The global market for Encoder IC was estimated to be worth US$ 501 million in 2024 and is forecast to a readjusted size of US$ 744 million by 2031 with a CAGR of 5.9% during the forecast period 2025-2031.
This report provides a comprehensive assessment of recent tariff adjustments and international strategic countermeasures on Encoder IC cross-border industrial footprints, capital allocation patterns, regional economic interdependencies, and supply chain reconfigurations.
An encoder is a sensing device that provides feedback. Encoders convert motion to an electrical signal that can be read by some type of control device in a motion control system, such as a counter or PLC. 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.
An Encoder IC (Integrated Circuit) is a digital logic IC designed to convert one digital code to another, commonly used to translate a set of inputs into a unique binary code. These ICs take multiple input lines and produce a corresponding multi-bit output, often translating decimal values to binary or converting parallel data to serial, particularly in applications like remote control systems, security alarms, and position sensing.
The Encoder IC (Integrated Circuit) market is experiencing significant growth, driven by the increasing adoption of automation, robotics, and smart electronics across various industries. Encoder ICs-essential components for motion control and feedback systems-translate mechanical motion into electrical signals for precise position, speed, or direction sensing. These chips are essential in everything from factory automation and robotics to consumer electronics, automotive systems, and medical devices.
1. Rising Demand in Industrial Automation
One of the most significant drivers of encoder IC market growth is the rapid expansion of Industry 4.0 and the global shift toward smart factories. Encoder ICs are key elements in motor control systems used in conveyor belts, robotic arms, CNC machinery, and elevators. The need for real-time feedback, precision motion control, and reduced downtime in automated systems is fueling the demand for high-performance encoders-especially optical and magnetic encoder ICs.
2. Automotive Sector Expansion
Modern vehicles increasingly rely on encoder ICs for steering angle detection, throttle control, pedal position sensing, gearbox feedback, and electric motor synchronization. With the rise of electric vehicles (EVs), ADAS (Advanced Driver Assistance Systems), and autonomous driving, the demand for reliable and compact encoder ICs with high-resolution capabilities is expanding rapidly. Automotive-grade encoder ICs also require high durability in harsh environments, boosting demand for magnetic and capacitive types.
3. Miniaturization and Integration
As devices become smaller and smarter, there is a trend toward miniaturized encoder ICs that integrate additional functionality such as signal processing, I2C/SPI communication, or embedded diagnostics. This trend supports the development of compact medical devices (like infusion pumps or robotic surgical systems) and precision tools in consumer electronics (like drones, cameras, and 3D printers).
This report aims to provide a comprehensive presentation of the global market for Encoder IC, focusing on the total sales volume, sales revenue, price, key companies market share and ranking, together with an analysis of Encoder IC by region & country, by Type, and by Application.
The Encoder IC market size, estimations, and forecasts are provided in terms of sales volume (Million Pcs) and sales revenue ($ millions), considering 2024 as the base year, with history and forecast data for the period from 2020 to 2031. With both quantitative and qualitative analysis, to help readers develop business/growth strategies, assess the market competitive situation, analyze their position in the current marketplace, and make informed business decisions regarding Encoder IC.
Market Segmentation
By Company
- Broadcom
- AMS
- Melexis
- TE Connectivity
- IC-Haus
- SEIKO NPC
- RLS
- ams OSRAM
- Hamamatsu
- Nisshinbo Micro Devices
- Magntek
Segment by Type
- Magnetic Encoder IC
- Optical Encoder IC
Segment by Application
- Automotive
- Medical
- Consumer Electronics
- Industrial Automation
- Aerospace & Defense
- Other
By Region
- North America
- Asia-Pacific
- China
- Japan
- South Korea
- Southeast Asia
- India
- Australia
- Rest of Asia-Pacific
- Europe
- Germany
- France
- U.K.
- Italy
- Netherlands
- Nordic Countries
- Rest of Europe
- Latin America
- Mexico
- Brazil
- Rest of Latin America
- Middle East & Africa
- Turkey
- Saudi Arabia
- UAE
- Rest of MEA
Chapter Outline
Chapter 1: Introduces the report scope of the report, global total market size (value, volume and price). This chapter also provides the market dynamics, latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.
Chapter 2: Detailed analysis of Encoder IC manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.
