Industrial Communication Market - By Component (Hardware, Software, Services), By Protocol (Fieldbus, Ethernet, Wireless), By Application & Forecast, 2024 - 2032

Industrial Communication Market Size

Industrial Communication Market was valued at USD 137.97 billion in 2023 and is anticipated to register a CAGR of over 6.8% over the forecast period of 2024-2032.
 

The rise of Industry 4.0 has revolutionized industrial communication with smart factories integrating IoT, AI, and advanced analytics. This technological shift drives growth by enhancing operational efficiency, real-time data collection, and predictive maintenance. By leveraging interconnected devices and intelligent systems, companies can optimize production processes, reduce downtime, and increase overall productivity, setting the stage for continuous innovation and competitive advantage.
 

As industrial systems become increasingly connected, robust cybersecurity is critical. Investments in advanced encryption, intrusion detection systems, and secure communication protocols bolster trust and safety in industrial communication networks. Enhanced data security measures protect sensitive information from cyber threats, ensuring the integrity and reliability of industrial operations. This focus on security supports growth by fostering confidence among stakeholders and minimizing the risk of costly breaches.
 

Cloud computing has become integral to industrial communication, offering scalable storage solutions and real-time data access. By leveraging cloud platforms, industries can streamline data management, enhance collaboration, and implement advanced analytics. This seamless integration allows for remote monitoring, improved decision-making, and greater flexibility, driving growth through enhanced operational agility and reduced infrastructure costs.
 

Legacy systems are often critical components of industrial operations, but their outdated technology can create significant barriers when integrating with modern communication solutions. These systems may not support contemporary protocols or interfaces, leading to complex and costly retrofit solutions or requiring a complete overhaul. Such challenges can result in increased downtime, operational disruptions, and a slower pace of technological advancement, ultimately affecting overall productivity and efficiency. Managing the transition while maintaining operational continuity can be a delicate and resource-intensive process.
 

Industrial Communication Market Trends

The industrial communication industry is witnessing rapid evolution, driven by the adoption of Industry 4.0 technologies that underscore smart manufacturing and automation. A pivotal growth driver is the increasing integration of IoT (Internet of Things) devices. According to the Industrial Internet Consortium, IoT devices facilitate real-time data collection and bolster connectivity across industrial systems. This IoT surge is further bolstered by advancements in network technologies, notably 5G. The 5G Alliance for Connected Industries and Automation (5G-ACIA) highlights that 5G's higher speeds and lower latency are pivotal, enabling industrial operations to be more efficient and responsive. Concurrently, the ascent of edge computing is reshaping industrial communication. By processing data closer to its origin, edge computing slashes latency, enhancing operational efficiency. The OpenFog Consortium notes that companies are capitalizing on cloud computing to effectively manage and analyze the copious data from connected devices, fostering agile and data-centric decision-making.
 

Another notable trend is the heightened focus on cybersecurity within industrial communication networks. As these systems interconnect, they become more susceptible to cyber threats. Consequently, there's a pronounced shift towards robust security measures. The Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) reports that these measures include encryption, intrusion detection systems, and secure communication protocols, all aimed at safeguarding data integrity. Furthermore, standardized communication protocols like OPC UA and MQTT are gaining prominence. The OPC Foundation and the MQTT.org emphasize that these protocols play a pivotal role in ensuring interoperability across systems and devices, streamlining integration, and fortifying system reliability. Collectively, these trends underscore a transition towards more intelligent, secure, and interconnected industrial communication solutions, fueling innovation and sectoral growth.
 

Industrial Communication Market Analysis

Based on communication protocol, the market is segmented into fieldbus, ethernet, wireless. In 2023, the ethernet segment accounted for the largest market share with over 49% share.
 

• Ethernet, a widely adopted communication protocol, revolutionizes industrial communication with its high-speed data transfer and reliability. Its standardized framework supports interoperability across various devices and systems, enhancing network efficiency and scalability in industrial settings. Ethernet’s ability to handle large data volumes and provide robust network management makes it integral to modern automation and control systems.
   
• Advancements in Ethernet technology, such as Industrial Ethernet and Time-Sensitive Networking (TSN), further optimize performance by offering real-time data processing and reduced latency. These enhancements enable seamless integration of IoT devices and smart manufacturing solutions, driving innovation and operational efficiency in the industrial communication landscape.
   

Based on application, the industrial communication market is divided into automotive and transportation, electrical and electronics, aerospace & defense, oil & gas, food & beverages, energy & power, chemical, pharmaceutical, industrial manufacturing, others. From 2024 to 2032, aerospace and defense are the fastest growing segment with a CAGR of over 7.5%.
 

• In aerospace and defense, Ethernet technology plays a critical role by providing robust, high-speed communication for complex systems. It supports the integration of various subsystems, from avionics to mission control, ensuring reliable data exchange and operational efficiency. The protocol’s scalability and real-time capabilities enhance system performance and safety, crucial for applications where precision and reliability are paramount.
   
