The industrial networking solutions market size is expected to reach US$ 137.70 billion by 2031 from US$ 29.45 billion in 2023. The market is estimated to record a CAGR of 21.3% from 2023 to 2031. The increasing demand for SD-WAN solution is likely to remain a key market trend.
Industrial Networking Solutions Market Analysis
By leveraging advanced networking technologies, industries can monitor and analyze data in real time, enabling them to analyze potential issues and perform proactive maintenance, thus, minimizing downtime and optimizing operational efficiency. Another significant driver is the growth of the Industrial Internet of Things (IIoT). As more industrial devices and equipment become connected, there is a growing need for robust networking solutions that can support the ever-increasing number of connected devices, handle the massive amounts of data generated, and ensure secure and reliable communication. In addition to these drivers, other factors, such as the increased focus on cybersecurity, the integration of cloud computing in industrial networks, and the demand for high-speed and low-latency communication, are also contributing to the industrial networking solutions market growth.
Industrial Networking Solutions Market Overview
Industrial networking is the use of networking technologies and protocols to connect industrial devices and systems, such as sensors, controllers, and other equipment, to allow for communication and data sharing. Industrial networks provide communication between control system components. Control communications can affect performance, quality, and reliability. Furthermore, control devices or the controller itself play an essential role in acquiring information to support layered analytics, such as Supervisory Control and Data Acquisition (SCADA), Artificial Intelligence (AI), and Machine Learning (ML). Further, the growing adoption of industrial networking solutions in automotive, BFSI, manufacturing, telecommunication, logistics, and transportation, among other industries, is expected to boost market growth during the forecast period.
Overall, the rise in demand for wireless technologies, the need for predictive maintenance, and the growth of the Industrial IoT are contributing to the growing industrial networking solutions market. This market presents significant opportunities for businesses operating in this marketplace to provide innovative and reliable networking solutions to meet the evolving needs of industries.
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Industrial Networking Solutions Market: Strategic Insights
Market Size Value in US$ 29.45 billion in 2023 Market Size Value by US$ 137.70 Billion by 2031 Growth rate CAGR of 21.3% from 2023 to 2031 Forecast Period 2024-2031 Historic Period 2021-2022
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Industrial Networking Solutions Market: Strategic Insights
| Market Size Value in | US$ 29.45 billion in 2023 |
| Market Size Value by | US$ 137.70 Billion by 2031 |
| Growth rate | CAGR of 21.3% from 2023 to 2031 |
| Forecast Period | 2024-2031 |
| Historic Period | 2021-2022 |
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Industrial Networking Solutions Market Drivers and Opportunities
Increasing Adoption of Wireless Technologies
There is a growing utilization of wireless technologies in industrial operations, driven by the demand for flexibility, mobility, and scalability in industrial networks. Wireless networks offer advantages such as easy reconfiguration, adaptability to changing environments, seamless connectivity on the go, and the ability to add new devices and expand network coverage without extensive infrastructure modifications. This trend allows organizations to futureproof their network infrastructure and prepare for advancements in wireless technology. Ultimately, the adoption of wireless technologies in industrial operations is revolutionizing the design and deployment of industrial networks, providing greater flexibility, mobility, scalability, and futureproofing capabilities. This enables organizations to enhance productivity, improve operational efficiency, and meet the growing needs of the industrial landscape, further boosting the industrial networking solutions market growth.
Market players are emphasizing product and technology development. For instance, in May 2022, Rajant Corporation—the pioneer of Kinetic Mesh wireless networks—and Acubis Technologies, a Kinetic Mesh Premier Partner (KMPP) in Australia, delivered the first FE1 series BreadCrumbs–Rajant Peregrine and Hawk–to a government-owned utilities provider in southwest Queensland. Acubis Technologies was selected to provide a wireless industrial networking solution capable of handling the demands of utility providers. The latest FE1 Series BreadCrumbs, Peregrine, and Hawk, with InstaMesh, proved to be the industrial networking solution of choice for the client, providing high bandwidth and ruggedized mobile connections throughout their entire operations. Such developments are boosting the industrial networking solutions market growth.
