Industrial Ethernet Switches Market by Type (Layer 2, Layer 3, Managed Industrial Ethernet Switches), Protocol (CC-Link IE, EtherCAT, EtherNet/IP), End-Use Industry - Global Forecast 2024-2030

Industrial Ethernet Switches Market by Type (Layer 2, Layer 3, Managed Industrial Ethernet Switches), Protocol (CC-Link IE, EtherCAT, EtherNet/IP), End-Use Industry - Global Forecast 2024-2030

The Industrial Ethernet Switches Market size was estimated at USD 12.45 billion in 2023 and expected to reach USD 13.32 billion in 2024, at a CAGR 7.21% to reach USD 20.28 billion by 2030.

Industrial Ethernet switches are specialized networking devices used for industrial environments, including manufacturing plants, utility facilities, and transportation systems. These devices are designed to withstand and tolerate extreme conditions including higher temperatures, vibrations, and electromagnetic interference. Industrial Ethernet switches facilitate reliable and efficient data transfer among various industrial devices, enabling real-time monitoring, control, and automation of diverse industrial processes. The growing inclination toward adopting Industrial Internet of Things (IIoT) technologies in the industrial sector and government Industry 4.0 initiatives drive the need for robust network infrastructures. The growing demand for real-time data processing capabilities and analytics in the oil & gas sectors and the expanding need to manage the diverse components of smart grids in the energy infrastructure have fuelled the need for industrial Ethernet switches. However, the complexity of integrating the equipment with existing legacy systems and the lack of standardized protocols across different industry verticals pose hurdles. Additionally, data security and privacy concerns raise questions regarding the safety and reliability of industrial Ethernet switches. However, key players are exploring integrating advanced cybersecurity solutions within industrial Ethernet switches to overcome data security and privacy issues. Furthermore, advancing switch technology to support higher data rates, improving security measures to cater to the expanding needs of industrial networks, and exploring the use of AI and ML for predictive maintenance and network optimization are expected to provide new avenues of growth.

Regional Insights

The U.S. and Canada are the major countries adopting industrial Ethernet switches in the Americas. The demand for industrial Ethernet switches in the Americas region is primarily driven by the need to modernize industrial facilities, incorporate smart technologies, and efficiently manage extensive data loads. The market in the region benefits from advanced technological infrastructure and a keen governmental emphasis on adopting Industry 4.0 standards. Ongoing research and development (R&D) efforts aim to increase network systems' resilience, security, and efficiency within industrial settings. In addition, the region supports the integration of advanced technologies such as AI, ML, and data analytics due to its rapid development pace. The Asia-Pacific region, led by economies such as China, Japan, and India, is experiencing rapid industrial growth. The surge in manufacturing sectors, particularly automotive, electronics, and heavy industries, is pushing the demand for industrial Ethernet switches. Innovations and investments in smart factories, Industrial IoT (IIoT), and automation technologies further fuel the adoption. In China, the Made in China 2025 initiative emphasizes high-tech industries fostering local innovation, which includes substantial investments in enhancing network infrastructures. The market in the EMEA region is influenced by the EU's stringent standards for industrial operations and a strong emphasis on digitalization and sustainability in manufacturing processes. EU's stringent data privacy and security regulations have created a standardized framework for the progress and development of highly secure industrial Ethernet switches. The Middle East is gradually shifting from its oil-dependent economy toward diversification, with smart city projects and industrial innovation playing pivotal roles.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Industrial Ethernet Switches 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
    • Increasing adoption of automation technologies and Industry 4.0 initiatives
    • Expansion of smart grid solutions and technologies across the world
    • Utilization of Ethernet switches to facilitate remote monitoring in oil & gas industries
    • Market Restraints
      • Possibility of failure of industrial Ethernet switches and performance limitations
      • Market Opportunities
        • Incorporation of advanced AI/ML and data analytics technologies in industrial ethernet switches
        • Shift toward compact design Ethernet switches coupled with focused to achieve energy security and efficiency
        • Market Challenges
          • Privacy issues associated with industrial ethernet switches
          • Market Segmentation Analysis
            • Type: Ongoing innovations and advancements to improve the performance and efficiency of power over Ethernet (PoE) switches
            • Protocol: Preference for CC-Link IE protocol in applications requiring high-speed data transfer and real-time control
            • End-Use Industry: Expanding utilization of industrial Ethernet switches in the oil and gas sector to ensure real-time monitoring of operations
            • 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 Ethernet Switches 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 Ethernet Switches 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
            • New Plug-and-Play Unmanaged Industrial Ethernet Switches Launched by Westermo
              