• Furthermore, advancements in Ethernet, such as Time-Sensitive Networking (TSN), address the stringent requirements of aerospace and defense sectors by offering low-latency communication and deterministic data delivery. This ensures synchronized operations across multiple systems and platforms, enhancing situational awareness and responsiveness in dynamic environments. Ethernet’s adaptability supports the integration of emerging technologies and innovations in these high-demand fields.
   

In 2023, the Europe region market held the largest share of over 35%, and it is predicted that it will hold its dominant position throughout the forecast period. Europe stands as a dominant region in the industrial communication market, driven by its strong focus on advanced manufacturing, automation, and Industry 4.0 technologies. European countries lead in implementing smart factories, IoT solutions, and high standards for industrial cybersecurity. The region's robust infrastructure, significant R&D investments, and commitment to technological innovation foster a dynamic market environment. Additionally, stringent regulatory standards and a collaborative approach to industrial technology adoption enhance Europe’s position as a key player in advancing industrial communication and automation globally.
 

China is a leading force in the market, driven by its extensive manufacturing base and aggressive push towards Industry 4.0. The country is heavily investing in IoT, smart factories, and advanced automation technologies to enhance production efficiency and global competitiveness. Government policies favoring technological innovation and digital infrastructure development further stimulate market growth.
 

Germany is a key player in the industrial communication market, renowned for its advanced manufacturing capabilities and technological innovation. The country’s focus on Industries 4.0 and smart factory integration drives demand for sophisticated communication technologies and automation solutions. Germany's strong emphasis on cybersecurity and standardization, such as OPC UA, ensures reliable and secure industrial communication. Its well-established infrastructure and significant R&D investments position Germany as a leader in driving technological advancements and setting industry benchmarks.
 

Japan is a major contributor to the market, characterized by its advanced technology and innovation in automation and robotics. The country’s strong emphasis on smart manufacturing and IoT integration supports the development of sophisticated communication systems. Japan's industrial sector benefits from high investment in research and development, enhancing its competitive edge in global markets.
 

South Korea plays a crucial role in the industrial communication industry, leveraging its robust technology sector and advanced manufacturing capabilities. The country is investing heavily in smart factories, IoT solutions, and automation to drive industrial efficiency and innovation. South Korea’s strong emphasis on digital transformation and R&D initiatives enhances its market position, supporting the development of cutting-edge communication technologies.
 

Industrial Communication Market Share

ABB Ltd., Siemens, and Rockwell Automation are key players in industrial communication, offering advanced automation solutions and robust communication technologies. ABB and Siemens lead with comprehensive portfolios in smart manufacturing and IoT integration, while Rockwell Automation excels in control systems and network infrastructure. Schneider Electric and Cisco Systems Inc. provide critical cybersecurity measures and scalable communication solutions, enhancing system reliability and security. Advantech Co. Ltd. and Omron Corporation focus on innovative industrial hardware and software, driving efficiency and connectivity in manufacturing processes.
 

Together, these companies represent a diverse spectrum of expertise in industrial communication. Their collective innovations in automation, cybersecurity, and IoT integration drive advancements across industries, enabling smarter, more efficient operations. Their global reach and commitment to technological advancement solidify their roles as leaders in shaping the future of industrial communication.
 

Industrial Communication Market Companies

Major players operating in the industrial communication industry are:

• ABB Ltd.
• Cisco Systems Inc.
• Siemens
• Rockwell Automation
• Schneider Electric
• Advantech Co. Ltd.
• Omron Corporation.
   

Industrial Communication Industry News

• In February 2023, Siemens launched industry-ready 5G routers, Scalance MUM856-1 and MUM853-1, in India. These 5G routers allow for improved mobile broadband transmission, massive machine-type communication, and incredibly low latencies.
   
• In May 2022, Advantech launched UNO-2271G V2 Industrial Edge IoT Gateway. The gateway has a modular design with optimized I/O to ensure flexible configuration and deployment. It can also be quickly integrated with an optional second stack I/O extension module to support a variety of operations such as equipment connectivity, process visualization, environment management, and dispatch management.
   

The industrial communication market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Switches
  • Hubs, Routers and Gateways
  • Connectors
  • Communication Interfaces
  • Controllers and Processors
  • Others
• Software
• Services
  • Installation
  • Maintenance

Market, By Communication Protocol

• Fieldbus
  • Profibus
  • Modbus
  • CC- Link
  • Devicenet
  • Canopen
  • Others
• Ethernet
  • Profinet
  • Ethernet/IP
  • Ethercat
  • Modbus - TCP
  • Powerlink
  • Others
• Wireless
  • WLAN
  • ISA100.11a
  • Wireless HART
  • Others

Market, By Application

• Automotive and Transportation 
• Electrical and Electronics
• Aerospace & Defense
• Oil & Gas 
• Food & Beverages
• Energy & Power 
• Chemical
• Pharmaceutical
• Industrial Manufacturing
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA