Industrial networking solutions enable the communication between various industrial devices and systems by providing reliable, secure and scalable wired and wireless connectivity. These solutions include networking hardware such as switches, routers, adapters and gateways which help in connecting industrial machines and equipment within a factory. The growing need for smart factory automation to enhance productivity and efficiency is a major driver for the industrial networking solution market. Increased adoption of Industry 4.0 technologies such as machine-to-machine communication, industrial internet of things, cyber security, cloud and edge computing has further augmented the demand.
The Global industrial networking solution market is estimated to be valued at US$ 30.23 Bn in 2024 and is expected to exhibit a CAGR of 20.3% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the industrial networking solution market are Aruba Networks, Belden Inc., Cisco Systems, Inc., Dell Technologies, Eaton Corporation plc, Huawei Technologies Co., Ltd., Juniper Networks, Nokia, Rockwell Automation, Schneider Electric, Siemens AG, Sierra Wireless, Telit, Texas Instruments, and Wind River. Key players are focusing on developing industrial-grade networking solutions with advanced capabilities to integrated with Industry 4.0 systems.
The rising adoption of emerging technologies such as IoT, cloud & edge computing is expected to present significant Industrial Networking Solution Market Growth opportunities. Growing infrastructure development towards smart factories and digital twin for predictive maintenance is anticipated to fuel the market growth over the forecast period.
Global expansion into emerging economies in Asia Pacific and Latin America present immense growth potential. China, India and countries in Southeast Asia are witnessing rapid industrialization which is positively impacting the demand. Furthermore, governments across globe are supporting industrial automation to increase production efficiency and competitiveness of domestic manufacturing industries.
Market Drivers
The major driver for industrial networking solution market is the growing need for smart factory automation. Industrial automation requires robust, reliable and secure connectivity between systems, machines and equipment to exchange data and enable remote monitoring. Networking solutions help in connecting devices and systems within a factory while ensuring security and compliance with industrial standards. This drives their increased adoption across industries to enhance visibility and optimize production processes.
PEST Analysis
Political: The Industrial Networking Solution Market Analysis is regulated by government directives and regulations regarding data privacy, security, and infrastructure development. Manufacturers have to ensure their products adhere to compliances.
Economic: As the global economy recovers post pandemic, investments in modernizing infrastructure and manufacturing would rise stimulating demand for industrial networking solutions to drive efficiency.
Social: With growing connectivity and digitalization, industries are optimizing operations through industrial IoT and automation. This raises integration of technologies in networks for improved productivity.
Technological: Advanced solutions integrating cloud, edge and artificial intelligence are enabling real-time analytics and predictive maintenance. 5G rollout will further boost applications for wireless connectivity in industrial settings. Secure networks supporting complex systems are vital.
Geographical Regions with High Concentration
The Asia Pacific region accounts for the largest share of the industrial networking solution market in terms value. This is attributed to rapid industrialization and growing manufacturing activity across industries ranging from automotive to electronics in major economies of China, India, Japan and South Korea. Significant government initiatives are modernizing infrastructure and fostering development.
Fastest Growing Region
The industrial networking solution market in North America region is expected to grow at the fastest rate over the forecast period. This can be ascribed to ongoing investment toward infrastructure upgrade, deployment of advanced technologies and focus on development of smart factories. Integration of networking systems is gaining traction across sectors to enhance efficiency and competitiveness.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn