Industrial Communication Market by Communication Protocol, Component, Industry Vertical

Description

List of Tables

[185 Pages Report] The Industrial Communication Market size was estimated at USD 35.64 billion in 2023 and expected to reach USD 38.41 billion in 2024, at a CAGR 8.68% to reach USD 63.86 billion by 2030.

Industrial communication refers to exchanging information and data between various devices, machines, and systems within an industrial environment. This complex web of communication is facilitated through specialized networks, protocols, and technologies designed specifically for industrial settings' unique challenges and requirements. It is crucial in enabling effective automation, monitoring, control, diagnostics, and maintenance processes across manufacturing facilities, power plants, transportation systems, oil refineries, and other critical infrastructures. Industrial communication systems are essential for ensuring safety in hazardous environments which enable remote monitoring of equipment conditions or environmental parameters such as temperature or pressure levels that could pose risks to workers if not properly maintained. Industrial communication is vital to modern industries as it fosters increased operational efficiency while promoting workplace safety. The emergence of Industry 4.0 and the Industrial Internet of Things (IIoT) further accelerates the adoption of different communication technologies, ethernet-based networks being a popular type. However, challenges such as high implementation costs and lack of standardization in communication technologies may impede market development. To provide expanded services to end-user industries, market players are embracing advanced technologies such as Industrial Internet-of-Things (IIoT) devices and secure network protocols intended for industrial situations. Integrating artificial intelligence (AI) and machine learning (ML) advancements into industrial communications and continuous improvements in wireless technologies present potential avenues for expansion.

KEY MARKET STATISTICS
Base Year [2023]	USD 35.64 billion
Estimated Year [2024]	USD 38.41 billion
Forecast Year [2030]	USD 63.86 billion
CAGR (%)	8.68%

Communication Protocol: Emerging popularity of wireless communication protocols

Fieldbus is a widely used industrial communication protocol connecting digital devices in process automation applications. They are ideal for use in hazardous environments, as they offer improved device control and diagnostics, simplifying commissioning and maintenance tasks. Canopen is a high-performance communication protocol based on the Controller Area Network (CAN) standard designed specifically for real-time control applications. CC-Link stands for Control & Communication Link and is widely used in manufacturing industries as it enables high-speed communications between PLCs and remote I/O units using twisted pair cables over long distances. Foundation Fieldbus and Highway Addressable Remote Transducer (HART) are digital communication protocols designed for industry process automation and facilitate bi-directional communication between intelligent field devices and control systems while supporting advanced diagnostics, asset management, and multi-variable data. Interbus is a serial communication protocol specifically designed for industrial automation applications. Modbus is an open-source communication protocol widely used in various industries due to its simplicity, ease of implementation, and adaptability to different media. Process Field Bus (Profibus) is a standardized communication protocol that is popular fieldbuses globally for discrete manufacturing and process automation applications across various industries such as automotive, power generation, chemical, pharmaceuticals, food & beverage, and water treatment plants. Industrial Ethernet is a versatile communication technology that has revolutionized the way data is exchanged within the industrial sector. CC-Link Industrial Ethernet (IE) is an open network protocol that offers seamless connectivity with gigabit speeds for time-sensitive applications in various sectors, such as automotive manufacturing and semiconductor production. EtherCAT (Ethernet for Control Automation Technology) is an open-source protocol to facilitate fast communication between automation devices at microsecond-level responsiveness. EtherNet/IP (EtherNet Industrial Protocol) is an open-standard communication protocol based on the Common Industrial Protocol (CIP), which operates over standard Ethernet infrastructure. Modbus TCP is a widely-used protocol based on the Modbus RTU serial communication standard, adapted for Ethernet networks. POWERLINK is a deterministic real-time protocol developed by B&R Industrial Automation that enables high-performance communication over standard Ethernet networks. It employs a centralized master-slave architecture with jitter-free synchronization to ensure efficient data transmission among devices. Widely used in robotics and machine tool industries, POWERLINK supports motion control applications requiring precise coordination between multiple axes. PROFINET is an open-standard Ethernet-based protocol that offers real-time performance and flexibility in industrial automation settings. Sercos III (Serial Real-time Communication System) is the third generation of the Sercos interface series designed specifically for high-speed communication in motion control applications. Wireless protocols have become increasingly prevalent in industrial environments due to their flexibility and ease of implementation. Cellular communication protocols leverage existing cellular networks to provide comprehensive area coverage and reliable communication. The International Society of Automation's ISA100.11a standard is a wireless protocol designed specifically for industrial automation systems that require highly reliable and secure communication links with low latency in harsh environments. Wireless HART (WHART) is a widely adopted wireless communication protocol for industrial process automation. Wireless Local Area Network (WLAN) provides high-speed data transmission rates over short distances within a facility or campus environment. Zigbee is a low-power wireless communication protocol for small-scale networks involving sensors, actuators, and other IoT devices.

