Global Industrial Ethernet Market

The global industrial Ethernet switch market was calculated at USD 3.94 Billion in 2021 and is estimated to reach USD 45.99 Billion by 2028, with a CAGR of 7.6% from 2022 to 2028. Elements such as expansion in the adoption of industrial Ethernet regulators due to its advantages and the rising demand to provide efficiency in transmission infrastructure in the automotive & transport environment especially drive the market’s growth. In addition, the advancement in the application of industrial Ethernet switches in industrial infrastructures such as smart grid, smart rail & traffic, security & surveillance, and different utility fuels the industrial Ethernet switch market growth.

What is Industrial Ethernet?

The Industrial Ethernet refers to a group of Ethernet protocols established on the standard Ethernet hardware and internet protocols, jointly with a proprietary application layer. The application layer protocol provides that the correct data is transferred and accepted when and where needed for a specific operation. In the same method that standard Ethernet allows file sharing and credentials to networked devices in an office, Industrial Ethernet protocols permit controllers to access data within drives, PLCs, workstations, and I/O devices on the factory floor.

Growth Drivers

Increasing demand for scalable, speedy, reliable, and interoperable transmission protocols

Industrial Ethernet is important for reaching complete transparency within an industrial plant and between the plant and enterprise webs. A dependable communication network is the core of the Industry 4.0 vision. Both industrial automation and communication networks are near conditional on real-time operational needs. Hence, they must manage information in a deterministic and duplicative method. The networks must be scalable across an expansive range of tools working on multiple standards with various interfaces. A manufacturer system should offer fast response times and high efficiency and dependability. To acquire these advantages, designers must choose the most suitable communication technology, guide a multiprotocol environment, and protect a broad range of industrial tools. Therefore, the growing demand for scalable and interoperable protocols has advanced endeavors to create a new collection of communication products.

Opportunities

The emergence of 5G constructs lucrative opportunities for market participants.

Industrial communication is a critical element of Industry 4.0. While companies concentrate on making their production function smart, they must believe in the multiple progressive communication technologies to accomplish it. 5G helps to overpower the drawbacks of other wireless procedures. With the onset of 5G technology, the manufacturing industry will significantly transform. Attributed to the ultra-low latency and dependability of 5G connectivity, deployment of secure, flexible, and efficient manufacturing systems is probable. 5Gallows continued the mechanization of robots and warehouse transportation and stopped using cables.

Restraints

Absence of standardization in industrial transmission protocols and interfaces

Industrial tools or devices transmit through different interfaces, technologies, and protocols. The scarcity of standardization in these communication interfaces and protocols may result in the misrepresentation of data. It even can confuse the integration of methods and restrict the usage of plug-and-play components for irrelevant systems. For example, most supplies manufactories utilize their proprietary interface protocols for transmitting with their machines, creating communication challenges with the help of devices produced by other manufacturers. Many communication protocols are being utilized in industrial Ethernet, but only rare brokers offer communication modules supporting most protocols. Many vendors deliver customized industrial Ethernet modules supporting a few transmission protocols. Thus, end-users find it difficult to switch to other protocols according to their requirements. Lack of standardization concerning technology complicates the integration of systems and hamper the “plug-and-play” capabilities between communication devices.

Pre Covid-19 Impact on Global Industrial Ethernet Market

Before the covid-19 pandemic, the increasing number of smart grid projects was one of the essential drivers expected to impact the market entirely during the forecast period. There is a surge in the execution of smart grids in the power industry, with the growing demand for detection and reaction to local differences in the use of power. The endeavors taken by Chinese and North American governments of these regions to modernize traditional power grids into smart grids are expanding the measure of the global industrial Ethernet market. The attention also pushes the smart grid schemes among end-user industries about the advantages of smart grid projects over traditional grids before the pandemic.

Covid-19 Impact on Global Industrial Ethernet Market

During the outbreak of COVID-19, the pandemic has caused nearly all manufacturing enterprises to reassess their processes and come up with immediate responses to stabilize their supply chain. Many manufacturing businesses have stopped their production, which has collaterally harmed the supply chain and negatively affected the development of the industrial Ethernet market. Multiple industrial communication enterprises worldwide noticed a substantial decline in earnings growth in the first quarter of 2020. On the other hand, a few companies noticed a considerably low pandemic influence on their sales and manufacturing units in the first quarter of 2020. However, these companies would detect a high crash in the second quarter of the year.

Post Covid-19 Impact on Global Industrial Ethernet Market

After the covid-19 outbreak, Industry 4.0 is developing new digital industrial technology that will connect sensors, machines, and IT systems along the value chain outside a single enterprise. These connected methods will interact with one another using standard internet-based protocols, analyze data to estimate failure, and accordingly configure the variations in data. The fourth industrial boom will allow it to gather and analyze data across machines, allowing faster, flexible, and more efficient processes to deliver higher quality products at a decreased cost.

