Rotary Encoder Market Outlook:
Rotary Encoder Market size was valued at USD 1.1 billion in 2025 and is expected to reach USD 1.8 billion by the end of 2036, registering a CAGR of 5.1% during the forecast period, i.e., 2026-2036. In 2026, the industry size of rotary encoder is assessed at USD 1.2 billion.
The increasing industrial automation globally is a key factor expected to boost the demand for different types of rotary encoders during the forecast period. The use of rotary encoders as sensors is crucial in industrial automation for position detection and speed in different mechanical systems. According to a 2024 report by the International Federation of Robotics, around 4,281,585 units were operating in factories worldwide in 2024, a significant increase compared to 2023. This is expected to increase the demand for rotary encoders in automation, motion control, and robotics.
Source: IFR
By region, nearly 70% new robots were deployed in industries in Asia, followed by 17% in Europe and 10% in the U.S in 2023. Here is a list of industrial robot installations in specific countries.
|
Region |
Country |
Installations 2023 (units) |
YoY Change |
|
Asia |
China |
276,288 |
-5% (vs 2022: 290,144) |
|
Japan |
46,106 |
-9% |
|
|
South Korea |
31,444 |
-1% |
|
|
India |
8,510 |
+59% |
|
|
Europe |
Total |
92,393 |
+9% |
|
Germany |
28,355 |
+7% |
|
|
Italy |
10,412 |
-9% |
|
|
France |
6,386 |
-13% |
|
|
Spain |
5,053 |
+31% |
|
|
Slovakia |
2,174 |
+48% |
|
|
Hungary |
1,657 |
+31% |
|
|
UK |
3,830 |
+51% |
|
|
North America |
Total |
55,389 |
-1% |
|
United States |
37,587 |
-5% |
|
|
Canada |
4,311 |
+37% |
Source: IFR
In addition, continuous innovations in the development of rotary encoder technology influence market growth. Innovations are mainly driven by companies associated with the market. For instance, in March 2025, Oriental Motor announced the expansion of its product line of rotary encoders with the introduction of a new 40 mm rotary encoder. The resolution of new encoders ranges from 100 to 4000 P/R, and they are capable of delivering diverse output types, including open collector, line driven, and voltage output.
