The global Optical Encoder ICs market size is predicted to grow from US$ 264 million in 2025 to US$ 392 million in 2031; it is expected to grow at a CAGR of 6.8% from 2025 to 2031.
Optical encoders have been the popular choice in the motion control market for many years. They are comprised of an LED light source (typically infrared) and photodetectors placed on opposite sides of an encoder disk. This disk is constructed of plastic or glass and contains a series of alternating transparent and opaque lines or slots. During the rotation of the disk, the LED light path is interrupted by the alternating lines or slots on the disk, which in turn produces the typical square wave A & B quadrature pulses used to determine shaft rotation and speed.
Global major companies profiled in the Optical Encoder Ics market include Broadcom, New Japan Radio, etc. Global top two companies account for nearly 50% of the market share. In terms of consumption region, the market for Optical Encoder ICs divided into five geographic regions: In Europe, total Encoder IC accounted for about 25%. In North America, total Encoder IC accounted for over 30%. The Encoder IC market in Asia-Pacific accounted for over 30%. Among the key type segments, Reflective Type Optical Encoder ICs segment accounted for the leading share in the market and is projected to dominate the market over the estimated period. And based on application, the world's largest application of Optical Encoder ICs is in Industrial Automation, accounted for over 25%, followed by Motors manufacturing with over 20 percent.
As industrial automation, robotics, and IoT (Internet of Things) technologies advance, the need for precise motion control systems is rising. Optical encoders provide high accuracy and reliability in these systems, which are essential for applications like CNC machines, robotic arms, and autonomous vehicles.
Thereās an ongoing trend towards miniaturization of optical encoder ICs. Manufacturers are focusing on integrating more features into smaller packages, enabling use in compact applications like wearables, drones, and medical devices. The move toward smaller sizes also helps reduce overall system costs and improve efficiency.
The automotive industry is increasingly adopting optical encoders for various applications, such as steering angle sensing, electric power steering systems, and motor control in electric vehicles (EVs). The shift towards EVs and autonomous vehicles is creating new opportunities for optical encoder ICs.
The need for higher resolution and faster response times is growing, especially in precision applications like CNC machines, laser systems, and high-speed data transmission. Optical encoders with higher resolution and faster data processing capabilities are increasingly in demand.
Optical encoder ICs are being integrated into more advanced control systems, such as closed-loop systems for real-time feedback and adaptive control. These systems offer higher precision and better performance, which is vital for high-performance machinery in industrial and consumer applications.
Non-contact encoders (like optical encoders) are becoming more popular compared to traditional mechanical encoders due to their longer lifespan, higher accuracy, and resistance to wear. This is particularly beneficial in harsh environments where traditional contact-based sensors might fail over time.
The āOptical Encoder ICs Industry Forecastā looks at past sales and reviews total world Optical Encoder ICs sales in 2024, providing a comprehensive analysis by region and market sector of projected Optical Encoder ICs sales for 2025 through 2031. With Optical Encoder ICs sales broken down by region, market sector and sub-sector, this report provides a detailed analysis in US$ millions of the world Optical Encoder ICs industry.
This Insight Report provides a comprehensive analysis of the global Optical Encoder ICs landscape and highlights key trends related to product segmentation, company formation, revenue, and market share, latest development, and M&A activity. This report also analyzes the strategies of leading global companies with a focus on Optical Encoder ICs portfolios and capabilities, market entry strategies, market positions, and geographic footprints, to better understand these firmsā unique position in an accelerating global Optical Encoder ICs market.
This Insight Report evaluates the key market trends, drivers, and affecting factors shaping the global outlook for Optical Encoder ICs and breaks down the forecast by Type, by Application, geography, and market size to highlight emerging pockets of opportunity. With a transparent methodology based on hundreds of bottom-up qualitative and quantitative market inputs, this study forecast offers a highly nuanced view of the current state and future trajectory in the global Optical Encoder ICs.
This report presents a comprehensive overview, market shares, and growth opportunities of Optical Encoder ICs market by product type, application, key manufacturers and key regions and countries.
Segmentation by Type:
Transmissive Type
Reflective Type
Segmentation by Application:
Industrial Automation
Motors
Medical
Office Automation
Consumer Electronics
Semiconductor Equipment
Measurement Equipment
Others
This report also splits the market by region:
Americas
United States
Canada
Mexico
Brazil
APAC
China
Japan
Korea
Southeast Asia
India
Australia
Europe
Germany
France
UK
Italy
Russia
Middle East & Africa
Egypt
South Africa
Israel
Turkey
GCC Countries
The below companies that are profiled have been selected based on inputs gathered from primary experts and analysing the company's coverage, product portfolio, its market penetration.
Broadcom
New Japan Radio
SEIKO NPC
IC-Haus
PREMA Semiconductor
Hamamatsu
Key Questions Addressed in this Report
What is the 10-year outlook for the global Optical Encoder ICs market?
