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    Industrial Ethernet Market

    ID: MRFR/ICT/3402-CR
    200 Pages
    Aarti Dhapte
    July 2025

    Industrial Ethernet Market Research Report By Protocol (EtherNet/IP, PROFINET, EtherCAT, Modbus TCP, SERCOS), By Application (Manufacturing Automation, Process Automation, Transportation Systems, Energy and Utilities, Building Automation), By End-use (Automotive, Electronics, Oil and Gas, Food and Beverage, Pharmaceuticals), By Component (Switches, Routers, Cables, Gateways, I/O Devices), and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

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    Industrial Ethernet Market Summary

    The Global Industrial Ethernet Market is projected to grow from 5.41 USD Billion in 2024 to 12.5 USD Billion by 2035, reflecting a robust growth trajectory.

    Key Market Trends & Highlights

    Industrial Ethernet Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate of 7.91 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 12.5 USD Billion, indicating substantial expansion.
    • In 2024, the market is valued at 5.41 USD Billion, showcasing a strong foundation for future growth.
    • Growing adoption of Industrial Ethernet due to increasing demand for automation is a major market driver.

    Market Size & Forecast

    2024 Market Size 5.41 (USD Billion)
    2035 Market Size 12.5 (USD Billion)
    CAGR (2025-2035) 7.91%

    Major Players

    Hitachi, Advantech, Rockwell Automation, Moxa, B&R Industrial Automation, WAGO, Schneider Electric, ProSoft Technology, Belden, Cisco Systems, ams OSRAM, Siemens, Phoenix Contact, Hirschmann

    Industrial Ethernet Market Trends

    The increasing need for real-time data transmission in manufacturing processes is driving the present strong momentum in the Industrial Ethernet Market. Industrial Ethernet is being used by industries more and more to increase automation and machine communication, which raises production levels.Accordingly, the emergence of Industry 4.0 is forcing companies to include increasingly sophisticated networking technologies, which makes Industrial Ethernet crucial for smooth device-to-device connectivity.

    This shift highlights the movement toward smart manufacturing, where making decisions based on data is essential. Furthermore, the emergence of the Internet of Things (IoT) is changing the way industries function and opening up possibilities for improved control and monitoring systems.

    The market has also witnessed a trend toward more stringent cybersecurity measures in recent years. It is now crucial to secure sensitive data from dangers as sectors grow increasingly linked. To protect their operations, manufacturers are putting more and more emphasis on adding strong security measures to their Industrial Ethernet systems.All things considered, automation, IoT integration, and improved security provide a dynamic environment for market participants in the Industrial Ethernet Market, opening the door for further advancements and expansion.

    The ongoing evolution of industrial automation is driving a robust demand for Industrial Ethernet solutions, as industries increasingly seek to enhance connectivity and operational efficiency.

    U.S. Department of Commerce

    Industrial Ethernet Market Drivers

    Market Growth Projections

    The Global Industrial Ethernet Market Industry is poised for substantial growth, with projections indicating a market value of 5.41 USD Billion in 2024 and an anticipated increase to 12.5 USD Billion by 2035. This growth trajectory suggests a robust compound annual growth rate (CAGR) of 7.91% from 2025 to 2035. Such figures reflect the increasing adoption of Industrial Ethernet solutions across various sectors, driven by the demand for automation, IoT integration, and enhanced data security. The market's expansion is indicative of the evolving landscape of industrial communication technologies, where Industrial Ethernet plays a pivotal role in shaping the future of industrial operations.

    Rising Demand for Automation

    The Global Industrial Ethernet Market Industry experiences a notable surge in demand for automation across various sectors. As industries increasingly adopt automated solutions to enhance efficiency and productivity, the reliance on robust networking technologies becomes paramount. This trend is particularly evident in manufacturing, where automation systems require reliable communication protocols. The market is projected to reach 5.41 USD Billion in 2024, reflecting the growing integration of Industrial Ethernet solutions in automated environments. Furthermore, as industries strive for digital transformation, the adoption of Industrial Ethernet is likely to accelerate, positioning it as a critical component in the future of industrial operations.

