Industrial Ethernet Market Expected to Exceed $350 Billion by 2032

The Industrial Ethernet market will grow from a current market value of over $50 billion to over $350 billion by 2032; as stated in a new research report from Global Market Insights, Inc.

The industrial Ethernet market is expected to witness substantial growth by 2032 owing to the advent of 5G technology in various industries across the globe. Furthermore, the growing demand for Industry 4.0 and automation in the manufacturing industry and rising awareness regarding economical industrial solutions are likely to drive the market growth during the forecast period.

The COVID-19 pandemic has created exponential opportunities for the Industrial Ethernet industry as many companies witnessed a shift in work trends and adopted advanced automation solutions. Industrial Ethernet emerged as an effective choice for Industry 4.0 approaches. For example, the food and beverage industry witnessed connectivity lags during the pandemic due to food contamination concerns. Later, the FDA approved guidelines related to the installation of industrial switches, encouraging many F&B industry players to implement Industrial Ethernet switches.

In addition, the industry's major players have been committed to rigorous R&D programs to expand their business scope, thereby promoting overall market vitality. For example, in July 2022, the Ethernet Alliance, a global Ethernet alliance, approved the UL solution for the Ethernet Alliance's second-generation Ethernet Power certification test in Taiwan, expanding new functions for manufacturers. This certification makes products safer, more reliable and sustainable.

The Industrial Ethernet market has been segmented based on component, protocol, application, and region.

By component, the industrial Ethernet market has been segmented into hardware, software, and services. The services segment is further segmented into integration testing services and maintenance services. The industrial Ethernet maintenance services segment is expected to grow at a CAGR of over 30% during 2023-2032 as Ethernet services can help companies reduce failures due to cable faults. The surge in the use of predictive maintenance in industrial Ethernet helps in receiving fault analysis through Industry 4.0 networks to replace faulty cables.

Based on the protocol, the industrial Ethernet market is segmented into Ethernet TCP/IP, Gigabit, PROFINET, EtherCAT, Ethernet/IP, Modbus TCP/IP, Powerlink, Sercos III, and HSE. Ethernet TCP/IP will account for more than 40% of the market share by 2022, owing to the growing popularity of Ethernet TCP/IP protocol used to manage connections between automation equipment and technologies such as CNC, PLC, sensors, robots, and other industrial equipment.

Based on application, the industrial Ethernet market is segmented into aerospace & defense, oil & gas, electrical & electronics, energy & power, automotive & transportation, chemicals, and others. The electrical & electronics segment will account for more than 20% of the market share in 2022 owing to technological advancements in electrical and electronic products. In addition, electronic products such as routers, firewalls, gateways, hubs, and switches support the implementation of industrial Ethernet, driving the growth of the segment.

In a regional context, the Latin American Industrial Ethernet market is expected to grow at a CAGR of over 15% by 2032. Government initiatives to improve and expand power generation capacity and transmission infrastructure are boosting the market growth in the Latin American region. Furthermore, the growing demand for setting up renewable energy power plants in the region is expected to encourage the installation of power cables over the next 10 years.