What factors are driving Optical Encoder ICs market growth, globally and by region?
Which technologies are poised for the fastest growth by market and region?
How do Optical Encoder ICs market opportunities vary by end market size?
How does Optical Encoder ICs break out by Type, by Application?
Please Note - This is an on demand report and will be delivered in 2 business days (48 hours) post payment.
1 Scope of the Report
1.1 Market Introduction
1.2 Years Considered
1.3 Research Objectives
1.4 Market Research Methodology
1.5 Research Process and Data Source
1.6 Economic Indicators
1.7 Currency Considered
1.8 Market Estimation Caveats
2 Executive Summary
2.1 World Market Overview
2.1.1 Global Optical Encoder ICs Annual Sales 2020-2031
2.1.2 World Current & Future Analysis for Optical Encoder ICs by Geographic Region, 2020, 2024 & 2031
2.1.3 World Current & Future Analysis for Optical Encoder ICs by Country/Region, 2020, 2024 & 2031
2.2 Optical Encoder ICs Segment by Type
2.2.1 Transmissive Type
2.2.2 Reflective Type
2.3 Optical Encoder ICs Sales by Type
2.3.1 Global Optical Encoder ICs Sales Market Share by Type (2020-2025)
2.3.2 Global Optical Encoder ICs Revenue and Market Share by Type (2020-2025)
2.3.3 Global Optical Encoder ICs Sale Price by Type (2020-2025)
2.4 Optical Encoder ICs Segment by Application
2.4.1 Industrial Automation
2.4.2 Motors
2.4.3 Medical
2.4.4 Office Automation
2.4.5 Consumer Electronics
2.4.6 Semiconductor Equipment
2.4.7 Measurement Equipment
2.4.8 Others
2.5 Optical Encoder ICs Sales by Application
2.5.1 Global Optical Encoder ICs Sale Market Share by Application (2020-2025)
2.5.2 Global Optical Encoder ICs Revenue and Market Share by Application (2020-2025)
2.5.3 Global Optical Encoder ICs Sale Price by Application (2020-2025)
3 Global by Company
3.1 Global Optical Encoder ICs Breakdown Data by Company
3.1.1 Global Optical Encoder ICs Annual Sales by Company (2020-2025)
3.1.2 Global Optical Encoder ICs Sales Market Share by Company (2020-2025)
3.2 Global Optical Encoder ICs Annual Revenue by Company (2020-2025)
3.2.1 Global Optical Encoder ICs Revenue by Company (2020-2025)
3.2.2 Global Optical Encoder ICs Revenue Market Share by Company (2020-2025)
3.3 Global Optical Encoder ICs Sale Price by Company
3.4 Key Manufacturers Optical Encoder ICs Producing Area Distribution, Sales Area, Product Type
3.4.1 Key Manufacturers Optical Encoder ICs Product Location Distribution
3.4.2 Players Optical Encoder ICs Products Offered
3.5 Market Concentration Rate Analysis
3.5.1 Competition Landscape Analysis
3.5.2 Concentration Ratio (CR3, CR5 and CR10) & (2023-2025)
3.6 New Products and Potential Entrants
3.7 Market M&A Activity & Strategy
4 World Historic Review for Optical Encoder ICs by Geographic Region
4.1 World Historic Optical Encoder ICs Market Size by Geographic Region (2020-2025)
4.1.1 Global Optical Encoder ICs Annual Sales by Geographic Region (2020-2025)
4.1.2 Global Optical Encoder ICs Annual Revenue by Geographic Region (2020-2025)
4.2 World Historic Optical Encoder ICs Market Size by Country/Region (2020-2025)
4.2.1 Global Optical Encoder ICs Annual Sales by Country/Region (2020-2025)
4.2.2 Global Optical Encoder ICs Annual Revenue by Country/Region (2020-2025)
4.3 Americas Optical Encoder ICs Sales Growth
4.4 APAC Optical Encoder ICs Sales Growth
4.5 Europe Optical Encoder ICs Sales Growth
4.6 Middle East & Africa Optical Encoder ICs Sales Growth
5 Americas
5.1 Americas Optical Encoder ICs Sales by Country
5.1.1 Americas Optical Encoder ICs Sales by Country (2020-2025)
5.1.2 Americas Optical Encoder ICs Revenue by Country (2020-2025)
5.2 Americas Optical Encoder ICs Sales by Type (2020-2025)
5.3 Americas Optical Encoder ICs Sales by Application (2020-2025)
5.4 United States
5.5 Canada
5.6 Mexico
5.7 Brazil
6 APAC
6.1 APAC Optical Encoder ICs Sales by Region
6.1.1 APAC Optical Encoder ICs Sales by Region (2020-2025)
6.1.2 APAC Optical Encoder ICs Revenue by Region (2020-2025)
