Europe Industrial Networking Solutions Market Research Report By Component (Technologies, Services), By Application (Remote monitoring, Asset tracking and management, Supply chain management, Real time streaming and video, Emergency and incident management, Predictive maintenance), By Deployment (Cloud, On premises), By Networking type (Wireless networking, Wireline networking) and By Regional (Germany, UK, France, Russia, Italy, Spain, Rest of Europe)- Forecast to 2035

Europe Industrial Networking Solutions Market Overview

As per MRFR analysis, the Europe Industrial Networking Solutions Market Size was estimated at 3.42 (USD Billion) in 2023.The Europe Industrial Networking Solutions Market is expected to grow from 4.2(USD Billion) in 2024 to 32.25 (USD Billion) by 2035. The Europe Industrial Networking Solutions Market CAGR (growth rate) is expected to be around 20.359% during the forecast period (2025 - 2035)

Key Europe Industrial Networking Solutions Market Trends Highlighted

The Europe Industrial Networking Solutions Market is experiencing significant growth driven by the rapid adoption of Industry 4.0 and the Internet of Things (IoT). European manufacturers are increasingly utilizing connected devices and smart technologies to enhance operational efficiency and competitiveness. Governments across Europe are also supporting this trend through initiatives aimed at boosting digital transformation in industries. The European Commission's "Digital Europe Programme" aims to foster the development of advanced technologies, including industrial networking solutions, which is further propelling demand in this sector. 

Additionally, the drive towards greater sustainability is creating opportunities to be explored or captured within the market.Companies are being pushed to use more environmentally friendly manufacturing methods, which is making them use more efficient networking solutions that can help them use less energy and produce less waste. This change is in line with a number of EU rules that focus on climate action and sustainability. It has led to investments in new networking technologies that are meant to help businesses go green. In Europe, there has been a clear trend toward better data security and cybersecurity in industrial networking solutions in recent years. 

As more devices connect to the internet, the risk of cyber threats has grown. This has led businesses to spend more on secure networking infrastructures.Countries such as Germany and France are leading the way in implementing stringent cybersecurity regulations that further emphasize the need for secure industrial networks. Overall, the combination of technological advancement, sustainability objectives, and a focus on security is are key trend shaping the landscape of the industrial networking solutions market in Europe.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Industrial Networking Solutions Market Drivers

Rising Demand for Industrial Automation

The Europe Industrial Networking Solutions Market is experiencing significant growth driven by the increasing demand for industrial automation across various sectors, including manufacturing and logistics. With Industry 4.0 initiatives gaining momentum, European countries are witnessing a shift towards automated processes that enhance operational efficiency. According to a report by the European Commission, nearly 75% of manufacturing enterprises in Germany have implemented automation technologies, indicating a substantial preference for smart factories.

This trend is vital as companies like Siemens and Schneider Electric invest heavily in developing advanced networking solutions to support automation. The need for robust and reliable industrial networking solutions is critical, driving market growth as organizations aim to enhance productivity while minimizing downtime and errors.

Growth of IoT and Smart Manufacturing

The proliferation of the Internet of Things (IoT) in industrial applications is a major driver for the Europe Industrial Networking Solutions Market. By 2030, it is anticipated that approximately 50 billion devices will be connected worldwide, with a significant portion of these used in industrial settings, as reported by the European Telecommunications Standards Institute (ETSI). 

This trend fosters the need for advanced networking solutions that facilitate seamless connectivity and data exchange among devices.Companies like Cisco and ABB are developing IoT-focused networking solutions that cater to the smart manufacturing sector. Such advancements are essential to harnessing real-time data analytics for informed decision-making, consequently driving the growth of the market in Europe.

Cybersecurity Concerns in Industrial Networks

As industrial networking solutions become increasingly connected, cybersecurity concerns pose a substantial driver for the Europe Industrial Networking Solutions Market. Research by the European Union Agency for Cybersecurity (ENISA) indicates that cyber threats in the industrial sector have surged, with incidents increasing by 23% over the past three years. 

