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The industrial communication market size is forecast to increase by USD 73.71 billion at a CAGR of 10.92% between 2022 and 2027. The market's expansion hinges on key factors such as the growing integration of IIoT technology, the introduction of innovative Fieldbus systems, and the widespread implementation of industrial Ethernet solutions. These advancements are reshaping industrial automation by enhancing connectivity, data collection, and operational efficiency. The rising adoption of IIoT offers real-time insights and predictive maintenance capabilities, while new Fieldbus technologies streamline communication within industrial networks. Additionally, industrial Ethernet solutions provide high-speed, reliable connectivity for seamless data transmission. Collectively, these trends drive market growth by empowering industries with enhanced connectivity, data management, and automation capabilities.
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This report extensively covers market segmentation by product (Fieldbus, industrial ethernet, and wireless), type (component, software, and services), 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.
The process industries are a key sector within the market, characterized by their unique communication needs and operational workflows. Efficiency is paramount in these industries, driving the adoption of advanced communication technologies to streamline processes and reduce human intervention. Standardization plays a crucial role in ensuring interoperability and seamless communication across various industrial equipment and interfaces. Protocols such as HART communication and IEEE 802 are widely used in industrial settings, enabling efficient data exchange and control. However, challenges like data misrepresentation and the need for plug-and-play features are addressed through innovative solutions offered by equipment manufacturers. The evolution of wireless networks incorporating technologies like Bluetooth Smart, WirelessHART, WLAN, and Zigbee has revolutionized communication in sectors like the oil & gas industry, electronics industry, and energy & power generation industry. These wireless solutions enhance flexibility, mobility, and real-time data access, mitigating issues related to high voltage transients, surge, burst, and electrical fast transients (EFT). Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is driven by the growing adoption of IIoT technology. IIoT connects physical devices with sensors, software, and hardware to exchange data without human intervention. Smart devices and traditional non-internet-enabled devices make up the IIoT network. Manufacturers benefit from open networks like Ethernet over dedicated automation networks due to higher bandwidth and continuous expansion.
Moreover, IIoT implementation in smart factories boosts throughput, productivity, and inventory reduction. Industrial end users with Ethernet ecosystems can fully leverage smart factories' efficiency. The increasing adoption of IIoT technology positively impacts the global industrial communications market's growth during the forecast period.
The integration of Fieldbus with IIoT is a significant trend driving the growth of the Market. The 4th Industrial Revolution brought about the convergence of IIoT and Fieldbuses, especially in modern industrial communication systems, to enhance connectivity, security, and performance. Fieldbus enables real-time data transmission on device status, diagnostics, process variables, and configuration parameters via IIoT, ensuring constant monitoring of plant operations for optimal performance.
Moreover, this integration reduces CAPEX and OPEX as end-users benefit from internet-enabled industrial automation systems, minimizing the need for additional auxiliary devices and reducing downtime for application delivery. The coexistence of simple and intelligent devices with standardized communication protocols ensures investment security, positively impacting the market growth during the forecast period.
The Market faces challenges due to the lack of determinism in industrial communication networks. Determinism refers to a communication protocol's ability to ensure that messages are sent and received within a fixed or predictable time, crucial for critical control applications in industrial automation.
Moreover, industrial control systems require real-time information transfer, where even a slight network interruption can disrupt the manufacturing process and compromise personnel safety. Ethernet networks' characteristics, with nodes sending data packets to all other nodes, can lead to collisions, reducing determinism and potentially impacting the market's growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies 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.
General Electric Co: The company offers advanced software applications for optimization sensors and building control, switches, access control, control systems and instruments for energy management, remote patient monitoring systems, video surveillance, fire products, and installation, maintenance, and upgrades of systems.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research report analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market research and growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the Fieldbus segment will be significant during the forecast period. Fieldbus is an industrial network system used for real-time distributed control. It is a method of connecting devices in a production facility. Different types of fieldbuses used for communication in the industry are Profibus, Modbus, and others. Profibus connects automation modules to process controllers. The process controller uses a single multidrop cable to connect devices. The equipment is economical for use on large construction sites. This is because installation costs are low, and fault isolation is easier with a single cable connection.
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The Fieldbus segment was valued at USD 42.28 billion in 2017 and continued to grow until 2021. The emergence of Industry 4.0 and IIoT in the process industry highlights the importance of real-time communication and automation systems. Industrial Fieldbus protocols such as SERCOS III are therefore used for intelligent monitoring and autonomous decision-making. This method is used in the process industry for integrated safety and control systems. Therefore, continued implementation of integrated safety and intelligent monitoring systems in process industries is expected to drive demand for SERCOS III over the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is now the world leader in automotive production. There is a high demand for automation from the booming automotive industry (both production and sales), especially in countries such as China, Japan, India, Malaysia, and South Korea. Therefore, increased investment in automotive production in APAC during the forecast period is likely to lead to increased adoption of IE. Rapid urbanization and industrialization in emerging markets such as India and China are creating demand for automation solutions in process industries such as oil & gas, food & beverage, paper & pulp, and power. As a result, APAC has become the fastest-growing region in this market.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The Market is evolving rapidly, driven by factors such as standardization efforts, the increasing complexity of industrial equipment, and the need for seamless interfaces between diverse systems. However, challenges like data misrepresentation and ensuring plug-and-play features remain paramount. Manufacturers are investing heavily in wireless networks like Bluetooth Smart, WirelessHART, WLAN, and Zigbee to enhance connectivity across industries like the oil & gas industry, electronics industry, and energy & power generation industry.
Moreover, technologies such as HART communication, IEEE 802, and cellular technologies are also gaining traction, although concerns persist around high voltage transients, electrostatic discharge (ESD), and lightning strikes. The market landscape depends on Equipment manufacturers, Surge, Burst, Electrical fast transients (EFT), Industrial communication equipment, Services offerings, Sensing technologies, and Pharma facility. Robust industrial switches and electromagnetic protection are crucial for ensuring network stability amid shock and vibration. Industrial communication solutions encompass networking wires, printed circuit board (PCB) designs, and device housings optimized for heat dissipation and air conditioning. Service offerings include network design, maintenance contracts, and remote support services for sectors like medical devices, chemical plants, and pharma facilities. These solutions aim to provide real-time access, enhance supply chain integration, and offer extended enterprise visibility into vital manufacturing data.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.92% |
Market growth 2023-2027 |
USD 73.71 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.1 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., ASUSTeK Computer Inc., Beckhoff Automation GmbH and Co. KG, Belden Inc., Cisco Systems Inc., Emerson Electric Co., FANUC Corp., General Electric Co., Huawei Technologies Co. Ltd., IFM electronic GmbH, Moxa Inc., National Instruments Corp., OMRON Corp., Physik Instrumente GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, SICK AG, Siemens AG, and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, market growth analysis, Market forecasting, 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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