Industrial Networking Solutions Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Industrial Networking Solutions Market Analysis

The Industrial Networking Solutions Market is expected to register a CAGR of 20.34% over the forecast period from 2021 - 2026. Multiple industries are seeking to drive operational improvements into their assets and production systems with the help of convergence and digitization by utilizing the new solutions in the Industrial Internet of Things (IIoT) and Industry 4.0. However, these initiatives have the requirement to securely connect the production environments with standard networking technologies to allow industries and their key partners access to a rich stream of new data, real-time visibility, and remote access to the systems and assets in the operational environments. This is the right time for Industry 4.0 since many industrial applications and digitalization efforts can benefit today from LTE/4G; besides, it is a vital step to promote the adoption of cellular technology at industrial verticals and lay the foundation for future advanced networking use cases.

• The industrial ecosystem is moving away from Fieldbus technologies based on proprietary networks for communication protocols over standard networking such as Ethernet, 802.11-based Wi-Fi, and the portfolio of I.P. protocols (for example, TCP and UDP). This focus on open networking standards is a foundational aspect of the devices that make up the industrial ecosystem are capable of communicating on converged, public networks, which significantly improves the accessibility of data and information. Also, there are many emerging network technologies currently being discussed or developed in the industry. Technologies such as Network Slicing (part of 5G), Software Defined Networking (SDN), Network Function Virtualization (NFV), and Low Power Wide Area Network (LPWAN) may provide better or different support for industrial applications.
• The industries are witnessing humongous growth in data generation, due to mobile and connected devices, cloud-based systems, etc. With more than 50 billion connected devices expected, Huawei predicts that, by 2020, over 50% of data may be analyzed, processed, and stored at the network edge. Moreover, according to Cisco, 46% of network devices will be machine -to -machine or IoT by 2020, which are vulnerable to attacks. To fully realize the potential of these connected devices, the industries need to be equipped with Wide Area Networks that are flexible to meet the network demands anticipated over the future.
• In January 2020, NXP Semiconductors N.V. announced a multi-gigabit Ethernet switch designed for automakers to deliver the high-speed networks required for evolving connected vehicles. The NXP SJA1110 is one of the first automotive Ethernet switches with built-in safety capabilities, offering integrated hardware-assisted security, and multi-gigabit interfaces. Optimized for integration with NXP's S32G vehicle network processor, the SJA1110 switch is also an integral part of an overall networking solution, which includes the VR5510 power management I.C. Together, this solution is designed to address some of the biggest challenges facing vehicle networking including scalability, security, safety, and high-speed traffic engineering.
• In November 2019, Nokia announced that it had launched private wireless networks for more than a hundred customers across multiple industries where it's industrial customers can take advantage of these networks related to Industry 4.0 innovation. Unleashing the full potential of Industry 4.0 technologies such as machine learning, A.I., cloud, and IoT Nokia's private LTE/4.9G, and 5G wireless networking solutions have established a global marketplace footprint across energy, public sector, manufacturing, transportation, and logistics. Building on this marketplace's success, Nokia also announced an expansion of its industrial-grade private networking solutions.
• The outbreak of COVID-19 is expected to influence global industrial spending significantly over the coming years due to the non-operational status of various industries deemed non-essential by governments across the world are facing huge losses that are expected to influence their tech spending till the end of 2021. Moreover, COVID-19 is forcing various manufacturers to depend more on digitalization and automation for long-term operations to reduce the financial impact of the pandemic and other potential economic challenges. COVID-19 outbreak is expected to be a short-term effect, and it would eventually pass. However, in the long run, COVID-19 is a chance for industries to make much-needed operational improvements with significant emphasis on enhancing networking technologies increases amidst the current pandemic.

Industrial Networking Solutions Market Trends

This section covers the major market trends shaping the Industrial Networking Solutions Market according to our research experts:

Manufacturing is Expected to Hold Significant Share

Industrial Networking Solutions Industry Segmentation

An industrial network solution is an essential part of any automation system architecture as it engages in providing effective means of data exchange and data controllability and flexibility to connect several devices. Generally, communication networks are utilized to enable data communication between computers and other devices. These networks are used in the distribution of multiple products, offer technical support, which needs to be wired and wireless networking systems.