The need for secure networking solutions has thus become paramount for organizations aiming to protect sensitive data and maintain operational integrity.Companies like Fortinet and Check Point have focused on developing specialized cybersecurity measures tailored for industrial networks. This heightened focus on cybersecurity is crucial for the sustained growth of the market, as organizations prepare for increasingly sophisticated cyber threats.

Government Initiatives and Funding for Modernization

Government initiatives across Europe aimed at modernizing infrastructure and enhancing digital capabilities have significantly influenced the growth of the Europe Industrial Networking Solutions Market. The European Union's Digital Europe Programme allocates over 7 billion Euros to bolster digital technologies in industry and public services by 2027. 

National strategies in countries like France and Italy also emphasize smart manufacturing and digital transformation.This funding creates a favorable environment for adopting advanced networking solutions, driving market expansion as organizations leverage government support for modernization efforts. Established players such as SAP and Rockwell Automation are capitalizing on these initiatives to provide innovative solutions, reinforcing the market's growth trajectory in Europe.

Europe Industrial Networking Solutions Market Segment Insights

Industrial Networking Solutions Market Component Insights

The Europe Industrial Networking Solutions Market has been experiencing significant growth driven by the rapid digital transformation across various industries, where the Component segment plays a vital role. Within this segment, the importance of Technologies and Services stands out, with Technologies forming a backbone for effective connectivity and communication in industrial settings, enabling real-time data exchange and improved process efficiency. This technological advancement is primarily driven by the rise of the Internet of Things (IoT), where interconnected devices enhance operational capabilities.On the other hand, Services complement these Technologies, providing essential support and implementation strategies that ensure seamless integration, maintenance, and optimization of networking solutions. 

The need for enhanced security measures has also contributed to the demand for advanced Services, as businesses prioritize protecting their industrial systems against cyber threats. Overall, the combination of Technologies and Services within the Component segment is crucial for aligning with the evolving demands of the industry, ultimately leading to improved productivity and reliability in Europe's industrial landscape.As companies continue to invest in these networking solutions, the Component segment remains pivotal in shaping a resilient and adaptive industrial environment in the region.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Industrial Networking Solutions Market Application Insights

The Application segment of the Europe Industrial Networking Solutions Market is poised for substantial advancements, driven by a blend of technological progress and increasing demand for operational efficiency. Within this landscape, Remote monitoring has gained substantial traction as organizations prioritize real-time insights into their assets and operations. Asset tracking and management are similarly critical, enabling businesses to optimize their resource utilization while ensuring transparency throughout the supply chain. Supply chain management solutions play a vital role in enhancing connectivity and information flow, like never before, contributing to overall productivity.Real time streaming and video capabilities have emerged as significant tools for effective communication and surveillance, fostering safer work environments. 

In addition, Emergency and incident management frameworks are increasingly necessary as organizations navigate compliance and safety regulations in various industries. Predictive maintenance stands out as an important practice, as it allows manufacturers to foresee equipment failures, thus minimizing downtime and enhancing productivity. These sub-segments are integral to the Europe Industrial Networking Solutions Market, reflecting its adaptation to the increasingly interconnected industrial landscape, aimed at fostering innovation, efficiency, and compliance.The combination of these applications underscores the market's ongoing transformation, catering to the diverse needs of the region's industries.

Industrial Networking Solutions Market Deployment Insights

The Deployment segment within the Europe Industrial Networking Solutions Market has garnered significant attention due to the critical role it plays in enhancing connectivity and operational efficiency in industrial settings. As industries across Europe continue to digitize, the demand for innovative deployment solutions has surged, primarily focusing on two key methods: Cloud and On-premises deployments. Cloud deployment is becoming increasingly vital, providing flexible access to resources and enabling real-time data analysis, critical for industries that require agility in their operations.Conversely, On-premises deployment offers organizations the advantage of complete control over their networking solutions, which is particularly important for those dealing with sensitive data or operating in regulated environments. 

