Industrial Ethernet Market Size, Share & Trends Analysis Report By Type (Hardware, Software, Services), By Protocol (EtherCAT, PROFINET), By End Use (Oil And Gas, Energy & Power), By Region, And Segment Forecasts, 2024 - 2030

Industrial Ethernet Market Size & Trends

The global industrial ethernet market size was estimated at USD 11.43 billion in 2023 and is projected to expand at a CAGR of 7.9% from 2024 to 2030. The market is experiencing significant growth, driven by the increasing demand for robust and reliable networking solutions in industrial settings. As manufacturing processes become more automated and interconnected, the need for high-speed, low-latency communication networks has intensified. Industrial Ethernet provides a scalable and flexible infrastructure that supports real-time data exchange and integration with advanced technologies such as IoT and Industry 4.0. This evolution is fueled by the rise of smart factories, where seamless data flow between machines and control systems is crucial.

The shift from traditional fieldbus systems to Ethernet-based networks is also contributing to the market expansion, as Ethernet offers superior bandwidth and network management capabilities. Furthermore, the growing emphasis on predictive maintenance and data analytics in industrial operations is pushing companies to invest in Ethernet solutions that can handle large volumes of data. As a result, the market is poised for robust growth, with increasing adoption across various sectors.

The market is also gaining traction in industries such as energy, transportation, and utilities. These sectors require reliable and secure communication networks to manage complex operations and ensure safety. For instance, in the energy sector, Ethernet networks are used to monitor and control power grids, enabling real-time data acquisition and response to system anomalies. Similarly, in transportation, Ethernet solutions facilitate the management of traffic control systems and support advanced applications like vehicle-to-everything (V2X) communication.

The expansion of smart grid technologies and the push towards sustainable energy solutions are further driving demand for industrial Ethernet. Moreover, as more industries adopt digital transformation strategies, the need for standardized and interoperable network solutions becomes more critical. This trend is creating new opportunities for Ethernet vendors to develop innovative solutions customized to diverse industrial applications.

The increasing need for cybersecurity in industrial networks is also propelling the market. With the rise in cyber threats targeting critical infrastructure, companies are prioritizing secure communication protocols and robust network architectures. Industrial Ethernet solutions are being enhanced with advanced security features such as encryption, intrusion detection, and secure access controls. This focus on cybersecurity is critical as industrial systems become more interconnected, increasing the potential attack surface.

The adoption of secure Ethernet solutions helps protect sensitive data and ensures the integrity and availability of industrial processes. Regulatory compliance and industry standards, such as the IEC 62443 series of standards for industrial cybersecurity, are further driving the adoption of secure Ethernet networks. As companies strive to safeguard their operations against cyber threats, the demand for secure industrial Ethernet solutions is expected to grow significantly.

Type Insights

The hardware segment led the market and accounted for 47.0% of the global revenue in 2023. Industrial environments demand highly robust and durable hardware to withstand harsh conditions such as extreme temperatures, humidity, dust, and vibrations. Devices such as industrial Ethernet switches, routers, and cables are designed to meet stringent requirements, ensuring reliable network performance in challenging settings. The durability and reliability of hardware components are paramount in preventing network failures that could lead to costly downtime or even safety hazards.

The increasing need for cybersecurity in industrial networks is also propelling the market. With the rise in cyber threats targeting critical infrastructure, companies are prioritizing secure communication protocols and robust network architectures. Industrial Ethernet solutions are being enhanced with advanced security features such as encryption, intrusion detection, and secure access controls.

The software segment is projected to grow significantly over the forecast period. The increasing complexity and scale of industrial networks require advanced network management and monitoring solutions. Software tools that provide comprehensive network visibility, diagnostics, and real-time monitoring are essential for maintaining optimal network performance and quickly addressing issues.

These solutions enable companies to manage their networks more efficiently, reducing downtime and improving overall operational efficiency. The rise of Industry 4.0 and the Industrial Internet of Things (IIoT) is fueling demand for software that supports the integration and interoperability of various devices and systems. Industrial Ethernet networks are becoming more interconnected, with a wide range of sensors, controllers, and machines communicating with each other.