Component: Proliferating demand for industrial communication software

The hardware infrastructure within industrial communication systems comprises several critical elements to ensure efficient data transmission and reception. Communication interfaces provide a medium for data transfer between devices or systems using various communication protocols. Connectors are essential for establishing physical links between devices and cables within an industrial communication network. Controllers & processors are responsible for managing the overall functioning of the communication system by processing data from input or output devices and executing control algorithms based on predefined logic. Hubs, routers & gateways facilitate network interconnectivity by directing data packets to their appropriate destinations. Isolators protect sensitive equipment from electrical surges or ground loops; converters adapt signals from one form to another depending on the requirements of connected devices. Memory storage devices store configuration files, application data, and logs that support system operation and diagnostics. Power supply units deliver reliable power to all components within an industrial communication system while protecting them from electrical fluctuations and disturbances. Switches help manage data traffic within a network by selectively forwarding packets between devices based on their destination address, enabling efficient bandwidth usage and reducing the risk of collisions. Various services are essential for effectively implementing, operating, and maintaining industrial communication systems. These services include system design and integration, consultation, technical support and troubleshooting, training programs for operators and administrators, and regular software updates to ensure ongoing compatibility and security requirements are met. Industrial communication systems depend on specialized software solutions to manage data exchange between devices securely and efficiently. These solutions encompass communication protocols, configuration, and management tools that allow monitoring of network performance metrics in real-time, diagnostic utilities to promptly identify faults or errors within the system and advanced analytics capabilities that allow users to extract valuable insights from collected data to optimize their processes further.

Industry Vertical: Expanding applications of industrial communication in the aerospace & defense sector

The aerospace & defense industry requires highly reliable, secure, and real-time communication systems. Advancements in satellite communication technologies have improved connectivity for military aircraft and ground vehicles. Industrial communication systems are crucial in modern automotive manufacturing processes by connecting machines, robots, and control systems across production lines. The chemicals and fertilizers industry relies on robust communication networks to monitor hazardous materials handling safely and efficiently while meeting regulatory requirements. Electronics manufacturing depends on precision, speed, and effective industrial communication, critical to streamlining operations and reducing downtime due to equipment failures or bottlenecks. Industrial communication enables efficient power grid management through smart meters and connected sensors. Real-time monitoring of fabrication processes is crucial for maintaining product quality in the engineering industry. Industrial communication ensures efficient automation and traceability in food processing plants while meeting stringent hygiene standards. Reliable and secure communication is vital for safe and productive mining operations as it allows constant monitoring and control of machinery, personnel, and environmental conditions. Industrial communication technologies enable real-time monitoring of critical parameters such as pressure, temperature, and flow rates in oilfields or refineries while providing safety measures against accidents or leaks. The pharmaceutical industry requires secure, robust communication systems for quality assurance, process control, and regulatory compliance. Industrial communication is essential for monitoring and controlling water treatment plants' parameters to ensure safe drinking water and meet government regulations.