    Growth of Smart Manufacturing

    The Global Industrial Ethernet Market Industry is significantly impacted by the growth of smart manufacturing initiatives. As industries transition towards smart factories, characterized by interconnected systems and data-driven decision-making, the role of Industrial Ethernet becomes increasingly vital. This shift enables real-time data exchange and analytics, facilitating improved operational efficiency and reduced downtime. The market is expected to witness a compound annual growth rate (CAGR) of 7.91% from 2025 to 2035, driven by the adoption of smart manufacturing technologies. As companies invest in digital transformation, the demand for Industrial Ethernet solutions is likely to rise, positioning it as a cornerstone of modern manufacturing.

    Integration of IoT Technologies

    The integration of Internet of Things (IoT) technologies into industrial processes significantly influences the Global Industrial Ethernet Market Industry. IoT devices necessitate seamless connectivity and data exchange, which Industrial Ethernet provides through its high-speed and reliable communication capabilities. This integration enables real-time monitoring and control of industrial operations, enhancing decision-making processes. As industries increasingly leverage IoT for operational efficiency, the demand for Industrial Ethernet solutions is expected to grow. By 2035, the market could reach 12.5 USD Billion, driven by the proliferation of IoT applications in sectors such as manufacturing, logistics, and energy management.

    Need for Enhanced Data Security

    In the context of the Global Industrial Ethernet Market Industry, the need for enhanced data security remains a critical driver. As industrial networks become more interconnected, the risk of cyber threats escalates, prompting industries to adopt secure communication protocols. Industrial Ethernet solutions often incorporate advanced security features, such as encryption and authentication, to safeguard sensitive data. This focus on security is particularly relevant in sectors like energy and utilities, where data breaches can have severe consequences. Consequently, the demand for secure Industrial Ethernet solutions is likely to increase, reflecting a broader trend towards prioritizing cybersecurity in industrial environments.

    Expansion of Industrial Internet

    The expansion of the Industrial Internet significantly influences the Global Industrial Ethernet Market Industry. This concept encompasses the integration of advanced technologies, such as big data analytics and machine learning, into industrial processes. Industrial Ethernet serves as the backbone for these technologies, enabling seamless communication and data sharing among devices and systems. As industries increasingly adopt the Industrial Internet to enhance operational efficiency and innovation, the demand for Industrial Ethernet solutions is expected to grow. This trend aligns with the broader movement towards Industry 4.0, where interconnected systems drive productivity and competitiveness in the global market.

    Market Segment Insights

    Industrial Ethernet Market Segment Insights

    Industrial Ethernet Market Segment Insights

    Industrial Ethernet Market Protocol Insights

    Industrial Ethernet Market Protocol Insights

    The Protocol segment of the Industrial Ethernet Market was a crucial component of the industry's infrastructure, facilitating seamless communication among devices in industrial settings.Among the various protocols, Ethernet/IP stood out with a valuation of 1.64 USD billion in 2024 and is expected to rise to 3.75 USD billion by 2035, reflecting its majority holding in the market owing to its adaptability in large-scale industrial operations.

    PROFINET followed closely, with valuations at 1.37 USD Billion in 2024 and a projected growth to 3.1 USD Billion by 2035, emphasizing its significance in manufacturing and process automation environments.EtherCAT, valued at 0.9 USD Billion in 2024 and anticipated to grow to 2 USD Billion by 2035, was particularly noted for its high-speed communication capabilities, making it essential for time-sensitive applications in automation.

    Modbus TCP, with a market valuation of 0.8 USD Billion in 2024 and increasing to 1.9 USD Billion in 2035, was celebrated for its simplicity and ease of integration, thereby maintaining steady demand among smaller operators and legacy systems.Lastly, SERCOS also demonstrated a strong presence in the market, starting at 1.7 USD Billion in 2024 and projected to reach 3.75 USD Billion by 2035, highlighting its effectiveness in motion control applications.

