Global Industrial Communication Market to 2023: Growing Demand for Scalable, Faster, Reliable, and Interoperable Communication Protocols

DUBLIN, Dec. 3, 2018 /PRNewswire/ --

The "Industrial Communication Market by Offering, Communication Protocol, End-Use Application and Geography - Global Forecast to 2023" report has been added to ResearchAndMarkets.com's offering.

The industrial communication market is expected to be worth USD 141.04 billion by 2023, growing at a CAGR of 11.14% during 2018-2023.

Industrial communication mainly consists of the devices, systems, and software required in machine-to-machine and man-to-machine communication in discrete, process, and hybrid industries. The consulting, installation, and support services are also a part of this market.

Industrial Ethernet protocol and wireless protocol are expected to witness higher growth during the forecast period. Over the years, Ethernet protocol has come up as a better replacement for the Fieldbus protocol in an array of industrial applications; with this, the growth of the market for Ethernet protocol has significantly outpaced that of the market for industrial Fieldbus protocol in recent years. However, with a large installed base of legacy system in developed countries, and demand for the Fieldbus protocol in process industries, the market for this protocol is also expected to grow during the first half of the forecast period, but at a much lower rate than the market for Ethernet.

The industrial communication market is mainly driven by the adoption of Industrial Internet of Things (IIoT) and advancement in M2M communication technology for industrial networking. The growth of Industry 4.0 practices in Europe and North America propels the growth of industrial communication. Moreover, the growing penetration of Industry 4.0 and Computer-Integrated Manufacturing (CIM) in developing countries in APAC and the Middle East is expected to offer new growth opportunities for the industrial communication solutions providers during the forecast period. Different standards adopted by various equipment manufacturers are hindering the data collection and information generating process, and acting as a major restraint for the industrial communication market.

This report covers the key components required for enabling industrial communications, such as connectors, controllers and processors, converters, routers, gateways, switches, hubs, and power supply devices. Of all the components, switches are the largest contributor to the overall industrial communication market, accounting for a share of 21.84% of the market for components in 2017.

Communication protocol plays an important role in industrial communication. A communication protocol states a set of rules for a given type of communication. Industrial communication is currently dominated by Fieldbus and industrial Ethernet protocols. Wireless communication protocol holds a small share of this market but is expected to grow at a rapid CAGR of 15.67% during the forecast period.

Some of the major players operating in industrial communication market include OMRON Corporation (Japan), Schneider Electric SE (France), Siemens AG (Germany), ABB LTD. (Switzerland), Rockwell Automation, Inc. (US), Advantech Co., Ltd. (Taiwan), ifm electronic gmbh (Germany), HMS Industrial Networks (Sweden), Cisco Systems, Inc. (US), Moxa Inc. (US), and Belden Inc. (US).

These players have adopted various strategies to expand their global presence and increase their market shares. Product launches and developments, and acquisitions and collaborations are some of the major strategies adopted by the market players to strengthen their position in this market.

Key Topics Covered:

1 Introduction
1.1 Study Objectives
1.2 Market Definition
1.3 Study Scope
1.4 Currency
1.5 Stakeholders

2 Research Methodology
2.1 Research Data
2.2 Market Size Estimation
2.3 Market Breakdown and Data Triangulation
2.4 Research Assumptions
2.5 Limitations

3 Executive Summary

4 Premium Insights
4.1 Attractive Opportunity in Industrial Communication Market
4.2 Industrial Communication Market, By Offering
4.3 Market Share, By Region (2018 vs 2023)
4.4 Electrical and Electronics to Hold Largest Share of Industrial Communication Market in APAC By 2018
4.5 Market, By Geography

5 Market Overview
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Growing Need for Scalable, Faster, Reliable, and Interoperable Communication Protocols
5.2.1.2 Rise of Industrial Revolution 4.0
5.2.1.3 Increasing Machine-To-Machine Communication
5.2.1.4 Government Initiatives to Support Industrial Automation
5.2.2 Restraints
5.2.2.1 Lack of Standardization Among Equipment Manufacturers
5.2.3 Opportunities
5.2.3.1 Growing Adoption of Industrial Internet of Things (IIoT)
5.2.3.2 Rising Demand for Wireless Networks
5.2.4 Challenges
5.2.4.1 Threats Related to Cybersecurity
5.2.4.2 Harsh Field Site Conditions Such as High-Voltage Transients, Severe Shocks and Vibrations, and Extremely High Temperatures

