Industrial Ethernet Market Overview
The Industrial Ethernet Market is projected to grow from USD 8.55 billion in 2024 to USD 17.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.59% during the forecast period (2024 - 2032). Additionally, the market size for Industrial Ethernet was valued at USD 7.7 billion in 2023.
Governments of emerging nations are taking more steps to encourage the adoption of industrial automation and the quick development of networking technologies, are the key market drivers enhancing the market growth.
Figure 1: Industrial Ethernet Market Size, 2024 - 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Ethernet Market Trends
Increasing initiatives by governments of developing countries to promote adoption of industrial automation is driving the market growth
Governments of emerging countries support the expansion of numerous industries in order to achieve overall growth. For the structural development of industries, more automation and communication technologies are being adopted. Governments give the discrete and process industries a lot of attention. The Singaporean government has partnered with a number of organisations, including the Food Innovation Resource Centre and the Singapore Food Manufacturing Association (SFMA), to implement the most up-to-date automation solutions, including SCADA, PLC, DCS, robots, and cables, in the food and beverage industry.
The Malaysian government announced a 200% automation capital allowance (ACA) in its 2015 budget in an effort to encourage labor-intensive industrial sectors like textile, rubber, and plastics to adopt the most recent automation technologies and increase their overall productivity. The ACA states that the government can write off capital expenses for manufacturing companies within three years (at a rate of 40% initially and 20% annually).
India is a developing country with a manufacturing sector that is expanding quickly. The National Manufacturing Policy (NMP), which was developed by the national government, has sped up the expansion of its manufacturing sector. The Make in India project was launched by the government to encourage companies to use automated manufacturing processes in their facilities. Therefore, it is anticipated that government initiatives to promote the adoption of industrial control and factory automation will stimulate market expansion throughout the projected period.
Market services are now understood to be crucial for ensuring complete transparency when operating inside an industrial unit. These aid in establishing and maintaining efficiency both within the plant and within enterprise networks. The basis of the Industry 4.0 idea is a solid communication network infrastructure because the market is heavily reliant on real-time operating requirements. Therefore, a system should be well-equipped and contain all the characteristics necessary for improving the management of information in a redundant manner. Additionally, networks need to be scalable, part of a large equipment set, and able to operate with a variety of standards and interface types. Thus, driving the Industrial Ethernet market revenue.
Industrial Ethernet Market Segment Insights
Industrial Ethernet Component Insights
The Industrial Ethernet market segmentation, based on Component, includes hardware, software, and services. Hardware segment dominated the market in 2022. One of the main factors influencing this segment's revenue growth is the rapid invention of hardware goods including industrial switches, industrial routers, and industrial gateways, among others. Another significant element driving the segment's sales growth is the rising need for industrial ethernet components that offer enhanced performance in harsh environmental circumstances like high levels of humidity, vibration, dust, and temperature extremes. Manufacturers are progressively concentrating on creating and introducing industrial ethernet devices that include features like small design, provides network redundancy, and have increased security features in addition to being resistant to extreme temperatures.
Figure 2: Industrial Ethernet Market, by Component, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Ethernet Protocol Insights
The Industrial Ethernet market segmentation, based on Protocol, includes HSE, Sercos III, Ethernet/IP, Modbus TCP/IP, Gigabit Wi-Fi, Ethernet TCP/IP, Powerlink, EtherCAT, and CC-Link IE. HSE segment dominated the market in 2022. The availability of several performance classes, including HSE, is becoming more widely known, which is a major element in the segment's sales growth. Applications with cycle times of roughly 10 ms and no real-time requirements or soft real-time requirements employ HSE.
Industrial Ethernet Industry Vertical Insights
The Industrial Ethernet market segmentation, based on Industry Vertical, includes aerospace & defense, energy & power, pharmaceutical, oil & gas, food & beverages, chemical, automotive, and others. Automotive segment dominated the Industrial Ethernet market in 2022. Major factors influencing this segment's sales growth include rising demand for hybrid connectivity and the automotive industry's quick adoption of new technologies. In the automobile and transportation sector, managing routing and spacing also gets more challenging as equipment capability increases. In order to guarantee security and signal integrity, power and data transfer must be used within a single connector housing.
Industrial Ethernet Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific Industrial Ethernet market dominated this market in 2022 (45.80%). The oil and gas industry's growing need for automation technologies as well as the region's growing need for more sophisticated technologies to increase operational effectiveness, save costs, and boost productivity are the main factors fueling the market's revenue growth. The demand for industrial ethernet solutions for smart city applications, transport systems, and energy management systems is being driven by the region's governments' large investments in infrastructure development. Moreover, China’s Industrial Ethernet market held the largest market share, and the Indian Industrial Ethernet market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INDUSTRIAL ETHERNET MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The North America Industrial Ethernet Market is expected to register significant growth from 2023 to 2032. Recent advancements in the physical layer of ethernet and rising knowledge of the many advantages of using industrial ethernet are two key factors boosting market revenue growth in the area. Two Ethernet advancements that are now paving the way for broader Ethernet adoption in the business are Single Pair Ethernet (SPE) and Ethernet Advanced Physical Layer (APL), both of which have a number of potential advantages. Further, the U.S. Industrial Ethernet market held the largest market share, and the Canada Industrial Ethernet market was the fastest growing market in the North America region.