By Offering Segmental Analysis

Based on the segmental analysis, the market is bifurcated into Hardware, Software and Services. The hardware segment is predicted to maintain the largest share of the industrial Ethernet market. Gadgets such as IP phones and PCs are connected to the internet to encourage prompt communication in industries. Machine-to-machine (M2M) communication in the industrial environment allows efficient plant processes. It accelerates operations and provides higher dependability and robustness across different industries, such as automotive, transportation, aerospace & defense, pharmaceutical, and food & beverage.

By Protocol Segmental Analysis

Based on the protocol segment, the market is classified into EtherCAT, EtherNet/IP, Power link, Sercos ||| and CC-Link |E. EtherNet/IP protocol calculated for the highest market share in 2021. Ethernet/IP is an industrial Ethernet protocol designed by Rockwell Automation, Inc. in 1990. Ethernet/IP is one of the top industrial protocols widely utilized in different industries, including hybrid and operation. Ethernet/IP uses standard Ethernet and switches, and it can have hundreds of nodes in a system.

By End-Use Segmental Analysis

Based on End-Use segment analysis, the market is classified into Automotive & Transportation, Electrical & Electronics, Aerospace & Defense, Oil & Gas, Food & Beverages, Pharmaceutical & Medical Devices, Energy & Power, Mining & Metals, Engineering/Fabrication, water & Wastepaper and Others. The Automotive & Transportation end-use industry calculated for the largest market share in 2021. Automotive is one of the largest end-use industries of industrial Ethernet and is anticipated to continue to monopolize the market due to the growing demand for progressive automation in automobile manufacturing intersections worldwide. Likewise, water level monitoring sensors, AC movements, and controllers are the essential components of water treatment methods, and an industrial Ethernet network is used to promote communication among these systems. The automotive enterprise continues to evolve at an outstanding speed with industrialization and connectivity.

By Regional Segmental Analysis

Based on the regional segmental analysis, the market is classified into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. Asia-Pacific to account for the largest market share during the forecast period. Asia-Pacific is currently the largest manufacturing hub for automobile and electronic companies. To contend with other global participants, the companies in Asia-Pacific use developed automation systems, which demand positively dependable communication networks for machine-to-machine (M2M) communication in their plants. The manufacturing companies in Asia-Pacific extensively adopt the smart factory concept for implementing advanced manufacturing technologies on the factory floor.

Competitors Analysis

The Companies include Arista Networks, Cisco Systems Inc., Belden Inc., Siemens Ag, Brocade Communication Systems Inc., Hewlett-Packard, Juniper network, Microsoft Corporation, Alcatel-Lucent, Huawei Technologies and other prominent players in the global industrial Ethernet market. Key Stakeholders

• Market research and consulting firms
• Industrial Ethernet Market Associates
• Local Governments
• Regulatory bodies
• Industrial Ethernet Market
• Suppliers
• Retailers
• Service Providers

Recent Developments

• In December 2020, Rockwell Automation presented new Alley- Bradley 440G-MZ guard locking switches. These solutions deliver a safety-based communications protocol that supplies access diagnostic knowledge and facilitates integration into a connected enterprise.
• In June 2020, SICK established Live Connect to produce a standardized connection from a border gateway to the SICK Asset Hub to access the virtual model and its data. It visualizes the sensor level, thereby delivering a foundation that unlocks new prospects for optimizing plant availability and operational efficiency.
• In June 2020, Moxa presented the MDS-G4000 Series industrial DIN-rail modular controlled Ethernet switches to realize next-level network versatility.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 3.94 Billion
The revenue forecast in 2028	USD 45.99 Billion
Growth Rate	CAGR of 7.6 % from 2022 to 2028.
Historical data	2017 – 2020
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The companies include Arista Networks, Cisco Systems Inc., Belden Inc., Siemens Ag, Brocade Communication Systems Inc., Hewlett-Packard, Juniper network, Microsoft Corporation, Alcatel-Lucent, and Huawei Technologies key players.

Market Modelling

By Offering

• Hardware
• Software
• Services

By Protocol

• EtherCAT
• EtherNet/IP
• Power link
• Sercos |||
• CC-Link |E

By End-Use Industry

• Automotive & Transportation
• Electrical & Electronics
• Aerospace & Defense
• Oil & Gas
• Food & Beverages
• Pharmaceutical & Medical Devices
• Energy & Power
• Mining & Metals
• Engineering/fabrication
• Water & Wastepaper
• Others

By Region

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East & Africa

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