Industrial Ethernet Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Industrial Ethernet Market is projected to expand from USD 13.45 Billion in 2025 to USD 20.62 Billion by 2031, reflecting a CAGR of 7.38%. Industrial Ethernet involves utilizing standard Ethernet protocols within harsh industrial settings to enable deterministic, real-time communication and control across automation systems. This market is chiefly sustained by the essential operational need for high-bandwidth data exchange to support the convergence of Information Technology and Operational Technology. Furthermore, the growing dependence on real-time analytics for optimizing processes acts as a core driver for adoption, separate from temporary technological trends. Highlighting this growth, PROFIBUS & PROFINET International (PI) reported in 2025 that the installed base of PROFINET devices grew by 9.5 million nodes in 2024, reaching a global total of 78.8 million.

Despite this potential, market growth encounters substantial obstacles regarding the amalgamation of contemporary Ethernet solutions with aging legacy infrastructure. The significant capital expenditure and technical intricacies involved in retrofitting existing fieldbus systems establish a high barrier to entry for numerous enterprises. Moreover, this transition reveals previously isolated networks to increased cybersecurity risks, requiring stringent and frequently expensive protective measures that can delay rapid deployment.

Market Drivers

The execution of Industry 4.0 and smart manufacturing initiatives serves as a major accelerator for market growth, requiring a complete transformation of communication architectures. As industrial facilities increasingly automate intricate processes, the demand for sturdy network architectures capable of managing immense data volumes becomes crucial.

This operational evolution drives organizations to invest significantly in upgrading their digital infrastructure to enable real-time control and data transparency. According to the '9th Annual State of Smart Manufacturing Report' by Rockwell Automation in March 2024, 83% of global manufacturers surveyed intend to boost their technology investment budgets for the year to back these digital changes. As a result, Industrial Ethernet adoption is speeding up because it offers the bandwidth and scalability needed for the dense interconnectivity of smart factories.

Concurrently, the move from legacy fieldbus systems to Ethernet-based protocols is fundamentally changing the connectivity environment. Industrial businesses are increasingly favoring Ethernet solutions due to their superior speed, greater data packet capacity, and smooth integration with enterprise-level systems, shifting away from the limitations of serial communication. This trend is measured by current adoption rates; HMS Networks reported in 2024 that Industrial Ethernet protocols accounted for 71% of the global market for newly installed nodes in factory automation. The motivation for this switch is further confirmed by the clear economic advantages gained through advanced connectivity. In the 'Industrial Digitalization Report' by Nokia in June 2024, 93% of surveyed enterprises stated they achieved a positive return on investment after deploying private wireless and robust industrial connectivity solutions.

Market Challenges

The task of merging modern Ethernet solutions with aging legacy infrastructure poses a major restriction on the Global Industrial Ethernet Market's growth. Industrial companies often manage brownfield facilities where fieldbus systems have operated reliably for decades, generating financial and operational hesitation regarding complex retrofitting initiatives. The capital expenditure needed to replace or bridge these established systems frequently exceeds the immediate perceived advantages of increased bandwidth, causing organizations to postpone essential network upgrades. Additionally, linking these previously air-gapped legacy environments to wider Ethernet networks creates significant cybersecurity vulnerabilities, compelling companies to allocate potential investment funds toward defense mechanisms instead of network expansion.

The magnitude of this incumbency is highlighted by the continuing volume of non-Ethernet nodes in operation, which compete directly with new Ethernet deployments for market share. According to PROFIBUS & PROFINET International (PI), the association reported in 2025 that the cumulative installed base of PROFIBUS fieldbus devices hit 70 million utilized globally by the end of 2024. This extensive footprint of legacy technology illustrates the scale of the replacement challenge, effectively decelerating the pace at which Industrial Ethernet can permeate established markets and hindering the sector's overall growth trajectory.

Market Trends

The adoption of Zero Trust Security Models is emerging as a vital requirement within the Global Industrial Ethernet Market, as the removal of traditional air gaps leaves Operational Technology (OT) vulnerable to external threats. Unlike legacy architectures that depended on physical isolation, modern Industrial Ethernet networks increasingly connect with enterprise IT and cloud environments, making perimeter-based defenses inadequate. This expansion of connectivity necessitates a security framework where every user and device is constantly verified, irrespective of their network location. The need for this architectural change is emphasized by the frequency of vulnerabilities in connected systems; according to Claroty's 'Global State of CPS Security 2025: Navigating Risk in an Uncertain Economic Landscape' report from September 2025, 46% of surveyed security professionals experienced a breach in the previous 12 months exploiting third-party vendor access, driving the rapid implementation of granular, identity-based network segmentation.

At the same time, the integration of Edge Computing Intelligence into networking hardware is converting industrial switches and routers from basic data transport devices into active processing nodes. To enable the low-latency decision-making essential for modern automation, manufacturers are embedding advanced analytics and machine learning capabilities directly at the network edge, reducing the necessity to transmit huge datasets to central servers. This decentralization of processing power relieves bandwidth congestion and allows for real-time reactions in critical applications like predictive maintenance and visual quality inspection. This shift toward intelligent edge infrastructure is strongly backed by broader manufacturing investment plans; according to Rockwell Automation's '10th Annual State of Smart Manufacturing Report' from June 2025, 95% of surveyed manufacturers stated they have invested in or intend to invest in artificial intelligence and machine learning technologies within the next five years, generating direct demand for industrial networking hardware that can support these distributed computing workloads.

Key Players Profiled in the Industrial Ethernet Market

• Siemens AG
• Honeywell International Inc.
• Cisco Systems, Inc.
• Rockwell Automation, Inc.
• Moxa Inc.
• Advantech Co., Ltd.
• Belden Inc.
• Phoenix Contact GmbH & Co. KG
• Emerson Electric Company
• WAGO GmbH & Co. KG

Report Scope

In this report, the Global Industrial Ethernet Market has been segmented into the following categories:

Industrial Ethernet Market, by Offering:

• Hardware
• Software
• Services

Industrial Ethernet Market, by Protocol:

• PROFINET
• EtherNet/IP

Industrial Ethernet Market, by End-use Industry:

• Automotive & Transportation
• Electrical & Electronics

Industrial Ethernet Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Industrial Ethernet Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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