Industrial Ethernet Market Size to grow by USD 43.52 billion between 2024-2028
According to a research report “ Industrial Ethernet Market” by Component (Hardware, Software, Services) Technology (Ethernet/IP, PROFINET, EtherCAT, Modbus TCP/IP, Others) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 43.52 billion, at a CAGR of 13.29% during the forecast period. In today's power industry, the implementation of smart grids is gaining significant traction due to the increasing requirement for real-time power usage detection and response. With China and North America leading the way, governments are investing heavily in modernizing traditional power grids into intelligent, networked systems. The primary benefits of smart grids, including improved power flow control and the ability to integrate various power sources, are driving substantial investments in these projects. As the power grid becomes increasingly complex, with inputs from both conventional and renewable energy sources, the need for precise matching of power supply and demand in real-time is paramount to prevent voltage fluctuations and ensure grid stability. This trend is significantly expanding the industrial Ethernet market, as these networks provide the necessary communication infrastructure for the advanced control systems required in smart grid implementations.
Browse market data tables, figures, and in-depth TOC on “Industrial Ethernet Market” by Component (Hardware, Software, Services) Technology (Ethernet/IP, PROFINET, EtherCAT, Modbus TCP/IP, Others) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample
By Component, the Hardware segment is projected to dominate the market size in 2024
Ethernet/IP is a leading industrial Ethernet protocol, developed by Rockwell Automation's Allen Bradley brand in 2000. This protocol is based on the Common Industrial Protocol (CIP) and is managed by the Open DeviceNet Vendor Association (ODVA), an international standards organization. Ethernet/IP employs an originator/adapter architecture for seamless data exchange, accommodating star, tree, or linear topologies. It empowers end-user industries to implement standard Ethernet technology for industrial applications by providing essential tools. In industrial settings, Ethernet/IP enables communication between application nodes via CIP connections over a TCP connection, with the capability to establish multiple CIP connections on a single TCP connection.
By Technology, Ethernet/IP segment is expected to hold the largest market size for the year 2024
The Industrial Ethernet market represents a significant growth opportunity for businesses seeking to modernize their manufacturing operations. This technology enables high-speed, reliable, and secure data communication between industrial devices and enterprise IT systems. Companies can improve efficiency, enhance productivity, and reduce downtime by implementing Industrial Ethernet solutions. The market is expected to grow at a robust CAGR due to increasing automation and digitization in industries.
APAC is forecasted to hold the largest market size by region in 2024
The Industrial Ethernet market in APAC is currently experiencing a slower revenue growth rate compared to other regions due to the absence of a well-established industrial Ethernet network. However, key industrial Ethernet technologies such as PROFINET, EtherCAT, Ethernet/IP, PROFIBUS, Modbus, and CC-Link are extensively used in the region. Notably, the CC-Link IE Field version is gaining significant traction. The power and automotive industries are anticipated to witness notable growth during the forecast period, driven by the expanding consumer base in APAC, particularly in India and China, which is expected to boost automotive manufacturing. Furthermore, the power industry's growth is expected to be fueled by the global shift towards renewable energy sources during the forecast period.
The Industrial Ethernet Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Industrial Ethernet market is experiencing significant growth due to the digitalization and automation trends in various industries, including consumer electronics, smart automation in the fabrication industry, and structural parts manufacturing in engineering/fabrication. Steel and metal industries are increasingly adopting Industrial Ethernet for its ability to transmit data in real-time, enabling efficient production processes. The MODBUS-TCP Protocol is a popular choice for industrial applications due to its reliability and ease of use. However, operating costs can be a challenge for smaller businesses, as Industrial Ethernet requires specialized equipment and expertise. Industrial Ethernet must also withstand harsh environments, including vibrations, severe shocks, and high-voltage transients. The challenge of integrating Industrial Ethernet with 5G technology presents an opportunity for innovation and improved interfaces. Europe, which has a rich industrial history, has been a leader in industrialization and industrial automation. However, the European recession has led to a focus on cost reduction and efficiency gains, making Industrial Ethernet an attractive solution. Keywords: Digitalization, Automation, Consumer Electronics, Smart Automation, Fabrication Industry, Structural Parts Manufacturing, Steel, Metal, Engineering/Fabrication, MODBUS-TCP Protocol, Operating Costs, Vibrations, Severe Shocks, High-Voltage Transients, Challenge, 5G Technology, Opportunity, Interfaces, European, Recession, Industrialization, Industrial Automation.
Market Research Overview
The Industrial Ethernet market is witnessing significant growth due to the rapid industrialization and digitalization in various sectors, including Electronic Companies, Automobile, Aerospace and Defense, Automotive and Transportation, Consumer Electronics, and the Fabrication Industry. The smart factory concept is driving the demand for Industrial Ethernet, enabling productivity improvements, network management, and real-time communication. Communication protocols such as MODBUS-TCP are becoming standardized, while automation systems and machine-to-machine communication are essential for smart factories. The manufacturing hubs in Europe and the US are leading the Industrial Ethernet market, with precedence statistics showing a steady increase in demand. HMS Networks, among other players, is leveraging this trend with its offering of networking technologies for harsh environments. The challenge of implementing Industrial Ethernet in high-temperature, vibration, and shock-prone environments, as well as high-voltage transients, presents an opportunity for innovation. The service segment is expected to grow, with network administrators focusing on virtualization, cloud, and data security. The automotive and transportation sector is a significant contributor, with the need for data-driven decision-making and smart automation on the factory floor. The aerospace and defense industry also benefits from the real-time communication and data security offered by Industrial Ethernet. The 5G technology is set to revolutionize the Industrial Ethernet market, with faster interfaces and lower latency enabling more extensive automation and real-time communication. Despite the European recession, the Industrial Ethernet market is expected to continue its growth trajectory, driven by the need for cost-effective network infrastructure and the ongoing industrialization trend.
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