According to our (Global Info Research) latest study, the global Magnetic Encoder Chip market size was valued at US$ 282 million in 2025 and is forecast to a readjusted size of US$ 407 million by 2032 with a CAGR of 5.5% during review period.
A Magnetic Encoder Chip is a semiconductor sensor device that measures rotation angle, position, or speed by detecting changes in a magnetic field. Instead of using optical signals (as in optical encoders), a magnetic encoder chip uses Hall-effect, AMR, GMR, or TMR magnetic sensing technologies to track the movement of a magnet attached to a motor shaft or linear mechanism.
In 2024, global Magnetic Encoder Chip sales volume reached approximately 53.15 million units, with an average global market price of around 4.9 US$ per unit.
1. Rapid Growth of Electric Motors, Robotics, and Precision Automation
A major driver of the magnetic encoder chip market is the global expansion of electric motors and automated machinery across industries such as robotics, industrial automation, e-mobility, HVAC, consumer electronics, and smart manufacturing. Magnetic encoder chips provide compact, cost-effective, and highly reliable position and angle sensing inside BLDC, PMSM, and stepper motors—components that are increasingly used in robots, AGVs/AMRs, servo systems, drones, and factory automation equipment. As Industry 4.0 and industrial robotics adoption accelerate, the demand for integrated motor-feedback solutions grows sharply. Magnetic encoder chips have become the preferred sensing technology because they offer high resolution, contactless operation, and resilience to dust, oil, vibration, and mechanical wear, making them ideal for harsh industrial and automotive environments.
2. Rising Adoption of Automotive Electrification and Advanced Driver Assistance Systems (ADAS)
Automotive electrification—including EV traction motors, e-steering, brake-by-wire, and electronically controlled actuators—creates strong demand for magnetic encoder chips that provide high-accuracy angle, speed, and position information. Modern vehicles incorporate dozens of position sensors for steering angle, throttle position, pedal sensing, transmission control, mirror and seat motors, and thermal management systems. Magnetic encoder chips, especially AMR, GMR, and TMR technologies, are increasingly selected because they offer high precision, high temperature tolerance, and long-term stability that meets automotive safety requirements (ASIL-B/D). As ADAS and autonomous driving systems require more accurate and redundant position sensing, magnetic encoder chips play a critical role in ensuring safe and reliable motor control, thereby driving significant market growth in the automotive sector.
3. Transition Toward High-Resolution, Low-Power, and Integrated Sensor Solutions
A third major market driver is the technological shift toward higher-resolution, lower-power, and fully integrated sensing solutions that reduce system size and cost. New magnetic encoder chips combine advanced sensing technologies—such as TMR, GMR, and high-precision Hall arrays—with on-chip analog-to-digital conversion, DSP interpolation, self-calibration, and digital interfaces like SPI, I²C, SENT, and ABI. This level of integration allows encoder chips to replace bulkier optical encoders and mechanical position sensors, enabling compact motor designs for drones, gimbals, medical devices, home appliances, and consumer electronics. Furthermore, low-power magnetic encoders support battery-driven devices and emerging IoT applications. As design engineers prioritize compactness, reduced BOM cost, and high performance, integrated magnetic encoder chips continue to gain market share across multiple industries.
This report is a detailed and comprehensive analysis for global Magnetic Encoder Chip market. Both quantitative and qualitative analyses are presented by manufacturers, by region & country, by Type and by Application. As the market is constantly changing, this report explores the competition, supply and demand trends, as well as key factors that contribute to its changing demands across many markets. Company profiles and product examples of selected competitors, along with market share estimates of some of the selected leaders for the year 2025, are provided.