Chapter 3: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.
Chapter 4: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.
Chapter 5: Sales, revenue of Encoder IC in regional level. It provides a quantitative analysis of the market size and development potential of each region and introduces the market development, future development prospects, market space, and market size of each country in the world.
Chapter 6: Sales, revenue of Encoder IC in country level. It provides sigmate data by Type, and by Application for each country/region.
Chapter 7: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.
Chapter 8: Analysis of industrial chain, including the upstream and downstream of the industry.
Chapter 9: Conclusion.
Table of Contents
1 Market Overview
- 1.1 Encoder IC Product Introduction
- 1.2 Global Encoder IC Market Size Forecast
- 1.2.1 Global Encoder IC Sales Value (2020-2031)
- 1.2.2 Global Encoder IC Sales Volume (2020-2031)
- 1.2.3 Global Encoder IC Sales Price (2020-2031)
- 1.3 Encoder IC Market Trends & Drivers
- 1.3.1 Encoder IC Industry Trends
- 1.3.2 Encoder IC Market Drivers & Opportunity
- 1.3.3 Encoder IC Market Challenges
- 1.3.4 Encoder IC Market Restraints
- 1.4 Assumptions and Limitations
- 1.5 Study Objectives
- 1.6 Years Considered
2 Competitive Analysis by Company
- 2.1 Global Encoder IC Players Revenue Ranking (2024)
- 2.2 Global Encoder IC Revenue by Company (2020-2025)
- 2.3 Global Encoder IC Players Sales Volume Ranking (2024)
- 2.4 Global Encoder IC Sales Volume by Company Players (2020-2025)
- 2.5 Global Encoder IC Average Price by Company (2020-2025)
- 2.6 Key Manufacturers Encoder IC Manufacturing Base and Headquarters
- 2.7 Key Manufacturers Encoder IC Product Offered
- 2.8 Key Manufacturers Time to Begin Mass Production of Encoder IC
- 2.9 Encoder IC Market Competitive Analysis
- 2.9.1 Encoder IC Market Concentration Rate (2020-2025)
- 2.9.2 Global 5 and 10 Largest Manufacturers by Encoder IC Revenue in 2024
- 2.9.3 Global Top Manufacturers by Company Type (Tier 1, Tier 2, and Tier 3) & (based on the Revenue in Encoder IC as of 2024)
- 2.10 Mergers & Acquisitions, Expansion
3 Segmentation by Type
- 3.1 Introduction by Type
- 3.1.1 Magnetic Encoder IC
- 3.1.2 Optical Encoder IC
- 3.2 Global Encoder IC Sales Value by Type
- 3.2.1 Global Encoder IC Sales Value by Type (2020 VS 2024 VS 2031)
- 3.2.2 Global Encoder IC Sales Value, by Type (2020-2031)
- 3.2.3 Global Encoder IC Sales Value, by Type (%) (2020-2031)
- 3.3 Global Encoder IC Sales Volume by Type
- 3.3.1 Global Encoder IC Sales Volume by Type (2020 VS 2024 VS 2031)
- 3.3.2 Global Encoder IC Sales Volume, by Type (2020-2031)
- 3.3.3 Global Encoder IC Sales Volume, by Type (%) (2020-2031)
- 3.4 Global Encoder IC Average Price by Type (2020-2031)
4 Segmentation by Application
- 4.1 Introduction by Application
- 4.1.1 Automotive
- 4.1.2 Medical
- 4.1.3 Consumer Electronics
- 4.1.4 Industrial Automation
- 4.1.5 Aerospace & Defense
- 4.1.6 Other
- 4.2 Global Encoder IC Sales Value by Application
- 4.2.1 Global Encoder IC Sales Value by Application (2020 VS 2024 VS 2031)
- 4.2.2 Global Encoder IC Sales Value, by Application (2020-2031)
- 4.2.3 Global Encoder IC Sales Value, by Application (%) (2020-2031)
- 4.3 Global Encoder IC Sales Volume by Application
- 4.3.1 Global Encoder IC Sales Volume by Application (2020 VS 2024 VS 2031)
- 4.3.2 Global Encoder IC Sales Volume, by Application (2020-2031)
