Automation and Instrumentation
Industrial Ethernet Market Size to Grow at a CAGR of 10.1% During the Forecast Period 2021-2026
Industrial Ethernet/IP Market Overview
The Industrial Ethernet/IP Market size was estimated at $9.2 billion in 2020, growing at a CAGR of 10.1% in the period 2021-2026. Industrial Ethernet is designed for industrial environments to deliver the real-time and definite communication among machine controllers, router & gateways, actuators, sensors and other processing applications. The rising adoption of Industrial IoT solutions for advanced industrial automation among various industry-verticals such as automotive and manufacturing sectors aim enhanced production processes, resulted in the growth of the Industrial Ethernet/IP Industry.
The ongoing wireless cellular technology developments denote next level smart manufacturing, along with the growing awareness towards advanced factory – installation with IT systems are further driving the growth of the market. The Industrial Ethernet is rapidly upgrading globally to seek mission-critical automation processes coupled up with the growing emergence of dependable communication interface application, are analyzed to boost the Industrial Ethernet/IP market.
Key Takeaways
North America dominated the Industrial Ethernet/IP Market in 2020 with a share of 37%, owing to the early adoption of Ethernet solutions and integration of latest technology in various industry verticals to respond towards high-speed industrial automation systems.
The growing introduction of digital factory and Power supply devices due to the implementation of Industry 4.0 are boosting the Industrial Ethernet/IP Market growth.
The introduction of Cobots, the Human assistance machines and growing demand for cutting-edge connectivity are analyzed to drive the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Segment Analysis - By Offering Type
By Offering type, the Industrial Ethernet/IP Market is segmented into Hardware, Software and Services. The Hardware segment is analyzed to register the highest share of 74.1% in 2020, owing to the significant advantages of industrial-grade hubs, Routers and Switches due to reliability, network redundancy, as well as affordable price-to-performance availability. Moreover, the comprehensive portfolios of Switches, like unmanaged switches, rackmount switches, PoE switches which offer highest-level of durability in plant-based manufacture drive the market of Industrial Ethernet/IP.
In September 2019, Marvell launched High-Port Multi-Gigabit Automotive Ethernet Switches with security and cutting-edge routing features that can be used in large gateway applications across several industrial & factory automation, rail and intelligent transportation systems. Therefore, the rising demands for varied industrial-style rugged hardware components and to support common Industrial Protocol Management operations for highly reliable deployment are driving the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Segment Analysis - By End-Use Industry
By End-Use Industry, the Industrial Ethernet/IP Market is segmented into Energy & Power, Automotive, Oil and Gas, Food and beverage, Pharmaceutical, Aerospace and Defense, Utility, Transportation / Logistics, General Manufacturing, and others. The Automotive Industry is estimated to register the highest share of 16.5% in 2020, owing to the fundamental demands for industrial automation processes across manufacturing plants for ruggedness and real-time performance.
Moreover, in order to address high-bandwidth applications and unified communication processes for delivering different industrial production drive the market expansion. In March 2019, Broadcom Inc. launched the BCM8956X, automotive multilayer Ethernet switches to address the increasing need for time-sensitive networking (TSN), bandwidth and security for autonomous and connected vehicles. Thus, the growth of the industrial Ethernet solutions and other technological progress for error-free computation and automation accelerate the demand of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Segment Analysis – By Geography
North America dominated the Industrial Ethernet/IP Market in 2020 with a share of 37%, owing to the early adoption of Ethernet solutions and integration of latest technology in various industry verticals to respond towards high-speed industrial automation systems. Furthermore, extensive research and development across sectors such as automobiles, aerospace and data centres in which industrial Ethernet solutions drive potential outcomes is influencing the market growth in these regions.
