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The market for industrial Ethernet switches is undergoing dynamic changes at the moment due to a combination of factors including the development of industrial automation, the necessity for continuous communication in industrial settings, and technical improvements. The increasing use of digital transformation by enterprises globally has made Industrial Ethernet Switches indispensable for enabling effective data exchange and communication inside industrial networks.
The increasing use of Industry 4.0 principles is a significant factor influencing market dynamics. To improve operational efficiency, industries are progressively incorporating smart technologies, such as machine-to-machine (M2M) communication and the Internet of Things (IoT). In this environment, industrial Ethernet switches are essential because they offer dependable, fast communication networks that facilitate real-time data transfer and decision-making. The necessity for strong and durable network infrastructures that can manage the complexity of contemporary industrial processes is driving the demand for these switches.
Furthermore, the continued development of industrial automation has an impact on the need for industrial Ethernet switches. With more companies automating their operations in an effort to increase productivity and decrease human interference, a strong and expandable network infrastructure is essential. Industrial Ethernet switches facilitate smooth communication between different factory floor devices by providing the connection needed to enable automation systems. This tendency is especially noticeable in industries where automation is quickly taking over, such manufacturing, automotive, and energy.
The industrial Ethernet switch market is also being shaped by the growing emphasis on cybersecurity in industrial networks. Industrial companies are giving the deployment of safe and reliable network solutions first priority due to the increase in cyberattacks that target vital infrastructure. Demand for industrial Ethernet switches with integrated security features—like access restrictions and sophisticated encryption—is rising as businesses want to protect their industrial networks from possible cyberattacks.
The increasing range of uses for Industrial Ethernet switches also affects market dynamics. These switches, which were first made for basic data transfer, may now be used for a variety of purposes, such as power-over-Ethernet (PoE) functions, video surveillance, and voice-over-IP (VoIP) communication. Because of their adaptability, Industrial Ethernet Switches are becoming more and more popular in a variety of industrial sectors, which is helping to increase their market share.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Type, Application Areas, Organization Size, End-Users and Region |
Industrial Ethernet Switch Market Highlights:
Global Industrial Ethernet Switch Market Overview:
Industrial Ethernet Switch Market Size was valued at USD 3.6 billion in 2023. The industrial ethernet switch market industry is projected to grow from USD 3.8 Billion in 2024 to USD 6.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.5% during the forecast period (2024 - 2032). The key market drivers for the growth of the market include factors like the rise in the usage of industrial ethernet switch due to their advantages as well as the growing requirement to ensure the effectiveness of communication infrastructure in the automotive and transport environments.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Ethernet Switch Market Trends
Growing efforts by developing country governments to encourage the deployment of industrial automation to boost market growth
To achieve all-around growth, governments of developing nations assist the expansion of numerous industries. As a result, more automation and communication components and technologies are being adopted for the structural development of industries. Governments place a lot of emphasis on the discrete and process sectors. In order to implement the most recent automation solutions, such as SCADA, PLC, DCS, robots, and cables, in the food and beverage industry, the Government of Singapore has collaborated with a number of organisations, including the Food Innovation Resource Centre and the Singapore Food Manufacturing Association (SFMA). A 200% automation capital allowance (ACA) was announced by the Malaysian government in its 2015 budget to encourage labor-intensive industrial sectors including textile, rubber, and plastics to embrace the most recent automation technologies and boost their overall productivity. According to the ACA, the government deducts capital expenditures for manufacturing businesses within three years (a 40% initial allowance and a 20% yearly allowance). India is one of the developing nations with a rapidly expanding manufacturing industry. The national government's creation of the National Manufacturing Policy (NMP) has accelerated the growth of its manufacturing industry. To encourage businesses to incorporate automated techniques in their manufacturing facilities, the government has introduced the Make in India initiative. Therefore, it is anticipated that throughout the projected period, government initiatives to encourage the adoption of industrial control and factory automation has enhanced the industrial ethernet switch market CAGR across the globe in the recent years.
However, an essential component of Industry 4.0 is industrial communication. The manufacturing sector is seeing an increase in demand for 5G technology as it helps to address the drawbacks of existing wireless networks. The introduction of 5G technology will lead to a significant upheaval in the manufacturing sector. The demand for industrial ethernet switch will rise along with the demand for 5G. Thus, driving the growth of the industrial ethernet switch market revenue.
Industrial Ethernet Switch Market Segment Insights:
Industrial Ethernet Switch Type Insights
The industrial ethernet switch market segmentation, based on type, includes Managed and Unmanaged. The managed segment held the majority share in 2021 in respect to the industrial ethernet switch market revenue. Better management and troubleshooting capabilities are provided by managed ethernet switches. The managed solutions also provide safe data transport.
Industrial Ethernet Switch Application Areas Insights
The industrial ethernet switch market segmentation, based on application areas, includes Smart Grid and Security & Surveillance. The smart grid segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2024 - 2032. By converting to an Ethernet-based network, a smart grid Ethernet switch plays a vital role in substation automation by lowering the cost and complexity of connecting between equipment found in many transmission and distribution substations. Hence, it positively impacts the market growth.
Figure 2: Industrial Ethernet Switch Market, by Application Areas, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Industrial Ethernet Switch Organization Size Insights
The industrial ethernet switch market data, based on organization size, includes SME and Large Enterprises. The large enterprise segment held the majority share in 2021 in respect to the industrial ethernet switch market revenue. The market for industrial ethernet switch is anticipated to expand as a result of rising demand for high-speed data services, organizational dependence on data centers, and the requirement for automatic switching in large organisations.
