Industrial Communication Market Size By Component (Hardware [Switches, Hubs, Routers & Gateways, Connectors, Communication Interface, Controller & Processor], Software, Service [Installation Service, Maintenance Service]), By Protocol (Fieldbus [PROFIBUS, Modbus, CC-Link, DeviceNet, CANopen], Ethernet [PROFINET, Ethernet/IP, EtherCAT, Modbus-TCP, Powerlink], Wireless [WLAN, ISA100.11a, Wireless HART]), By Application (Automotive & Transportation, Electrical & Electronics, Aerospace & Defense, Oil & Gas, Food & Beverages, Energy & Power, Chemical, Pharmaceutical, Industrial manufacturing), Industry Outlook, Regional Analysis, Growth Potential, Competitive Landscape & Forecast, 2019 - 2025
Published Date: May 2019 | Report ID: GMI3367 | Authors: Ankita Bhutani, Preeti Wadhwani
Industrial Communication Market size estimated at over USD 80 billion in 2018 and is anticipated to grow at a CAGR of more than 10% from 2019 to 2025.
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The industrial communication market is driven by the widespread adoption of Industry 4.0 revolution. The industry sectors are going through a phase of digital disruption. The industries are leveraging on advanced technologies and machines, such as Industrial IoT, automated machines, additive manufacturing, along with advanced materials to modify their business models and gain operational efficiency. This is enabling organizations to develop smart supply chain, better manufacturing process, and an efficient end-to-end ecosystem. The rising need among the industry verticals to reduce the cost of operation & increase efficiency is the primary factor augmenting the demand for automation.
The growing adoption of advanced communication protocols among industries also acts as a major driver for the industrial communication market. As digitalization among industries is increasing, the need for effective communication technology also arises. The previous communication protocols were series-based protocols that could not cope up with the explosion of digital data and latency-sensitive application. To address these challenges, organization are shifting toward more advanced and flexible industrial ethernet protocols. The ethernet protocols work on Modified Access Control (MAC) layer to provide low deterministic and latency responses. The protocols also provide a flexible number of nodes and flexible network topology in the system, making them an ideal solution for industrial communication application.
However, data safety and security issues associated with wireless communication technology and industrial ethernet protocols are restricting their adoption among industrial facilities. Moreover, the presence of traditional communication technology and harsh industrial environment also hinders growth of the industrial communication market.
|Base Year:||2018||Market Size in 2018:||80 Billion (USD)|
|Historical Data for:||2014 to 2018||Forecast Period:||2019 to 2025|
|Forecast Period 2019 to 2025 CAGR:||10%||2025 Value Projection:||160 Billion (USD)|
|Pages:||350||Tables, Charts & Figures:||507|
|Geographies covered (18):||U.S., Canada, Germany, UK, France, Italy, Spain, Russia, Australia, China, India, Japan, South Korea, Brazil, Mexico, UAE, Saudi Arabia, South Africa|
|Segments covered:||Component, Protocol, Application, and Region|
|Companies covered (21):||ABB Ltd., ACS MOTION CONTROL, Advanced Motion Control, ADVANTECH Co. Ltd., Beckhoff Automation GmbH, Belden Inc., Bosch Rexroth AG, Cisco System Inc., Eaton Corporation, General Electric, HMS Industrial Networks, Honeywell International Inc., Ifm electronic gmbh, Mitsubishi Electric Group, Moxa Inc., Omron Corporation, Parker Hannifin Inc., Rockwell Automation, Schneider Electric, Sick AG, Siemens AG|
|Pitfalls & Challenges:||
Industrial Communication Market, By Component
Hardware is dominating the component landscape with more than 75% share in the industrial communication market. The large-scale adoption of physical network infrastructure components, such as switches, routers, controllers, and communication interface devices, is supporting market growth. Switches account for more than 25% share in the hardware market due to the rapid digitalization of industrial processes. Switches play a vital role in the overall functioning of the network architecture. Along with routers and gateways, switches provide infrastructure for connectivity-enabled business strategies such as Industry 4.0, Industrial Internet of Things (IIoT), and convergence of IT/OT. Moreover, the advancement in switches to withstand harsh industrial environment also accelerates their demand in the market.
The services market will grow at a CAGR of about 10% during the forecast period. The market is driven by the growing demand for implementing reliable communication infrastructure among industries. The implementation of industrial communication solution requires the deployment of multiple hardware and software components along with the integration with the existing infrastructure that requires high technical expertise. These services enable successful deployment of the communication network and ensure long-term stability of the network by offering periodic support and maintenance services.
