Market Size of Industrial Networking Solutions Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | 20.34 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Industrial Networking Solutions Market Analysis
The Industrial Networking Solutions Market is expected to register a CAGR of 20.34% over the forecast period from 2021 - 2026. Multiple industries are seeking to drive operational improvements into their assets and production systems with the help of convergence and digitization by utilizing the new solutions in the Industrial Internet of Things (IIoT) and Industry 4.0. However, these initiatives have the requirement to securely connect the production environments with standard networking technologies to allow industries and their key partners access to a rich stream of new data, real-time visibility, and remote access to the systems and assets in the operational environments. This is the right time for Industry 4.0 since many industrial applications and digitalization efforts can benefit today from LTE/4G; besides, it is a vital step to promote the adoption of cellular technology at industrial verticals and lay the foundation for future advanced networking use cases.
- The industrial ecosystem is moving away from Fieldbus technologies based on proprietary networks for communication protocols over standard networking such as Ethernet, 802.11-based Wi-Fi, and the portfolio of I.P. protocols (for example, TCP and UDP). This focus on open networking standards is a foundational aspect of the devices that make up the industrial ecosystem are capable of communicating on converged, public networks, which significantly improves the accessibility of data and information. Also, there are many emerging network technologies currently being discussed or developed in the industry. Technologies such as Network Slicing (part of 5G), Software Defined Networking (SDN), Network Function Virtualization (NFV), and Low Power Wide Area Network (LPWAN) may provide better or different support for industrial applications.
- The industries are witnessing humongous growth in data generation, due to mobile and connected devices, cloud-based systems, etc. With more than 50 billion connected devices expected, Huawei predicts that, by 2020, over 50% of data may be analyzed, processed, and stored at the network edge. Moreover, according to Cisco, 46% of network devices will be machine -to -machine or IoT by 2020, which are vulnerable to attacks. To fully realize the potential of these connected devices, the industries need to be equipped with Wide Area Networks that are flexible to meet the network demands anticipated over the future.
- In January 2020, NXP Semiconductors N.V. announced a multi-gigabit Ethernet switch designed for automakers to deliver the high-speed networks required for evolving connected vehicles. The NXP SJA1110 is one of the first automotive Ethernet switches with built-in safety capabilities, offering integrated hardware-assisted security, and multi-gigabit interfaces. Optimized for integration with NXP's S32G vehicle network processor, the SJA1110 switch is also an integral part of an overall networking solution, which includes the VR5510 power management I.C. Together, this solution is designed to address some of the biggest challenges facing vehicle networking including scalability, security, safety, and high-speed traffic engineering.
- In November 2019, Nokia announced that it had launched private wireless networks for more than a hundred customers across multiple industries where it's industrial customers can take advantage of these networks related to Industry 4.0 innovation. Unleashing the full potential of Industry 4.0 technologies such as machine learning, A.I., cloud, and IoT Nokia's private LTE/4.9G, and 5G wireless networking solutions have established a global marketplace footprint across energy, public sector, manufacturing, transportation, and logistics. Building on this marketplace's success, Nokia also announced an expansion of its industrial-grade private networking solutions.
- The outbreak of COVID-19 is expected to influence global industrial spending significantly over the coming years due to the non-operational status of various industries deemed non-essential by governments across the world are facing huge losses that are expected to influence their tech spending till the end of 2021. Moreover, COVID-19 is forcing various manufacturers to depend more on digitalization and automation for long-term operations to reduce the financial impact of the pandemic and other potential economic challenges. COVID-19 outbreak is expected to be a short-term effect, and it would eventually pass. However, in the long run, COVID-19 is a chance for industries to make much-needed operational improvements with significant emphasis on enhancing networking technologies increases amidst the current pandemic.
Industrial Networking Solutions Industry Segmentation
An industrial network solution is an essential part of any automation system architecture as it engages in providing effective means of data exchange and data controllability and flexibility to connect several devices. Generally, communication networks are utilized to enable data communication between computers and other devices. These networks are used in the distribution of multiple products, offer technical support, which needs to be wired and wireless networking systems.
By Component | |
Hardware | |
Software and Services |
By Type of Connectivity | |
Wired | |
Wireless |
By Deployment Type | |
On-premises | |
Cloud |
By End-User Industry | |
Automotive | |
Financial and Banking Industry | |
Manufacturing | |
Telecommunication | |
Logistics and Transportation | |
Other End-User Industries (Mining, Oil and Gas, Energy and Utilities etc.) |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of World |
Industrial Networking Solutions Market Size Summary
The industrial networking solutions market is experiencing significant growth, driven by the increasing need for operational improvements and the adoption of Industry 4.0 and the Industrial Internet of Things (IIoT). As industries seek to enhance their assets and production systems through digitization and convergence, the demand for secure and standard networking technologies has surged. This shift is facilitating real-time data access, visibility, and remote system management, which are crucial for modern industrial operations. The transition from proprietary Fieldbus technologies to open networking standards like Ethernet and Wi-Fi is a key trend, enabling better data accessibility and supporting emerging technologies such as 5G, Software Defined Networking (SDN), and Low Power Wide Area Networks (LPWAN). These advancements are essential for managing the vast amounts of data generated by connected devices and cloud-based systems, which are increasingly integral to industrial processes.
The market landscape is characterized by the presence of major players like Cisco Systems, Juniper Networks, and Dell Technologies, who are actively developing and deploying innovative networking solutions. These companies are focusing on enhancing network connectivity and security to support the growing digitalization and automation needs of various industries. The Asia-Pacific region is poised for rapid growth, supported by robust infrastructure development and government initiatives, particularly in China and Japan. The COVID-19 pandemic has accelerated the shift towards digitalization, prompting industries to invest in advanced networking technologies to mitigate operational disruptions. As a result, the industrial networking solutions market is expected to continue its expansion, with companies leveraging strategic partnerships and acquisitions to strengthen their market position and enhance their service offerings.
Industrial Networking Solutions Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview (Covers the impact due to COVID-19)
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 Hardware
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2.1.2 Software and Services
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2.2 By Type of Connectivity
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2.2.1 Wired
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2.2.2 Wireless
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2.3 By Deployment Type
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2.3.1 On-premises
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2.3.2 Cloud
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2.4 By End-User Industry
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2.4.1 Automotive
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2.4.2 Financial and Banking Industry
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2.4.3 Manufacturing
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2.4.4 Telecommunication
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2.4.5 Logistics and Transportation
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2.4.6 Other End-User Industries (Mining, Oil and Gas, Energy and Utilities etc.)
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2.5 Geography
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2.5.1 North America
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2.5.2 Europe
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2.5.3 Asia-Pacific
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2.5.4 Rest of World
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Industrial Networking Solutions Market Size FAQs
What is the current Industrial Networking Solutions Market size?
The Industrial Networking Solutions Market is projected to register a CAGR of 20.34% during the forecast period (2024-2029)
Who are the key players in Industrial Networking Solutions Market?
Cisco Systems Inc., Juniper Networks Inc., Dell EMC (Dell Technologies Inc.), Rockwell Automation, Inc. and Sierra Wireless, Inc. are the major companies operating in the Industrial Networking Solutions Market.