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The global industrial communication market was valued at USD 22 billion in 2023 and grew at a CAGR of 10% from 2024 to 2033. The market is expected to reach USD 57.06 billion by 2033. The rising automation and digitization of industries will drive the growth of the global industrial communication market.
Industrial communication consists of the methodologies or means of transmitting data, information, and commands to and from all elements in industrial settings including manufacturing industries, power stations, or oil production facilities. It has a significant function of allowing effective operations, supervision and management of devices, apparatus, systems and processes to accomplish high efficiency in industrial procedures to avoid incidents. At the very essence of industrial communication is the ability to transport real time data, which is a crucial factor in the control of automation systems, synchronisation of production lines and assurance of operative systems. This communication entails the integration of wired and wireless technology through which control, values, status information, and other data can be shared between various machines, sensors, controllers and human operators. Some of the industrial communication networks are Modbus, Profibus, EtherNet/IP and OPC which are tailored to satisfy the needs of the industrial real-time application in terms of bandwidth and reliability. The importance of industrial communication is felt especially with the realization of the Industrial Internet of Things (IIoT) where a variety of sensors and connected devices generates information about aspects such as performance of equipment and state of the environments. IIoT systems largely depend on industrial communication to support the required data flow and to allow analytics, predictive maintenance, and process automation. In addition, industrial communication provides compatibility of the different devices and systems where the various technologies are implemented. As modern industries progress and the call for larger automation, the question of appropriate, highly available, and secure industrial communication networks providing the foundation for the effective, safe, and profitable utilisation of the industrial facilities is more of a challenge than ever before.
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The rising automation and digitization of industries – Industry 4.0., also commonly known as the fourth industrial revolution incorporates smart technologies, cyber-physical systems, automation and data exchange in the manufacturing industries and similar sectors. This transition involves the integration of computers, sensors and operators, to automate tasks and make decisions. For instance, assembly line, robotic process automation and intelligent control system also demand a reliable communication system to enable them to execute their activities in an efficient manner so as to reduce production downtime. When a number of industries introduce automation in their production processes, the need for efficient industrial communication networks rises to support the flow and command of data for devices and systems. Industrial Internet of Things (IIoT) integrates devices, sensors, and machines used in industrial operations which also requires strong industrial communication. Thus, such networks are crucial to modern industrial processes, especially because without actual communication solutions, the IIoT solutions themselves could not work. The growing implementation of smart factories can be attributed to the boosting demand for industrial communication technologies. Smart factories utilize such technologies as AI, machine learning and robotics in production and all of them are built with complex communication systems.
High costs of investments – Large implementation and maintenance costs act as hurdles to the further expansion of industrial communication systems and their demand. Establishment of highly developed industrial computer networks particularly those that harbour new age technologies such as IIoT, automation, and real-time monitoring entail integration of huge capital. This includes the expense on the acquisition of sensors, controllers, communicational devices and the software required for managing the procured devices. Additionally, the structure of the needed infrastructure which include wired and wireless networks for communication flows may be costly. In many industries including SMEs, the initial costs are too expensive and can stretch a business’s budget which hampers its adoption in these enterprises. Costs such as maintenance to support these solutions minimize adoption even further. Industrial communication systems, like any other systems need from time-to-time overhaul, repairing and checking. Maintenance always requires some skills which requires personnel equipped with the same further adding to costs. The overall cost of both installation and future maintenance of these solutions thus slows down adoption.
Stringent regulatory framework – Compliance with regulations and safety norms are key factors that are likely to accelerate the pace of adopting industrial communication because industries are subjected to high levels of monitoring and are forced to adhere to high standards of safety, environmental legislation and operational best practices. With industries becoming digitized especially those in manufacturing, energy and chemicals, the general compliance to regulations has proved to be challenging. A good communication system makes it possible to monitor and report the industrial activities that the various regulations seek to address. Furthermore, these communication systems are vital in worker protection and include but are not limited to such uses as the transmission of safety notifications, emergency shutdown signals, or equipment failure. Over the time, several industries have shifted to international standards such as ISO 45001 for occupational health and safety. Using such standards requires better communication solutions.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global industrial communication market, with a 43% market revenue share in 2023.
North America currently leads the industrial communication market due to the region’s highly developed industrial sector and the active interaction with Industry 4.0 and Industrial IoT (IIoT) trends. The countries such as United States and Canada are considered to have a high need for automation in manufacturing, automotive, energy, and oil and gas sectors that heavily rely on efficient industrial communication systems to transfer data, monitor processes, and control them. The region leadership is attributed to massive investments in infrastructure that facilitates the adoption of advanced communication technologies, all aimed at enhancing the effectiveness and security of the various industries. Moreover, because North American region has strict legal systems and standards for safety and operations, business organizations are mandated to establish secure and effective systems of communication to meet regional legal frameworks and safety standards for operation.
