Global Industrial Communication Market Grows at a Staggering CAGR of 11.25%

Introduction

Industrial Communication, also known as a communication protocol, is an industrial network structure. Industrial communication networks provide robust data exchange, data controllability, and device connectivity flexibility, making them the foundation of any automation system architecture. The automation of manufacturing units is made possible by an effective industrial communication network, improving safety, productivity, and connectivity while reducing energy consumption and labor costs.

The purpose of industrial communication is the reliable transmission of data to the control level from the field. Consistent solutions utilizing Industrial Ethernet, cutting-edge wireless technologies, and cybersecurity enhance the availability and security of networked systems at this location.

Market Dynamics

Increasing Need for Scalable, Faster, Reliable, and Interoperable Communication Protocols Drives the Global Market

Industrial Ethernet is required to achieve full transparency within an industrial plant and between the plant and enterprise networks. Industrial automation and industrial communication networks rely heavily on real-time operational requirements. Consequently, they must be able to process information in a deterministic and redundant manner. In addition, the networks must be scalable across a vast array of apparatus operating on multiple standards and utilizing different interfaces.

A factory system should offer quicker response times, improved efficiency, and increased dependability. In addition, designers must choose the most effective communication technology, navigate a multiprotocol environment, and encompass a vast array of industrial equipment to realize these benefits. Industrial Ethernet provides numerous benefits, including no terminal resistance requirement, coverage over vast distances, and high transmission velocities. Therefore, the scalability and interoperability of industrial Ethernet will drive the industrial communication market in the coming years.

Initiatives Undertaken by Governments of Different Countries Creates Tremendous Opportunities

Various governments worldwide support the industrialization of their respective countries to guarantee their total development. This has resulted in the adoption of numerous automation and communication technologies and components for the structural development of industries. International governments are concentrating on processes and discrete industries. For instance, the Government of Singapore has collaborated with several associations, such as the Singapore Food Manufacturing Association (SFMA) and the Food Innovation Resource Centre, to implement the most advanced automation solutions, including SCADA, PLC, DCS, robots, and cables, in the food and beverages industry. In addition, the United Kingdom launched an industrial strategy centered on stretching the limits of artificial intelligence and renewable energy. These factors are anticipated to offer lucrative global industrial communication opportunities.

Regional Analysis

North America is the most significant global industrial communication market shareholder and is anticipated to exhibit a CAGR of 10.44% during the forecast period. North America's dominance in the global industrial communication market is primarily attributable to the increasing adoption of cutting-edge technology and the expansion of end-user markets. Greater adoption of connected devices, automation, and industry 4.0 technologies for industrial applications in North America is propelling the expansion of industrial communication in the region. As per a report by the Congressional Research Service, the United States contained 4,8 billion enterprise and automotive IoT devices. It is envisaged that the expanding end-use industries in North America will contribute to the expansion of industrial communication. In 2018, the U.S. manufacturing sector added USD 2.4 billion, representing 11% of the U.S. economy. In addition, the increase in government initiatives to promote the adoption of advanced technologies is anticipated to accelerate the market in North America.

Europe is estimated to exhibit a CAGR of 11.67% over the forecast period. A thriving automotive industry and a growing emphasis on industry 4.0 technologies contribute to expanding the European industrial communication market. The substantial automobile industry is one of the main end-users of industrial communication and the market's primary driver in Europe. According to the European Automobile Manufacturers Association, the European Union exported over EUR 124 billion in passenger vehicles in 2019. In the same year, the value of EU automobile imports increased by approximately 15.6% to a total of EUR 53 billion. In addition, the increasing emphasis placed by governments on developing and adopting industrial automation and Industry 4.0 technologies is anticipated to bolster the industrial communication market in Europe. Likewise, increasing public and private funding for Industry 4.0 technologies contributes to expanding the European industrial communication market.

Key Highlights

• The global industrial communication market was valued at USD 121.99 billion in 2022. It is estimated to reach USD 318.46 billion by 2031, growing at a CAGR of 11.25% during the forecast period (2023–2031).
• Based on components, the global industrial communication market is bifurcated into hardware, software, and services. The hardware segment is the most significant contributor to the market share and is anticipated to expand at a CAGR of 9.77% over the forecast period.
• Based on communication protocol, the global industrial communication market is divided into industrial Ethernet, Fieldbus, and wireless. The industrial Ethernet segment dominates the global market and is predicted to exhibit a CAGR of 11.44% over the forecast period.
• Based on application, the global industrial communication market is segmented into automotive and transportation, aerospace and defense, food and beverages, electrical and electronics, industrial manufacturing, and others. The industrial manufacturing segment owns the highest market share and is estimated to grow at a CAGR of 11.44% during the forecast period.
• North America is the most significant global industrial communication market shareholder and is anticipated to exhibit a CAGR of 10.44% during the forecast period.

Competitive Players

Competitive Players

The key global industrial communication market players are Cisco, Texas Instruments Incorporated, General Electric, OMRON Corporation, Schneider Electric SE, Siemens AG, and Rockwell Automation, Inc., Mitsubishi Electric Corporation, ABB Ltd, and Honeywell International Inc.

Recent Developments

Market News

• In May 2023, HMS Networks, a prominent developer of industrial communication and remote connectivity solutions, introduced its new Ewon remote connectivity solutions. The new offering provides machine manufacturers and their consumers with an end-to-end IIoT solution to collect machine data and display it through an intuitive web interface.
• In March 2023, Saudi Aramco and Samsung signed an agreement to localize 5G industrial communication networks.

Segmentation

Global Industrial Communication Market: Segmentation

By Component

• Hardware
• Software
• Services

By Communication Protocol

• Industrial Ethernet
• Fieldbus
• Wireless

By Applications

• Automotive and Transportation
• Aerospace and Defense
• Food and Beverages
• Electrical and Electronics
• Industrial Manufacturing
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• RoW