As automation continues to penetrate major industry verticals, industrial ethernet market is set to become one of the most rapidly evolving business spaces of recent times for efficient communication networking. This standard-based intelligent switching technology is claimed to offer a plethora of advantages over conventional industrial networks on virtue of its flexibility, scalability, and robustness. Although initially being considered as a solution that is limited to corporate world, industrial ethernet market, of late, has been gaining substantial momentum in manufacturing arena. In persistent efforts to make organizations more productive and efficient, manufacturers have been rapidly integrating ethernet technology on the factory floor.
U.S. Industrial Ethernet Market Share, By Application, 2016
Statistics further backing the declaration - overall industrial ethernet market, having held a revenue of USD 20 billion in 2016, is forecast to exceed a valuation of USD 72 billion by 2024. A major credit of this anticipated steeping revenue graph goes to the increasing number of lucrative initiatives undertaken by the tech giants with respect to industry standardization. Say for instance, Qualcomm’s latest demonstration of wireless Profinet Industrial Ethernet over 5G New Radio(NR) has created quite a buzz in the business space lately. Private 5G Network for industrial IoT, as per experts’ opinion, is a significant arena that would demand attention for the next phase of global 3GPP 5G NR. In response to this opportunistic wave, the American telecommunication conglomerate may have taken this initiative, setting it as a standard for other industrial ethernet market players.
Reportedly, the demonstration showcased new utilization areas for 5G New Radio URLLC (ultra-reliable low latency communication) sub-millisecond latency, including its credential to run command-and-control for various high demand automation applications. This wireless technology protocol, having been endorsed in the changing landscape of Industry 4.0, is expected to widen the application outreach in industrial ethernet market. This is due to the fact that industrial ethernet over a high-speed wireless network claims to facilitate the operation of reconfigurable factories, a strong concept of fourth Industrial Revolution. Experts believe the low latency supported by 5G network, could also open up lucrative opportunities for factories that banks on precision operations and precision instruments.
Thus, it can be aptly inferred that a paradigm transition from mere consumer awareness to increased focus on implementation of standards has indeed played a pivotal role in industrial ethernet market penetration. EtherNet/IP, SERCOS III, EtherCAT, and POWERLINK are some of the most widely applied protocols that have collectively paved a way for smart manufacturing via efficient communication networking. Speaking of that, it is imperative to mention that North America industrial ethernet market is strongly characterized by these standardization. As per an authentic market assessment report, the regional business space accounted for a major chunk of the global share in 2016 and is forecast to remain at the helm over the ensuing years as well.
The dominance of the regional industrial ethernet market can be majorly attributed to the supportive governmental policies regarding increasing deployment of automation across automotive and manufacturing domains. In tandem, the region also houses most of the renowned manufacturing giants which have been constantly working on diversifying their product portfolio. Say for instance, recently HMS has shipped its patent five-millionth Anybus product to North American manufacturing leader Parker Hannifin, in a bid to enhance the latter’s new valve control unit. Anybus CompactCom B40, that is proposed to be incorporated in Parker’s new valve unit, would allow this valve controlling unit to communicate to any industrial ethernet network or any fieldbus anywhere. Endorsed with this unique feature, experts believe, this would provide tremendous network flexibility as it can be flashed to meet North America fieldbus protocols.
The ongoing efforts undertaken by industrial ethernet market players depicts the extent by which ethernet technology has penetrated the manufacturing ecosystem. Presently, companies partaking in the business space have been aggressively focusing on bringing advanced ethernet switches, specifically designed for harsh environments. Say for instance, NetComm Wireless, the Australia based telecommunication giant has recently made it to the headlines with the launch of its 4G LTE Cat 6 Industrial IoT router. Equipped with RDM (Remote Device Manager) platform and dual band WiFi, this high-speed connectivity for IIoT applications is particularly designed to control critical operational technology even in harsh industrial environments. Some of the other potential contenders in industrial ethernet market who have also worked on the same profile include Moxa, Siemens, Allied Telesis, and Mencom Corporation. All in all, with robust product innovation underway and a strong regulatory groundwork backing it, industrial ethernet market is set to explore a plethora of new applications in the ensuing years, with a target CAGR of 15% over 2017-2024.