The market dynamics reflect a growing trend towards hybrid models that incorporate both Cloud and On-premises solutions, allowing businesses to tailor their networking strategies to specific operational needs. Overall, the Deployment segment stands as a foundational element in the Europe Industrial Networking Solutions Market, driving advancements and efficiencies across various industrial sectors while also presenting opportunities for growth amidst evolving technological landscapes and increasing production demands.

Industrial Networking Solutions Market Networking Type Insights

The Europe Industrial Networking Solutions Market is evolving significantly, characterized by the growing importance of networking types such as Wireless networking and Wireline networking. Wireless networking stands out due to its flexibility and the ability to deploy quickly in industrial settings where wired connections may be impractical. This type is crucial for applications in remote monitoring and control within the manufacturing and transportation sectors, enhancing operational efficiency. Conversely, Wireline networking remains fundamental for its reliability and speed, often being the backbone of critical communication in industrial environments.

As industries embrace automation and IoT technologies, the demand for robust and secure networking solutions continues to rise, driving added investment into both wireless and wired infrastructures. This trend indicates a significant potential for market growth within the segment, catering to the diverse needs of European industries, from manufacturing to energy management. The integration of advanced technologies, such as 5G and fiber optics, further propels the significance of these networking types, ensuring they are vital components of the European Industrial Networking Solutions Market.

Industrial Networking Solutions Market Regional Insights

The Europe Industrial Networking Solutions Market is witnessing robust growth driven by advancements in automation and the increasing integration of smart technologies across industries. Key countries such as Germany and the UK are at the forefront, with Germany dominating due to its strong automotive and manufacturing sectors, while the UK is investing significantly in Industry 4.0 initiatives. France also plays a crucial role in this market, leveraging its established industrial base to enhance networking solutions. Meanwhile, Russia presents opportunities with its growing focus on the modernization of industrial infrastructure.

Italy and Spain contribute with their unique market dynamics, reflecting both traditional industries and emerging technology sectors. The Rest of Europe, comprising various smaller economies, enhances the market diversity by adopting innovative networking solutions tailored to local industrial needs. The increasing emphasis on digital transformation in operational processes across these nations is driving demand for advanced networking technologies, presenting significant opportunities while also posing challenges related to cybersecurity. Overall, the Europe Industrial Networking Solutions Market segmentation clearly highlights a diverse regional landscape with varying growth potentials and industry needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Europe Industrial Networking Solutions Market Key Players and Competitive Insights

The Europe Industrial Networking Solutions Market is characterized by its dynamic and highly competitive landscape, driven by the evolving demands of Industry 4.0, industrial automation, and the increasing deployment of smart manufacturing systems. Companies within this market are concentrating on developing advanced networking solutions, such as IoT connectivity and real-time data analytics, to cater to industries like manufacturing, automotive, energy, and logistics. The competitive insights reveal a promising growth trajectory fueled by technological advancements, regulatory shifts towards digital transformation, and increased investment in connected infrastructure. Players in the market are focusing on enhancing their product offerings through innovation, strategic partnerships, and mergers and acquisitions to solidify their market presence and address the growing demand for industrial connectivity.Sierra Wireless stands out in the Europe Industrial Networking Solutions Market with its robust range of wireless communication solutions specifically tailored for industrial applications. 

The company is recognized for its exceptional partnerships and extensive distribution channels across the continent, which contribute significantly to its market presence. Sierra Wireless excels in providing reliable and secure cellular IoT solutions that facilitate seamless connectivity and enhance operational efficiency for businesses. Their strengths lie in their strong R&D capabilities, allowing for rapid development and deployment of cutting-edge technologies, such as 5G connectivity, which are increasingly being adopted in European industrial sectors. Furthermore, their commitment to full lifecycle support and customer service sets them apart as a trusted leader in industrial networking solutions.Siemens has established a formidable presence in the Europe Industrial Networking Solutions Market, offering a comprehensive portfolio of products and services that include industrial automation systems, IoT software, and secure networking infrastructure. 