Regional Insights

The Americas' industrial communication market has been experiencing considerable growth due to the widespread adoption of Industry 4.0 technologies and a resilient manufacturing sector. The United States and Canada intensely focus on automation and digitization across multiple industries, such as automotive, aerospace & defense, chemical, pharmaceuticals, and energy, with several key players catering to their specialized needs. The APAC region has emerged as a leading market for industrial communications due to rapid industrialization, significant investments in infrastructure projects, and increasing adoption of advanced technologies such as the Industrial Internet of Things (IIoT) and Industry 4.0. Countries, including China, Japan, India, South Korea, and Taiwan, contribute significantly to the growth of industrial communication systems in this region. Europe has a well-established industrial communication market comprising numerous major players expanding their production and distribution channels across the region. The regional players have a strong presence in the global market, providing technologically advanced solutions and leveraging their expertise in industrial automation systems. The European market benefits from strong governmental support for developing advanced infrastructure and digitization endeavors. The European market is characterized by heavy investments in automation technologies aimed at improving operational efficiency while focusing on introducing standards and protocols for developing high-quality industrial communication networks.

FPNV Positioning Matrix

The FPNV Positioning Matrix is pivotal in evaluating the Industrial Communication Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Industrial Communication Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Key Company Profiles

The report delves into recent significant developments in the Industrial Communication Market, highlighting leading vendors and their innovative profiles. These include Aaeon Technology Inc., ABB Ltd., Advantech Co., Ltd., B+M Blumenbecker GmbH, Belden Inc., Cisco Systems, Inc., General Electric Company, Honeywell International Inc., IFM Electronic GmbH, Industrial Communications, LLC, Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Mitsubishi Electric Corporation, Molex, LLC, Moxa Inc., Nokia Corporation, Omron Corporation, Pepperl+Fuchs SE, Phoenix Contact Gmbh & Co. Kg, Renesas Electronics Corporation, Robert Bosch AG, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Sick AG, Siemens AG, STMicroelectronics N.V., Telefonaktiebolaget LM Ericsson, Texas Instruments, and Tridon Communications.

Market Segmentation & Coverage

This research report categorizes the Industrial Communication Market to forecast the revenues and analyze trends in each of the following sub-markets:

Communication Protocol
- Fieldbus
  - Canopen
  - CC-Link
  - Devicenet
  - Foundation Fieldbus & HART
  - Interbus
  - Modbus
  - Profibus

Industrial Ethernet
- CC-Link IE
- Ethercat
- EtherNet/IP
- Modbus TCP
- Powerlink
- Profinet
- Sercos III

Wireless
- Cellular
- ISA100.11a
- WHART
- WLAN
- Zigbee

Component
- Hardware
  - Communication Interfaces
  - Connectors
  - Controllers & Processors
  - Hubs, Routers, & Gateways
  - Isolators & Convertors
  - Memory
  - Power Supply Devices
  - Switches

Services
Software

Industry Vertical
- Aerospace & Defense
- Automotive & Transportation
- Chemicals & Fertilizers
- Electrical & Electronics
- Energy & Power
- Engineering & Fabrication
- Food & Beverages
- Mining
- Oil & Gas
- Pharmaceutical
- Water & Wastewater

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

The report offers valuable insights on the following aspects:

1. Market Penetration: It presents comprehensive information on the market provided by key players.

2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.

3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.

4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.

5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

The report addresses key questions such as:

1. What is the market size and forecast of the Industrial Communication Market?

2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Industrial Communication Market?

