The global industrial communication market is set to grow from its current market of value over USD $80 billion in 2018 to USD $160 billion by 2025, a trend driven by the emergence of the Industrial Internet of Things (IIoT), according to a new research report by Global Market Insights.
According to the report, over the past five years, IIoT has emerged as a disruptive technology, transforming industrial process and automating operation across several industry verticals including automotive, manufacturing, energy, oil and gas, healthcare, and transportation.
These industry verticals collectively account for more than two-thirds of the world’s economy. According to the report, as the market dynamics are changing and industries are evolving toward an integrated digital-human workforce, IIoT will play a vital role in redefining the new phase of industrialisation.
The report also indicates that supportive government initiatives to promote automation among industries augment the demand for industrial communication market.
“Governments across countries are playing a pivotal role in driving digitalisation and automation across industry verticals,” it states.
“They are working closely with industry giants and other private sector players to promote the adoption of advanced technologies. This presents myriad opportunities for the growth of the market. Moreover, the increasing degree of robotisation and automation among industries further accelerates the adoption of advanced technologies to create effective communication between the components.”
Ethernet IP will reportedly grow at a CAGR of over 12 per cent during the forecast period. The large-scale adoption of the protocol throughout the manufacturing architecture is the primary factor supporting the growth of the industrial communication market. As digitalisation across the industry verticals increases, organisations are shifting from legacy communication systems toward advanced ethernet protocols to cope up with the changing communication requirements. This is encouraging the adoption of ethernet IP protocol.
“Wireless communication protocol will grow at a CAGR of more than 22 per cent during the projected timeline. Advancements in communication technology along with the rapid adoption of IoT devices is driving the industrial communication market. The benefits offered by wireless communication over wired communication technology, such as flexibility, scalability, and cost-effectiveness, further accelerates its demand,” the report states.
“Currently, the adoption of wireless communication is limited to the subsystems of the otherwise wired network infrastructure as the organisations are still reluctant to switch to wireless network due to their high reliability on the wired network. However, this presents a huge opportunity for wireless communication in the future.
The aerospace & defense sector will attain an annual growth of over 11 per cent during the forecast period.”
Furthermore, increasing digitalisation in the aerospace and defense sectors is propelling the industrial communication market, according to the report. These sectors are embracing advanced technologies to modify their value chains, leveraging on technology solutions to reduce the cost of operation and to restructure supply chains to reduce time to market.
The report indicates that the Asia-Pacific industrial communication market will grow at a CAGR of more than 12 per cent during the forecast period.
“The market is driven by rapid industrialization in the emerging economies of the region. The supportive government policies for promoting domestic manufacturing capabilities and the low cost and skilled labor force are some of the primary factors that paved the way for industrialization in the region. Moreover, the increasing adoption of the Industry 4.0 revolution further augments the demand for the industrial communication market,” the report states.
The report outlines the major vendors in the market, including ABB, ACS Motion Control, Advanced Motion Control, ADVANTECH, Beckhoff Automation, Belden, Bosch Rexroth, Cisco Systems, Eaton, General Electric, HMS Industrial Networks, Honeywell International, ifm electronic GmbH, Mitsubishi Electric, Moxa, Omron Corporation, Parker Hannifin, Rockwell Automation, Schneider Electric, SICK AG, and Siemens.