The company's strengths are underpinned by its deep industry expertise, broad geographic reach, and significant investment in innovation, enabling it to deliver integrated solutions that cater to the diverse needs of European industries. Key products comprise the Siemens Industrial IoT platform, which facilitates real-time data processing and connectivity for smart factories. Additionally, Siemens has pursued strategic mergers and acquisitions to bolster its capabilities in connectivity and automation, enhancing its competitive edge. The company's strong focus on sustainability and digitalization aligns with the evolving demands of the European market, establishing Siemens as a key player committed to sustaining a leadership position in industrial networking solutions.

Key Companies in the Europe Industrial Networking Solutions Market Include

• Sierra Wireless
• Siemens
• Arkessa
• Phoenix Contact
• Rockwell Automation
• Cisco Systems
• Belden
• Siemens Industry Software
• Emerson Electric
• Moxa
• Advantech
• NEXCOM International
• Schneider Electric
• Honeywell
• Hirschmann

Europe Industrial Networking Solutions Market Developments

In recent months, the Europe Industrial Networking Solutions Market has witnessed significant developments. Companies such as Siemens and Rockwell Automation are expanding their portfolio to support increased automation and digitalization in industries, caused largely by the rising demand for Industry 4.0 solutions. Sierra Wireless announced an upgrade to its IoT modules, enhancing connectivity in industrial applications while improving security features as firms increasingly focus on cyber resilience. Additionally, there has been noticeable growth in market valuations across various segments driven by technological advancements and heightened investments in smart manufacturing.

In terms of mergers and acquisitions, Schneider Electric has made headlines with its acquisition of a smart factory solutions provider in June 2023, aimed at strengthening its position in the Industrial Internet of Things. Similarly, in September 2023, Emerson Electric acquired a leading network solutions firm to bolster its offerings in industrial software and connectivity solutions. Over the past two to three years, developments such as the increasing adoption of cloud-based solutions and the implementation of 5G technology have reshaped the industrial networking landscape in Europe, impacting operational efficiency and decision-making processes across sectors.

Europe Industrial Networking Solutions Market Segmentation Insights

Industrial Networking Solutions Market Component Outlook

• • Technologies
  • Services

Industrial Networking Solutions Market Application Outlook

• • Remote monitoring
  • Asset tracking and management
  • Supply chain management
  • Real time streaming and video
  • Emergency and incident management
  • Predictive maintenance

Industrial Networking Solutions Market Deployment Outlook

• • Cloud
  • On premises

Industrial Networking Solutions Market Networking Type Outlook

• • Wireless networking
  • Wireline networking

Industrial Networking Solutions Market Regional Outlook

• • Germany
  • UK
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	3.42(USD Billion)
MARKET SIZE 2024	4.2(USD Billion)
MARKET SIZE 2035	32.25(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	20.359% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Sierra Wireless, Siemens, Arkessa, Phoenix Contact, Rockwell Automation, Cisco Systems, Belden, Siemens Industry Software, Emerson Electric, Moxa, Advantech, NEXCOM International, Schneider Electric, Honeywell, Hirschmann
SEGMENTS COVERED	Component, Application, Deployment, Networking type, Regional
KEY MARKET OPPORTUNITIES	5G technology integration, Increased automation demand, Industrial IoT expansion, Cybersecurity investments growth, Legacy system modernization
KEY MARKET DYNAMICS	growing demand for IoT connectivity, increased focus on automation, cybersecurity concerns in industries, need for real-time data exchange, adoption of Industry 4.0 technologies
COUNTRIES COVERED	Germany, UK, France, Russia, Italy, Spain, Rest of Europe