Industrial Ethernet Switch Market

Growing efforts by developing country governments to encourage the deployment of industrial automation to boost market growth

To achieve all-around growth, governments of developing nations assist the expansion of numerous industries. As a result, more automation and communication components and technologies are being adopted for the structural development of industries. Governments place a lot of emphasis on the discrete and process sectors. In order to implement the most recent automation solutions, such as SCADA, PLC, DCS, robots, and cables, in the food and beverage industry, the Government of Singapore has collaborated with a number of organisations, including the Food Innovation Resource Centre and the Singapore Food Manufacturing Association (SFMA).

A 200% automation capital allowance (ACA) was announced by the Malaysian government in its 2015 budget to encourage labor-intensive industrial sectors including textile, rubber, and plastics to embrace the most recent automation technologies and boost their overall productivity. According to the ACA, the government deducts capital expenditures for manufacturing businesses within three years (a 40% initial allowance and a 20% yearly allowance). India is one of the developing nations with a rapidly expanding manufacturing industry. The national government's creation of the National Manufacturing Policy (NMP) has accelerated the growth of its manufacturing industry.

To encourage businesses to incorporate automated techniques in their manufacturing facilities, the government has introduced the Make in India initiative. Therefore, it is anticipated that throughout the projected period, government initiatives to encourage the adoption of industrial control and factory automation has enhanced the industrial ethernet switch market CAGR across the globe in the recent years.

However, an essential component of Industry 4.0 is industrial communication. The manufacturing sector is seeing an increase in demand for 5G technology as it helps to address the drawbacks of existing wireless networks. The introduction of 5G technology will lead to a significant upheaval in the manufacturing sector. The demand for industrial ethernet switch will rise along with the demand for 5G. Thus, driving the growth of the industrial ethernet switch market revenue.

The Global Industrial Ethernet Switch Market Industry is poised for substantial growth, with projections indicating a market value of 3.8 USD Billion in 2024 and an anticipated increase to 8.57 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 7.68% from 2025 to 2035, reflecting the increasing adoption of industrial Ethernet switches across various sectors. The market's expansion is driven by factors such as rising automation, the growth of smart manufacturing, and the need for enhanced network reliability, positioning industrial Ethernet switches as critical components in modern industrial environments.

The Global Industrial Ethernet Switch Market Industry experiences a surge in demand for automation across various sectors, including manufacturing and logistics. As industries increasingly adopt automated systems to enhance efficiency and reduce operational costs, the need for reliable and high-speed networking solutions becomes paramount. Industrial Ethernet switches facilitate seamless communication between devices, ensuring real-time data exchange and process optimization. This trend is expected to contribute significantly to the market's growth, with projections indicating a market value of 3.8 USD Billion in 2024, reflecting the industry's shift towards advanced automation technologies.

Smart manufacturing is reshaping the landscape of the Global Industrial Ethernet Switch Market Industry. The integration of Internet of Things (IoT) technologies into manufacturing processes necessitates robust networking solutions that can handle vast amounts of data generated by connected devices. Industrial Ethernet switches play a crucial role in enabling this connectivity, supporting the implementation of smart factories. As manufacturers increasingly invest in IoT and Industry 4.0 initiatives, the demand for industrial Ethernet switches is likely to rise, with the market projected to reach 8.57 USD Billion by 2035, showcasing the long-term potential of this sector.

Cybersecurity threats pose a significant challenge to the Global Industrial Ethernet Switch Market Industry. As industrial networks become more interconnected, the risk of cyberattacks increases, prompting organizations to invest in secure networking solutions. Industrial Ethernet switches equipped with advanced security features, such as encryption and access control, are essential for safeguarding critical infrastructure. This growing emphasis on cybersecurity is likely to drive market growth, as companies prioritize the protection of their assets and data. The trend indicates a shift towards more secure industrial networking solutions, which could further enhance the market's value in the coming years.