Protocol Insights

The PROFINET protocol segment accounted for the largest market revenue share in 2023. PROFINET's robust performance and real-time capabilities make it particularly well-suited for demanding industrial applications. It supports real-time data transfer and synchronization with high precision, which is essential for applications such as motion control and process automation.

This high performance and reliability make PROFINET a preferred choice for industries requiring stringent control over their operations, contributing significantly to its market dominance. PROFINET's widespread adoption and strong industry support have bolstered its market position. It is backed by the PROFIBUS & PROFINET International (PI) organization, which ensures continuous development, standardization, and interoperability. This extensive support network has led to widespread adoption across various industries, including automotive, manufacturing, and energy.

The EtherCAT protocol segment is expected to see significant growth during the forecast period. EtherCAT's exceptional performance in terms of speed and efficiency makes it highly suitable for real-time control applications. Its unique on-the-fly processing capability allows data to be processed while passing through the network nodes, resulting in extremely low latency and high synchronization precision.

This performance advantage is critical for applications such as robotics, CNC machines, and high-speed automation systems, where timely data exchange is paramount. The increasing adoption of advanced automation technologies and Industry 4.0 principles are driving the demand for high-performance industrial Ethernet protocols like EtherCAT. As industries aim to enhance productivity, efficiency, and flexibility through automation, the need for reliable and fast communication networks intensifies.

End Use Insights

The Automotive & Transportation segment accounted for the largest market revenue share in 2023. The automotive industry's significant shift towards automation and digitalization in manufacturing processes has driven the adoption of industrial Ethernet. Modern automotive manufacturing facilities are increasingly incorporating advanced technologies such as robotics, automated guided vehicles (AGVs), and real-time data analytics to enhance production efficiency, quality control, and flexibility.

Industrial Ethernet provides the high-speed, reliable communication infrastructure required to support these technologies, facilitating seamless data exchange and coordination across various production stages. The rise of electric and autonomous vehicles is fueling demand for sophisticated communication networks within the automotive sector. The development and testing of these vehicles require robust and high-bandwidth networking solutions to manage the complex interactions between sensors, control systems, and external communication interfaces.

The Electrical & Electronics segment is projected to grow significantly over the forecast period. The increasing complexity and miniaturization of electronic devices require more sophisticated manufacturing processes that rely heavily on automation and precise control. Industrial Ethernet provides the necessary high-speed, reliable communication infrastructure to support these advanced manufacturing techniques, enabling efficient production and high-quality output.

As the demand for smaller and more complex electronic components grows, so does the need for robust networking solutions to manage intricate production processes. The rapid adoption of smart manufacturing and Industry 4.0 principles in the electrical and electronics industries is a significant driver of growth. Smart factories leverage interconnected machines, IoT devices, and data analytics to optimize production, reduce downtime, and enhance flexibility. Industrial Ethernet facilitates seamless data exchange between these devices and systems, ensuring real-time monitoring and control.

Regional Insights

North America industrial Ethernet market dominated the market and accounted for 35.2% share in 2023. The strong presence of key market players and solution providers in North America, such as Rockwell Automation, Cisco Systems, and Belden Inc., are leading developers of industrial Ethernet technologies and have extensive distribution networks across the region. Their continuous innovation and development of new products customized to the specific needs of industrial applications have strengthened market growth. Moreover, these companies provide comprehensive support and services, further encouraging the adoption of industrial Ethernet solutions.

U.S. Industrial Ethernet Market Trends

The industrial Ethernet market in the U.S. is expected to grow significantly over the forecast period.Cyber threats pose significant risks to industrial operations, potentially leading to data breaches, operational disruptions, and safety hazards. The U.S. market is seeing increased investment in cybersecurity solutions that protect network infrastructure, including firewalls, intrusion detection systems, and secure communication protocols. Companies are prioritizing the implementation of secure industrial Ethernet networks to safeguard their operations.

