Industrial Ethernet Market (By Offerings: Hardware, Software, Services; By Protocol: EtherCAT, EtherNet/IP, PROFINET, POWERLINK, SERCOS III, CC-Link IE, Others; By End-use Industry: Oil and Gas, Automotive & Transportation, Energy & Power, Chemical & Fertilizer, Food & Beverages, Electrical & Electronics, Aerospace & Defense, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032


The global industrial ethernet market size was estimated at USD 8.45 billion in 2022 and it is expected to hit around USD 21.62 billion by 2032, expanding at a CAGR of 9.9% during the forecast period 2023 to 2032.

Industrial Ethernet Market Size 2023 To 2032

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Key Takeaways

  • Asia Pacific contributed more than 39% of revenue share in 2022.
  • North America is expected to witness the fastest growth during the forecast period.
  • By Offering, the hardware segment is projected to hold the largest share of the market during the forecast period.
  • By Offering, the services segment is expected to show notable growth.
  • By Protocol, the PROFINET and EtherNet/IP segment is expected to continue its dominance during the forecast period.
  • By End-use Industry, the automotive and transportation segment holds the largest market share.
  • By End-use Industry, the aerospace and defense segment will continue to grow at a significant CAGR during the forecast period.

Industrial Ethernet Market in the Asia Pacific 2023-2032

The Asia Pacific industrial ethernet market size accounted for USD 3.3 billion in 2022 and is estimated to reach around USD 8.51 billion by 2032, growing at a CAGR of 10% from 2023 to 2032.

Asia Pacific Industrial Ethernet Market Size 2023 To 2032

Asia Pacific accounted for the largest share of the Industrial ethernet market in 2022; the region is anticipated to continue its growth during the forecast period. The Asia Pacific industrial ethernet market is characterized by the presence of prominent market players, supportive government policies, rapid adoption of Industry 4.0, increasing investment in industrial automation, and rapid industrialization.

The increasing popularity of industrial ethernet across automotive sectors and consumer electronics in countries such as China, Japan, and India are the major factors behind the dominance of the Asia Pacific industrial ethernet market during the forecast period. Additionally, various initiatives have been by many developing nations such as China, India, Japan, and others, promoting automation and rapid digitalization across all industrial verticals. In a study by HMS Networks on the industrial network market, HMS concludes that the industrial ethernet continues to grow at the fastest growth rate.

Industrial Ethernet Market Share, By Region, 2022 (%)

North America is the fastest-growing region in the global Industrial ethernet market. The North American region is experiencing a strong penetration of the Internet of Things (IoT) devices, increasing investments in industrial infrastructure, huge investments in industrial automation, and an upsurge in industrialization. Thereby, these factors create a strong potential for the industrial ethernet market to expand in North America.

Industrial Ethernet Market Overview

Electricity played a crucial role in the industrial revolution, enabling more efficient and mass production of several durable goods such as home appliances, automobiles, and others. The world is becoming increasingly connected in the digitalization era, and more advanced networking technologies are being launched for industrial applications. Manufacturers are adopting digital industrialization or Industry 4.0. ethernet allows computers to share files, browse the internet, and access printers and other hardware devices connected to the network. Ethernet is efficient, reliable, and flexible. Ethernet is the most widely embraced networking protocol globally. The low cost required in implementation has made ethernet an attractive networking technology for industrial environments.

Industrial ethernet is about creating an automated network. It has surpassed conventional fieldbus architectures to become the leading connection protocol in factories across the globe. Industrial ethernet is expanding steadily, and several standards bodies continue to develop standards to support it. industrial ethernet (IE) uses ethernet in an industrial setting with protocols. Determinism and real-time control are important factors when defining Industrial ethernet.

Industrial ethernet widens the network’s value across industries. Due to rapid technological advancements, ethernet protocols have become one of the most crucial types of transmission in automation technology. Industrial ethernet switches, cables, and connectors need to withstand harsh conditions (heat and cold, vibrations, chemicals, factory noise, and others) in an industrial setting. Industrial Ethernet assists in creating a safe and reliable network infrastructure across all business and production levels.