Industrial Communication Market, By Protocol
Fieldbus held more than 49% share in the industrial communication market. The market growth is attributed to the large-scale adoption of Fieldbus protocols including PROFIBUS, Modbus, DeviceNet, and CC-Link among the process industry. The increasing degree of robotization & automation among industrial projects also supports growth of the Fieldbus market. PROFIBUS covered 38% share in the Fieldbus market in 2018. The ability of the PROFIBUS protocol to connect digital input/output devices, electrical gears, and other discrete & motion control aspects, such as analyzers, drives its demand. Moreover, the growing demand for low-cost and flexible communication technology is augmenting the demand for PROFIBUS among industrial facilities.
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Ethernet will grow at a CAGR of more than 12% during the projected timeline. The increasing adoption of advanced communication protocol is the primary factor driving the market. Increasing digitalization forced the organization to shift from the legacy communication systems to advanced communication protocol to get real-time access to the industrial process. Moreover, the inability of the legacy systems to cope up with the rapidly changing communication requirements of the organization is encouraging the adoption of ethernet protocols. PROFINET accounts for more than 19% share in the ethernet market. PROFINET provides secure & quick data exchange on all platforms and enables organizations to comprehend innovative concepts. Moreover, flexibility and openness offered by PROFINET provide organizations a high amount of freedom while designing system and machine structure.
Industrial Communication Market, By Application
The automotive & transportation sector is leading the industrial communication market with over 25% share in 2018. The increasing adoption of the Industry 4.0 revolution in the automotive sector is accelerating the market. The automotive industry is leveraging on advanced technologies to create an effective manufacturing process to gain an advantage in terms of operational efficiency, cost of production, and flexibility of the process. Moreover, automation of the manufacturing & assembling process among the automakers fosters market growth. The automakers are rolling out their fully autonomous assembling facilities to reduce the cost of operation and enhance performance. This presents huge opportunities for the market in the automotive sector.
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Industrial Communication Market, By Region
North America accounts for over 27% share in the industrial communication market in 2018. The supportive government initiatives and policies in the region to promote automation and digitalization among industries is driving the market. The government is focusing on increasing the adoption of Industry 4.0 manufacturing technologies by investing in cutting-edge manufacturing technologies and developing a full-fledged network dedicated to scaling up advanced manufacturing technologies and processes. Moreover, the government is also encouraging public-private partnership activities to bring together several universities, federal governments, and industry leaders for accelerating innovation and automation among the industrial facilities.
Europe is also one of the most lucrative markets for the industrial communication market with a share of 37% in the annual revenue in 2018. The market is driven by large-scale investment in the Industry 4.0 and industrial IoT space. Europe accounts for more than a third of the global investment in Industry 4.0 initiatives. Most of the investment is concentrated on the Western and Northern Europe regions particularly in countries including Germany, France, and the UK. Moreover, the national governments and the European Union are constantly working to drive digitalization among industries and lower barriers for automation.
Competitive Market Share
The key vendors in the industrial communication market are Cisco, ABB, Siemens, Rockwell Automation, Schneider, Beckhoff Automation, General Electric, ACS Motion Control, Honeywell International, Omron Corporation, Eaton, Belden, and Moxa. The players operating in the market are competing based on physical network infrastructure, communication protocols, and system integrations to enhance their customer base and profitability. The players are leveraging on inorganic growth strategies to gain market share and get an edge over competitors. Merger & acquisition is witnessed to be the most common strategy among market players. For instance, in 2016, Rockwell Automation acquired Maverick Solutions, a system integrator, for gaining domain expertise and delivering innovative control & information solutions to customers across several industry verticals such as chemical, food & beverage, and oil & gas.
Earlier for industrial communication, mainly Fieldbus systems were developed to address the limitation caused by actuators, controllers, and sensors to establish effective communication on the lower level of the automation pyramid. However, things started changing with the advent of internet, as IT become a prominent part of the industrial facilities. In automation, this led to the development of ethernet-based network. Furthermore, the need for real-time communication capabilities for automation led to the development of multiple ethernet protocols dedicated to industrial automation. Later, the emergence of the Industry 3.0 revolution resulted in the rise of the wireless communication protocol for automation applications.
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