6.2 APAC Optical Encoder ICs Sales by Type (2020-2025)
6.3 APAC Optical Encoder ICs Sales by Application (2020-2025)
6.4 China
6.5 Japan
6.6 South Korea
6.7 Southeast Asia
6.8 India
6.9 Australia
6.10 China Taiwan
7 Europe
7.1 Europe Optical Encoder ICs by Country
7.1.1 Europe Optical Encoder ICs Sales by Country (2020-2025)
7.1.2 Europe Optical Encoder ICs Revenue by Country (2020-2025)
7.2 Europe Optical Encoder ICs Sales by Type (2020-2025)
7.3 Europe Optical Encoder ICs Sales by Application (2020-2025)
7.4 Germany
7.5 France
7.6 UK
7.7 Italy
7.8 Russia
8 Middle East & Africa
8.1 Middle East & Africa Optical Encoder ICs by Country
8.1.1 Middle East & Africa Optical Encoder ICs Sales by Country (2020-2025)
8.1.2 Middle East & Africa Optical Encoder ICs Revenue by Country (2020-2025)
8.2 Middle East & Africa Optical Encoder ICs Sales by Type (2020-2025)
8.3 Middle East & Africa Optical Encoder ICs Sales by Application (2020-2025)
8.4 Egypt
8.5 South Africa
8.6 Israel
8.7 Turkey
8.8 GCC Countries
9 Market Drivers, Challenges and Trends
9.1 Market Drivers & Growth Opportunities
9.2 Market Challenges & Risks
9.3 Industry Trends
10 Manufacturing Cost Structure Analysis
10.1 Raw Material and Suppliers
10.2 Manufacturing Cost Structure Analysis of Optical Encoder ICs
10.3 Manufacturing Process Analysis of Optical Encoder ICs
10.4 Industry Chain Structure of Optical Encoder ICs
11 Marketing, Distributors and Customer
11.1 Sales Channel
11.1.1 Direct Channels
11.1.2 Indirect Channels
11.2 Optical Encoder ICs Distributors
11.3 Optical Encoder ICs Customer
12 World Forecast Review for Optical Encoder ICs by Geographic Region
12.1 Global Optical Encoder ICs Market Size Forecast by Region
12.1.1 Global Optical Encoder ICs Forecast by Region (2026-2031)
12.1.2 Global Optical Encoder ICs Annual Revenue Forecast by Region (2026-2031)
12.2 Americas Forecast by Country (2026-2031)
12.3 APAC Forecast by Region (2026-2031)
12.4 Europe Forecast by Country (2026-2031)
12.5 Middle East & Africa Forecast by Country (2026-2031)
12.6 Global Optical Encoder ICs Forecast by Type (2026-2031)
12.7 Global Optical Encoder ICs Forecast by Application (2026-2031)
13 Key Players Analysis
13.1 Broadcom
13.1.1 Broadcom Company Information
13.1.2 Broadcom Optical Encoder ICs Product Portfolios and Specifications
13.1.3 Broadcom Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.1.4 Broadcom Main Business Overview
13.1.5 Broadcom Latest Developments
13.2 New Japan Radio
13.2.1 New Japan Radio Company Information
13.2.2 New Japan Radio Optical Encoder ICs Product Portfolios and Specifications
13.2.3 New Japan Radio Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.2.4 New Japan Radio Main Business Overview
13.2.5 New Japan Radio Latest Developments
13.3 SEIKO NPC
13.3.1 SEIKO NPC Company Information
13.3.2 SEIKO NPC Optical Encoder ICs Product Portfolios and Specifications
13.3.3 SEIKO NPC Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.3.4 SEIKO NPC Main Business Overview
13.3.5 SEIKO NPC Latest Developments
13.4 IC-Haus
13.4.1 IC-Haus Company Information
13.4.2 IC-Haus Optical Encoder ICs Product Portfolios and Specifications
13.4.3 IC-Haus Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.4.4 IC-Haus Main Business Overview
13.4.5 IC-Haus Latest Developments
13.5 PREMA Semiconductor
13.5.1 PREMA Semiconductor Company Information
13.5.2 PREMA Semiconductor Optical Encoder ICs Product Portfolios and Specifications
13.5.3 PREMA Semiconductor Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.5.4 PREMA Semiconductor Main Business Overview
13.5.5 PREMA Semiconductor Latest Developments
13.6 Hamamatsu
13.6.1 Hamamatsu Company Information
13.6.2 Hamamatsu Optical Encoder ICs Product Portfolios and Specifications
13.6.3 Hamamatsu Optical Encoder ICs Sales, Revenue, Price and Gross Margin (2020-2025)
13.6.4 Hamamatsu Main Business Overview
13.6.5 Hamamatsu Latest Developments
14 Research Findings and Conclusion
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*If Applicable.