6 Industrial Communication Market, By Offering
6.1 Introduction
6.2 Components
6.2.1 Market for Industrial Controllers and Processors to Witness Significant Growth During Forecast Period
6.2.2 Switches
6.2.2.1 Rising Adoption of Ethernet Protocol to Propel the Growth of Market for Industrial Communication Switches During Forecast Period
6.2.3 Hubs, Routers, and Gateways
6.2.3.1 Increasing Use of More Than One Communication Protocol in Industrial Communication to Drive Growth of Market for Gateways and Routers During Forecast Period
6.2.4 Connectors
6.2.4.1 Square Subscriber Connectors (SCS), Also Standard Connectors, are More Popular in North America While Round Straight Tip (ST) Connectors are More Popular in Europe
6.2.5 Communication Interfaces
6.2.5.1 Growing Market for Industrial Pcs to Drive Growth of Communication Interfaces
6.2.6 Power Supply Devices
6.2.6.1 Growing Need for Efficient Battery Charging, Power-Source Selection, and Voltage Scaling in Field Devices to Propel Growth of Market for Power Supply Devices.
6.2.7 Controllers and Processors
6.2.7.1 Growing Need to Control, Monitor, and Record Field-Level Data Automatically Within Industrial Communication Network Driving Market for Controllers and Processors
6.2.8 Memory
6.2.8.1 Migration Toward Solid-State Drive (SSD) From Hard Disk Drive (HDD) to Drive Industrial Communication Market for Memory
6.2.9 Isolators and Convertors
6.2.9.1 Increase in Use of Optical Isolators in Ethernet Industrial Communication Protocol to Drive Market for Isolators and Convertors
6.2.10 Others
6.3 Software
6.3.1 Increasing Importance of Network-Management Software With the Growing Network Complexity, to Ensure the Smooth Functioning of the Industrial Communication Network, Driving Industrial Communication Software Market
6.4 Services
6.4.1 Growing Focus Toward Comprehensive Industrial Communication Solution From Tier 1 Players to Drive Industrial Communication Services Market

7 Industrial Communication Market, By Communication Protocol
7.1 Introduction
7.2 Fieldbus
7.2.1 Foundation Fieldbus and Hart
7.2.1.1 Growing Adoption in Iron and Steel, Oil and Gas, and Chemicals Industries to Drive Growth of Market for Foundation Fieldbus During Forecast Period
7.2.2 Profibus
7.2.2.1 Profibus is One of the Most Widely Recognized Fieldbus Standards Worldwide
7.2.3 Modbus
7.2.3.1 Ease of Use and Superior Reliability to Drive Market for Modbus Protocol
7.2.4 CC- Link
7.2.4.1 Rising Adoption of CC-Link in Process Industries to Boost Market for CC-Link Communication Protocol During Forecast Period
7.2.5 Devicenet
7.2.5.1 Devicenet is Low-Cost and Robust Industrial Communication Protocol Compared to Other Traditional Communication Protocols
7.2.6 Canopen
7.2.6.1 Growing Use in Motion Control Application to Fuel Growth of Market for Canopen During Forecast Period
7.2.7 Interbus
7.2.7.1 Significant Penetration Interbus is Attributed to Availability of Interbus Capable Hardware Offered By Tier 1 and Tier 2 Industrial Communication Equipment Vendors
7.2.8 Others
7.3 Industrial Ethernet
7.3.1 Profinet
7.3.1.1 Profinet Emerged as Promising Alternative to Ethernet/IP Communication Protocol
7.3.2 Ethernet/IP
7.3.2.1 Wide Use of Ethernet/IP in Range of Industries, Including Hybrid and Process Industries, Makes It One of the Prominent Industrial Protocols
7.3.3 Ethercat
7.3.3.1 Ability to Connect Entire Automation Systems in Real Time Expected to Drive Market for Ethercat During the Forecast Period
7.3.4 Modbus - TCP
7.3.4.1 APAC to Lead Modbus - TCP Market By 2023
7.3.5 Powerlink
7.3.5.1 Automotive, Chemicals, and Mining Industries to Be Leading Contributors to Market for Powerlink Industrial Communication Protocol By 2023
7.3.6 Sercos Iii
7.3.6.1 Higher Transfer and Operation Speed of Sercos Iii Compared to Many Other Ethernet Communication Protocols is Expected to Drive the Growth During Forecast Period.
7.3.7 CC-Link Ie
7.3.7.1 Growing Demand in Process Automation Applications to Boost Market for CC-Link Ie During Forecast Period
7.4 Wireless
7.4.1 WLAN
7.4.1.1 Ease of Installation and Use, and Improved Reliability of WLAN Systems in Industrial Application Likely to Drive WLAN Industrial Communication Market During Forecast Period
7.4.2 Isa100.11a
7.4.2.1 Superior Multicasting and Efficient Routing Due to Reduced Routing Table Size Contribute to Growth of Market for Isa100.11a Communication Protocol
7.4.3 Cellular
7.4.3.1 Rising Demand for Extended Network Coverage and Capacity to Accommodate Large Number of Connected Devices in Industries to Boost Cellular Industrial Communication Market During Forecast Period
7.4.4 Whart
7.4.4.1 Whart Protocol is Ideal Solution for Diagnostic Information in Digital Form While Retaining Compatibility With Legacy Automation Architectures
7.4.5 Zigbee
7.4.5.1 Advantages Such as Easy Network Expansion, Low Power Consumption, Good Coverage Area, and Reliable Network Structure Encourage Use of Zigbee for Large Networks
7.4.6 Others

