Rotary Encoder Market Size

Rotary Encoder Market size was over USD 2.58 billion in 2024 and is expected to reach USD 7.19 billion by the end of 2037, growing at around 8.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of rotary encoder is assessed at USD 2.75 billion. The growth of the market is due to the adoption of automation across a range of industries and has been further accelerated by digitization and the Industry 4.0 revolution, which is expected to moderate market development. Because of the steady rise in IoT usage and digital transformation across multiple industries, Industry 4.0 convinced OEMs to integrate IoT into their operations. For example, spending on the Internet of Things (IoT) in Europe surpassed USD 202 billion in 2021, according to a recent survey. Through 2025, it is anticipated to rise at a double-digit rate. 

In addition to these, governments throughout the world are encouraging the use of different automation technologies to help industrial companies grow structurally. Governments are also concentrated on the manufacturing industries because they are a crucial part of this development. This is anticipated to increase industrial robot adoption and therefore propel market expansion as a whole.