Key Features:
Global Magnetic Encoder Chip market size and forecasts, in consumption value ($ Million), sales quantity (K Units), and average selling prices (US$/Unit), 2021-2032
Global Magnetic Encoder Chip market size and forecasts by region and country, in consumption value ($ Million), sales quantity (K Units), and average selling prices (US$/Unit), 2021-2032
Global Magnetic Encoder Chip market size and forecasts, by Type and by Application, in consumption value ($ Million), sales quantity (K Units), and average selling prices (US$/Unit), 2021-2032
Global Magnetic Encoder Chip market shares of main players, shipments in revenue ($ Million), sales quantity (K Units), and ASP (US$/Unit), 2021-2026
The Primary Objectives in This Report Are:
To determine the size of the total market opportunity of global and key countries
To assess the growth potential for Magnetic Encoder Chip
To forecast future growth in each product and end-use market
To assess competitive factors affecting the marketplace
This report profiles key players in the global Magnetic Encoder Chip market based on the following parameters - company overview, sales quantity, revenue, price, gross margin, product portfolio, geographical presence, and key developments. Key companies covered as a part of this study include Broadcom, AMS, TE Connectivity, Allegro MicroSystems, Magntek, Asahi Kasei Microdevices, iC-Haus GmbH, Melexis, MultiDimension Technology, SEMIMENT, etc.
This report also provides key insights about market drivers, restraints, opportunities, new product launches or approvals.
Market Segmentation
Magnetic Encoder Chip market is split by Type and by Application. For the period 2021-2032, the growth among segments provides accurate calculations and forecasts for consumption value by Type, and by Application in terms of volume and value. This analysis can help you expand your business by targeting qualified niche markets.
Market segment by Type
Magnetoresistive Type
Hall Type
Market segment by Product
Incremental Type
Absolute Type
Market segment by Function
Rotary Type
Linear Type
Angle Type
Market segment by Application
Automotive
Medical
Industrial Equipment
Consumer Electronics
Other
Major players covered
Broadcom
AMS
TE Connectivity
Allegro MicroSystems
Magntek
Asahi Kasei Microdevices
iC-Haus GmbH
Melexis
MultiDimension Technology
SEMIMENT
RLS
Xi'an Zhongke Alpha Electronic Technology
Market segment by region, regional analysis covers
North America (United States, Canada, and Mexico)
Europe (Germany, France, United Kingdom, Russia, Italy, and Rest of Europe)
Asia-Pacific (China, Japan, Korea, India, Southeast Asia, and Australia)
South America (Brazil, Argentina, Colombia, and Rest of South America)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa, and Rest of Middle East & Africa)
The content of the study subjects, includes a total of 15 chapters:
Chapter 1, to describe Magnetic Encoder Chip product scope, market overview, market estimation caveats and base year.
Chapter 2, to profile the top manufacturers of Magnetic Encoder Chip, with price, sales quantity, revenue, and global market share of Magnetic Encoder Chip from 2021 to 2026.
Chapter 3, the Magnetic Encoder Chip competitive situation, sales quantity, revenue, and global market share of top manufacturers are analyzed emphatically by landscape contrast.
Chapter 4, the Magnetic Encoder Chip breakdown data are shown at the regional level, to show the sales quantity, consumption value, and growth by regions, from 2021 to 2032.
Chapter 5 and 6, to segment the sales by Type and by Application, with sales market share and growth rate by Type, by Application, from 2021 to 2032.
Chapter 7, 8, 9, 10 and 11, to break the sales data at the country level, with sales quantity, consumption value, and market share for key countries in the world, from 2021 to 2026.and Magnetic Encoder Chip market forecast, by regions, by Type, and by Application, with sales and revenue, from 2027 to 2032.
Chapter 12, market dynamics, drivers, restraints, trends, and Porters Five Forces analysis.
Chapter 13, the key raw materials and key suppliers, and industry chain of Magnetic Encoder Chip.
Chapter 14 and 15, to describe Magnetic Encoder Chip sales channel, distributors, customers, research findings and conclusion.
Summary:
Get latest Market Research Reports on Magnetic Encoder Chip. Industry analysis & Market Report on Magnetic Encoder Chip is a syndicated market report, published as Global Magnetic Encoder Chip Market 2026 by Manufacturers, Regions, Type and Application, Forecast to 2032. It is complete Research Study and Industry Analysis of Magnetic Encoder Chip market, to understand, Market Demand, Growth, trends analysis and Factor Influencing market.