In the next nine years, to 2029, the global sales of optical encoders are projected to grow at a CAGR of around 9%, according to new research by Future Market Insights. Healthcare equipment currently accounts for over a fourth of the total demand for optical encoders, remaining a significantly lucrative application area, most likely to overtake the consumer electronics industry in terms of market value share.
The report on the optical encoder market by Future Market Insights also highlights that another major booster to market growth through 2029 is the increasing implementation of advanced absolute optical encoders by manufacturers of surface mount technology (SMT) placement equipment.
Players in the automation sector are switching from incremental optical encoders to absolute optical encoders that are well suited for high-precision instrument, as they produce parallel digit outputs.
In terms of georgaphical split, the Asia Pacific excluding Japan (APEJ) is experiencing a high growth rate in optical encoder market as manufacturers of automotive, consumer electronic and industry automation are adopting optical encoders to improve product quality.
Requirement for high performance optical encoders is expected to increase, owing to commercialisation of quantum dots (QDs). QDs are used in a variety of thin-film devices such as photo detectors, solar cells and LEDs. In flat panel display (FPD) applications, QDs offer improved efficiency, display life, power consumption, brightness and color saturation, along with reduced cost. Experts at FMI expects manufacturers to shift from liquid crystal display (LCD) toward the development of QD-enabled devices such as cost-effective thin film transistor (TFT) products in the foreseeable future.
Improvement in performance will be crucial to meet demand for motion control in QD devices. Advanced optical encoders are expected to emerge as the best solutions for servo feedback in applications that require highest precision, in turn creating potential business opportunities for manufacturers in the optical encoders market.