Emphasis on Component (Hardware, Services, Software), Communication Protocol (Industrial Ethernet, Fieldbus, Wireless, Cloud, OPA/UA, and Others); Industry Vertical (Automotive and Transportation, Aerospace & Defense, Food & Beverages, Electrical & Electronics, Oil and Gas, Chemicals And Pharmaceuticals, and Others); and Region/Country
The Industrial Communication market was valued at approximately USD 26 billion in 2023 and is expected to grow at a substantial CAGR of around 6.5% during the forecast period (2024-2032) owing to the increasing adoption of wireless communication.
Industrial communication can be defined as the procedures used in conveying data and information between and/or among different industrial systems, machines as well as devices to enable command, automation, surveillance, and management of industrial procedures. It encompasses the employment of particular channels of communication, equipment, or channels, and physical inter-connectivity that is suitable for operating under various and severe industrial conditions, without compromising real-time as well as a secure data relay. Some examples of industrial communication technologies are industrial ethernet, field bus, industrial wireless, and protocols such as PROFINET, Ether CAT, and Modbus.
Companies are focusing on introducing a combination of advanced technologies which include 5G networks, edge computation, and IIoT solutions in the expansion of the industrial communication market. For instance, on January 29, 2024, Moxa Inc., a leader in industrial communications and networking, officially announced the launch of a new family of x86 industrial computers (IPCs) with exceptional reliability, adaptability, and longevity to address the increasing demands of data connectivity and real-time processing of large volumes of sensor and device data at the industrial edge. Moreover, companies are shifting their attention towards network security, safeguarding industrial networks from cyber threats, and adopting a single protocol for communication to make them interoperable.
This section discusses the key market trends influencing the various segments of the industrial communication market as identified by our research experts.
Industrial Ethernet Transform Industrial Communication Industry
Industrial Ethernet held a significant share of the market in 2023. This offers high-speed, reliable, and scalable data communication for industrial automation and control systems. Moreover, it provides a larger bandwidth and, therefore, real-time data exchange, which is critical in today’s manufacturing industries where fast and accurate data transfer is necessary. Its reliability and capacity to manage significant data make it suitable to interconnect modern trends like IoT devices, sensors, and smart machinery among others. For instance, on July 1, 2024, Moxa launched its high-bandwidth Ethernet switch portfolio, new MRX Series Layer 3 rackmount Ethernet switches that support 64 ports with up to 16 ports of 10GbE speed to accelerate data aggregation for industrial applications, and help users build high-bandwidth network infrastructure to realize IT/OT convergence with the EDS-4000/G4000 Series Layer 2 DIN-rail Ethernet switches supporting 2.5GbE uplink options. Furthermore, global acceptance of Industrial Ethernet protocols including PROFINET, EtherNet/IP, and Modbus TCP allows integration and communication among the different devices and systems thereby minimizing time wastage in case of a system breakdown or lack of efficiency.
North America has a significant share of the market in 2023.
The region’s focus on advancing Industry 4.0 and smart manufacturing initiatives has created a high demand for enhanced communication systems that facilitate real-time data processing and automation. For instance, on February 28, 2024, GE Vernova announced the release of Proficy for Sustainability Insights, a new software solution designed to operationalize manufacturers’ goals toward sustainability, while helping maximize productivity and profitability. By integrating operational and sustainability data, artificial intelligence (AI) based software can help industrial companies use resources more efficiently and effectively across a plant or entire enterprise, as well as manage climate metrics required for regulatory compliance. Adding to this, companies in North America are incorporating Industrial Ethernet, IIoT, and 5G to boost productivity, synchronize the installation of improved equipment, and leverage insight-driven decision-making. Furthermore, the rise in focus on the security of the region also reflects the need for better communication solutions to mitigate cybersecurity threats in industrial networks. Therefore, having key major players and a developed industrial base also enhances the efficiency of the application of advanced communication technologies in North America, making North America an important driving force for the growth of the industrial communication market.
The Industrial Communication market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are Siemens, Rockwell Automation, ABB, Schneider Electric, GE Vernova company, Cisco Systems, Inc., Phoenix Contact, MOXA, NXP Semiconductors, and Advantech Co., Ltd.
On 25 July 2024 – Cisco, a worldwide leader in networking and security, and Rockwell Automation, the world’s largest company dedicated to industrial automation and digital transformation, announced a collaboration to propel the digital transformation of the industrial market in the Asia Pacific, Japan and Greater China region. The announcement was made as the two companies signed a Memorandum of Understanding (MOU) on the same.
On March 13, 2024 – Rockwell Automation, Inc. the world’s largest company dedicated to industrial automation and digital transformation, announced the launch of its CUBIC Modular Switchboard and Motor Control Center (MCC) product line across the Asia Pacific region. CUBIC specializes in IEC-61439 compliant modular enclosure systems for the construction of power and electrical panels.
On 28 September 2023, Siemens launched a private infrastructure developed in-house for the 5G mobile communications standard. The solution enables industrial companies to build their own local 5G networks that will provide optimal support for automation applications.
On May 30, 2023 – Moxa Inc., announced that it has joined Avnu Alliance, the industry forum driving deterministic capabilities into open, standards-based networking as a promoter member to advance time-sensitive networking (TSN) ecosystem interoperability. Moxa’s joining shows great promise, focusing on working on a truly unified and high-performance network infrastructure that permits all types of traffic to coexist for real-time communication, low latency, and high-reliability requirements in diverse applications.
The global industrial communication market can be customized further as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology Or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Industrial Communication Market Revenue (usd Bn), 2022-2032f
7. Market Insights By Component
8. Market Insights By Communication Protocol
9. Market Insights By Industry Vertical
10. Market Insights By Region
11. Value Chain Analysis
12. Competitive Landscape
13. Company Profiles
14. Acronyms & Assumption
15. Annexure
Analyzing the historical market, estimating the current market, and forecasting the future market of the global Industrial Communication market were the three major steps undertaken to create and analyze the adoption of Industrial Communication in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global Industrial Communication market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the Industrial Communication market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the Industrial Communication market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as component, communication protocol, industry verticals, and regions. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Industrial Communication market. Further, we conducted factor analysis using dependent and independent variables such as component, communication protocol, industry vertical, and regions of the industrial communication market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Industrial Communication market sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Industrial Communication market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
The industry’s market size, in terms of revenue (USD) and the adoption rate of the Industrial Communication market across the major markets domestically
All percentage shares, splits, and breakdowns of market segments and sub-segments
Key players in the global Industrial Communication market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global industrial communication market. Data was split into several segments and sub-segments after studying various parameters and trends in the component, communication protocol, industry vertical, and regions of the global industrial communication market.
The current & future market trends of the global industrial communication market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the industrial communication market's current size and growth potential?
Q2: What are the driving factors for the growth of the industrial communication market?
Q3: Which segment has the largest share of the industrial communication market by communication protocol?
Q4: What are the major trends in the industrial communication market?
Q5: Which region will dominate the industrial communication market?
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