              Westermo launched the SandCat series, a lineup of compact, unmanaged industrial Ethernet switches designed for seamless integration into harsh environments; these switches present a cost-effective, plug-and-play solution that superbly enhances Westermo’s portfolio of managed switches. With a focus on the escalating needs for network complexity, reliability, and bandwidth in sectors including utilities, marine, manufacturing, and energy, the SandCat series delivers by offering five fast Ethernet ports capable of 100 Mbit/s. This makes them ideal for connecting many end devices, supplemented by a fiber port option for extended communication reach.
              
              New Microchip Ethernet Switches Include TSN and Range of Port Bandwidths
              
              Microchip introduced three innovative Ethernet switches, specifically designed for industrial applications: the LAN9694, LAN9696, and LAN9698, offering bandwidth capabilities of 46 G, 66 G, and 102 G, respectively. The incorporation of Time-Sensitive Networking (TSN) technology and redundancy protocols, such as high-availability seamless redundancy (HSR) and parallel redundancy protocol (PRP), ensures deterministic communication and increased reliability for critical industrial automation processes. The LAN969x series stands out for its support of both high-speed data processing and stringent time-scheduling requirements, embodying a robust solution for time-sensitive industrial networking needs.
              
              Leonton New Powerful Compact PoE Switches Enhance PoE Network Deployment Flexibility and Reliability
              
              Leonton Technologies introduced the CPG2-0800 series, a newcomer in its range of industrial compact PoE switch offerings. The series, encompassing the CPG2-0800 and CPG2-0800-T models, revolutionizes the arena of 8-port compact PoE+ Gigabit unmanaged Ethernet switches. Tailored for environments where space is at a premium and conditions are exceptionally demanding, such as security surveillance, Intelligent Transportation Systems (ITS), and factory automation, these switches are engineered to overcome the challenges of unstable PoE capabilities.
            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 Ethernet Switches 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 Ethernet Switches Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd., Advantech Co., Ltd., Alcatel–Lucent S.A., Amphenol Corporation, Arista Networks, Inc., Beckhoff Automation GmbH, Belden Incorporated, Broadcom Inc., Cisco Systems Inc., CommScope Holding Company, Inc., D-Link Systems, Inc., Dell Technologies Inc., Eaton Corporation PLC, Emerson Electric Co., Fiberroad Technology Co., Ltd., Fujitsu Limited, General Electric Company, HARTING Deutschland GmbH & Co. KG, Hewlett Packard Enterprise Development LP, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co., Ltd., IDEC Corporation, Intel Corporation, International Business Machines Corporation, Juniper Networks, Inc., Mitsubishi Electric Corporation, Moxa Inc., NVIDIA Corporation, Omron Corporation, Patton LLC, Perle Systems Limited, Robert Bosch GmbH, Rockwell Automation, Inc., SALZ Automation GmbH, Schneider Electric SE, Siemens AG, TE Connectivity Ltd., Weidmüller Interface GmbH & Co. KG, Westermo Network Technologies AB, and ZTE Corporation.
            
            Market Segmentation & Coverage
            
            This research report categorizes the Industrial Ethernet Switches Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Type
              • Layer 2
              • Layer 3
              • Managed Industrial Ethernet Switches
              • Power over Ethernet
              • Ruggedized Industrial Ethernet Switches
              • Unmanaged Industrial Ethernet Switches
              • Protocol
                • CC-Link IE
                • EtherCAT
                • EtherNet/IP
                • POWERLINK
                • PROFINET
                • SERCOS III
                • End-Use Industry
                  • Aerospace & Defense
                  • Automotive & Transportation
                  • Electrical & Electronics
                  • Energy & Power
                  • Food & Beverages
                  • IT & Telecom
                  • Mining & Metals
                  • Oil & Gas
                  • Pharmaceutical & Medical Devices
                  • 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