Industrial Ethernet Market Report 2025

This Industrial Ethernet market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The industrial ethernet market size has grown rapidly in recent years. It will grow from $35.77 billion in 2024 to $40.44 billion in 2025 at a compound annual growth rate (CAGR) of 13%. The growth in the historic period can be attributed to growth in industrial automation, adoption of ethernet for real-time communication, increase in industrial IoT (IIoT) deployments, demand for high-speed and reliable connectivity, emphasis on standardization of industrial communication protocols.

The industrial ethernet market size is expected to see rapid growth in the next few years. It will grow to $75.35 billion in 2029 at a compound annual growth rate (CAGR) of 16.8%. The growth in the forecast period can be attributed to integration of time-sensitive networking (TSN) in industrial ethernet, expansion of industry 4 initiatives, increased adoption in smart manufacturing, growth in industrial edge computing, emphasis on cybersecurity in industrial networks. Major trends in the forecast period include adoption of gigabit and 10 gigabit ethernet in industrial applications, development of power over ethernet (POE) for industrial devices, use of single pair ethernet (SPE) for simplified connectivity, integration of wireless communication in industrial ethernet networks, emphasis on network convergence in industrial communication systems.

The increasing popularity of smart automobiles is expected to drive the growth of the industrial Ethernet market in the future. Smart automobiles refer to a technology that connects directly to the vehicle's electronic control module to record, track, and manage various automobile control subsystems. Industrial Ethernet serves as a reliable and significantly faster networking protocol that supports smart automotive technologies, including self-driving cars, vehicle-to-everything communication, advanced driver-assistance systems (ADAS), infotainment systems, and more within the automotive sector. For example, a report from the U.S. Department of Transportation indicates that sales of autonomous vehicles in the U.S. are projected to reach 4.5 million units by 2025, a substantial increase from just 0.1 million units in 2021. Thus, the growing popularity of smart automobiles is set to drive the growth of the industrial Ethernet market.

The increasing adoption of 5G is anticipated to drive the growth of the industrial Ethernet market in the future. 5G, which stands for the fifth generation of mobile telecommunications, represents the latest advancement in wireless technology for cellular networks. It signifies a considerable leap in telecommunications and data connectivity, offering faster data speeds, lower latency, greater capacity, and enhanced reliability compared to previous generations. 5G supports Industrial Ethernet (IE) by providing fast, low-latency, and dependable wireless connectivity, enabling real-time data transfer, accommodating high-bandwidth applications, and facilitating edge computing. For instance, in March 2024, a report from a U.S.-based organization, Global 5G Connection, stated that by the end of 2023, North America had 197 million 5G connections, which accounted for 29% of the global total, reflecting a 64% year-over-year growth. It is projected that 5G connections will surge to 7.9 billion by 2028. Therefore, the rising adoption of 5G will propel the growth of the industrial Ethernet market.

Technological advancement emerges as a prominent trend in the industrial ethernet market, with major companies focusing on innovative products to sustain their positions. For instance, Westermo Network Technologies introduced a next-generation industrial ethernet switch platform designed to handle big data and industrial internet of things (IIoT) applications. This advanced platform utilizes the latest WeOS operating system, maximizing hardware capabilities, improving network capabilities, and lowering the total cost of ownership across various sectors.

Major companies in the industrial Ethernet sector are concentrating on launching innovative products, such as industrial edge management systems, to maintain their market position. An Industrial Edge Management System, commonly known as an Industrial Edge Platform or Edge Management Solution, is a technology platform and software ecosystem designed to manage and optimize the deployment of edge computing devices and applications within industrial settings. For example, in November 2022, Siemens, a Germany-based automation company, introduced its new Industrial Edge Management System, which includes an optimized license management solution along with new devices and applications at the SPS trade fair in Nuremberg, Germany. This launch is part of the company's ongoing efforts to enhance its Industrial Edge capabilities, bringing operational technology (OT) and IT closer together in industrial production and facilitating a seamless data flow from the field level to the cloud. This new solution from Siemens aims to address the growing number of users in industrial production IT, particularly at large companies with established IT infrastructures.

In October 2022, HMS Industrial Networks AB, a Swedish subsidiary of HMS Networks AB, acquired 70% of all shares of Procentec B. V., a Netherlands-based company specializing in products for the industrial automation market. This strategic acquisition fills gaps in communication infrastructure for HMS Industrial Networks AB, enhancing its capabilities within industrial networks, including PROFIBUS, PROFINET, EtherNet/IP, and other industrial Ethernet standards.

Major companies operating in the industrial ethernet market include Cisco Systems Inc., Siemens AG, Rockwell Automation Inc., Beckhoff Automation, Moxa Inc., Belden Inc., Huawei Technologies Co Ltd., Asea Brown Boveri Ltd., Schneider Electric SE, ACS Motion Control Ltd., Physik Instrumente GmbH, IFM Electronics GmbH., Analog Devices Inc., Yokogawa Electric Corporation, Eaton Corporation., Robert Bosch GmbH, Bosch Rexroth AG., Honeywell International Inc., Advantech Co. Ltd., B&R Automation, General Electric Pvt Ltd., Weidmuller, Mitsubishi Electric Corporation., Alta Industrial Motion, National Instruments Corporation., Omron Corporation., Parker Hannifin Corporation., Phoenix Contact.

Asia-Pacific was the largest region in the industrial ethernet market in 2024. North America was the second largest region of the industrial ethernet market share. The regions covered in the industrial ethernet market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial ethernet market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Industrial Ethernet (IE) involves the application of Ethernet in an industrial setting, employing deterministic and real-time control methods. It utilizes standard Ethernet hardware and internet protocols, augmented with a proprietary application layer to ensure deterministic and real-time control capabilities for industrial operations.

The primary offerings in industrial Ethernet include hardware, software, and services. Hardware components encompass recording devices, central processing units (CPUs), transmitters, and receivers. In the context of industrial automation, hardware refers to the physical components crucial for various communication services. Industrial Ethernet utilizes different protocols, including EtherCAT, Ethernet/IP, Profinet, Powerlink, Sercos III, CC-Link IE. These protocols find application across various industries such as oil and gas, aerospace and defense, energy and power, electrical and electronics, automotive and transport, chemicals, and others. The use of Industrial Ethernet in these sectors ensures reliable and efficient communication for industrial automation and control systems.

The industrial ethernet market research report is one of a series of new reports that provides industrial ethernet market statistics, including industrial ethernet industry global market size, regional shares, competitors with an industrial ethernet market share, detailed industrial ethernet market segments, market trends and opportunities, and any further data you may need to thrive in the industrial ethernet industry. This industrial ethernet market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The industrial ethernet (IE) market consists of revenues earned by entities by providing IE services such as internet communication services, device network services, network, and security control. The market value includes the value of related goods sold by the service provider or included within the service offering. The industrial ethernet market also includes sales of programmable logic controller (PLCs), local and distributed input/output, servo controllers and drives which are used in providing IE services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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