North America Region Industrial Communication Market Share in 2023 - 43%
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The communication protocol segment is divided into Ethernet/IP, Modbus, PROFIBUS, CANopen, DeviceNet, HART (Highway Addressable Remote Transducer), OPC (Open Platform Communications), and BACnet. The Ethernet/IP segment dominated the market, with a market share of around 35% in 2023. Industrial Ethernet has taken the largest market share in the industrial communication market as it offers high-speed, reliability and scalable solutions. Industrial Ethernet is based on the concept of office Ethernet though it is intended and designed to cope with all the demands of the industrial usage of Ethernet. They include flexibility, robustness, and the integration capability of industrial automation systems with this architecture. Another area which benefits from the use of Industrial Ethernet is transport of large amounts of data. Additionally, IIoT and smart manufacturing come in as industries develop more complex Systems which paves the way for lighter transfer of data and higher bandwidth. These needs are supported by Industrial Ethernet with speeds up to and beyond 10 Gbps allowing efficient communication between machines, sensors and control systems. Another reason for its prevalence is the availability of standardized Ethernet protocols. As a result, it becomes possible for tools from various manufacturing companies to interconnect seamlessly; conflicts and compatibility issues being at a minimal, therefore improving the interconnection system capacity.
The communication medium segment is divided into wired communication and wireless communication. The wired communication segment dominated the market, with a market share of around 51% in 2023. Wired communication dominates the industrial communication market based on performance, reliability, and stability of the technology to perform in challenging industrial applications. Copper-wired commutation, especially Ethernet and Modbus are used extensively in industries such as manufacturing, energy and transportation amongst others and are famous for their ability to offer definitive and reliable data transference interface. These systems therefore come with the added feature of high bandwidth and low latency perfect for use in exchanging data in real time between machines, sensors and control systems. The resistance to interference is especially high in wired networks when compared with all the wireless solutions, making them perfect for industrial use in locations with high electromagnetic interference, such as factories or power plants. Wired communication dominates because of its reliability and robustness as a form of communication.
The end user industry segment is divided into manufacturing, automotive, oil and gas, energy and utilities, chemicals and petrochemicals, food and beverage, pharmaceuticals, mining, and water and wastewater treatment. The manufacturing segment dominated the market, with a market share of around 33% in 2023. Manufacturing industries dominate the market due to the increasing implementation of automation, data exchange, and control systems. Manufacturing organisations remain the most affected by the fourth industrial revolution, also referred to as Industry 4.0. Internetworking assumes a fundamental part in this change, guaranteeing that machines, sensors, robots, and infrastructures cooperate and communicate effectively with each other. Automations systems combined with industrial communication technologies ensure exchange of information between production lines, inventory and supply chain and other such systems of manufacturers, making it easier for them to take informed decisions. This connectivity encourages predictive maintenance, thereby helping to identify any breakdowns in equipment well before they occur and hence cutting on the operational costs of repairing costly machines and increasing the average life of the equipment. The advances in manufacturing industry with the incorporation of smart factories and IIoT solutions to enhance flexibility contribute to the growing need for industrial communication systems.
The application segment is divided into automation and control systems, process control, remote monitoring, safety and security systems, predictive maintenance, energy management and real-time data acquisition. The automation and control systems segment dominated the market, with a market share of around 26% in 2023. Automation and control systems formally, constitutes a major segment of the industrial communication market and are vital in boosting productivity, minimizing errors and preventing accidents across all industrial segments. These systems are intended to track, manage and control machines, processes and other tools in real time using communication networks for passing information and instructions. Advanced automation and control systems have been on the rise due to the increased implementation of the fourth industrial revolution also known as Industry 4.0, driven by automation, data exchange, and integration augmented by the use of advanced smart technologies. These systems use reliable and fast connection to implement the synchronization and coordination between various processes in industries like manufacturing, energy, oil and gas, and chemicals. The main goal of automation and control systems by and large is to always keep industrial processes running optimally and for most of the time.
The component segment is divided into industrial routers and gateways, industrial HMI (Human Machine Interface), industrial switches, controllers, industrial sensors, communication cables and connectors, and industrial wireless modules. The industrial routers and gateways segment dominated the market, with a market share of around 32% in 2023. Industrial routers and gateways account for a large portion of the industrial communication market because they are key elements that keep complex industrial networks functioning properly while allowing for secure information exchange. These devices act as interfaces between typical networks, LAN, WLAN, or cellular, allowing the use of various protocols in industrial applications. Its ability to facilitate interaction between the traditional and new systems like IIoT, automation, or remote monitoring solution puts them in a dominant position because these are solutions slowly but surely entering manufacturing, energy, and transit sectors. In addition, industrial routers and gateways are capable of remote monitoring and control, which is paramount when it comes to increasing operational effectiveness and preparing for preventively maintenance.
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Billion) |
| Market size value in 2023 | USD 22 Billion |
| Market size value in 2033 | USD 57.06 Billion |
| CAGR (2024 to 2033) | 10% |
| Historical data | 2020-2022 |
| Base Year | 2023 |
| Forecast | 2024-2033 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Communication Protocol, Communication Medium, End User Industry, Application and Component |
As per The Brainy Insights, the size of the global industrial communication market was valued at USD 22 billion in 2023 to USD 57.06 billion by 2033.
Global industrial communication market is growing at a CAGR of 10% during the forecast period 2024-2033.
The market's growth will be influenced by the rising automation and digitization of industries.
High costs of investments could hamper the market growth.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global industrial communication market based on below mentioned segments:
Global Industrial Communication Market by Communication Protocol:
Global Industrial Communication Market by Communication Medium:
Global Industrial Communication Market by End User Industry:
Global Industrial Communication Market by Application:
Global Industrial Communication Market by Component:
Global Industrial Communication Market by Region:
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