Industrial Ethernet Switch Market Size (2024 – 2030)

The Global Industrial Ethernet Switch Market size was exhibited at USD 3.49 billion in 2023 and is projected to hit around USD 5.72 billion by 2030, growing at a CAGR of 7.3% during the forecast period from 2024 to 2030.

Industrial Ethernet switches are principally crafted to provide efficient data transmission with high speed and resilience, catering to the needs of industrial networks and environments. Various categories of these switches, including managed switches, unmanaged switches, and others, find extensive application in diverse industries such as aerospace & defense, food & beverage, oil & gas, and automotive. The market for industrial Ethernet switches is marked by intense competition, featuring numerous participants offering a broad spectrum of products. Anticipated growth in the industrial Ethernet switches market is attributed to the escalating demand within industries such as aerospace & defense, oil & gas, and automotive.

A pivotal driver of market expansion is the increasing adoption of industrial Ethernet switches within the aerospace & defense sector. These switches are deployed in commercial aircraft, unmanned aerial vehicles, helicopters, and similar applications. The inherent attributes of industrial Ethernet switches, encompassing high reliability, interoperability, rapid data transfer, and effective communication in challenging conditions, contribute significantly to their heightened utilization in the aerospace and defense domain.

Key Market Insights:

A notable factor fueling the growth of the industrial Ethernet switches market is the trend towards miniaturization. This is driven by the imperative to reduce overall product dimensions and withstand demanding working environments. The preference for compact and streamlined devices among end-users has prompted manufacturers to develop miniature industrial Ethernet switches. Already, industrial control switches with dimensions 20%-30% smaller than traditional counterparts are being introduced. The escalating demand for smaller boards and the drive to optimize space utilization in production facilities are poised to further propel the trend of switch miniaturization, consequently bolstering the demand for Ethernet switches and fostering market growth in the foreseeable future.

Another prominent trend in the industrial Ethernet switches market is the integration of time-sensitive networking (TSN) in Ethernet services. TSN technology, characterized by deterministic communication and adherence to Ethernet standards, identifies hosts and receivers through Ethernet header contents, facilitating the payload of industrial applications. The incorporation of TSN in the industrial Ethernet standard enhances connectivity, optimization, and aids in cost savings while specifying communication time frames. This integration is expected to stimulate increased adoption of Ethernet for data transfer, contributing to a projected Compound Annual Growth Rate (CAGR) exceeding 10% during the forecast period, according to the industrial Ethernet switches market forecast report.

Global Industrial Ethernet Switch Market Drivers:

Rise in the Industrial Internet of Things (IIoT) Drives Growth in the Industrial Ethernet Switch Market

The anticipated surge in the adoption of the Industrial Internet of Things (IIoT) is poised to propel the advancement of the industrial Ethernet switch market in the foreseeable future. IIoT represents the expansion and implementation of the Internet of Things (IoT) within industrial sectors and applications. Industrial Ethernet switches, serving as essential components for high-bandwidth or high-density industrial networking IoT solutions, play a crucial role in business and industrial networks on a global scale. As reported by Ericsson, a Sweden-based telecommunications company, in September 2022, it is anticipated that nearly 60% of cellular IoT connections will be broadband IoT by the end of 2030, with the majority being connected through 4G. The global count of IoT connections stood at 13.2 billion in 2022, and it is projected to escalate to 34.7 billion by 2030, indicating an 18% growth rate. Consequently, the increasing adoption of IIoT emerges as a significant driver for the industrial Ethernet switch market.

Industrial Ethernet Switch Market Expands in Tandem with the Rise of Industrial Automation

The burgeoning trend of industrial automation is expected to propel the growth trajectory of the industrial Ethernet switch market in the coming years. Industrial automation leverages control systems, computer technology, and information technology to replace human intervention in various industries, aiming to augment efficiency, productivity, and safety. The industrial Ethernet switches market assumes a pivotal role by providing the essential communication infrastructure necessary for the smooth operation and expansion of industrial automation. According to the World Robotics Report by the International Federation of Robotics (IFR), a Germany-based non-profit organization, there has been a notable upswing in the installation of new industrial robots globally in 2022. The report indicates a substantial year-on-year growth rate of 31%, with 517,385 new industrial robots installed in factories worldwide. Hence, the escalating wave of industrial automation emerges as a driving force for the industrial Ethernet switch market.

Global Industrial Ethernet Switch Market Restraints and Challenges:

The market growth is hindered by the substantial cost associated with industrial Ethernet switches.

The elevated cost of industrial Ethernet switches poses a notable obstacle to the expansion of the market. As industries increasingly rely on robust networking solutions to facilitate seamless communication and data transfer, the high prices of these switches create a barrier to widespread adoption. While industrial Ethernet switches play a pivotal role in enhancing network performance and reliability in demanding industrial environments, their expense can pose a financial challenge for businesses, particularly small and medium-sized enterprises.