Industrial Ethernet Switch End-User Insights
The industrial ethernet switch market data, based on end-user, includes Aerospace And Defense and Oil And Gas. The aerospace and defense segment held the majority share in 2021 in respect to the industrial ethernet switch market revenue due to elements including quickly growing end-user industries, technology improvements, and government programmes aiming at optimizing operations across different sectors, including defense and aerospace.
Industrial Ethernet Switch Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific industrial ethernet switch market accounted for USD 1.33 billion in 2021 and is expected to exhibit a significant CAGR growth. It is ascribed to the use of industrial ethernet switch in a variety of sectors, including control over programmable logic controllers (PLCs) and supervisory control & data acquisition (SCADA) integration. This market is expanding in this area as a result of rising fibre optical utilisation and demand in the telecommunications industry.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INDUSTRIAL ETHERNET SWITCH MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America industrial ethernet switch Market is expected to grow at the fastest CAGR from 2024 to 2032 since more and more components supporting data centers are being deployed and needed, Other specific considerations, such as the location of smart grids and the existence of large manufacturing facilities, will also have a significant impact on the development of this industry. Moreover, US industrial ethernet switch market held the largest market share, and the Canada industrial ethernet switch market was the fastest growing market in the North American region.
Europe industrial ethernet switch market accounts for the second-fastest growing market owing to the use of smart factory concepts to integrate cutting-edge technologies in production facilities. Further, the Germany industrial ethernet switch market held the largest market share, and the UK industrial ethernet switch market was the fastest growing market in the European region.
Industrial Ethernet Switch Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the industrial ethernet switch market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the industrial ethernet switch industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the industrial ethernet switch industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, industrial ethernet switch industry has provided medicine with some of the most significant benefits. The industrial ethernet switch market major player such as CISCO SYSTEMS INC. (U.S.), JUNIPER NETWORKS INC. (U.S.), ALCATEL-LUCENT (FRANCE), HEWLETT PACKARD ENTERPRISE (U.S.), POLYCOM (U.S.), AVAYA INC. (U.S.), MICROSOFT CORPORATION (U.S.), CHECK POINT SOFTWARE TECHNOLOGIES LTD. (ISRAEL), IBM CORPORATION (U.S.), BROCADE COMMUNICATIONS SYSTEMS INC. (U.S.), SIEMENS AG (GERMANY), HUAWEI TECHNOLOGIES CO. LTD (CHINA), ZTE CORPORATION (CHINA), MOXA (TAIWAN), OMRON (JAPAN) and ROCKWELL AUTOMATION (US).
A Taiwanese technology business called Moxa Technologies specializes in network infrastructure solutions, industrial computing, and edge connectivity. Solutions for network infrastructure, industrial computing, and edge connectivity are Moxa's areas of expertise. Their main office is in Taiwan's Taipei. In June 2021, a startup called MOXA has introduced a new line of modular industrial din-rails. The Ethernet switches have been managed in these series in a way to achieve next-generation network adaptability.
Also, an American industrial automation company Rockwell Automation, Inc.'s brands include Allen-Bradley, FactoryTalk software, and LifecycleIQ Services. Rockwell Automation is based in Milwaukee, Wisconsin, and employs about 26,000 people. It serves clients in more than 100 nations. In December 2020, Rockwell automation just introduced the Alley-Bradley 440g-MZ guard locking switch. These switches offer a security-based communications protocol, which in turn provides access to diagnostic data and simplifies the process of joining into a connected enterprise.
Key Companies in the industrial ethernet switch market includes
• CISCO SYSTEMS INC. (U.S.)
• JUNIPER NETWORKS INC. (U.S.)
• ALCATEL-LUCENT (FRANCE)
• HEWLETT PACKARD ENTERPRISE (U.S.)
• POLYCOM (U.S.)
• AVAYA INC. (U.S.)
• MICROSOFT CORPORATION (U.S.)
• CHECK POINT SOFTWARE TECHNOLOGIES LTD. (ISRAEL)
• IBM CORPORATION (U.S.)
• BROCADE COMMUNICATIONS SYSTEMS INC. (U.S.)
• SIEMENS AG (GERMANY)
• HUAWEI TECHNOLOGIES CO. LTD (CHINA)
• ZTE CORPORATION (CHINA)
• MOXA (TAIWAN)
• OMRON (JAPAN)
• ROCKWELL AUTOMATION (US)
Industrial Ethernet Switch Industry Developments
October 2022: Conrad Electronic, a German-based sourcing platform for technical goods with operations in 17 European nations, and OMRON have announced a pan-European distribution partnership.
September 2020: MOXA has introduced a new line-up of unmanaged Ethernet switches with options for 5 to 18 combo ports, increasing the potential and reliability to connect more nodes with higher bandwidths. The new series is known as eds-2000-el and eds-2000-ml.
June 2020: Sick created a solution called live connect to give a systematized connection from an edge gateway to sick asset hub as well as a virtual representation of a sensor and its data. By aiding in the simulation of sensor status, this gadget creates new options for improving process efficiency and plant availability.
December 2019: In order to increase its capacity for local manufacture and system construction, sick China inaugurated a new location.
Industrial Ethernet Switch Market Segmentation:
Industrial Ethernet Switch Type Outlook
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Managed
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Unmanaged
Industrial Ethernet Switch Application Areas Outlook
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Smart Grid
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Security & Surveillance
Industrial Ethernet Switch Organization Size Outlook
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SME
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Large Enterprise
Industrial Ethernet Switch End User Outlook
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Aerospace And Defense
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Oil And Gas
Industrial Ethernet Switch Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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