The industrial ethernet market was valued at USD 9.2 billion in 2020 and is projected to reach USD 13.7 billion by 2026. It is expected to grow at a CAGR of 7.3% during the forecast period.
The growing need for scalable, fast, reliable, and interoperable communication protocols, increasing initiatives by governments of developing countries to promote the adoption of industrial automation, and the growing popularity of smart automobiles are contributing to the growth of the industrial ethernet market. The rising adoption of 5G to act as a growth opportunity for the market players.
Based on the offering, hardware to account the largest share during 2021-2026.
The hardware segment is expected to hold the largest share of the industrial ethernet market. Devices such as IP phones and PCs are connected to the internet to enable rapid communication in industries. Machine-to-machine (M2M) communication in the industrial environment helps facilitate efficient plant operations. It accelerates operations and ensures higher reliability and robustness across various industries, such as automotive, transportation, aerospace & defense, pharmaceutical, and food & beverage. However, a secure and robust network is required to protect internet-connected devices from data manipulation or theft. Such a robust application-specific network can be built using networking components. The hardware segment covers the components that are used to build specific communication networks. The components include switches, routers, gateways, power supply devices, controllers, and others.
EtherCAT to grow at the highest CAGR during the forecast period.
EtherCAT is a real-time industrial ethernet technology, which was developed by Beckhoff Automation (Germany). It is suitable for hard and soft real-time requirements in automation technology, test and measurement, and many other applications in the fabrication, metal forming, and assembly system industries. These industries require high data integrity, secure data transfer, and synchronicity. EtherCAT has been specifically designed for fast control demand applications. It can provide scalable connectivity for entire automation systems, from large PLCs all the way down to the I/O and sensor level. EtherCAT is a protocol optimized for process data, using standard IEEE 802.3 ethernet frames.
Automotive & Transportation end-use industry accounted for the largest share of the industrial ethernet market during the forecast period
Automotive is one of the largest end-use industries of industrial ethernet and is expected to continue to dominate the market due to the growing need for advanced automation in automobile manufacturing hubs worldwide. Likewise, water level monitoring sensors, AC drives, and controllers are the crucial components of water treatment systems, and an industrial ethernet network is used to facilitate communication among these systems. In automobile manufacturing, Ethernet (IEEE 802.3) is an extensively used protocol. In this industry, many processes are controlled through computers, and Ethernet is one of the most suitable protocols for computer-enabled communication. The technology is primarily used for diagnostics, machine control, and factory automation, and for connecting remote sensors. It has the capability of handling a large amount of data traffic on a single infrastructure.
5 Premium Insights 5.1 Attractive Growth Opportunities in Industrial Ethernet Market 5.2 Industrial Ethernet Market, by Offering 5.3 Industrial Ethernet Market, by Protocol 5.4 Industrial Ethernet Market, by End-Use Industry 5.5 Industrial Ethernet Market, by Country
6 Market Overview 6.1 Introduction 6.2 Market Dynamics 6.2.1 Drivers 22.214.171.124 Growing Need for Scalable, Fast, Reliable, and Interoperable Communication Protocols 126.96.36.199 Increasing Initiatives by Governments of Developing Countries to Promote Adoption of Industrial Automation 188.8.131.52 Growing Popularity of Smart Automobiles 6.2.2 Restraints 184.108.40.206 Absence of Standardization in Industrial Communication Protocols and Interfaces 6.2.3 Opportunities 220.127.116.11 Emergence of 5G to Create Lucrative Opportunities for Market Players 6.2.4 Challenges 18.104.22.168 Threats Related to Cybersecurity 22.214.171.124 Harsh Field Site Conditions - High-Voltage Transients, Severe Shocks and Vibrations, and Extremely High Temperatures 6.3 Overview of Ieee 802.3 Standard, Deterministic Ethernet, Time Sensitive Networking, and Intrinsically Safe Ethernet 6.3.1 Ieee 802.3Cg 126.96.36.199 10Base - T1S 188.8.131.52 10Base - T1L 6.3.2 Deterministic Ethernet 6.3.3 Time-Sensitive Networking (TSN) 6.3.4 Intrinsically Safe Ethernet 6.3.5 Isolation for Industrial Ethernet 184.108.40.206 Few of the Use Cases Where Digital Isolators are Used with Microcontroller 6.4 Value Chain Analysis 6.5 Key Stages in Industrial Ethernet Value Chain 6.5.1 Research and Development 6.5.2 Component Manufacturing 6.5.3 System Integration 6.5.4 Marketing and Sales 6.5.5 Post-Sales Services