Emergence of Industry 4.0
Industry 4.0 is the result of the digital transformation in numerous industries, bringing real-time decision-making, increased productivity, flexibility, and agility to alter the business's operations. Industry 4.0 allows stakeholders to optimize facilities and increase efficiency by leveraging interconnected industrial equipment and advanced computation. The Fourth Industrial Revolution refers to the rapid transformation of 21st-century technology, industries, societal patterns, and procedures as a result of interconnectedness and intelligent automation. Multiple industries are looking to increase the operational efficiency of their assets and production systems through convergence and digitization, leveraging innovative technologies in the Industrial Internet of Things (IIoT) and Industry 4.0. However, these initiatives must securely connect production environments to standard networking technologies for industries and their key partners to gain access to a rich stream of new data, real-time visibility, and remote access to operational systems and assets. With Industry 4.0, industrial applications and digitalization efforts may benefit from LTE/4G.
Additionally, it is a key step to boost the adoption of cellular technology in industrial verticals and create the framework for future advanced networking. The benefits of Industry 4.0 processes, technologies, and systems include enhanced productivity and efficiency, better flexibility and agility, and increased profitability in networking solutions. Thus, the emergence of Industry 4.0 is expected to create opportunities for the industrial networking solutions market growth during the forecast period.
Industrial Networking Solutions Market Report Segmentation Analysis
Key segments that contributed to the derivation of the industrial networking solutions market analysis are component, technology, and end user.
- In terms of component, the market is segmented into hardware and software & services.
- Based on connectivity, the market is categorized into wired and wireless.
- Based on deployment, the market is bifurcated into on-premises and cloud.
- Based on end-use industry, the market is segmented into automotive, BFSI, manufacturing, telecommunication, logistics & transportation, and others.
Industrial Networking Solutions Market Share Analysis by Geography
- The industrial networking solutions market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
- The market in Asia Pacific is experiencing significant growth due to the rise in the adoption of automation, government initiatives, and a robust manufacturing sector. This growth is fueled by technological advancements, including the integration of the Industrial Internet of Things (IIoT), edge computing, and wireless communication. These technological developments have greatly improved connectivity and real-time monitoring capabilities in industrial environments, leading to increased efficiency and productivity.
- China dominates the market in Asia Pacific, holding the largest industrial networking solutions market share, followed by India. Both countries are experiencing a notable increase in the adoption of wireless technologies and cloud services and heightened security concerns, driving the demand for industrial networking solutions. Furthermore, the implementation of industrial IoT solutions is contributing positively to the market expansion in this region.
Industrial Networking Solutions Market Report Scope
Industrial Networking Solutions Market News and Recent Developments
The industrial networking solutions market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the industrial networking solutions market are listed below:
- Fortinet expanded its lineup of industrial network protection solutions. The company has introduced new hardware and software additions to its OT Security Platform, specifically designed to safeguard assets connected to industrial networks. These additions aim to help enterprises converge their operational technology (OT) and information technology (IT) network operations while ensuring the protection of critical resources. (Source: Fortinet, Press Release, December 2023)
- RS Components formed a strategic partnership with HMS Networks to enhance its range of industrial equipment networking solutions. The collaboration aims to broaden the selection of networking solutions available to customers, enabling them to connect and integrate their industrial equipment more effectively. (Source: RS Component, Press Release, July 2022)
Industrial Networking Solutions Market Report Coverage and Deliverables
The "Industrial Networking Solutions Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Industrial networking solutions market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Industrial networking solutions market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Industrial networking solutions market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the industrial networking solutions market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
Frequently Asked Questions
The market is expected to reach a value of US$ 137.7 billion by 2031.
Increasing demand for SD-WAN solutions is a key trend in the market.
Cisco Systems, Inc., Nokia, Rockwell Automation, Inc., Hewlett Packard Enterprise Development LP, and Huawei Technologies Co., Ltd. are major players in the market.
Asia Pacific dominated the industrial networking solutions market in 2023.
The increasing adoption of wireless technologies and the rising need for predictive maintenance are driving the market growth.
The market is anticipated to expand at a CAGR of 21.3% during 2023-2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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