OPTICAL ENCODER MARKET ANALYSIS

Optical encoders serve a variety of critical functions and require high-quality components and precision manufacturing to function properly. The components used in optical encoders such as lenses, sensors and other optical elements require sophisticated manufacturing processes and cleanroom production environments that increase costs. The assembly and testing of these precise components into fully functioning encoder units is also a labor intensive and costly process. For example, assembling the photoelectric detector, code disc and light source in a precise arrangement within tight tolerances takes significant skilled labor hours. In addition, optical encoders are usually custom-designed and calibrated for different applications, which adds further non-recurring engineering and design costs.

Market Opportunities: Automotive industry growth

The automotive industry has shown robust growth over the past few years and this growth is projected to continue well into the future. As automotive production increases globally to meet the rising vehicle demand, it will drive significant opportunities for components and technologies that support automobile manufacturing.

One such component that is witnessing increased adoption is optical encoders. Optical encoders are integral to key functions in modern vehicles like engine management, transmission control, power steering, active suspension, acceleration/braking systems, and others. Their accurate motion sensing capability enables precise control and feedback required for advanced driver-assistance systems, infotainment controls, and autonomous functionalities. As automakers strive to incorporate more electronically-controlled features and transition towards electric and self-driving vehicles, their dependence on optical encoders will rise substantially.