Industrial Communication Market by Communication Protocol (Fieldbus, Industrial Ethernet, Wireless), Component (Hardware, Services, Software), Industry Vertical - Global Forecast 2024-2030

Industrial Communication Market by Communication Protocol (Fieldbus, Industrial Ethernet, Wireless), Component (Hardware, Services, Software), Industry Vertical - Global Forecast 2024-2030

The Industrial Communication Market size was estimated at USD 35.64 billion in 2023 and expected to reach USD 38.41 billion in 2024, at a CAGR 8.68% to reach USD 63.86 billion by 2030.

Industrial communication refers to exchanging information and data between various devices, machines, and systems within an industrial environment. This complex web of communication is facilitated through specialized networks, protocols, and technologies designed specifically for industrial settings' unique challenges and requirements. It is crucial in enabling effective automation, monitoring, control, diagnostics, and maintenance processes across manufacturing facilities, power plants, transportation systems, oil refineries, and other critical infrastructures. Industrial communication systems are essential for ensuring safety in hazardous environments which enable remote monitoring of equipment conditions or environmental parameters such as temperature or pressure levels that could pose risks to workers if not properly maintained. Industrial communication is vital to modern industries as it fosters increased operational efficiency while promoting workplace safety. The emergence of Industry 4.0 and the Industrial Internet of Things (IIoT) further accelerates the adoption of different communication technologies, ethernet-based networks being a popular type. However, challenges such as high implementation costs and lack of standardization in communication technologies may impede market development. To provide expanded services to end-user industries, market players are embracing advanced technologies such as Industrial Internet-of-Things (IIoT) devices and secure network protocols intended for industrial situations. Integrating artificial intelligence (AI) and machine learning (ML) advancements into industrial communications and continuous improvements in wireless technologies present potential avenues for expansion.

Regional Insights

The Americas' industrial communication market has been experiencing considerable growth due to the widespread adoption of Industry 4.0 technologies and a resilient manufacturing sector. The United States and Canada intensely focus on automation and digitization across multiple industries, such as automotive, aerospace & defense, chemical, pharmaceuticals, and energy, with several key players catering to their specialized needs. The APAC region has emerged as a leading market for industrial communications due to rapid industrialization, significant investments in infrastructure projects, and increasing adoption of advanced technologies such as the Industrial Internet of Things (IIoT) and Industry 4.0. Countries, including China, Japan, India, South Korea, and Taiwan, contribute significantly to the growth of industrial communication systems in this region. Europe has a well-established industrial communication market comprising numerous major players expanding their production and distribution channels across the region. The regional players have a strong presence in the global market, providing technologically advanced solutions and leveraging their expertise in industrial automation systems. The European market benefits from strong governmental support for developing advanced infrastructure and digitization endeavors. The European market is characterized by heavy investments in automation technologies aimed at improving operational efficiency while focusing on introducing standards and protocols for developing high-quality industrial communication networks.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Industrial Communication Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Rising demand of reliable, scalable and real-time communication across industries
    • Emergence of Industry 4.0 and the Industrial Internet of Things (IIoT) in industries
    • High adoption of ethernet-based communication networks
    • Market Restraints
      • High implementation cost and lack of standardization
      • Market Opportunities
        • Deployment of 5G for enabling efficient communication networks in industries
        • Integration of AL/ML in industrial communications and advancements in wireless technologies
        • Market Challenges
          • Concern regarding cybersecurity threats and harsh operating conditions
          • Market Segmentation Analysis
            • Communication Protocol: Emerging popularity of wireless communication protocols
            • Component: Proliferating demand for industrial communication software
            • Industry Vertical: Expanding applications of industrial communication in the aerospace & defense sector
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Industrial Communication Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Industrial Communication Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Intel, Ericsson Expand Collaboration to Advance Next-Gen Optimized 5G Infrastructure
              
              Intel and Ericsson have joined into a strategic collaboration agreement in industrial communication. As part of this collaboration, Intel manufactures custom 5G SoCs for Ericsson's next-generation optimized 5G infrastructure. The companies work together to optimize 4th Gen Intel Xeon Scalable processors with Intel vRAN Boost specifically for Ericsson's Cloud RAN solutions. Ericsson has chosen Intel as its manufacturing partner for future custom 5G SoCs, utilizing the state-of-the-art 18A process node. This collaboration aims to establish a more resilient and sustainable supply chain for Ericsson's products.
              
