According to a new report from Global Market Insights, the Industrial Ethernet Market is set to grow from its current market value of just over $20 billion to $72 billion by 2024. The increase in market size is attributed to the growing popularity of Industrial IoT to improve supply chain and production efficiency. The market encompasses product categories such as switches, gateways, connectors, processors and controllers for structuring industrial networks.
Ethernet on the plant floor translates to improved interoperability, increased potential operating distances, and the ability to have multiple nodes on links. The report goes on to explain how the escalating need for industrial devices to feed data to enterprise-level cloud-based applications and the demand for Ethernet-enabled end devices in industrial networks is increasing consistently from all end-use sectors.
The hardware segment is also expected to hold a major share of the Industrial Ethernet market by 2024, due to the extensive adoption of Ethernet switches, hubs, gateways, and connectors that make automation a reality. Additionally, as different hardware and software components need to be integrated with the legacy systems used in industrial settings, the demand for functional testing and the implementation of such components will also witness steady growth.
Adoption levels of the Ethernet TCP/IP protocol is projected to increase significantly to facilitate connections between various devices, such as industrial machines, robots, PLCs and all of their integrated sensors. This stems from the need to enable reliable, real-time communication of factory floor data.
The report indicates that North America will hold the majority share of the Industrial Ethernet market by 2024, accounting for over 50 percent. The rise of manufacturing automation applications in the region will play a key role. Supportive government initiatives and policies will also contribute significantly to market growth.