Industrial Communication Market Size, Share, Growth Analysis, Offering (Component, Software), By Vertical (Automotive, Pharmaceuticals & Medical), By Communication Protocol (Industrial Ethernet, Wireless), By Region -Industry Forecast 2025-2032
Report ID:
SQMIG45J2245 |
Region:
Global |
Published Date: November, 2024
Pages:
199
|Tables:
0
|Figures:
0
Industrial Communication Market Insights
Industrial Communication Market size was valued at USD 21.15 Billion in 2023 and is poised to grow from USD 22.38 Billion in 2024 to USD 35.13 Billion by 2032, growing at a CAGR of 5.8% during the forecast period (2025-2032).
One of the major forces accelerating the market is the increasing adoption of the Industrial Internet of Things (IIoT) across various industries. The IIoT allows for continual connection between machines, sensors, and control systems for analysing and making decisions in real-time. Manufactures can use IIoT to track machinery functionality, eliminate machine downtime with predictive maintenance applications and improve the overall efficiency of operations. Manufacturers can use IIoT to track machinery functionality, predict malfunctions for reduced downtime or prolonged lifetime, and achieve more extensive functional performance. Growing penetration of smart sensors in line with cloud computing and big data analytics is further augmenting the automation solutions deployed across industries like manufacturing and energy and power.
The transition to industry 4.0 is another key trend that is defining the evolution trajectory of industrial communication industry. This next generation industrial revolution centers around smart factories with machines interacting autonomously and operations being optimized to an advanced level. Industries are seeing a transformation in their operations with the incorporation of industry 4.0 technologies like robotics, artificial intelligence (AI) and machine learning. Business firms are most likely to invest much more in automation with the intention of improving manufacturing cycles and reducing human error while also creating more flexibility to responding market demands.
Market snapshot - (2024-2031)
Global Market Size
Largest Segment
Fastest Growth
Growth Rate
CAGR
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Industrial Communication Market Segmental Analysis
The global industrial communication market is segmented into offering, communication protocol, vertical, and region. Based on the offering, the market is segmented into hardware, components, software, and services. Based on communication protocol, the market is segmented into fieldbus, industrial ethernet, wireless. Based on vertical, the market is segmented into automotive, pharmaceuticals & medical, electrical & electronics, aerospace & defense. Based on Region, the market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
Analysis by Offering
Based on offering, the component segment is dominating the market with the largest industrial communication market share. Industries are automating their operations and thus boosting the demand for advanced hardware including sensors, switches, gateways and controllers’ segments rise significantly and propel growth. These elements are the backbone of industrial communication systems enabling the exchange of data between machines and systems in real-time. As industries move towards IIoT and smart manufacturing, having more reliable and high-performance hardware is becoming significant. Furthermore, technological innovations in edge computing and wireless communications are compelling manufacturers to retrofit new equipment to their legacy systems to improve speed, connectivity, and robustness while continuing operations in resource-strained industrial settings.
The service segment is witnessing the fastest growth in the industrial communication market. The services segment is growing rapidly due to the growing demand for specialized servicing of complex communication networks. The adoption of new technologies like IoT, automation, and cloud-based integration in several industry verticals is growing extensively. This is increasing the demand for consulting, system integration, and maintenance services. To deploy these technologies accurately with minimum downtime, expert guidance is needed for companies. Additionally, predictive maintenance enabled through the integration of AI and machine learning has increased dependency on managed services to track and analyze network performance in real-time.
Analysis by Vertical
Based on vertical, the automotive segment is dominating the industrial communication market. The automotive sector is experiencing significant growth due to the increasing complexity of manufacturing processes and the rise of connected and autonomous vehicles. Automotive manufacturers are using new communication technologies to support production lines, implement automation, and connect machines, robots, and control systems. The drive toward electric and autonomous vehicles have made real-time data exchange and high-speed communication critical for manufacturing environments. Ethernet, TSN, and various wireless technologies provide the infrastructure for high-speed, low-latency communication needed for real-time control and monitoring required in smart factories.