In July 2020, Doosan Robotics Inc. launched six new Cobots, termed as collaborative robots to accelerate the smart factory industry trend. Presently, many leading manufacturers are embracing Advance Automation (A3) with human-robot collaboration for managing robust connectivity pertinent to Industry 4.0, and thus, driving the market growth. In addition to that, Rockwell Automation collaborated with Fluke Networks in September 2020 to deliver new guidelines for Industrial Ethernet Testing for faster startup and more reliable operation. Therefore, such acquisition for industrial automations and installation of advanced tools are driving the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Drivers
Growing implementation of Industry 4.0
The increasing adoption of industry 4.0 across the various manufacturing and process industries is driving the growth of the market. Industrial Ethernet technology enables industry verticals to aim seamless data transfer through a secure network connection across the entire plant infrastructure. Hence, it improves the productivity and minimizes the error as well as other downtime factors of the manufacturing units worldwide.
In October 2019, Automation Anywhere launched AI-Powered RPA-as-a-Service Platform that provides ease of use, cloud-native platform solutions and built-in AI functions to support automation processes, and integrates industrial machinery. According to the significant emergence of Industry 4.0 trend, many small and medium enterprises and large organizations are migrating to digital factories.
In September 2020, Alibaba Group Holding Limited launched Xunxi Digital Factory in Hangzhou, which offers a complete digitized manufacturing supply chain. Hence, the growing introduction of digital factory and Power supply devices due to the implementation of Industry 4.0 are some of the factors that are boosting the Industrial Ethernet/IP Market growth.
Introduction of Cobots across manufacturing plants
The groundbreaking technology, Cobots is the revolutionized robots that provide high-volume operations across diversified plant sectors. The AI-driven cobots are recent advancements that deliver a variety of services across the factories and provide precise performance with flexible programmable platforms. In December 2019, FANUC launched six models of FANUC’s ‘green’ CR series of collaborative robots to be used in the manufacturing industry, and denoted game-changing potential to the end-users to aim various opportunities in terms of managing a competitive landscape. Hence, the introduction of these Human assistance machines and growing demand for cutting-edge connectivity are analyzed to drive the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Challenges
Huge capital investment
The integration of industrial Ethernet solutions to aim optimized process automation and intelligent factory applications require substantial capital investment. Hence, it is difficult for many enterprises to fund for the latest technology installation across the industrial environment to obtain an effective solution, which eventually hampers the growth of the Industrial Ethernet/IP Industry outlook.
Industrial Ethernet/IP Market Landscape
Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in the Industrial Ethernet/IP Market. Industrial Ethernet/IP Market top 10 companies include Beckhoff New Automation Technology, Siemens AG, Cisco Systems, Inc., Rockwell Automation, Inc., Schneider Electric, B&R Industrial Automation GmbH, Belden Incorporated, General Cable Technologies Corporation, ABB, Advantech Co., Ltd and among others.
Partnerships/Product Launches/Contracts
Industrial Ethernet/IP Market, By Region, 2020
Industrial Ethernet/IP Market Segment Analysis - By Offering Type
By Offering type, the Industrial Ethernet/IP Market is segmented into Hardware, Software and Services. The Hardware segment is analyzed to register the highest share of 74.1% in 2020, owing to the significant advantages of industrial-grade hubs, Routers and Switches due to reliability, network redundancy, as well as affordable price-to-performance availability. Moreover, the comprehensive portfolios of Switches, like unmanaged switches, rackmount switches, PoE switches which offer highest-level of durability in plant-based manufacture drive the market of Industrial Ethernet/IP.
In September 2019, Marvell launched High-Port Multi-Gigabit Automotive Ethernet Switches with security and cutting-edge routing features that can be used in large gateway applications across several industrial & factory automation, rail and intelligent transportation systems. Therefore, the rising demands for varied industrial-style rugged hardware components and to support common Industrial Protocol Management operations for highly reliable deployment are driving the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Segment Analysis - By End-Use Industry
By End-Use Industry, the Industrial Ethernet/IP Market is segmented into Energy & Power, Automotive, Oil and Gas, Food and beverage, Pharmaceutical, Aerospace and Defense, Utility, Transportation / Logistics, General Manufacturing, and others. The Automotive Industry is estimated to register the highest share of 16.5% in 2020, owing to the fundamental demands for industrial automation processes across manufacturing plants for ruggedness and real-time performance.
