Incremental Encoders Market Outlook:
Incremental Encoders Market size was over USD 4.23 billion in 2025 and is poised to exceed USD 10.87 billion by 2035, growing at over 9.9% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of incremental encoders is estimated at USD 4.61 billion.
The growth of the market can primarily be attributed to the growing demand for incremental encoders for airborne systems as well as flight simulators with the rise in the aerospace industry worldwide. For instance, it was found that, the revenue of global commercial aerospace and defense (A&D) industry accounted for more than USD 700 billion in 2021
Encoders are used in machinery for motion feedback and motion control. They are found in machinery in all industries. 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. The demand for incremental encoders is on the rise in the automotive industry, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global incremental encoders market during the forecast period.