The pharmaceutical & medical devices segment is experiencing tremendous growth and popularity in recent years, attributed to the multitude of benefits they provide. In recent times, reliable communication has become critical because pharmaceutical & medical industries are adopting automation and digital technologies. This is helping them to improve quality control, ensure traceability, and fulfill rigid regulatory standards. The real-time data exchange among machines, monitoring systems, and management platforms enhances process visibility and speeds up decision-making to confirm production complies with regulations. The emergence of smart manufacturing in these industries, especially IoT for equipment and environmental monitoring further enhances the demand for high-speed, reliable communication networks.
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Industrial Communication Market Regional Insights
North America is dominating with the largest industrial communication market share. There is increasing demand for industrial communication market as manufacturing is become smarter and transitioning towards industry 4.0 In the automotive, aerospace and pharmaceutical sectors, manufacturers are investing more in automation solutions to improve production efficiency and labor cost reductions. The emergence of cutting-edge technologies includes technologies like AI, ML, and IIoT, which also contributes to the regional growth since organizations operating in this market tend to be always looking for ways to optimize operations & enhance the real-time decision-making process. Moreover, the market growth is driven by the reshoring manufacturing and rising demand for energy-efficient systems. Smart manufacturing supported by advanced communication technologies is applied in high-tech industries which emphasizes upon electronics, automotive, healthcare, and more. Nowadays, many companies are also becoming interested in digitalization and robotics technology to enhance competitiveness and innovation.
The Asia-Pacific market is witnessing the fastest growth in the industrial communication market. The requirement for communication in countries like China, Japan, and South Korea has increased extensively due to fast industrialization and urbanization. These countries are progressively embracing automation solutions to boost productivity to stay competitive in the global market, especially electronics, automotive, and textiles. Manufacturers ever-increasing labor expenditures and demand to minimize operational inefficiency steer them towards high-tech communication technologies which allow smooth data transfer and command of automated machinery. In addition, initiatives by the government to deploy smart manufacturing coupled with high technology providers in the region is expected to positively affect the industrial communication market in the region.
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Industrial Communication Market Dynamics
Drivers
Increasing Need for Transparency and Interoperable Communication Protocols
- Industrial ethernet plays a vital role in achieving total transparency in an industrial plant and between plant and enterprise networks. At the core of industry 4.0 is a constant communication network. Industrial automation and industrial communication networks are entirely based on real-time operational requirements. Additionally, they need to be able to scale across a wide spectrum of software supporting different standards and interfaces. A factory system shall have faster response times, better efficiency and higher reliability.
Increasing Adoption of Machine-to-Machine Communication
- Industry 4.0 embraces several core elements, but one of them is machine-to-machine (M2M) communication. In recent times, many IoT devices have a M2M capability and most of these are industrial application. The growing adoption of new machine-to-machine (M2M) technologies is primarily about improved connectivity for seamless communication and low power consumption. To enable efficient M2M communications, the load on existing mobile networks should deal with billions of nodes that are expected to be deployed within the next few years.
Restraints
Lack of Standardization in Communication Interfaces
- Standardization is the number one challenge for digitized manufacturing. Maintaining standards is important to safeguard data transfer between appliances, systems, and software at the connected value chain as a product pass through an intelligent, integrated factory to completion. In the same way, industrial equipment or devices communicate using a variety of interfaces, technologies, and protocols. The lack of standardization in these communication interfaces and protocols may lead to data misrepresentation.
Lack of Determinism in Industrial Communication
- One of the main challenges hindering the expansion of the industrial communication market is lack of determinism in industrial communication networks. In process industries, deterministic communication plays a vital part in ensuring efficiency and lessening human intervention. The market includes interfaces and protocols for real-time data transfer in industrial automation. Standardization of these protocols is crucial for seamless communication between different industrial equipment.
