The encoder market in SAM is expected to grow from US$ 143.5 million in 2019 to US$ 280.0 million by 2027; it is estimated to grow at a CAGR of 8.0% from 2020 to 2027.
arious industries are involved in integrating advanced technologies, including advanced analytics high-performance computing and the Internet of things (IoT) to manufacturing systems to enhance manufacturing processes, which would result in better-quality products at lower costs. In factories, various machines and devices are interconnected and monitored to enhance the efficiency and productivity. The application of these advanced technologies for manufacturing represents a key enabler for addressing challenges in manufacturing procedures. IoT is considered an enabling technology for the manufacturing process, contributing to the growth of industry 4.0. The IoT and the ability to harness sensor data and automation technologies revolutionize the way machines capture data. Such advances are creating various business opportunities for encoders vendors to adopt new technologies. Command-line user interface devices, an electronic component manufacturer, offers application-specific integrated circuit based on AMT (automated manual transmission) encoders, which integrates valuable diagnostic and programming tools, which speed the time to market and mitigate machine downtime in the field. The technology helps determine if the encoder is operating accurately. The diagnostic data is used to make reliable systems and monitored over time in order to offer performance trends that can be analyzed and used to forecast failures. Thus, the integration of IoT technologies helps track the performance in real-time; companies across the SAM are heavily investing in IoT technology to gain traction in the market, which is bolster the SAM encoder market.
Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina, among others. The semiconductor and automotive industry are among of the victims of COVID-19, and since the start of 2020, these industries have been reflecting declining growth trend. With the imposition of lockdown across SAM region, the industries have been witnessing shattering experience. The automotive industry requires a significant number of human labour, as the COVID-19 is spreading through human involvement, the sector is unable to function properly. The declining trend in automotive and semiconductor industry is reflecting a negative impact on the SAM encoder market.
In terms of technology, the magnetic segment led the SAM encoder market in 2019. Various encoder uses magnetic technology, which is suitable for heavy-duty applications which require high robustness, speed, and a broad range of operating temperature; this technology ensure better reliability in the signal generation. It depends on three major components, which includes sensors, disk, and conditioning circuit. The disk is magnetized with various poles around its circumference. The sensor identifies the change in the magnetic field as the disk converts the information to a sine wave. Encoder with magnetic technology has several industrial applications, such as controlling the precision and speed of assembly instruments, testing instruments, and robots. Magnetic technology offers several benefits to manufacturing industries; linear magnetic encoder is resistant to vibration, dust, and moisture particles. Magnetic technology is generally used in applications such as the handling of packaged materials and the conveyor industry, which is fueling the growth of the SAM encoder market.
The overall SAM encoder market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the SAM encoder market with respects to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants who typically take part in such a process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the SAM encoder market. Dahua Technology Co., Ltd.; Renishaw Plc; LTN Servotechnik GmbH; OMRON Corporation; Delta Electronics; and Rockwell Automation, Inc. are among a few players operating in the SAM encoder market.