Europe Industrial Ethernet market accounted for the healthy market share in 2022. Major factors influencing market revenue growth in the region include an increasing focus on energy efficiency and strong manufacturing bases for the automotive, aerospace, and food and beverage industries. Strong industrial ethernet network users include Europe's robust manufacturing industry. Industrial ethernet is essential for dependable and effective communication between equipment and control systems in sectors like automotive, aerospace, and food and beverage. Industrial ethernet is a fundamental enabler of Industry 4.0, providing the essential connectivity for smart factories and digitalized manufacturing processes. Energy efficiency is also a top priority for businesses operating in these areas. Further, the German Industrial Ethernet market held the largest market share, and the U.K Industrial Ethernet market was the fastest growing market in the European region.
Industrial Ethernet Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Industrial Ethernet market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Industrial Ethernet Industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Industrial Ethernet Industry to benefit clients and increase the market sector. In recent years, the Industrial Ethernet Industry has offered some of the most significant advantages to medicine. Major players in the Industrial Ethernet market, including Beckhoff Automation GmbH & Co. KG, Cisco Systems Inc., Rockwell Automation Inc., Schneider Electric, Belden Inc., ACS Motion Control, General Electric, ABB, Analog Devices Inc, B&R, Moxa Inc., OMRON Corporation, Eaton, Bosch Rexroth AG, and Yokogawa Electric Corporation, are attempting to increase market demand by investing in research and development operations.
Amphenol Corp. (Amphenol) is a designer, manufacturer, and marketer of coaxial and specialised cables, antennas, interconnect systems, and electrical, electronic, and fibre optic connectors. The business offers products to a variety of markets, including mobile devices, commercial aircraft, industrial, automotive, and military. Amphenol offers its goods to original equipment manufacturers through its own internal sales team, electronics distributors, and independent salespeople. Next-generation ix Industrial (TM) Connectors were introduced in March 2020 by Amphenol Corporation in collaboration with Hirose Electric and Harting Technology Group.
Omron Corp. (Omron) produces and sells medical equipment, social systems, automation components, and electrical components. The product line of the company includes robots, power supplies, switches, relays, connectors, motion and drive components, safety components, automation systems, and sensors. Additionally, it provides traffic and road management systems, mems sensors, components for entertainment equipment, face recognition software, and services for train stations. Omron Corporation introduced its new NX1-series Machine Automation Controllers for the manufacturing sector in April 2018.
Key Companies in the Industrial Ethernet market include
Industrial Ethernet Industry Developments
November 2022: On November 8-10, 2022, Siemens will introduce its updated Industrial Edge Management System, an improved licence management solution, and new products at the SPS trade show in Nuremberg, Germany. The recently introduced management systems will enable a seamless data flow from the field level to the cloud, bringing Operational Technology (OT) and IT closer together in industrial production.
Industrial Ethernet Market Segmentation
Industrial Ethernet Component Outlook
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Hardware
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Software
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Services
Industrial Ethernet Protocol Outlook
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HSE
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Sercos III
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Ethernet/IP
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Modbus TCP/IP
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Gigabit Wi-Fi
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Ethernet TCP/IP
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Powerlink
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EtherCAT
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CC-Link IE
Industrial Ethernet Industry Vertical Outlook
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Aerospace & Defense
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Energy & Power
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Pharmaceutical
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Oil & Gas
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Food & Beverages
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Chemical
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Automotive
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Others
Industrial Ethernet Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 7.7 Billion |
| Market Size 2024 |
USD 8.55 Billion |
| Market Size 2032 |
USD 17.8 Billion |
| Compound Annual Growth Rate (CAGR) |
9.59% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Protocol, Industry Vertical, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Beckhoff Automation GmbH & Co. KG, Cisco Systems Inc., Rockwell Automation Inc., Schneider Electric, Belden Inc., ACS Motion Control, General Electric, ABB, Analog Devices Inc, B&R, Moxa Inc., OMRON Corporation, Eaton, Bosch Rexroth AG, and Yokogawa Electric Corporation |
| Key Market Opportunities |
Emergence of 5G |
| Key Market Dynamics |
Increasing initiatives by governments of developing countries to promote adoption of industrial automation and rapid advancements in networking technologies |
Industrial Ethernet Market Highlights:
Frequently Asked Questions (FAQ) :
The Industrial Ethernet market size was valued at USD 7.7 Billion in 2023.
The market is projected to grow at a CAGR of 9.59% during the forecast period, 2024-2032.
Asia Pacific had the largest share in the market
The key players in the market are Beckhoff Automation GmbH & Co. KG, Cisco Systems Inc., Rockwell Automation Inc., Schneider Electric, Belden Inc., ACS Motion Control, General Electric, ABB, Analog Devices Inc, B&R, Moxa Inc., OMRON Corporation, Eaton, Bosch Rexroth AG, and Yokogawa Electric Corporation
The Hardware Component dominated the market in 2022.
The HSE Protocol had the largest share in the market.
