Encoder ICs Market Trends

Growth Drivers

• Emergence of wireless encoders - Wireless encoders allow for greater flexibility and ease of installation in different applications, eliminating the need to connect via a physical cable. Furthermore, the HEV-4KW is a wireless HDMI live streaming encoder with an incredibly small and light form factor enabling 4K video to be played from beginning to end. Wireless encoders are seamlessly integrated with the internet of things platforms and cloud-based services, enabling data analytics, precipitary maintenance as well as operational efficiency improvement.
   
• Demand in the automotive sector - Encoders are used in a wide range of medical applications, including robots to process samples in laboratories, patient tables to be adjusted, and the rotation speed and position of the gantry in CT scanners and surgical robots. In the United States, about 644,000 robot operations were carried out in 2021, and this number is expected to reach 1 million by 2028. Millions more have taken place worldwide.

Challenges

• Increased complexities associated - Encoders are often more complicated circuits than multiplexers, requiring several extra components to operate. Encoder ICs can be difficult to design and implement and require specialized knowledge and expertise, which discourages some users from adopting them in industries where interoperability is of paramount importance. Compatibility issues with current systems or other components are a major barrier to adoption, especially in the industrial sectors.
   
• The high initial investment required is set to hamper the market expansion further.
   
• High manufacturing cost is set to obstruct market growth in the future.