Europe Industrial Ethernet Market Trends

Europe industrial Ethernet market is significant growth. The region is at the forefront of adopting Industry 4.0 principles, which emphasize the integration of digital technologies into manufacturing and industrial processes. The European industrial sector is increasingly implementing smart factories, automation systems, and IoT solutions to enhance productivity, flexibility, and efficiency. Industrial Ethernet provides the high-speed, reliable communication infrastructure needed to support these advanced technologies, facilitating real-time data exchange and seamless connectivity between devices.

Asia Pacific Industrial Ethernet Market Trends

The industrial Ethernet market in Asia Pacific is anticipated to register the fastest CAGR over the forecast period. The Asia Pacific region is undergoing significant industrialization and urbanization, particularly in countries such as China, India, and Southeast Asian nations. This growth drives demand for advanced manufacturing technologies and automation, which in turn requires robust industrial Ethernet solutions. As industries modernize and expand, the need for reliable, high-speed communication networks to support complex industrial operations increases. Asia Pacific's prominence in the electronics and automotive industries drives significant growth in the market.

Key Industrial Ethernet Company Insights

Prominent firms have used product launches and developments, followed by expansions, mergers and acquisitions, contracts, agreements, partnerships, and collaborations as their primary business strategy to increase their market share. The companies have used various techniques to enhance market penetration and boost their position in the competitive industry.

For instance, In April 2024, Festo BV., a German automation company, and Phoenix Contact announced a strategic partnership to develop innovative solutions using PLCnext technology, combining their strengths to advance industrial automation. This collaboration aims to create flexible, open automation systems that meet the convergence of IT and OT, driving innovation and sustainability in the industry.

Recent Developments

• In July 2024, Moxa Inc. launched the MRX Series Layer 3 rackmount Ethernet switches, which support up to 64 ports and offer 16 ports with 10GbE speed. The EDS-4000/G4000 Series Layer 2 switches with 2.5GbE uplink options to enable high-bandwidth IT/OT convergence for industrial applications. These switches offer industrial-grade reliability, network redundancy, and simplified deployment, providing enhanced security and exceptional flexibility to futureproof network infrastructure.

• In July 2024, Rockwell Automation collaborated with Cisco Systems, Inc. to develop the Stratix 5200 Ethernet switches, which enhance OT and IT integration with increased functionality, security, and seamless integration with Rockwell’s Studio 5000 software. These switches, built on the Cisco IOS XE platform, support high-speed, redundant architectures, Layer 2 access switching, and compliance with international cybersecurity standards.

• In May 2024, Cisco Systems, Inc. integrated Splunk technology with its Extended Detection & Response (XDR) service to enhance enterprise Security Operations Centers (SOCs) by providing comprehensive threat prevention, detection, investigation, and response capabilities. This integration, along with the addition of AI and machine learning features, aims to improve security visibility and efficiency, helping organizations maintain robust security postures and address the global cybersecurity talent shortage.

• In November 2022, Siemens launched its new Industrial Edge Management System (IEM V2.0), optimized license management solutions, and new edge devices and apps at the SPS trade fair, enhancing the integration of OT and IT in industrial production and enabling efficient data flow from the field to the cloud. These updates, including the IEM V2.0 for Kubernetes clusters and the new Industrial Edge Hub, aim to improve IT resource allocation, energy efficiency, and flexibility in implementing IIoT applications.

Industrial Ethernet Market Report Scope

Global Industrial Ethernet Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global industrial Ethernet market report based on type, protocol, end us,e and region.

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Hardware

  • Software

  • Services

• Protocol Outlook (Revenue, USD Million, 2018 - 2030)

  • EtherCAT

  • EtherNet/IP

  • PROFINET

  • POWERLINK

  • SERCOS III

  • CC-Link IE

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Automotive & Transportation

  • Oil and Gas

  • Energy & Power

  • Food & Beverages

  • Chemical & Fertilizer

  • Electrical & Electronics

  • Aerospace & Defense

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa