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The industrial communication market size is forecast to increase by USD 81.2 billion at a CAGR of 11.01% between 2023 and 2028. The market's expansion hinges on key factors such as the growing integration of IIoT technology, the introduction of innovative Fieldbus systems, and the widespread implementation of industrial Ethernet solutions. These advancements are reshaping industrial automation by enhancing connectivity, data collection, and operational efficiency. The rising adoption of IIoT offers real-time insights and predictive maintenance capabilities, while new Fieldbus technologies streamline communication within industrial networks. Additionally, industrial Ethernet solutions provide high-speed, reliable connectivity for seamless data transmission. Collectively, these trends drive market growth by empowering industries with enhanced connectivity, data management, and automation capabilities. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.
Market Forecast 2023-2027
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The process industries are a key sector within the market, characterized by their unique communication needs and operational workflows. Efficiency is paramount in these industries, driving the adoption of advanced communication technologies to streamline processes and reduce human intervention. Standardization plays a crucial role in ensuring interoperability and seamless communication across various industrial equipment and interfaces. Protocols such as HART communication and IEEE 802 are widely used in industrial settings, enabling efficient data exchange and control. However, challenges like data misrepresentation and the need for plug-and-play features are addressed through innovative solutions offered by equipment manufacturers. The evolution of wireless networks incorporating technologies like Bluetooth Smart, WirelessHART, WLAN, and Zigbee has revolutionized communication in sectors like the oil & gas industry, electronics industry, and energy & power generation industry. These wireless solutions enhance flexibility, mobility, and real-time data access, mitigating issues related to high voltage transients, surge, burst, and electrical fast transients (EFT). Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is driven by the growing adoption of IIoT technology. IIoT connects physical devices with sensors, software, and hardware to exchange data without human intervention. Smart devices and traditional non-internet-enabled devices make up the IIoT network. Manufacturers benefit from open networks like Ethernet over dedicated automation networks due to higher bandwidth and continuous expansion.
Moreover, IIoT implementation in smart factories boosts throughput, productivity, and inventory reduction. Industrial end users with Ethernet ecosystems can fully leverage smart factories' efficiency. The increasing adoption of IIoT technology positively impacts the global industrial communications market's growth during the forecast period.
The integration of Fieldbus with IIoT is a significant trend driving the growth of the Market. The 4th Industrial Revolution brought about the convergence of IIoT and Fieldbuses, especially in modern industrial communication systems, to enhance connectivity, security, and performance. Fieldbus enables real-time data transmission on device status, diagnostics, process variables, and configuration parameters via IIoT, ensuring constant monitoring of plant operations for optimal performance.
Moreover, this integration reduces CAPEX and OPEX as end-users benefit from internet-enabled industrial automation systems, minimizing the need for additional auxiliary devices and reducing downtime for application delivery. The coexistence of simple and intelligent devices with standardized communication protocols ensures investment security, positively impacting the market growth during the forecast period.
The Market faces challenges due to the lack of determinism in industrial communication networks. Determinism refers to a communication protocol's ability to ensure that messages are sent and received within a fixed or predictable time, crucial for critical control applications in industrial automation.
Moreover, industrial control systems require real-time information transfer, where even a slight network interruption can disrupt the manufacturing process and compromise personnel safety. Ethernet networks' characteristics, with nodes sending data packets to all other nodes, can lead to collisions, reducing determinism and potentially impacting the market's growth during the forecast period.
The market share growth by the Fieldbus segment will be significant during the forecast period. Fieldbus is an industrial network system used for real-time distributed control. It is a method of connecting devices in a production facility. Different types of fieldbuses used for communication in the industry are Profibus, Modbus, and others. Profibus connects automation modules to process controllers. The process controller uses a single multidrop cable to connect devices. The equipment is economical for use on large construction sites. This is because installation costs are low, and fault isolation is easier with a single cable connection.
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The Fieldbus segment was valued at USD 44.5 billion in 2018. The emergence of Industry 4.0 and IIoT in the process industry highlights the importance of real-time communication and automation systems. Industrial Fieldbus protocols such as SERCOS III are therefore used for intelligent monitoring and autonomous decision-making. This method is used in the process industry for integrated safety and control systems. Therefore, continued implementation of integrated safety and intelligent monitoring systems in process industries is expected to drive demand for SERCOS III over the forecast period.
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APAC is estimated to contribute 49% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
APAC is now the world leader in automotive production. There is a high demand for automation from the booming automotive industry (both production and sales), especially in countries such as China, Japan, India, Malaysia, and South Korea. Therefore, increased investment in automotive production in APAC during the forecast period is likely to lead to increased adoption of IE. Rapid urbanization and industrialization in emerging markets such as India and China are creating demand for automation solutions in process industries such as oil & gas, food & beverage, paper & pulp, and power. As a result, APAC has become the fastest-growing region in this market.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Advantech Co. Ltd., ASUSTeK Computer Inc., Beckhoff Automation GmbH and Co. KG, Belden Inc., Cisco Systems Inc., Emerson Electric Co., FANUC Corp., General Electric Co., Huawei Technologies Co., Ltd., ifm electronic gmbh, Moxa Inc., OMRON Corp., Phoenix Contact GmbH and Co. KG, Physik Instrumente GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, SICK AG, Siemens AG, and Texas Instruments Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Market is evolving rapidly, driven by factors such as standardization efforts, the increasing complexity of industrial equipment, and the need for seamless interfaces between diverse systems. However, challenges like data misrepresentation and ensuring plug-and-play features remain paramount. Manufacturers are investing heavily in wireless networks like Bluetooth Smart, WirelessHART, WLAN, and Zigbee to enhance connectivity across industries like the oil & gas industry, electronics industry, and energy & power generation industry.
Moreover, technologies such as HART communication, IEEE 802, and cellular technologies are also gaining traction, although concerns persist around high voltage transients, electrostatic discharge (ESD), and lightning strikes. The market landscape depends on Equipment manufacturers, Surge, Burst, Electrical fast transients (EFT), Industrial communication equipment, Services offerings, Sensing technologies, and Pharma facility. Robust industrial switches and electromagnetic protection are crucial for ensuring network stability amid shock and vibration. Industrial communication solutions encompass networking wires, printed circuit board (PCB) designs, and device housings optimized for heat dissipation and air conditioning. Service offerings include network design, maintenance contracts, and remote support services for sectors like medical devices, chemical plants, and pharma facilities. These solutions aim to provide real-time access, enhance supply chain integration, and offer extended enterprise visibility into vital manufacturing data.
Industry Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.01% |
Market growth 2024-2028 |
USD 81.2 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.63 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Advantech Co. Ltd., ASUSTeK Computer Inc., Beckhoff Automation GmbH and Co. KG, Belden Inc., Cisco Systems Inc., Emerson Electric Co., FANUC Corp., General Electric Co., Huawei Technologies Co., Ltd., ifm electronic gmbh, Moxa Inc., OMRON Corp., Phoenix Contact GmbH and Co. KG, Physik Instrumente GmbH and Co. KG, Rockwell Automation Inc., Schneider Electric SE, SICK AG, Siemens AG, and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, market research and growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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