    The growth drivers behind these protocols were characterized by increasing automation in industries, the rise of Industry 4.0 practices, and the integration of IoT within industrial operations, enabling enhanced data collection and analysis.The Industrial Ethernet Market segmentation showcased not just the financials but also reflected a broader trend of digital transformation pushing for more efficient and reliable communication standards in the manufacturing landscape globally.

    Industrial Ethernet Market Application Insights

    Industrial Ethernet Market Application Insights

    The Application segment encompasses various critical areas, including Manufacturing Automation, Process Automation, Transportation Systems, Energy and Utilities, and Building Automation, which signifies the extensive adoption of Ethernet-based communication protocols in industrial settings.

    Manufacturing Automation represents a vital space as industries increasingly rely on interconnected devices to enhance operational efficiency. Likewise, Process Automation is essential for optimizing production processes across various sectors, ensuring consistent output quality.

    Transportation Systems also play a crucial role as they demand reliable and real-time data exchange for efficiency and safety. The Energy and Utilities sector benefits from Industrial Ethernet by improving grid communication and management systems, while Building Automation integrates technology to manage building performance and energy consumption effectively.

    With such diverse applications, the Industrial Ethernet Market demonstrates a wide area of influence and strategic importance in promoting real-time operations and advanced decision-making in global industries.

    Industrial Ethernet Market End-use Insights

    Industrial Ethernet Market End-use Insights

    Key End-use areas include Automotive, Electronics, Oil and Gas, Food and Beverage, and Pharmaceuticals, each contributing uniquely to the market landscape, as demands for connectivity, data exchange, and automation rise.

    The Automotive sector is seeing increased integration of Ethernet technology for better connectivity in vehicles, enabling advancements such as autonomous driving and vehicle-to-everything communication. Similarly, the Electronics industry thrives on high-speed data transfer for manufacturing efficiency and product innovation.

    The Oil and Gas sector utilizes Industrial Ethernet for real-time monitoring and control in challenging environments, enhancing safety and operational efficiency. In the Food and Beverage industry, the adoption of advanced Ethernet solutions helps streamline production processes and ensure quality control, playing a crucial role in meeting stringent regulatory requirements.

    Finally, Pharmaceuticals relies on Industrial Ethernet for precise tracking and data management in production and distribution, underscoring the importance of reliability and compliance. As businesses continue to prioritize smart manufacturing and automation, these End-use sectors are becoming increasingly crucial in driving the overall growth of the Industrial Ethernet Market.

    Industrial Ethernet Market Component Insights

    Industrial Ethernet Market Component Insights

    The Industrial Ethernet Market, specifically within the Component segment, continues to expand significantly. This growth is attributed to the increasing adoption of smart manufacturing and Industry 4.0 practices globally.

    The market encompasses various essential components that play a pivotal role in facilitating seamless communication and connectivity in industrial applications. Switches and routers are foundational elements that allow for efficient data transmission and network management, essential in today's interconnected environments.

    Cables and gateways are also crucial, providing robust connections and interfacing various devices throughout the industrial ecosystem, enabling real-time data flow and control. The rise of I/O devices further enhances operational efficiency by transforming analog signals into digital data, crucial in monitoring and automation processes.

    The market is propelled by the demand for enhanced network reliability and speed in industrial sectors, while challenges such as cybersecurity threats necessitate sophisticated solutions in component designs. Overall, the Industrial Ethernet Market data illustrates a strong trajectory of growth supported by technological advancements and increasing industrial automation.

    Get more detailed insights about Industrial Ethernet Market Research Report - Global Forecast till 2035

    Regional Insights

    The Industrial Ethernet Market exhibited significant growth across various regions, with North America leading the way, valued at 1.75 USD Billion in 2024 and expected to reach 4.15 USD Billion by 2035. Strong industrial adoption and technological advancements in North America contributed to its majority holding in the market.