8 Industrial Communication Market, By End-Use Application
8.1 Introduction
8.2 Automotive and Transportation
8.2.1 Intense Competition in Automotive Industry Leading to Surge in Demand for Efficient Industrial Communication to Streamline Production Processes
8.3 Electrical and Electronics
8.3.1 Shift From Fieldbus to Ethernet Communication Protocol to Propel Growth of Market for Electrical and Electronics Industries
8.4 Aerospace & Defense
8.4.1 Essentiality of Cost Optimization Through Automation and Industry 4.0 in Aerospace and Defense Industry to Raise Demand for Industrial Communication Technologies
8.5 Oil & Gas
8.5.1 Increasing Demand for Automation in Oil & Gas Industry to Propel Adoption of Advanced Industrial Communication Technologies
8.6 Chemicals and Fertilizers
8.6.1 Growing Need for Remote Diagnostics of Sensor Nodes and Actuators Boosts Adoption of Advanced Industrial Communication Technologies in Chemicals Industry
8.7 Food & Beverages
8.7.1 High Demand for Automation Technology Driven By Stringent Regulations Related to Food Quality and Safety Fuels Industrial Communication Market for Food and Beverages Industry
8.8 Pharmaceutical
8.8.1 Intense Competition, Higher Production Requirements, and Strict Regulatory Environment, Etc., to Promote Adoption of Technologically Advanced Communication Systems in Pharmaceutical Industry
8.9 Energy & Power
8.9.1 Rising Implementation of Industry 4.0 Acts as Catalyst for Growth of Market for Energy and Power Industry
8.10 Mining
8.10.1 Industrial Communication and Automation Technologies Gaining Traction in Mining Industry for Improving Safety, Increasing Production, and Reducing Operating Costs
8.11 Engineering/Fabrication
8.11.1 Ethernet Communication Protocol Likely to Surpass Share of Fieldbus Industrial Communication in Market for Engineering/Fabrication Applications By 2023
8.12 Water and Wastewater
8.12.1 Growing Adoption of New Technologies, Such as IoT and Industry 4.0, in Water and Wastewater Operations Driving More Focus Toward Use of Secure and Reliable Industrial Communication Technologies
8.13 Others

9 Geographic Analysis
9.1 Introduction
9.2 North America
9.2.1 US
9.2.1.1 Strong Government Support Have Contributed to the Large-Scale Adoption of Industrial Communication Solutions in Us
9.2.2 Canada
9.2.2.1 Discrete Industries Have Been the Early Adopters of Advanced Technology-Based Industrial Communication Protocols in Canada
9.2.3 Mexico
9.2.3.1 Adoption of the Automation Technology Across Various Industries Such as Chemicals and Mining is Driving the Industrial Communication Market in Mexico
9.3 Europe
9.3.1 UK
9.3.1.1 Government Initiatives Towards IoT Development in UK Likely to Drive the Market
9.3.2 Germany
9.3.2.1 Germany to Account for the Largest Share of European Industrial Communication Market By 2023
9.3.3 France
9.3.3.1 Growing Automation in Aerospace & Defense Industry to Drive the Growth of Market in France
9.3.4 Spain
9.3.4.1 Leading Stake of Automotive Industry in Spain to Accelerate the Growth of Market
9.3.5 Italy
9.3.5.1 Need of Connectivity Across Industries in Italy to Drive the Growth for Market
9.3.6 Rest of Europe
9.4 APAC
9.4.1 China
9.4.1.1 China to Witness the Highest Growth Rate for Industrial Communication Market During the Forecast Period
9.4.2 Japan
9.4.2.1 Japan to Be Among the Top Two Countries for Market in APAC
9.4.3 India
9.4.3.1 Supportive Government Plans to Drive the Demand for Industrial Communication Market in India
9.4.4 South Korea
9.4.4.1 Large Install Base for Automotive and Electronics Industries in South Korea to Drive the Growth for Market
9.4.5 Rest of APAC
9.5 Rest of the World
9.5.1 Middle East
9.5.1.1 Growing Adoption for Automation in Oil & Gas Industry to Drive the Growth for Market
9.5.2 South America
9.5.2.1 Mining Sector is A Major Growth Segment for Market in South America, With the Increased Mining Investment, Exploration, and Development
9.5.3 Africa
9.5.3.1 Development of Industrial Sector is Expected to Drive the Growth of the Market in Africa

10 Competitive Landscape
10.1 Overview
10.2 Market Ranking Analysis
10.3 Competitive Scenario
10.3.1 Product Launches/Developments
10.3.2 Partnerships/Collaborations
10.3.3 Expansions

11 Company Profiles
11.1 Key Players
11.1.1 Sick AG
11.1.2 Omron
11.1.3 Schneider Electric
11.1.4 Belden Inc.
11.1.5 Moxa Inc.
11.1.6 Siemens
11.1.7 Rockwell Automation
11.1.8 ABB
11.1.9 GE Grid Solutions, LLC
11.1.10 Cisco Systems
11.1.11 Advantech
11.1.12 Hms Industrial Networks
11.1.13 Ifm Electronic GmbH
11.1.14 Ericsson
11.1.15 Mitsubishi Electric Group
11.2 Other Companies
11.2.1 Honeywell
11.2.2 B&R Automation
11.2.3 Aaeon
11.2.4 Hans Turck GmbH & Co. Kg
11.2.5 Bosch Rexroth AG

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