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The Industrial Ethernet Market size is estimated to grow at a CAGR of 12.86% between 2022 and 2027, and the size of the market is forecast to increase by USD 37.51 billion. The growth of the market depends on several factors, such as the increasing number of smart grid projects, the replacement of Fieldbus with industrial Ethernet, and the growing implementation of IIoT.
This report extensively covers market segmentation by component (hardware, software, and services), technology (Ethernet/IP, PROFINET, EtherCAT, Modbus TCP/IP, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Industrial Ethernet Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Robust growth of IIoT is the key factor driving the global industrial ethernet market. With the advent of Industry 4.0 and the continued implementation of IIoT, the need for continuous connectivity from the smallest sensors to enterprise-level systems and beyond, the use of Industrial Ethernet is the preferred choice for end-user industries. Increased availability of affordable processors and sensors that enable real-time access to information, as well as advances in technology, are expected to drive growth.
Industrial ethernet seamlessly integrates with IoT as it offers high-speed transmission of up to 1Gbps. This is the platform of choice for many future digital factories. The integration of IIoT with Ethernet/IP-based devices will lead to the development of smart factories, increasing productivity and throughput and reducing maintenance costs. This saves manufacturers planned repair and maintenance costs and avoids unplanned breakdowns. Therefore, IIoT is one of the major factors driving the growth of the global industrial Ethernet market. The exponential growth in the number of IIoT-connected devices is also a major factor. Such factors are expected to drive the growth of the global industrial Ethernet market during the forecast period.
Digitalization in manufacturing facilities will fuel the global industrial ethernet market growth. The emergence of smart factories is changing the process of industrial production. Smart factories connect real-time data and information into a constant stream of data, enabling automation and self-optimization to improve or optimize processes.
Industrial Ethernet protocols such as EtherCAT are used to implement machine networking (controller-to-sensor/actuator communication), machine-to-cloud communication, and machine-to-machine communication in smart factories to achieve such connectivity specifications. Advancements in technology, coupled with the continued increase in the development of manufacturing facilities, are expected to influence the growth rate of the market during the forecast period.
Wireless communication can impede the growth of the industrial ethernet market. Wireless communication is creating challenges for the global industrial ethernet market. Wireless technology eliminates unnecessary wiring work in many cases. It is easy to access and adapt to changes compared to wired networks.
For Instance, wireless communication protocols currently account for approximately 8% of the global communication network market. However, the benefits gained from using wireless networks are increasing acceptance of these solutions in the end-user industry. Wireless networks have a wide operating range, and it has lower maintenance and repair costs. All these benefits associated with wireless communication technology may be a major challenge for the global industrial ethernet market.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ABB Ltd: The company offers industrial ethernet protocols and cables such as CoriolisMaster fcb400 coriolis mass flowmeter, CoriolisMaster FCH400 series, ProcessMaster FEP630, and HygienicMaster FEH630.
Belden Inc.: The company offers industrial ethernet cables such as industrial category 5e cable, industrial 5e PROFINET cable, industrial category 6 cable, and industrial category 6A cable.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The hardware segment will account for a major share of the market's growth during the forecast period. Increasing demand for scalable, faster, reliable, and interoperable communication solutions is one of the key factors expected to drive the growth of the industrial ethernet market during the forecast period.
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The hardware segment was valued at USD 12.40 billion in 2017 and continued to grow until 2021. Digitalization, the convergence of IT and OT, and the Industrial Internet of Things are increasing the demands of the industrial environment. Industrial ethernet hardware is used in various applications within industries such as manufacturing, Information Technologies, defense, telecommunications, utilities, security, infrastructure, gaming, agriculture, and medicine. Thus, the above factors are expected to drive the industrial ethernet market growth during the forecast period.
Based on technology, the market has been segmented into Ethernet/IP, PROFINET, EtherCAT, Modbus TCP/IP and others. The EtherNet/IP enables end-users to use off-the-shelf Ethernet cables, such as fiber and copper, without any modifications. It is equally compatible with wireless networks. Due to high flexibility and performance, growing implementation of IIoT, and increased penetration of ethernet networks in process industries, the demand for Ethernet/IP is increasing.PROFINET of things, which is gaining traction because of its fast data access, uptime, and openness, is one of the important trends driving market growth. Modbus TCP/IP is often used in industrial environments owing to the ease of maintenance and deployment. Thus it is expected to drive the growth of this segment during the forecast period.
North America is estimated to contribute 40% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Another region offering significant growth opportunities to vendors is APAC. Even though, APAC is experiencing a lower growth rate in terms of revenue, compared with other regions, as no network in the region is established. However, PROFINET, EtherCAT, Ethernet/IP, PROFIBUS, Modbus, and CC-Link are widely used, and the Ethernet version CC-Link IE Field is also gaining traction in the region. Due to the rising consumer base, the power and automotive industries are expected to gain traction during the forecast period. Thus, the above factors are expected to drive the global industrial ethernet market during the forecast period.
The outbreak of COVID-19 led to a halt in most industrial activities, which negatively impacted the growth of the industrial ethernet market in North America. However, owing to increased vaccination rates in the region, especially in the US, industrial ethernet market in the region started to recover. The lifting of restrictions and the revival of all industrial activities is boosting the growth of the market.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Industrial Ethernet Market Scope |
|
Report Coverage |
Details |
Page number |
185 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.86% |
Market growth 2023-2027 |
USD 37.51 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Analog Devices Inc., Belden Inc., Cisco Systems Inc., Hitachi Ltd., HMS Networks AB, Honeywell International Inc., Microsemi Corp., Moxa Inc., Nexans SA, Patton Electronics Co., Rockwell Automation Inc., Schneider Electric SE, Siemens AG, Signamax Inc., Texas Instruments Inc., TURCK India Automation Pvt. Ltd., Yokogawa Electric Corp., Eaton Corp. Plc, and OMRON Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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