- 4.3.3 Global Encoder IC Sales Volume, by Application (%) (2020-2031)
- 4.4 Global Encoder IC Average Price by Application (2020-2031)
5 Segmentation by Region
- 5.1 Global Encoder IC Sales Value by Region
- 5.1.1 Global Encoder IC Sales Value by Region: 2020 VS 2024 VS 2031
- 5.1.2 Global Encoder IC Sales Value by Region (2020-2025)
- 5.1.3 Global Encoder IC Sales Value by Region (2026-2031)
- 5.1.4 Global Encoder IC Sales Value by Region (%), (2020-2031)
- 5.2 Global Encoder IC Sales Volume by Region
- 5.2.1 Global Encoder IC Sales Volume by Region: 2020 VS 2024 VS 2031
- 5.2.2 Global Encoder IC Sales Volume by Region (2020-2025)
- 5.2.3 Global Encoder IC Sales Volume by Region (2026-2031)
- 5.2.4 Global Encoder IC Sales Volume by Region (%), (2020-2031)
- 5.3 Global Encoder IC Average Price by Region (2020-2031)
- 5.4 North America
- 5.4.1 North America Encoder IC Sales Value, 2020-2031
- 5.4.2 North America Encoder IC Sales Value by Country (%), 2024 VS 2031
- 5.5 Europe
- 5.5.1 Europe Encoder IC Sales Value, 2020-2031
- 5.5.2 Europe Encoder IC Sales Value by Country (%), 2024 VS 2031
- 5.6 Asia Pacific
- 5.6.1 Asia Pacific Encoder IC Sales Value, 2020-2031
- 5.6.2 Asia Pacific Encoder IC Sales Value by Region (%), 2024 VS 2031
- 5.7 South America
- 5.7.1 South America Encoder IC Sales Value, 2020-2031
- 5.7.2 South America Encoder IC Sales Value by Country (%), 2024 VS 2031
- 5.8 Middle East & Africa
- 5.8.1 Middle East & Africa Encoder IC Sales Value, 2020-2031
- 5.8.2 Middle East & Africa Encoder IC Sales Value by Country (%), 2024 VS 2031
6 Segmentation by Key Countries/Regions
- 6.1 Key Countries/Regions Encoder IC Sales Value Growth Trends, 2020 VS 2024 VS 2031
- 6.2 Key Countries/Regions Encoder IC Sales Value and Sales Volume
- 6.2.1 Key Countries/Regions Encoder IC Sales Value, 2020-2031
- 6.2.2 Key Countries/Regions Encoder IC Sales Volume, 2020-2031
- 6.3 United States
- 6.3.1 United States Encoder IC Sales Value, 2020-2031
- 6.3.2 United States Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.3.3 United States Encoder IC Sales Value by Application, 2024 VS 2031
- 6.4 Europe
- 6.4.1 Europe Encoder IC Sales Value, 2020-2031
- 6.4.2 Europe Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.4.3 Europe Encoder IC Sales Value by Application, 2024 VS 2031
- 6.5 China
- 6.5.1 China Encoder IC Sales Value, 2020-2031
- 6.5.2 China Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.5.3 China Encoder IC Sales Value by Application, 2024 VS 2031
- 6.6 Japan
- 6.6.1 Japan Encoder IC Sales Value, 2020-2031
- 6.6.2 Japan Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.6.3 Japan Encoder IC Sales Value by Application, 2024 VS 2031
- 6.7 South Korea
- 6.7.1 South Korea Encoder IC Sales Value, 2020-2031
- 6.7.2 South Korea Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.7.3 South Korea Encoder IC Sales Value by Application, 2024 VS 2031
- 6.8 Southeast Asia
- 6.8.1 Southeast Asia Encoder IC Sales Value, 2020-2031
- 6.8.2 Southeast Asia Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.8.3 Southeast Asia Encoder IC Sales Value by Application, 2024 VS 2031
- 6.9 India
- 6.9.1 India Encoder IC Sales Value, 2020-2031
- 6.9.2 India Encoder IC Sales Value by Type (%), 2024 VS 2031
- 6.9.3 India Encoder IC Sales Value by Application, 2024 VS 2031
7 Company Profiles
- 7.1 Broadcom
- 7.1.1 Broadcom Company Information
- 7.1.2 Broadcom Introduction and Business Overview