Growth Factors

  • With the increasing demand for establishing robust and reliable communication infrastructure within an organization, the global industrial ethernet industry is expected to show a significant expansion during the forecast period.
  • The growth of the Industrial ethernet market is driven by factors such as increasing awareness of Industry 4.0, rapid industrialization, increasing adoption of industrial automation, favorable government initiatives, increasing demand across aerospace & defense applications, increasing investment in network infrastructure, and rapid penetration of advanced ethernet technologies.
  • In addition, the industrial ethernet gaining tremendous popularity across the globe owing to its excellent features including its capacity to connect multiple nodes, extended connection distances, higher speeds, and ability to withstand harsh conditions in an industrial setting.
  • As Industrial ethernet implementations are accelerating, manufacturers and designers can have better choices for high-speed and factory-friendly form factors.

Industrial Ethernet Market Scope

Report Coverage Details
Growth Rate from 2023 to 2032 CAGR of 9.9%
Market Size in 2023 USD 9.24 Billion
Market Size by 2032 USD 21.62 Billion
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered By Offerings, By Protocol, and By Protocol
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Industrial Ethernet Market Dynamics

Driver

Increasing adoption of industrial automation

The increasing adoption of industrial automation is expected to fuel the growth of the market during the forecast period. Industrial automation is the control of machinery and processes by autonomous systems through the use of advanced technologies such as robotics and computer software. Industrial ethernet networks deliver uninterrupted and seamless connectivity services between different automation devices.

Connected devices such as actuators, PLCs (Programmable Logic Controllers), sensors, and industrial automation and control systems (IACS) deliver real-time data that can be used for monitoring quality, and cost reduction. Several enterprises across the globe are embracing Industry 4.0 with integrating advanced technologies such as robotics and artificial intelligence to boost productivity.

The use of industrial ethernet hardware plays a crucial role in automation and machine control networks. The rapid adoption of the Industrial Internet of Things (IIoT) and Industry 4.0, and advanced technologies have promoted industrial ethernet's position as a leading technology fueling digital transformation for smart manufacturing. Thereby, the market is expected to get accelerate.

Restraint

The high initial investment is likely to hamper the market

The high initial investment associated with the deployment of the industrial ethernet network is likely to hamper the market. A huge amount of capital is required to set up the infrastructure, implement software solutions, and purchase key hardware components. Small and medium-sized enterprises (SMEs) most often face budget constraints that discourage them from embracing advanced industrial ethernet technologies. In addition, the implementation and establishment of industrial ethernet networks can be complex and need specific professional skills, which can be difficult for enterprises lacking the required resources and is likely to limit the expansion of the global industrial ethernet market during the forecast period.

Opportunity

Several government initiatives

Several government initiatives are projected to boost the growth of the industrial ethernet market. Rising government initiatives in developing nations and increasing expenditure for the introduction of automation aim to boost the manufacturing sector. For instance, India is one of the fastest developing countries in the world with a rapidly expanding industrial industry. Technology-driven processes offer visibility and transparency accelerating the growth of India’s manufacturing market and becoming a manufacturing hub in the coming years. India's government's “Make in India” initiative encourages businesses to automate processes in their existing manufacturing facilities with the use of smart technologies.

To strengthen India’s manufacturing capabilities and boost the smart manufacturing sector, several initiatives announced by the Indian government such as the Phased Manufacturing Programme (PMP), Atmanirbhar packages, Production Linked Incentive (PLI) Scheme, and others. The Indian government has implemented several initiatives to attract foreign investors, such as Goods and Services Tax, the reduction in corporate tax rates, reforms in the FDI policy, and addressing liquidity issues in banks and non-banking financial companies (NBFCs).

In addition, to encourage investment, several policies have been introduced including the Industrial Park Rating System (IPRS), India Industrial Land Bank (IILB), National Single Window System (NSWS), National Monetization Pipeline (NMP), and National Infrastructure Pipeline (NIP).

Offering Insights

The hardware segment is projected to hold the largest share of the market during the forecast period. The innovation in hardware products including routers, switches, controllers, connectors, and others is the primary factor boosting the growth of the segment. On the other hand, the services segment is expected to show notable growth. Emerging trends in the communication network and integration with the increasing usage of the Internet of Things (IoT) have resulted in the use of the cloud and networking.