The need for enhanced network reliability is a driving force in the Global Industrial Ethernet Switch Market Industry. Industries such as manufacturing, energy, and transportation require uninterrupted network performance to ensure operational continuity. Industrial Ethernet switches are designed to provide high availability and low latency, making them suitable for mission-critical applications. As organizations seek to minimize downtime and improve productivity, the demand for reliable networking solutions is expected to rise. This trend underscores the importance of investing in robust industrial Ethernet switches to support the growing complexity of industrial networks.

The expansion of Industrial IoT applications is a key driver for the Global Industrial Ethernet Switch Market Industry. As industries leverage IoT technologies to improve operational efficiency and gain insights from data analytics, the demand for reliable networking infrastructure increases. Industrial Ethernet switches are integral to supporting the connectivity of IoT devices, enabling real-time monitoring and control of industrial processes. This trend is expected to fuel market growth, with a projected compound annual growth rate (CAGR) of 7.68% from 2025 to 2035, highlighting the increasing reliance on connected devices in industrial settings.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific industrial ethernet switch market accounted for USD 1.33 billion in 2021 and is expected to exhibit a significant CAGR growth. It is ascribed to the use of industrial ethernet switch in a variety of sectors, including control over programmable logic controllers (PLCs) and supervisory control & data acquisition (SCADA) integration. This market is expanding in this area as a result of rising fibre optical utilisation and demand in the telecommunications industry.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: INDUSTRIAL ETHERNET SWITCH MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America industrial ethernet switch Market is expected to grow at the fastest CAGR from 2024 to 2032 since more and more components supporting data centers are being deployed and needed, Other specific considerations, such as the location of smart grids and the existence of large manufacturing facilities, will also have a significant impact on the development of this industry. Moreover, US industrial ethernet switch market held the largest market share, and the Canada industrial ethernet switch market was the fastest growing market in the North American region.

Europe industrial ethernet switch market accounts for the second-fastest growing market owing to the use of smart factory concepts to integrate cutting-edge technologies in production facilities. Further, the Germany industrial ethernet switch market held the largest market share, and the UK industrial ethernet switch market was the fastest growing market in the European region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the industrial ethernet switch market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the industrial ethernet switch industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the industrial ethernet switch industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, industrial ethernet switch industry has provided medicine with some of the most significant benefits. The industrial ethernet switch market major player such as CISCO SYSTEMS INC. (U.S.), JUNIPER NETWORKS INC. (U.S.), ALCATEL-LUCENT (FRANCE), HEWLETT PACKARD ENTERPRISE (U.S.), POLYCOM (U.S.), AVAYA INC. (U.S.), MICROSOFT CORPORATION (U.S.), CHECK POINT SOFTWARE TECHNOLOGIES LTD. (ISRAEL), IBM CORPORATION (U.S.), BROCADE COMMUNICATIONS SYSTEMS INC. (U.S.), SIEMENS AG (GERMANY), HUAWEI TECHNOLOGIES CO.

LTD (CHINA), ZTE CORPORATION (CHINA), MOXA (TAIWAN), OMRON (JAPAN) and ROCKWELL AUTOMATION (US).

A Taiwanese technology business called Moxa Technologies specializes in network infrastructure solutions, industrial computing, and edge connectivity. Solutions for network infrastructure, industrial computing, and edge connectivity are Moxa's areas of expertise. Their main office is in Taiwan's Taipei. In June 2021, a startup called MOXA has introduced a new line of modular industrial din-rails. The Ethernet switches have been managed in these series in a way to achieve next-generation network adaptability.

Also, an American industrial automation company Rockwell Automation, Inc.'s brands include Allen-Bradley, FactoryTalk software, and LifecycleIQ Services. Rockwell Automation is based in Milwaukee, Wisconsin, and employs about 26,000 people. It serves clients in more than 100 nations. In December 2020, Rockwell automation just introduced the Alley-Bradley 440g-MZ guard locking switch. These switches offer a security-based communications protocol, which in turn provides access to diagnostic data and simplifies the process of joining into a connected enterprise.