    Europe followed closely, with a valuation of 1.5 USD Billion in 2024, projected to increase to 3.5 USD Billion by 2035, driven by a robust manufacturing sector and investments in automation. The Asia Pacific region also showcased a significant presence, valued at 1.5 USD Billion in 2024, due to rapid industrialization and urbanization, aiming for 3.5 USD Billion by 2035.

    Meanwhile, South America was valued at 0.4 USD Billion in 2024 and is anticipated to grow to 0.9 USD Billion by 2035, reflecting rising demand for connectivity and automation solutions. The Middle East and Africa, with a valuation of 0.26 USD Billion in 2024, is expected to reach 0.6 USD Billion by 2035, indicating emerging opportunities in infrastructure development.Altogether, these regions represented diverse growth opportunities in the industrial Ethernet space, influenced by their unique economic factors and industrial landscapes.

    Industrial Ethernet Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The Industrial Ethernet Market has seen significant growth as various industries increasingly adopt connected technologies for enhanced communication and automation. This market is characterized by fierce competition as numerous players strive to establish their presence and expand their market share.

    The landscape is evolving with advancements in networking technologies, rising demand for IoT solutions, and the necessity for high-speed data transfer. Companies are focusing on innovation, product diversification, and strategic alliances to strengthen their competitive positions.

    The rise of Industry 4.0 and smart factories is further propelling the demand for robust and reliable industrial Ethernet solutions. To remain competitive, firms are investing in R&D, emphasizing the development of enhanced and secure networking protocols and solutions that cater to the specific needs of various sectors.Hitachi has carved a noteworthy position within the Industrial Ethernet Market, showcasing strengths in its technological innovation and comprehensive offerings that address the growing demand for networking and automation solutions in industrial applications.

    The company's established reputation for reliability and performance strengthens its competitive advantage, enabling it to cater to diverse industrial requirements from manufacturing to logistics. Hitachi is not only recognized for its robust hardware solutions but also emphasizes the integration of software and services to provide tailored applications that enhance operational efficiency.

    This holistic approach to industrial Ethernet underscores Hitachi’s commitment to delivering quality and fostering long-term partnerships with clients, thereby reinforcing its standing in the global market.Advantech is a prominent player in the Industrial Ethernet Market, capitalizing on its extensive portfolio of products, including network switches, industrial IoT gateways, and embedded systems tailored for various industries.

    The company's strengths lie in its commitment to innovation, focusing on high-performance networking solutions that enhance connectivity and data communication across industrial environments. Advantech has established a solid global presence through strategic collaborations and mergers, enabling it to extend its reach and amplify its market impact.

    By focusing on cutting-edge technologies and customer-centric solutions, Advantech has positioned itself as a critical provider in the industrial networking landscape. The company's dedication to advancing its product offerings and embracing market trends plays a crucial role in solidifying its competitive edge and ensuring continual growth in the dynamic global market.

    Key Companies in the Industrial Ethernet Market market include

    Industry Developments

    To speed up OT/IT convergence, Rockwell Automation introduced its EtherNet/IP In-cabinet Solution in May 2025, which simplifies panel wiring and permits real-time data access. The Stratix 2100 Unmanaged Industrial Ethernet Switch, which offers gigabit speeds, QoS, and energy efficiency for small installations, was unveiled by Rockwell in June 2025.

    Moxa won the Red Dot Product Design Award for its high-bandwidth Layer 3 rackmount Ethernet switches (up to 16×10 GbE) for industrial settings, which were delivered in July 2024. Moxa introduced its next-generation x86 industrial computers in January 2024, enhancing edge connection for manufacturing's real-time OT data processing.

    The tough MPC-3000 panel computer series, built for demanding industrial applications, was unveiled by Moxa in October 2024. Schneider Electric stated in July 2025 that their EcoStruxure Ethernet switches, designed for energy-efficient and cybersecurity-ready industrial networks, will be rolled out globally.

    The Converged Plantwide Ethernet (CPwE) standard design, released by Cisco Systems and Rockwell in September 2023, allows for the deployment of both IT and OT Ethernet in production plants. Belden introduced a new line of TSN-capable Hirschmann switches in August 2024 to accommodate automation use cases and real-time industrial connectivity.