              Airbus and Cellnex strengthen partnership for mission-critical communications
              
              Airbus and Cellnex have entered a Memorandum of Understanding (MOU) to explore potential business and mission-critical communications partnerships. As per the terms of this MOU, Airbus utilizes its Agnet platform to provide end-user organizations with critical communication solutions. Cellnex leverages its portfolio of sites to facilitate equipment collocation and deployment, operation, and maintenance of networks and applications. This strategic partnership aims to create new business opportunities for both companies, benefiting various verticals and mission-critical users across different countries. By implementing and delivering intelligent solutions, this MOU enhances Airbus and Cellnex's market positioning and establishes its leadership in the industry.
              
              Apax Funds make approximately USD 450 million investment in travel tech company IBS Software
              
              Apax Partners LLP invested approximately USD 450 million in acquiring a minority stake in IBS Software. IBS Software offers a comprehensive portfolio of cloud-based solutions for the travel industry. IBS Software helps travel companies accelerate innovation and drive efficiency across core business processes, including cargo and logistics, flight operations, passenger services, loyalty programs, cruise operations, energy & resource logistics, and hospitality distribution platforms.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Industrial Communication Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Industrial Communication Market, highlighting leading vendors and their innovative profiles. These include Aaeon Technology Inc., ABB Ltd., Advantech Co., Ltd., B+M Blumenbecker GmbH, Belden Inc., Cisco Systems, Inc., General Electric Company, Honeywell International Inc., IFM Electronic GmbH, Industrial Communications, LLC, Intel Corporation, International Business Machines Corporation, Microsoft Corporation, Mitsubishi Electric Corporation, Molex, LLC, Moxa Inc., Nokia Corporation, Omron Corporation, Pepperl+Fuchs SE, Phoenix Contact Gmbh & Co. Kg, Renesas Electronics Corporation, Robert Bosch AG, Rockwell Automation, Inc., SAP SE, Schneider Electric SE, Sick AG, Siemens AG, STMicroelectronics N.V., Telefonaktiebolaget LM Ericsson, Texas Instruments, and Tridon Communications.
            
            Market Segmentation & Coverage
            
            This research report categorizes the Industrial Communication Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Communication Protocol
              • Fieldbus
                • Canopen
                • CC-Link
                • Devicenet
                • Foundation Fieldbus & HART
                • Interbus
                • Modbus
                • Profibus
                • Industrial Ethernet
                  • CC-Link IE
                  • Ethercat
                  • EtherNet/IP
                  • Modbus TCP
                  • Powerlink
                  • Profinet
                  • Sercos III
                  • Wireless
                    • Cellular
                    • ISA100.11a
                    • WHART
                    • WLAN
                    • Zigbee
                    • Component
                      • Hardware
                        • Communication Interfaces
                        • Connectors
                        • Controllers & Processors
                        • Hubs, Routers, & Gateways
                        • Isolators & Convertors
                        • Memory
                        • Power Supply Devices
                        • Switches
                        • Services
                        • Software
                        • Industry Vertical
                          • Aerospace & Defense
                          • Automotive & Transportation
                          • Chemicals & Fertilizers
                          • Electrical & Electronics
                          • Energy & Power
                          • Engineering & Fabrication
                          • Food & Beverages
                          • Mining
                          • Oil & Gas
                          • Pharmaceutical
                          • Water & Wastewater
                          • Region
                            • Americas
                              • Argentina
                              • Brazil
                              • Canada
                              • Mexico
                              • United States
                                • California
                                • Florida
                                • Illinois
                                • New York
                                • Ohio
                                • Pennsylvania
                                • Texas
                                • Asia-Pacific
                                  • Australia
                                  • China
                                  • India
                                  • Indonesia
                                  • Japan
                                  • Malaysia
                                  • Philippines
                                  • Singapore
                                  • South Korea
                                  • Taiwan
                                  • Thailand
                                  • Vietnam
                                  • Europe, Middle East & Africa
                                    • Denmark
                                    • Egypt
                                    • Finland
                                    • France
                                    • Germany
                                    • Israel
                                    • Italy
                                    • Netherlands
                                    • Nigeria
                                    • Norway
                                    • Poland
                                    • Qatar
                                    • Russia
                                    • Saudi Arabia
                                    • South Africa
                                    • Spain
                                    • Sweden
                                    • Switzerland
                                    • Turkey
                                    • United Arab Emirates
                                    • United Kingdom
                                    
                                    
                                    Please Note: PDF & Excel + Online Access - 1 Year