Industrial Ethernet Market Size Report, Trend & Growth Drivers-2030

Industrial Ethernet Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis by Offering (Hardware, Software, and Services); Protocol (PROFINET, Ethernet/IP, Others); Industry Vertical (Electric and Power, Manufacturing, Aerospace and Defense, Oil and Gas, Automotive and Transportation, Others)

Publication Month : Mar 2024

  • Report Code : TIPTE100001044
  • Category : Electronics and Semiconductor
  • Status : Upcoming
  • No. of Pages : 150
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[Research Report] The Industrial Ethernet market size is expected to grow from US$ 8.5 billion in 2022 to US$ 16.45 billion by 2030; it is estimated to grow at a CAGR of 8.6% from 2022 to 2030.

Analyst Perspective:

The usage of Ethernet in an industrial setting with protocols that offer determinism and real-time control is known as industrial Ethernet (IE). Within industrial automation and control systems, the fastest-growing communication protocol is Industrial Ethernet, an Ethernet protocol used in the industry. The term "industrial Ethernet" refers to technologies used in industry that make use of standard Ethernet physical layer and protocols. Ethernet protocols alter regular Ethernet in a way that guarantees the correct transmission and reception of particular manufacturing data, as well as the timely transmission and reception of data when required to carry out a particular activity. It can also relate to the application of extended temperature switches, robust connectors, and standard Ethernet protocols for process control or industrial automation in an industrial setting.

Industrial Ethernet handles the management of the data to the IT network in real-time for tracking control. It is used in manufacturing and logistics to capture data in the industrial environment. Power over Ethernet (PoE) is frequently delivered over a network when motion sensors, outdoor lights, and other similar devices are being used. This reduces wire complexity and facilitates device control. Electromagnetic interference (EMI) levels make network devices susceptible to electrical networks. Cables in the Industrial Ethernet market provide optical interfaces, which make installation easier. The data produced when a vehicle is moving needs to be processed for devices that can withstand vibrations. It is crucial to choose only certified items for this in order to guarantee their long-term dependability.

Industrial Ethernet Market Overview:

Over the past two decades, a lot has changed in the automation business, and industrial networks are no different. Fieldbus usage is decreasing as a result of the factory floor's adoption of industrial Ethernet, which is being fueled by digital transformation programs and more alignment between IT and operations technology departments. For instance, an independent provider of industrial networking products, HMS Networks, projects that the industrial network market will expand by 7% in 2023. Fieldbus networks decreased to 24% (from 27% in 2022), whereas solutions in the industrial Ethernet market now make up 68% of all newly installed nodes (up from 66% in 2022).

Future demands are constantly evolving and being driven by Industry 4.0 and the Industrial Internet of Things. Edge computers and IIoT gateways will need to establish connections with industrial equipment and IT, frequently the cloud, simultaneously. For data pipelines to traverse the whole organization's infrastructure—which includes cloud infrastructure as well as IT and OT environments—industrial and IT networks must be open. This needs to be completed in a secure, adaptable, and manageable manner. The only way to keep up with the rapid growth of network nodes, data, and new applications is to boost bandwidth. Due to this, Fast Ethernet has been replaced by Gigabit Ethernet, with multiple GbE being the norm. 5G offers a number of advantages, including the ability to use multiple Gbps of bandwidth depending on the deployment method selected and reliable communication with very low latency. Amidst these changing demands, new industrial Ethernet networking components are being developed to fulfill the increased demand for downsizing and to supply higher power in a smaller size.

Strategic Insights

Industrial Ethernet Market Driver:

Growing Investments in Industrial Networks to Drive Growth of Market

The need for businesses to develop robust and effective communication infrastructures is driving significant growth in the worldwide industrial network market in the years to come. Businesses are putting more and more effort into setting up industrial Ethernet infrastructure in order to maximize productivity and efficiency and outperform their rivals. Furthermore, there have been an increasing number of developing nations' endeavors to support automation and digitalization across all industrial verticals, including Brazil, China, India, and others. Ethernet has been dominating the automation connectivity market in the industries. To manage rising costs, quality, flexibility, and output challenges, the trend of increasing data flow from field devices to the edge or cloud and back for production optimization will not stop. By using the TCP/IP Suite, object-oriented programming, and off-the-shelf hardware with communication networks like EtherNet/IP, Ethernet can also help enable IT/OT convergence. The usefulness of having Ethernet down to the lowest level of automation devices will expand as Artificial Intelligence (AI) and Machine Learning (ML) find more problems to solve in the industrial environment. For instance, in April 2022, SwitchML, an open-source project recently released with P4.org, is an intelligent network technology that Intel stated it is developing in collaboration with Microsoft, the King Abdullah University of Science and Technology (KAUST), and the University of Washington. Distributed training has become the standard as machine learning (ML) models get larger and are trained on massive datasets in order to achieve ever-higher accuracy in real-world applications. Distributed deep learning is getting closer to becoming communication-bound as its size and scope grow. Thus, it's crucial to speed up machine learning training by utilizing more effective network connectivity, like intelligent Ethernet switches, in order to cut down on both training time and expense.

