Industrial Ethernet Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

The industrial ethernet market size is projected to reach US$ 21.37 billion by 2031 from US$ 9.83 billion in 2023. The market is expected to register a CAGR of 10.2% during 2023–2031. The growth in industrial automation and the rise in adoption of 5G are likely to remain key trends in the market.

Industrial Ethernet Market Analysis

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 layers 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 Market Overview

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.

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Industrial Ethernet Market: Strategic Insights

Industrial Ethernet Market

• Market Size 2023
  US$ 9.83 Billion
• Market Size 2031
  US$ 21.37 Billion

Market Dynamics

GROWTH DRIVERS

• Growing investment in the industrial networks

FUTURE TRENDS

• Expansion of 5G infrastucture in African countries

OPPORTUNITIES

• Growth in the 5G network

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Offering

• Hardware
• Software
• Services

Protocol

• PROFINET
• Ethernet/IP

Industry Vertical

• Electric and Power
• Manufacturing
• Aerospace and Defense
• Oil and Gas
• Automotive and Transportation

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Industrial Ethernet Market Drivers and Opportunities

Growing investment in the industrial networks to Favor the 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\lP, 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 (Al) and machine learning (ML) find more problems to solve in the industrial environment. For instance, in April 2022, SwitchML, an open-source project 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 (KAI-IST), 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.

Growth in the 5G network

The 5G networks provide wider bandwidth, which results in faster data transfer and computing. It virtually connects the machines, devices, and objects in the industrial setup. The reliable and faster wireless 5G connectivity empowers fast and consistent production and intralogistics processes with full flexibility and an uninterrupted internet connection. 5G infrastructure is crucial for the industrial sector for efficient IIoT-based operations.  Thus, government bodies across various countries are investing to build robust 5G infrastructure. For example, India has taken initiatives to build 5G infrastructure and promote R&D after the launch of 5G services in October 2022. In addition, the US government invested US$ 1.5 billion in the Public Wireless Supply Chain Innovation Fund. Thus, such government funding is bolstering the 5G networks and infrastructure around the world. The growth in the 5G ecosystem is generating the demand for industrial ethernet.

Industrial Ethernet Market Report Segmentation Analysis

Key segments that contributed to the derivation of the industrial ethernet market analysis are offering, protocol, and industry vertical.

• Based on the offering, the industrial ethernet market is divided into hardware, software, and services. The hardware segment held the largest share of the market in 2023.
• By protocol, the market is segmented into PROFINET, Ethernet/IP, and others. The PROFINET segment held a significant share of the market in 2023.
• In terms of industry verticals, the market is segmented into electric and power, manufacturing, aerospace and defense, oil and gas, automotive and transportation, and others. The manufacturing segment is expected to grow with a significant CAGR.

Industrial Ethernet Market Share Analysis by Geography

The geographic scope of the industrial ethernet market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

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 US by Calix, Inc. This will boost the adoption of industrial network infrastructure in the US.

Industrial Ethernet Market Market Report Scope

Industrial Ethernet Market News and Recent Developments

The industrial ethernet market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the industrial ethernet market are listed below:

• Allied Telesis, a global leader in connectivity solutions and intelligent networking tools, introduced the IE220 Series of industrial-grade switches – ruggedized for enduring performance in harsh environments, such as those found in OT networks and outdoor installations. These switches are hardened to withstand difficult environmental conditions, such as electromagnetic noise, wide-ranging temperatures, high humidity, and vibration. (Source: Allied Telesis, Press Release, July 2023)
• MaxLinear, Inc. (Nasdaq: MXL), a leader in Ethernet and network solutions, announced the market availability of its latest generation of single-port 1G Ethernet PHYs, complementing its already robust Ethernet portfolio. The new family is available in consumer and industrial variants and addresses a wide range of applications such as gateways, routers, industrial PCs, media converters, and SGMII to RGMII bridges. (Source: Panasonic, Press Release, November 2023)

Industrial Ethernet Market Report Coverage and Deliverables

The “Industrial Ethernet Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• industrial ethernet market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• industrial ethernet market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• industrial ethernet market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the industrial ethernet market
• Detailed company profiles