PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1305954
PUBLISHER: MarketsandMarkets | PRODUCT CODE: 1305954
The global industrial communication market was valued at USD 21.9 billion in 2023 to USD 29.0 billion by 2028; it is expected to grow at a CAGR of 5.7% from 2023 to 2028. The automotive industry continues to evolve at an impressive pace with the adoption of automation and connectivity. In automotive manufacturing, Ethernet (IEEE 802.3) is a widely 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, factory automation, and connecting remote sensors. Furthermore, industrial communication plays an important role in increasing connectivity in electric vehicles (EVs) by facilitating communication between various components and systems in the vehicle. In EVs, there are several subsystems that need to communicate with each other, including the battery management system, motor controller, charging system, and various sensors and actuators.
Services offerings to exhibit higher CAGR in the industrial communication market during forecast period
Rapid changes in network infrastructure and the growing adoption of IIoT have led to the adoption of cloud and virtualization. This has significantly increased the pressure on network administrators to manage the network infrastructure. Hence, manufacturing industries are outsourcing network services to ensure better network management quality and reduced operating costs. Also, post-COVID-19, most companies are adopting remote network monitoring services, which is expected to boost the services market during the forecast period.
Food and beverages vertical to exhibit higher CAGR in the industrial communication market
Among all industry verticals, the market for pharmaceuticals, food & beverages, and water & wastewater management segments is expected to grow at a significant CAGR during the forecast period. The post-COVID-19 scenario is expected to witness high demand for automation in the food & beverages industry to ensure minimum human intervention during the manufacturing and the processing of final products. This, in turn, is expected to lead to the demand for industrial communication systems to ensure the required productivity.
Asia Pacific accounted for largest share of the industrial communication market in 2022
Asia Pacific is a leading industrial hub for several industries, including automotive, electrical, and electronics. It is also the largest automobile producer in the world. In Asia Pacific, countries such as China, India, and South Korea are the leading manufacturers of consumer electronics devices, including smartphones, laptops, and gaming consoles. The large-scale development exhibited by the emerging economies in this region with the use of advanced technologies for manufacturing is contributing to the growth of the industrial communication market. Additionally, various initiatives undertaken by the governments of Asia Pacific countries to encourage the development of large and medium enterprises are also boosting the industrial communication market.
Breakdown of primaries
The industrial communication market is dominated by a few globally established players such as Cisco Systems, Inc. (US), Siemens (Germany), Rockwell Automation (US), OMRON Corporation (Japan), Moxa Inc. (Taiwan), Huawei Technologies Co., Ltd. (China), SICK AG (Germany), Schneider Electric (France), ABB (Switzerland), Belden Inc. (US), GE (France), Advantech Co., Ltd (Taiwan), FANUC CORPORATION (Japan), Bosch Rexroth AG (Germany), AAEON Technology Inc. (Taiwan), HMS Networks (Sweden), Honeywell International Inc. (US), Mitsubishi Electric Corporation (Japan), Ericsson (Sweden), Hans Turck GmbH & Co. KG (Germany), ACS Motion Control (Israel), Eaton (Ireland), Beckhoff Automation (Germany), Hitachi, Ltd. (Japan). The study includes an in-depth competitive analysis of these key players in the industrial communication market, with their company profiles, recent developments, and key market strategies.
The report segments the industrial communication market and forecasts its offering, communication protocol, by vertical, and by region. The report also discusses the drivers, restraints, opportunities, and challenges pertaining to the market. It gives a detailed view of the market across four main regions- North America, Europe, Asia Pacific, and RoW. Supply chain analysis has been included in the report, along with the key players and their competitive analysis in the industrial communication ecosystem.