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Industrial Communication Market Competitive Landscape
The growth of the industrial communication market can be attributed to the fact that by bridging the distance between distant sites, these solutions boost management effectiveness and shorten the time needed to reach crucial business decisions. Critical technology pillars for the worldwide mining sector include connectivity, real-time data delivery, collaboration, and machine-to-machine (M2M) communications. Market players are acquiring substantial market share as they provide a variety of solutions aligned with the changing industry needs including high-speed data transfer, real-time control, and communication protocols. As industries continue to transition toward digitalization and smart manufacturing, these companies are expected to maintain their leadership by innovating in areas such as edge computing, 5G integration, and cybersecurity for industrial networks.
Top Player’s Company Profile
- Cisco Systems, Inc. (US)
- Siemens (Germany)
- Rockwell Automation (US)
- OMRON Corporation (Japan)
- Moxa Inc. (Taiwan)
- Huawei Technologies Co., Ltd. (China)
- SICK AG (Germany)
- Schneider Electric (France)
- ABB (Switzerland)
- Belden Inc. (US)
- GE (France)
- Advantech Co., Ltd (Taiwan)
- FANUC CORPORATION (Japan)
- Bosch Rexroth AG (Germany)
- AAEON Technology Inc. (Taiwan)
- HMS Networks (Sweden)
Recent Developments
- HMS Networks, the leading independent provider of industrial communication and remote connectivity solutions, announced its newest Ewon remote connectivity solutions in May 2023. It gives machine manufacturers and their customers a full end-to-end IioT solution for gathering machine data and presenting the information via an easy-to-use web interface.
- In March 2023, Saudi Aramco and Samsung have agreed to localize 5G industrial communication networks.
- In June 2023, Fiberroad Technology Co., Ltd. introduced Auto Pro series of Industrial Ethernet Switch, which adapts to industrial machine automation management systems. With functions like Auto Broadcast Suppression, Auto QoS Priority, and Auto Power Switching, the series incorporated intelligent professional-grade performance options over a range of industrial applications.
Industrial Communication Key Market Trends
- Growing Demand for Smart Connectivity: Industrial modular connectors went a step further by performing active functions like surge voltage protection to protect digital or analogue I/O sensor circuits, or energy measurement and status monitoring. Integrating surge protection, energy measurement, machinery ID and even an ethernet switch into the connector removes the need for discrete devices and cabling for those functions. For instance, the fact that surge protection integrated into the connector needs no more than a few surge arresters inside a control cabinet.
- Rising Preference for Wireless Network: The increasing demand for wireless technologies like Bluetooth Smart, WirelessHART, WLAN, Zigbee, etc., is creating new growth opportunities for the industrial communication market. This is particularly accurate for the oil & gas, electronics, energy & power generation industries. Zigbee drives the market of a low-cost wireless network supplies solution. Numerous organizations globally adoptedthe Zigbee IEEE 802.15.4 technology. Likewise, WirelessHART enabled communication is becoming one of the mainstream solutions for signal transmission using HART communication in process industries. Continuous advancements in wireless communication technologies, particularly cellular technologies, continue to aid many industries in finding ways to monitor their assets around the world.
Industrial Communication Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the industrial communication industry is growing rapidly as demand for efficiency and standardization is growing in process industries. Manufacturers of industrial equipment are embedding advanced interfaces, protocols, and plug-and-play functionalities in machines to reduce human touchpoints and streamline data transfer. Industrial communication equipment must withstand harsh environments, including high voltage transients, and electrostatic discharge (ESD). Industrial switches are designed with electromagnetic protection, shock and vibration resistance, and rugged device housings for optimal performance. Supply chain integration is also a key trend in the industrial communication market. By integrating their supply chains, end users can reduce lead times, improve quality, and increase flexibility.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 19.99 Billion |
| Market size value in 2031 | USD 33.20 Billion |
| Growth Rate | 5.8% |
| Base year | 2023 |
| Forecast period | (2024-2031) |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Industrial Communication Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Industrial Communication Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Industrial Communication Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Industrial Communication Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Industrial Communication Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Industrial Communication Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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