7 Industrial Ethernet Market, by Offering 7.1 Introduction 7.2 Hardware 7.2.1 Switches 220.127.116.11 Switches are Used to Build a Network Connection Between Different Interconnected Computers 7.2.2 Gateways 18.104.22.168 Gateways are Primary Networking Devices Used as Common Connection Point for Regulating Traffic Between Networks 7.2.3 Routers 22.214.171.124 Routers Examine Destination Ip Address of Data Packets and Use Headers and Forwarding Tables to Decide Mode of Packet Transfer 7.2.4 Controllers and Connectors 126.96.36.199 Ethernet Controller is Popular Controller Used in Industrial Communication 7.2.5 Communication Interfaces and Converters 188.8.131.52 Communication Interfaces Help in Communicating with Different Network Devices Using Certain Protocols 7.2.6 Power Supply Devices 184.108.40.206 Power Management Integrated Circuits (Pmics) are Useful in Communication Power Management 7.2.7 Others 7.3 Software 7.3.1 Networking Management Software Optimize Network Efficiency and Minimize Total Cost of Ownership 7.4 Services 7.4.1 Industrial Communication Services Mainly Include Installation, Network Security, and Network Monitoring Services
8 Industrial Ethernet Market, by Protocol 8.1 Introduction 8.2 Profinet 8.2.1 Profinet Supplements Existing Profibus Technologies by Providing Fast Data Communication 8.3 Ethernet/Ip 8.3.1 Ethernet/Ip is a Leading Industrial Protocol Widely Used in Hybrid and Process Industries 8.4 Ethercat 8.4.1 Ethercat Has Been Specifically Designed for Fast Control Demand Applications 8.5 Modbus-TCP 8.5.1 Modbus-TCP Offers a High Level of Interoperability for Industrial Communication Network Devices 8.6 Powerlink 8.6.1 Ethernet Powerlink Enables Transfer of Time-Critical Data in Short Duration 8.7 Sercos Iii 8.7.1 Sercos Iii is Suitable for Communications in Process Industries as It Ensures Low Latency in Data Transfer 8.8 Cc-Link Ie 8.8.1 Cc-Link Ie Supports Flexible Wiring Topologies, Such as Star, Ring, and Line Configuration
9 Industrial Ethernet Market, by End-Use Industry 9.1 Introduction 9.2 Automotive & Transportation 9.2.1 Increasing Investments in Implementation of Smart Manufacturing Technologies in Automobile Manufacturing Plants to Boost Adoption of Industrial Ethernet 9.3 Electrical & Electronics 9.3.1 Increasing Demand for Industrial Ethernet Solutions in Electrical & Electronics Industry to Minimize Downtime, Run Operations at Full Speed, and Increase Productivity 9.4 Aerospace & Defense 9.4.1 Increasing Number of Deployments of Industrial Ethernet Solutions in Aerospace & Defense Industry to Ensure Effective Manufacturing Processes 9.5 Oil & Gas 9.5.1 Increasing Offshore Oil and Gas Activities is Fueling Adoption of Automation Solutions in Oil & Gas Industry 9.6 Chemical & Fertilizer 9.6.1 Growing Use of Industrial Ethernet in Chemical Industry to Increase Level of Safety and Efficiency and Sustainability 9.7 Food & Beverage 9.7.1 Increasing Trend of Automation in Food & Beverage Industry Throughout Manufacturing Process to Fuel Demand for Industrial Ethernet 9.8 Pharmaceutical & Medical Device 9.8.1 Increasing Deployment of Automation and Sensing Technologies in Pharmaceutical Industry to Fuel Market Growth 9.9 Energy & Power 9.9.1 Communication Networks Play an Integral Role in Exchange of Data and Information in Energy & Power Plants 9.10 Mining & Metals 9.10.1 Surging Deployment of Automation in Mining & Metals Industry for Improved Productivity and Enhanced Workforce Safety to Boost Market Growth 9.11 Engineering/Fabrication 9.11.1 Networking Technologies Ensure Consistent, Uninterrupted Mobile Connectivity for Workers in Engineering and Fabrication Applications 9.12 Water & Wastewater 9.12.1 Growing Adoption of Low-Cost, Low-Power Sensors, and Edge-Computing Devices to Increase Efficiency in Water and Wastewater Operations to Boost Market Growth 9.13 Others
10 Geographic Analysis 10.1 Introduction 10.2 North America 10.3 Europe 10.4 APAC 10.5 Rest of the World