The cost factor becomes a limiting element for organizations aiming to upgrade their infrastructure or expand their networks. This limitation not only impacts the adoption rate but also impedes the realization of potential benefits that advanced industrial Ethernet switches can offer, such as enhanced efficiency, minimized downtime, and improved data security. In addressing this challenge, industry stakeholders are focusing on efforts to develop cost-effective alternatives and strategies aimed at reducing the overall expenses associated with industrial Ethernet switches. These endeavors are crucial for fostering market growth and ensuring broader accessibility across various sectors.

Global Industrial Ethernet Switch Market Opportunities:

The global industrial Ethernet switch market offers abundant opportunities propelled by the increasing integration of Industry 4.0 technologies. With industries worldwide embracing automation, IoT, and smart manufacturing, there is a growing demand for high-performance and reliable industrial Ethernet switches. These switches play a pivotal role in facilitating seamless communication and data transfer within industrial networks, contributing to improved efficiency and real-time decision-making.

Market opportunities are further driven by the expansion of sectors such as manufacturing, energy, and transportation, all of which require robust networking solutions for their operations. Additionally, the escalating need for secure and scalable industrial communication infrastructure creates avenues for innovative solutions. As businesses prioritize digital transformation, the market stands to benefit from opportunities to develop advanced features like edge computing and enhanced cybersecurity measures. Overall, the global industrial Ethernet switch market is positioned for growth, propelled by the increasing demand for efficient and interconnected industrial networks in the era of smart and connected industries.

INDUSTRIAL ETHERNET SWITCH MARKET REPORT COVERAGE:

Global Industrial Ethernet Switch Market Segmentation: By Type

• Unmanaged Switches

• Managed Switches

• Others

In terms of type, the managed switches segment significantly contributed to the market growth in 2023. These switches facilitate dependable communication among Ethernet devices and play a pivotal role in overseeing, configuring, and monitoring network traffic. Furthermore, key factors such as the increasing adoption of industrial automation and the escalating demand for industrial switches with enhanced flexibility in controlling, managing, and prioritizing network traffic are substantial drivers propelling the growth of the managed switches segment.

Global Industrial Ethernet Switch Market Segmentation: By End User

• Aerospace & Defense

• Food & Beverage

• Oil & Gas

• Automotive

• Others

In terms of end user, the aerospace & defense segment is poised to contribute significantly to the growth of the Global Industrial Ethernet Switch Market throughout the forecast period. The utilization of industrial Ethernet switches in the aerospace and defense sector is driven by key features such as high reliability, interoperability, high speed, and efficient communication in challenging conditions. Furthermore, the market is expected to experience growth due to factors such as increased investments in the production of aviation and defense systems during the forecast period.

Global Industrial Ethernet Switch Market Segmentation: By Region

• North America 

• Asia-Pacific 

• Europe 

• South America 

• Middle East and Africa

In terms of region, North America witnessed the largest share contributing to the market growth in 2023. The presence of major industrial Ethernet switch providers in North America, including Cisco Systems Inc., Belden Inc., Avaya Inc., Broadcom Inc., and others, has resulted in significant advancements in industrial Ethernet switches within the region. Furthermore, factors such as increased investments in the military and defense sector and the growing deployment of industrial switches in both commercial and defense aircraft in North America are anticipated to propel market growth in the region throughout the forecast period.

COVID-19 Impact on the Global Industrial Ethernet Switch Market:

The global industrial Ethernet switch market has experienced significant impacts due to the outbreak of COVID-19. Production facilities in the electronics and semiconductor sectors have come to a halt, attributed to the slowdown and unavailability of the workforce on a global scale. The COVID-19 outbreak resulted in a substantial and prolonged decline in manufacturing utilization, with travel bans and facility closures preventing workers from accessing their factories, leading to a slowdown in the growth of the industrial Ethernet switch market in 2020.

Countries in Asia and Europe, subjected to lockdowns, faced considerable losses in business and revenue due to the shutdown of manufacturing units in the region. The operations of production and manufacturing industries bore the brunt of the COVID-19 outbreak, contributing to the slowdown in market growth in 2020.

However, the adverse impact of COVID-19 on the industrial Ethernet switch market is expected to be temporary, with a robust recovery anticipated by early 2021. The post-pandemic period is foreseen to witness extensive demand for industrial Ethernet products as manufacturing companies globally reassess their strategies and swiftly respond to stabilize their supply chains.

Recent Trends and Innovations in the Global Industrial Ethernet Switch Market:

In October 2022, Conrad Electronic, a German-based platform for sourcing technical goods operating in 17 European nations, and OMRON announced a pan-European distribution partnership.

Key Players:

1. Cisco Systems Inc.

2. Siemens AG

3. Rockwell Automation Inc.

4. Schneider Electric SE

5. Belden Inc.

6. Moxa Inc.

7. Hirschmann (a Belden brand)

8. Advantech Co. Ltd.

9. Hikvision Digital Technology Co. Ltd.

10. Juniper Networks Inc.