the global Magnetic Encoder Chip landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Magnetic Encoder Chip portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Magnetic Encoder Chip market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Magnetic Encoder Chip and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Magnetic Encoder Chip.
This report presents a comprehensive overview, market shares, and growth opportunities of Magnetic Encoder Chip market by product type, application, key manufacturers and key regions and countries.
Segmentation by Type:
Magnetoresistive Type
Hall Type
Segmentation by Product:
Incremental Type
Absolute Type
Segmentation by Function:
Rotary Type
Linear Type
Angle Type
Segmentation by Application:
Automotive
Medical
Industrial Equipment
Consumer Electronics
Other
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
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 Addressed in this Report
What is the 10-year outlook for the global Magnetic Encoder Chip market?
What factors are driving Magnetic Encoder Chip market growth, globally and by region?
Which technologies are poised for the fastest growth by market and region?
How do Magnetic Encoder Chip market opportunities vary by end market size?
How does Magnetic Encoder Chip break out by Type, by Application?
Please note: The report will take approximately 2 business days to prepare and deliver.
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.
LP Information, Inc. (LPI) ' newest research report, the “Magnetic Encoder Chip Industry Forecast” looks at past sales and reviews total world Magnetic Encoder Chip sales in 2025, providing a comprehensive analysis by region and market sector of projected Magnetic Encoder Chip sales for 2026 through 2032. With Magnetic Encoder Chip sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Magnetic Encoder Chip industry.
This Insight Report provides a comprehensive analysis of the global Magnetic Encoder Chip landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Magnetic Encoder Chip portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firms’ unique position in an accelerating global Magnetic Encoder Chip market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Magnetic Encoder Chip and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Magnetic Encoder Chip.
This report presents a comprehensive overview, market shares, and growth opportunities of Magnetic Encoder Chip market by product type, application, key manufacturers and key regions and countries.
Segmentation by Type:
Magnetoresistive Type
Hall Type
Segmentation by Product:
Incremental Type
Absolute Type
Segmentation by Function:
Rotary Type
Linear Type
Angle Type
Segmentation by Application:
Automotive
Medical
Industrial Equipment
Consumer Electronics
Other
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
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 Addressed in this Report
What is the 10-year outlook for the global Magnetic Encoder Chip market?
What factors are driving Magnetic Encoder Chip market growth, globally and by region?
Which technologies are poised for the fastest growth by market and region?
How do Magnetic Encoder Chip market opportunities vary by end market size?
How does Magnetic Encoder Chip break out by Type, by Application?
Please note: The report will take approximately 2 business days to prepare and deliver.
Table of Contents
121 Pages
- *This is a tentative TOC and the final deliverable is subject to change.*
- 1 Scope of the Report
- 2 Executive Summary
- 3 Global by Company
- 4 World Historic Review for Magnetic Encoder Chip by Geographic Region
- 5 Americas
- 6 APAC
- 7 Europe
- 8 Middle East & Africa
- 9 Market Drivers, Challenges and Trends
- 10 Manufacturing Cost Structure Analysis
- 11 Marketing, Distributors and Customer
- 12 World Forecast Review for Magnetic Encoder Chip by Geographic Region
- 13 Key Players Analysis
- 14 Research Findings and Conclusion
Pricing
Currency Rates
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