A rotary encoder, also referred to as a shaft encoder, is a sensor that generates an electrical signal in response to a rotational movement. This signal is used to determine or control the speed or position of a mechanical device. A rotary encoder is mounted on a cylindrical shaft and is often used in combination with mechanical conversion devices, such as linear slides and rack and pinions, to measure linear movement. Rotary encoders are used on a wide variety of precision equipment that requires close control of position or speed, including medical devices, robotics, assembly machines, and testing equipment, among others. It can be divided into two types: incremental rotary encoders and absolute rotary encoders. An incremental encoder is limited by only providing change information, so the encoder requires a reference device to calculate motion. An absolute rotary encoder determines its position using a static reference point. The method is slightly different depending on whether the absolute rotary encoder is optical or magnetic, but the principle is the same either way.

Global rotary encoder market was valued at 1366 Million US$ in 2018 and is projected to reach 1860 Million US$ by 2024, at a CAGR of 5.28% during the forecast period. Servo Motor, Elevator and Machine Tool industries are the main factors driving the development of this industry. The key consumption markets locate at developed countries. The Asia-Pacific the market share of 34%, followed by Europe with 28%, North America accounts for 21% of the market.

Key players in global rotary encoder market include: Heidenhain, Tamagawa, Nemicon, Pepperl+Fuchs, Omron, Kuebler, Danaher, Koyo, Baumer, TR-Electronic, BEI, DYNAPAR, Yuheng Optics, AUTONICS, HOHNER, Sick, Posital Fraba, Renishaw, Nidec Avtron, LEINE & LINDE etc.