Time-Sensitive Networking (TSN) Market worth over $1bn by 2026
Published Date: March 30, 2020 Authors: Preeti Wadhwani, Smriti Loomba
Time-Sensitive Networking Market size is set to surpass USD 1 billion by 2026, according to a new research report by Global Market Insights, Inc.
TSN is an extension of Ethernet technology that enables Ethernet-based networks more deterministic in supporting different real-time applications. It combines the large bandwidth capabilities of Ethernet and real-time field bus. It offers a communication technology that enables interoperability between standard industrial devices. The technology allows assured data transport with low delay variations and latency for time & mission-critical traffic.
The time-sensitive networking market growth is attributed to the increasing demand for real-time networking in various applications such as industrial automation, autonomous driving, and audio/video streaming. The growing adoption of smart factory solutions is also supporting the market expansion. The market revenue is credited to the rising acceptance of IIoT to enhance the productivity of various industrial sectors such as automotive & transport, electrical & electronics, oil & gas, energy & power, and aerospace & defense. With growing awareness toward better integrating factory-installations and IT systems, the demand for advanced TSN components is increasing across these industries. The development of IEEE standards on Ethernet for various applications, such as aerospace flight control and machine-to-machine communication, is also contributing significantly to the industry growth.
Managed services segment is expected to grow rapidly over the forecast period
The managed service segment in the time-sensitive networking market is poised to grow at a rate of over 40% through 2026 led by the increasing enterprises’ focus on outsourcing complete network management to third-party service providers. The primary growth driver of the managed services market is the rapidly changing technological landscape, which can be a challenge for organizations to keep up with. Business challenges such as enhancing hardware platforms, upgrading software licenses, and ensuring that the staff is trained on the relevant software are contributing toward the need for managed services.
To lower costs and increase operational efficiency, large enterprises and smaller organizations have been outsourcing their network management functions. The companies operating in different industries are outsourcing their entire management of network to increase their core competencies. Managed services also help these companies to improve their response time and reduce their delivery time. The increasing demand to reduce complexities associated with the deployment and maintenance of TSN technology will support the market demand.
The initial implementation requires the installation of different hardware components such as switches, media converters, firewalls, & communication interfaces. These hardware components are integrated with the pre-existing network infrastructure, that requires specialized expertise. Service providers enable effective installation and integration with legacy systems, ensuring the long-term stability of enterprise networks.
Browse key industry insights spread across 210 pages with 280 market data tables and 23 figures & charts from the report, “Time-Sensitive Networking Market Size, By Component (Solution [Switches, Controllers & Processors, Other Hardware Components], Service [Professional Services, Managed Services]), By Application (Industrial Automation, Power & Energy, Automotive & Transportation, Oil & Gas, Aerospace), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Development of smart factories to support the market value
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Industrial automation segment will capture 30% of the time-sensitive networking market share by 2026 due to the increasing usage of wireless sensors in manufacturing facilities. Government initiatives to modernize & extend power generation and distribution infrastructure and the adoption of IIoT for industrial Ethernet applications to facilitate industrial automation in sectors, such as automotive and electronics, are predicted to accelerate the industry expansion. Industrial control applications need consistent and deterministic delivery of data between different components such as sensors, controllers, & actuators. The data exchange between these components is critical for controlling different operations in manufacturing facilities. TSN technology helps these manufacturing companies to provide real-time networking to gain more control over their manufacturing operations.
APAC region is projected to grow rapidly during the forecast timeline
Asia Pacific time-sensitive networking market is anticipated to expand at a CAGR of over 40% through 2026 on account of the rapid industrialization in countries including India, China, and Japan owing to the increasing demand for industrial automation solutions in the region. The supportive government initiatives & policies to drive the acceptance of industrial automation solution in the region are also estimated to have a significant impact on the industry demand. Furthermore, the increasing usage of Industrial Internet of Things (IIoT) solutions and industrial Ethernet solutions among different industry sectors for flexibility, scalability, and reduction in the cost of operation, will fuel the industry value. The government investments & policies to promote the adoption of industrial automation are impelling the industry revenue.
Major industry players are focusing on new product development to gain a competitive advantage in the rapidly evolving market
Major companies operating in the time-sensitive networking market are Analog Devices, Inc., Belden, Inc., Broadcom Limited, Cisco Systems, Inc., Infinera Corporation, Intel Corporation, Marvell Technology Group Ltd., Microsemi Corporation, National Instruments Corporation, Nokia Corporation, NXP Semiconductors, Inc., Renesas Electronics Corporation, Siemens AG, TTTech Computertechnik AG, and Xilinx, Inc. The market leaders are focusing on the development of different TSN solutions for smart manufacturing applications.
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