- 7.1.3 Broadcom Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.1.4 Broadcom Encoder IC Product Offerings
- 7.1.5 Broadcom Recent Development
- 7.2 AMS
- 7.2.1 AMS Company Information
- 7.2.2 AMS Introduction and Business Overview
- 7.2.3 AMS Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.2.4 AMS Encoder IC Product Offerings
- 7.2.5 AMS Recent Development
- 7.3 Melexis
- 7.3.1 Melexis Company Information
- 7.3.2 Melexis Introduction and Business Overview
- 7.3.3 Melexis Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.3.4 Melexis Encoder IC Product Offerings
- 7.3.5 Melexis Recent Development
- 7.4 TE Connectivity
- 7.4.1 TE Connectivity Company Information
- 7.4.2 TE Connectivity Introduction and Business Overview
- 7.4.3 TE Connectivity Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.4.4 TE Connectivity Encoder IC Product Offerings
- 7.4.5 TE Connectivity Recent Development
- 7.5 IC-Haus
- 7.5.1 IC-Haus Company Information
- 7.5.2 IC-Haus Introduction and Business Overview
- 7.5.3 IC-Haus Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.5.4 IC-Haus Encoder IC Product Offerings
- 7.5.5 IC-Haus Recent Development
- 7.6 SEIKO NPC
- 7.6.1 SEIKO NPC Company Information
- 7.6.2 SEIKO NPC Introduction and Business Overview
- 7.6.3 SEIKO NPC Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.6.4 SEIKO NPC Encoder IC Product Offerings
- 7.6.5 SEIKO NPC Recent Development
- 7.7 RLS
- 7.7.1 RLS Company Information
- 7.7.2 RLS Introduction and Business Overview
- 7.7.3 RLS Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.7.4 RLS Encoder IC Product Offerings
- 7.7.5 RLS Recent Development
- 7.8 ams OSRAM
- 7.8.1 ams OSRAM Company Information
- 7.8.2 ams OSRAM Introduction and Business Overview
- 7.8.3 ams OSRAM Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.8.4 ams OSRAM Encoder IC Product Offerings
- 7.8.5 ams OSRAM Recent Development
- 7.9 Hamamatsu
- 7.9.1 Hamamatsu Company Information
- 7.9.2 Hamamatsu Introduction and Business Overview
- 7.9.3 Hamamatsu Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.9.4 Hamamatsu Encoder IC Product Offerings
- 7.9.5 Hamamatsu Recent Development
- 7.10 Nisshinbo Micro Devices
- 7.10.1 Nisshinbo Micro Devices Company Information
- 7.10.2 Nisshinbo Micro Devices Introduction and Business Overview
- 7.10.3 Nisshinbo Micro Devices Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.10.4 Nisshinbo Micro Devices Encoder IC Product Offerings
- 7.10.5 Nisshinbo Micro Devices Recent Development
- 7.11 Magntek
- 7.11.1 Magntek Company Information
- 7.11.2 Magntek Introduction and Business Overview
- 7.11.3 Magntek Encoder IC Sales, Revenue, Price and Gross Margin (2020-2025)
- 7.11.4 Magntek Encoder IC Product Offerings
- 7.11.5 Magntek Recent Development
8 Industry Chain Analysis
- 8.1 Encoder IC Industrial Chain
- 8.2 Encoder IC Upstream Analysis
- 8.2.1 Key Raw Materials
- 8.2.2 Raw Materials Key Suppliers
- 8.2.3 Manufacturing Cost Structure
- 8.3 Midstream Analysis
- 8.4 Downstream Analysis (Customers Analysis)
- 8.5 Sales Model and Sales Channels
- 8.5.1 Encoder IC Sales Model
- 8.5.2 Sales Channel
- 8.5.3 Encoder IC Distributors
9 Research Findings and Conclusion
10 Appendix
- 10.1 Research Methodology
- 10.1.1 Methodology/Research Approach
- 10.1.1.1 Research Programs/Design
- 10.1.1.2 Market Size Estimation
- 10.1.1.3 Market Breakdown and Data Triangulation
- 10.1.2 Data Source
- 10.1.2.1 Secondary Sources
- 10.1.2.2 Primary Sources
- 10.2 Author Details
- 10.3 Disclaimer