    Future Outlook

    Industrial Ethernet Market Future Outlook

    The Global Industrial Ethernet Market is projected to grow at 7.91% CAGR from 2024 to 2035, driven by automation, IoT integration, and demand for real-time data processing.

    New opportunities lie in:

    • Invest in advanced cybersecurity solutions for industrial networks.
    • Develop IoT-enabled devices to enhance connectivity and data analytics.
    • Explore partnerships with AI firms to integrate smart manufacturing solutions.

    By 2035, the market is expected to reach substantial growth, reflecting robust advancements in industrial connectivity.

    Market Segmentation

    Industrial Ethernet Market End-use Outlook

    • Automotive
    • Electronics
    • Oil and Gas
    • Food and Beverage
    • Pharmaceuticals

    Industrial Ethernet Market Protocol Outlook

    • EtherNet/IP
    • PROFINET
    • EtherCAT
    • Modbus TCP
    • SERCOS

    Industrial Ethernet Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Industrial Ethernet Market Component Outlook

    • Switches
    • Routers
    • Cables
    • Gateways
    • I/O Devices

    Industrial Ethernet Market Application Outlook

    • Manufacturing Automation
    • Process Automation
    • Transportation Systems
    • Energy and Utilities
    • Building Automation

    Report Scope

    Report Attribute/Metric

    Details

    Market Size 2023

    5.02(USD Billion)

    Market Size 2024

    5.41(USD Billion)

    Market Size 2035

    12.5(USD Billion)

    Compound Annual Growth Rate (CAGR)

    7.91% (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

    Hitachi, Advantech, Rockwell Automation, Moxa, B&R Industrial Automation, WAGO, Schneider Electric, ProSoft Technology, Belden, Cisco Systems, ams OSRAM, Siemens, Phoenix Contact, Hirschmann

    Segments Covered

    Protocol, Application, End-use, Component, Regional

    Key Market Opportunities

    Rapid automation adoption, Increased demand for IoT, Expansion of smart factories, Growing necessity for real-time data, Enhanced cybersecurity solutions

    Key Market Dynamics

    Growing demand for automation, Increased adoption of IoT, Need for high-speed connectivity, Rising focus on Industry 4.0, Enhanced cybersecurity requirements

    Countries Covered

    North America, Europe, APAC, South America, MEA



    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What was the market size of the Industrial Ethernet Market in 2024?

    The Industrial Ethernet Market was valued at 5.41 billion USD in 2024.

    What is the anticipated market size of the Industrial Ethernet Market by 2035?

    By 2035, the Industrial Ethernet Market is projected to reach 12.5 billion USD.

    What is the expected CAGR of the Industrial Ethernet Market from 2025 to 2035?

    The expected CAGR for the Industrial Ethernet Market from 2025 to 2035 is 7.91%.

    Which region held the largest market share in 2024 for the Industrial Ethernet Market?

    North America held the largest market share, valued at 1.75 billion USD in 2024.

    What is the estimated market size for the PROFINET protocol in 2035?

    The market size for the PROFINET protocol is expected to reach 3.1 billion USD by 2035.

    Which company is one of the key players in the Industrial Ethernet Market?

    Hitachi is recognized as one of the major players in the Industrial Ethernet Market.

    What is the projected market value for the EtherCAT protocol in 2035?

    EtherCAT is expected to reach a market value of 2.0 billion USD by 2035.

    What was the market value for the Asia Pacific region in 2024?

    The Asia Pacific region was valued at 1.5 billion USD in 2024.

    What is the expected market size for Modbus TCP by 2035?

    The expected market size for Modbus TCP is projected to be 1.9 billion USD by 2035.

    What significant opportunities exist in the Industrial Ethernet Market?

    Key opportunities in the Industrial Ethernet Market include advancements in automation and increasing demand for high-speed networking.

    Industrial Ethernet Market Research Report - Global Forecast till 2035 Infographic
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