Moreover, in order to address high-bandwidth applications and unified communication processes for delivering different industrial production drive the market expansion. In March 2019, Broadcom Inc. launched the BCM8956X, automotive multilayer Ethernet switches to address the increasing need for time-sensitive networking (TSN), bandwidth and security for autonomous and connected vehicles. Thus, the growth of the industrial Ethernet solutions and other technological progress for error-free computation and automation accelerate the demand of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Segment Analysis – By Geography
North America dominated the Industrial Ethernet/IP Market in 2020 with a share of 37%, owing to the early adoption of Ethernet solutions and integration of latest technology in various industry verticals to respond towards high-speed industrial automation systems. Furthermore, extensive research and development across sectors such as automobiles, aerospace and data centres in which industrial Ethernet solutions drive potential outcomes is influencing the market growth in these regions.
In July 2020, Doosan Robotics Inc. launched six new Cobots, termed as collaborative robots to accelerate the smart factory industry trend. Presently, many leading manufacturers are embracing Advance Automation (A3) with human-robot collaboration for managing robust connectivity pertinent to Industry 4.0, and thus, driving the market growth. In addition to that, Rockwell Automation collaborated with Fluke Networks in September 2020 to deliver new guidelines for Industrial Ethernet Testing for faster startup and more reliable operation. Therefore, such acquisition for industrial automations and installation of advanced tools are driving the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Drivers
Growing implementation of Industry 4.0
The increasing adoption of industry 4.0 across the various manufacturing and process industries is driving the growth of the market. Industrial Ethernet technology enables industry verticals to aim seamless data transfer through a secure network connection across the entire plant infrastructure. Hence, it improves the productivity and minimizes the error as well as other downtime factors of the manufacturing units worldwide.
In October 2019, Automation Anywhere launched AI-Powered RPA-as-a-Service Platform that provides ease of use, cloud-native platform solutions and built-in AI functions to support automation processes, and integrates industrial machinery. According to the significant emergence of Industry 4.0 trend, many small and medium enterprises and large organizations are migrating to digital factories.
In September 2020, Alibaba Group Holding Limited launched Xunxi Digital Factory in Hangzhou, which offers a complete digitized manufacturing supply chain. Hence, the growing introduction of digital factory and Power supply devices due to the implementation of Industry 4.0 are some of the factors that are boosting the Industrial Ethernet/IP Market growth.
Introduction of Cobots across manufacturing plants
The groundbreaking technology, Cobots is the revolutionized robots that provide high-volume operations across diversified plant sectors. The AI-driven cobots are recent advancements that deliver a variety of services across the factories and provide precise performance with flexible programmable platforms. In December 2019, FANUC launched six models of FANUC’s ‘green’ CR series of collaborative robots to be used in the manufacturing industry, and denoted game-changing potential to the end-users to aim various opportunities in terms of managing a competitive landscape. Hence, the introduction of these Human assistance machines and growing demand for cutting-edge connectivity are analyzed to drive the growth of the Industrial Ethernet/IP Market.
Industrial Ethernet/IP Market Challenges
Huge capital investment
The integration of industrial Ethernet solutions to aim optimized process automation and intelligent factory applications require substantial capital investment. Hence, it is difficult for many enterprises to fund for the latest technology installation across the industrial environment to obtain an effective solution, which eventually hampers the growth of the Industrial Ethernet/IP Industry outlook.
Industrial Ethernet/IP Market Landscape
Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in the Industrial Ethernet/IP Market. Industrial Ethernet/IP Market top 10 companies include Beckhoff New Automation Technology, Siemens AG, Cisco Systems, Inc., Rockwell Automation, Inc., Schneider Electric, B&R Industrial Automation GmbH, Belden Incorporated, General Cable Technologies Corporation, ABB, Advantech Co., Ltd and among others.
Partnerships/Product Launches/Contracts
- In February 2020, Advantech Co., Ltd, a leading supplier of industrial communications equipment launched 10G Industrial Ethernet Switches for hyper-converged infrastructure with guaranteed network transmission quality.
-
In June 2019, Belden acquired a leading provider of fiber-optic products and systems, Opterna, to grow themselves as a share-capture in the broadband business.