Protocol Insights

The PROFINET and EtherNet/IP segment held the largest share in 2022, with the growing technological advancements across the globe; PROFINET and EtherNet/IP are the most widely used protocols in a variety of industries owing to their several advantages. PROFINET is used to exchange data between controllers and devices in industrial automation. PROFINET is very deterministic and exchanges data in a predefined arrangement. Controllers include Programmable Logic Controllers (PLCs), Distributed Control Systems (DCSs), and Programmable Automation Systems (DDCSs).

Devices include Input and Output (I/O) blocks, Radio Frequency Identification (RFID) readers, drives, process instruments, vision systems, and others. PROFINET boosts productivity with openness, flexibility, efficiency, and performance. Since PROFINET is an open standard, PROFINET products such as PACs, PLCs, Robots, Drives, IOs, Proxies & diagnostic tools are developed by several manufacturers globally.

End-use Industry Insights

The automotive and transportation segment is the leading segment of the market; the rising technological advancements in the automobile industry are anticipated to grow the demand for industrial ethernet systems during the forecast period. Industrial ethernet is becoming an innovative approach and is expected to fuel the transport industry in the coming years. Real-time applications such as Advanced Driver Assistance Systems (ADAS), infotainment systems, and others are positively impacting the market’s growth. The automotive industry has unceasingly pioneered new manufacturing processes, propelling the rapid embracing of innovative technologies on the factory floor. 

Recent Developments

  • In November 2022, Delta, a global provider of power management and industrial automation solutions. Delta unveiled its extensive range of smart energy-efficient and highly integrated industrial automation hardware and software solutions engineered for Industrial Internet of Things (IIoT) applications at SPS Nuremberg. The demonstration includes a SaaS Digital Dashboard tool. DIACloud Digital Dashboard, that offers remote visualization of cloud data for various applications, and a new Industrial Internet of Things (IIoT) function card for the PLC series to enable several Industrial Internet of Things (IIoT) applications.

Industrial Ethernet Market Players: 

The global industrial ethernet market is fragmented with multiple small-scale and large-scale players, major prominent companies in the global industrial ethernet market are:

  • ABB Ltd.
  • Robert Bosch GmbH
  • Analog Devices Inc.
  • B&R Automation
  • Moxa Inc
  • Belden Inc
  • Rockwell Automation
  • Schneider Electric
  • Siemens AG
  • Innovasic, Inc
  • Cisco Systems, Inc
  • Beckhoff Automation
  • Hitachi Ltd.
  • Nexans SA

Segments Covered in the Report:

(Note*: We offer reports based on sub-segments as well. Kindly, let us know if you are interested)

By Offerings

  • Hardware
  • Software
  • Services

By Protocol 

  • EtherCAT
  • EtherNet/IP
  • PROFINET
  • POWERLINK
  • SERCOS III
  • CC-Link IE
  • Others

By End-use Industry

  • Oil and Gas
  • Automotive & Transportation
  • Energy & Power
  • Chemical & Fertilizer
  • Food & Beverages
  • Electrical & Electronics
  • Aerospace & Defense
  • Others

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

Frequently Asked Questions

What is the industrial ethernet market size?
The global industrial ethernet market size is expected to increase USD 21.62 billion by 2032 from USD 8.45 billion in 2022.
What will be the CAGR of global industrial ethernet market?
The global industrial ethernet market will register growth rate of 9.9% between 2023 and 2032.
Who are the prominent players operating in the industrial ethernet market?
The major players operating in the industrial ethernet market are ABB Ltd., Robert Bosch GmbH, Analog Devices Inc., B&R Automation, Moxa Inc, Belden Inc, Rockwell Automation, Schneider Electric, Siemens AG, Innovasic, Inc, Cisco Systems, Inc, Beckhoff Automation, Hitachi Ltd., Nexans SA, and Others.
Which are the driving factors of the industrial ethernet market?
The driving factors of the industrial ethernet market are the increasing adoption of industrial automation and rising demand across aerospace and defense applications.
Which region will lead the global industrial ethernet market?
Asia Pacific region will lead the global industrial ethernet market during the forecast period 2023 to 2032.

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