As intelligent manufacturing progresses from a grand narrative to a more meticulous new stage, the displacement sensors and encoders industry, which are the core components of industrial equipment's "sensory nerves" and "motion joints", is undergoing a crucial transformation from technological pursuit to ecological definition. In 2025, the industry will move forward under the dual melody of macroeconomic recovery and structural upgrading. On one hand, the moderate recovery of the global economy has led to a cautious recovery in capital expenditures in the manufacturing sector. Especially in the Asia-Pacific region, strategic industries such as new energy and semiconductors still enjoy strong investment momentum, providing a stable demand base for upstream core components. On the other hand, the wave of "new quality productivity" is profoundly reshaping the nature of demand: downstream customers are no longer satisfied with the performance parameters of individual components, but are seeking higher reliability, stronger environmental adaptability, and deeper integration into digital twin systems for overall solutions. This change has enabled sensing paths, such as magnetic grating technology, which possess advantages such as high resistance to dirt, strong shock resistance, long lifespan, and excellent cost performance, to enter a golden window period of continuous expansion in market share.

Looking at the overall market panorama in 2025, several distinct trends have already been established. Firstly, the integration and differentiation of technical routes have become clearer. In the ultra-high-end sector, grating encoders, with their unparalleled resolution, still occupy the top position of the pyramid; while in the broader industrial field, magnetic grating encoders are accelerating their penetration, especially in harsh conditions such as dust, oil contamination, and vibration, where their stable performance has won wide recognition from high-end machine tools to heavy equipment. Secondly, absolute and bus-based systems have become the "new benchmarks". As equipment complexity increases and downtime costs rise, absolute encoders that do not require zero-point seeking and have never-lost position data, as well as industrial Ethernet interfaces such as EtherCAT and Profinet that can achieve high-speed, multi-axis synchronous control, are transforming from "high-end options" to "standard configurations". Thirdly, the demand for industry customization is surging. New equipment such as linear motors, collaborative robots, and semiconductor wafer transfer systems have put forward highly diverse personalized requirements for the shape size, installation method, and communication protocol of sensors, pushing suppliers to transform from standard product manufacturers to joint development partners.

Against this backdrop, domestic leading enterprises such as Tianxian Digital Intelligence/Magnetic Zheng Intelligent, with their years of deep research and continuous innovation, are evolving from "followers of domestic substitution" to "breakthroughers leading technology". Their development path clearly reflects the industry trend: On the one hand, the successful overseas launch of the FMG3000 series absolute value magnetic encoder proves that domestic high-end products have the strength to match international brands in terms of accuracy and reliability, achieving a leap from the domestic market defense battle to international market competition. On the other hand, disruptive innovations such as the HMS magnetic suspension flexible ring-shaped line absolute value magnetic encoder system no longer limit to substitution, but directly define the new paradigm of next-generation precise ring-shaped motion control, providing revolutionary solutions for multi-mover collaboration and high-speed flexible production lines, and opening up a new growth path. At the same time, the deep barriers established in niche markets such as high-precision eddy current sensors have ensured the enterprise's profit advantage and technical话语权 in specific fields. These three aspects jointly form the solid foundation of the enterprise's "domestic upgrading and niche leading" three-dimensional offensive.

Looking ahead to 2026, the driving logic for industry growth will increasingly focus on the "quality" leap. The market is expected to continue growing at a rate higher than traditional automation, but the competitive dimension will be fully expanded.

Firstly, intelligence will become the core battlefield of value competition. Future encoders will no longer be silent data providers, but "sensing terminals" embedded with edge intelligence. Integrating temperature and vibration sensing functions, achieving local status monitoring and preliminary fault diagnosis, and seamlessly uploading data to the cloud platform through industrial Internet protocols to support predictive maintenance and production optimization, will become a standard feature for high-end products. This means that industry competition will expand from the comparison of hardware parameters to the construction of an "sensing + algorithm + data service" ecosystem capability.

Secondly, emerging application scenarios will trigger structural opportunities. The industrialization wave of humanoid robots has presented unprecedented challenges for joint encoders in terms of miniaturization, lightweighting, ultra-high dynamic response, and extreme cost control. This will be the arena for all technical routes. In addition, the demand for precise motion control in ultra-clean, non-magnetic interference environments in emerging fields such as biomanufacturing and precision medical equipment will also give rise to a new special sensor market. Whether enterprises can make early preparations for these "future tracks" will determine their long-term development ceiling.

Thirdly, industry chain collaboration and ecosystem co-construction have become the mainstream model. The simple buying and selling relationship will accelerate towards a deeper binding evolution. Strategic cooperation between sensor manufacturers and servo motors, drive controller manufacturers will be closer, jointly launching pre-integrated, pre-tested integrated motion control modules, significantly reducing the design and integration costs of terminal equipment manufacturers.

For leading enterprises like Tianxian Digital Intelligence, success in 2026 and beyond will depend on whether they can achieve a comprehensive evolution from "technological leadership" to "market leadership". This requires the company not only to continuously iterate on the three core engines of FMG3000, HMS system, and eddy current sensors, maintaining the sharpness of its product strength, but also to break down barriers in the organizational structure and form a "product offensive team" that can respond quickly to cutting-edge demands; to achieve full-chain digitalization in the operation system, making data-driven precise decision-making and efficient services possible; and to shift from telling performance stories to conveying value propositions, shaping the image of a "leader defining the future of precision motion".

In summary, the market landscape in 2026 will be jointly depicted by technological innovation and ecological wisdom. In an environment of uncertainty still existing in the macro environment, those enterprises that can use solid products as the spear, ecological cooperation as the shield, profound industry insights as the navigation, and be courageous in conducting internal reforms will not only be able to navigate steadily in the wave of industry upgrading, but also have the ability to define the direction of the tide and truly achieve a magnificent transformation from domestic strength to global leadership. This journey is full of challenges, but for pioneers who already hold core chips and demonstrate strategic determination, the future is promising.