3. What are the technology trends and regulatory frameworks in the Industrial Communication Market?

4. What is the market share of the leading vendors in the Industrial Communication Market?

5. Which modes and strategic moves are suitable for entering the Industrial Communication Market?

Product Code: MRR-FA220CE06003

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Rising demand of reliable, scalable and real-time communication across industries
  - 5.1.1.2. Emergence of Industry 4.0 and the Industrial Internet of Things (IIoT) in industries
  - 5.1.1.3. High adoption of ethernet-based communication networks
- 5.1.2. Restraints
  - 5.1.2.1. High implementation cost and lack of standardization
- 5.1.3. Opportunities
  - 5.1.3.1. Deployment of 5G for enabling efficient communication networks in industries
  - 5.1.3.2. Integration of AL/ML in industrial communications and advancements in wireless technologies
- 5.1.4. Challenges
  - 5.1.4.1. Concern regarding cybersecurity threats and harsh operating conditions
5.2. Market Segmentation Analysis
- 5.2.1. Communication Protocol: Emerging popularity of wireless communication protocols
- 5.2.2. Component: Proliferating demand for industrial communication software
- 5.2.3. Industry Vertical: Expanding applications of industrial communication in the aerospace & defense sector
5.3. Market Trend Analysis
- 5.3.1. Investment in expanding 5G infrastructure and rising wireless communications enhance market growth in the Americas.
- 5.3.2. Encouraging government backing for smart manufacturing and Industry 4.0 widens the APAC region's market growth.
- 5.3.3. Rapid transformation of the manufacturing sector and government support for Industry 4.0 encourage the EMEA region's market growth.
5.4. Cumulative Impact of Russia-Ukraine Conflict
5.5. Cumulative Impact of High Inflation
5.6. Porter's Five Forces Analysis
- 5.6.1. Threat of New Entrants
- 5.6.2. Threat of Substitutes
- 5.6.3. Bargaining Power of Customers
- 5.6.4. Bargaining Power of Suppliers
- 5.6.5. Industry Rivalry
5.7. Value Chain & Critical Path Analysis
5.8. Regulatory Framework Analysis

6. Industrial Communication Market, by Communication Protocol

6.1. Introduction
6.2. Fieldbus
6.3. Industrial Ethernet
6.4. Wireless

7. Industrial Communication Market, by Component

7.1. Introduction
7.2. Hardware
7.3. Services
7.4. Software

8. Industrial Communication Market, by Industry Vertical

8.1. Introduction
8.2. Aerospace & Defense
8.3. Automotive & Transportation
8.4. Chemicals & Fertilizers
8.5. Electrical & Electronics
8.6. Energy & Power
8.7. Engineering & Fabrication
8.8. Food & Beverages
8.9. Mining
8.10. Oil & Gas
8.11. Pharmaceutical
8.12. Water & Wastewater

9. Americas Industrial Communication Market

9.1. Introduction
9.2. Argentina
9.3. Brazil
9.4. Canada
9.5. Mexico
9.6. United States

10. Asia-Pacific Industrial Communication Market

10.1. Introduction
10.2. Australia
10.3. China
10.4. India
10.5. Indonesia
10.6. Japan
10.7. Malaysia
10.8. Philippines
10.9. Singapore
10.10. South Korea
10.11. Taiwan
10.12. Thailand
10.13. Vietnam

11. Europe, Middle East & Africa Industrial Communication Market

11.1. Introduction
11.2. Denmark
11.3. Egypt
11.4. Finland
11.5. France
11.6. Germany
11.7. Israel
11.8. Italy
11.9. Netherlands
11.10. Nigeria
11.11. Norway
11.12. Poland
11.13. Qatar
11.14. Russia
11.15. Saudi Arabia
11.16. South Africa
11.17. Spain
11.18. Sweden
11.19. Switzerland
11.20. Turkey
11.21. United Arab Emirates
11.22. United Kingdom

12. Competitive Landscape

12.1. Market Share Analysis, 2023
12.2. FPNV Positioning Matrix, 2023
12.3. Competitive Scenario Analysis
- 12.3.1. Intel, Ericsson Expand Collaboration to Advance Next-Gen Optimized 5G Infrastructure
- 12.3.2. Airbus and Cellnex strengthen partnership for mission-critical communications
- 12.3.3. Apax Funds make approximately USD 450 million investment in travel tech company IBS Software
- 12.3.4. Industrial Operations X brings cutting-edge IT and AI into industrial automation
- 12.3.5. Huawei Launches the Industry's First End-to-End OSU Product Portfolio, Building a Reliable Optical Communication Base for Industries
- 12.3.6. Schneider Electric and Capgemini Collaborate to Accelerate 5G Industrial Automation, Supported by Qualcomm
- 12.3.7. Nokia and Kyndryl expand global network and edge computing alliance
- 12.3.8. Schneider Electric Launches Industrial Digital Transformation Consulting and Deployment Service
- 12.3.9. New generation of Siemens Industrial Ethernet Switches strengthens OT/IT collaboration
- 12.3.10. ATLAS Space Operations Secures USD 26 million in Series B Funding Led by Mitsui
- 12.3.11. Siemens and NVIDIA to Enable Industrial Metaverse

13. Competitive Portfolio

13.1. Key Company Profiles
13.2. Key Product Portfolio