Industrial Ethernet Market Overview:

Industrial Ethernet Market Segmental Analysis:

Based on protocol, the industrial ethernet market is segmented into PROFINET and Ethernet/IP. As businesses become digitally linked, industrial Ethernet use keeps outpacing other solutions. This is particularly true when automation and industrial control systems use Internet of Things (IoT) technology to improve data accessibility and usability.  The best choices in this case are PROFINET and EtherNet/IP. PROFINET embodies the concept of providing an open standard to enable manufacturer-neutral automation solutions. Since the 1990s, the industrial communications industry has been using PROFINET, which is 100% Industrial Ethernet. This establishes the framework for connecting automation devices and regular Ethernet devices to a standardized automation network.

For instance, according to a 2023 report by HMS Networks, With a combined 18% market share, PROFINET and EtherNet/IP lead the network rankings. EtherCAT, a formidable competitor, is now in second place with 12%.

Industrial Ethernet Market Regional Analysis:

North America holds one of the largest global market shares. Increasing investments in the industrial network infrastructure in the region have fueled the growth of the industrial ethernet market. Industries are rapidly moving towards Industry 4.0 and IoT. This has increased the demand for low-latency data transfer protocols such as Ethernet in the market. The Ethernet has proven to be of immense use in industries to bridge the gap between information technology and operation technology.

Moreover, the US government is investing heavily in domestic production of electronic equipment used on high-speed internet networks. For instance, in September 2023, the Biden-Harris administration announced the new investments in high-speed Internet network electronics equipment production in the U.S. by Calix, Inc. This will boost the adoption of industrial network infrastructure in the US.

Industrial Ethernet Market Driver:

Industrial Ethernet Market Key Player Analysis:

The Industrial Ethernet market analysis consists of the players such as ABB Ltd.; Robert Bosch GmbH.; Analog Devices Inc.; B&R Automation.; Moxa Inc.; Belden Inc.; Rockwell Automation.; Schneider Electric.; Cisco Systems Siemens are among the key industrial ethernet market players profiled in the report.

Industrial Ethernet Market Recent Developments: 

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the Industrial Ethernet market. A few recent key industrial ethernet market developments are listed below: 

  • In March 2021, Field-level Ethernet connectivity for usage in dangerous regions of process industries was developed by ABB in collaboration with other industry experts and standards bodies. By extending its application to OPC UA-based convergent networks, ABB is assisting the industry in bridging the gap between IT and OT.
  • In May 2021, ABB is leading the way in industrial communication and instrumentation with the addition of power supply via Ethernet connectivity to their most recent electromagnetic flowmeter, ProcessMaster, and mass flowmeter, CoriolisMaster.
  • In November 2022, Siemens updated the Scalance XC-/XR-300 series Industrial Ethernet switches with new features to support the industrial networks of the future. Production-level networks become more sophisticated as a result of industrial plants' growing networking of machines, controllers, and IT systems. High-performance Industrial Ethernet switches with a large number of ports and data bandwidths are necessary to guarantee dependable data exchange.
  • In December 2015, Schneider Electric made the Ethernet Gateway Link150 available for purchase. For PowerLogic system devices and other communication devices that use the Modbus protocol, the Link150 functions as an Ethernet gateway. In even the most demanding applications, from a single building to a multi-site company, it offers fast, dependable Ethernet connectivity. Power and energy meters, circuit monitors, trip units, protection relays, motor controls, and other devices requiring rapid and effective data communication are supported by this gateway. It is an easy-to-use, reasonably priced serial line with full Ethernet connectivity that provides total access to all measurement and status data.

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Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

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Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

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  • ABB Ltd.
  • Robert Bosch GmbH.
  • Analog Devices Inc.
  • B&R Automation.
  • Moxa Inc.
  • Belden Inc.
  • Rockwell Automation.
  • Schneider Electric.
  • Cisco Systems Siemens

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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