IO-Link System Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.01 Billion |
| Market Size (2029) | USD 42.93 Billion |
| CAGR (2024 - 2029) | 25.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
IO-Link System Market Analysis
The IO-Link System Market size is estimated at USD 14.01 billion in 2024, and is expected to reach USD 42.93 billion by 2029, growing at a CAGR of 25.10% during the forecast period (2024-2029).
IO-Link is a bi-directional, point-to-point communication protocol that is mainly used to communicate with sensors and actuators in plant or factory automation processes. The growing adoption of industrial automation worldwide is one of the primary factors driving the market's growth.
- With big data, robotics, and virtual reality becoming more integrated, manufacturing is getting more digitized and mechanized. Traditional production is changing to smart factories where everything is connected. Consequently, traditional sensors are becoming 'smart' with IO-Link, allowing them to connect with several parameters.
- IO-Link enables a continuous data flow from the sensor or actuator to the control level. Also, owing to its compatibility with common industrial architectures, like Fieldbus and industrial Ethernet, it can be easily connected to existing PLCs or HMIs using standard connectors without additional cabling.
- Moreover, in Industry 4.0 scenario, engineers and maintenance technicians can collect more data from the factory floor. IO-Link allows users to collect output data and track it over time. Reduced wiring, remote configuration and monitoring, simple device replacement, increased data availability, and advanced diagnostics are some of the major advantages offered by the IO-Link system that help to drive the demand for the market.
- The need to protect employees from infection as they return to factories and warehouses has become a top priority for most companies in the post-pandemic scenario. The widespread use of intelligent robots and automation-based systems is increasingly replacing manual labor. Such trends have contributed to the growth of the market.
- With update speeds of 2.3 ms or higher, IO-Link is typically not fast enough for high-speed or motion-control applications. The technology also does not have the ability to process large amounts of data because the available input and output process data is limited to 32 bytes. Such limitations may hinder market growth.
IO-Link System Market Trends
Machine Tools Application Segment to Acquire a Major Share
- Automation is currently the most important factor in increasing productivity for the machine-tool sector. Parts are becoming increasingly more complex, and the market time is shorter. Thus, there is a need to produce the parts faster. Automation helps to increase efficiency in every process step.
- Moreover, with the advent of Industry 4.0, comprehensive and intelligent automation has come to be defined by advanced controls, monitoring, and diagnostics. Such capabilities can only be realized by leveraging industrial connectivity - through which controls and machine devices are unified on some platform (such as IO-Link) for continual data exchange.
- A machine tool has multiple sensors for detecting pressures, levels, and temperature. The sensors used currently are set manually using keys and a 7-segment display. Initial parameter setting and resetting when a unit needs to be replaced can be time-consuming and costly. Thus, there is a need for solutions to automatically identify sensors and set parameters in an automated manner.
- IO-Link capable sensors can be identified through their Vendor and Device ID. The program recognizes the connected sensor, checks for correctness, and sets the sensor parameters using the associated parameter record. With this solution, sensors from different manufacturers can also be used.
- Further, machine monitoring can be realized with IO-Link devices set up to report status that can, in turn, inform the system of necessary adjustments and corrections. Also, IO-Link devices can make actionable status communications to support enhanced maintenance routines for minimized downtime.
Asia-Pacific to Grow at a Significant Rate
- China has the largest manufacturing industry in the world. The country's industrial output grew 3.6% in 2022 from the previous year, as per the Ministry of Industry and Information Technology (MIIT), despite production and logistics disruptions from COVID-19 curbs. The manufacturing sector's output was estimated to have risen by 3.1% in 2022, accounting for 28% of China's gross domestic product (GDP), according to the MIIT.
- Moreover, Industry 4.0, Made in China 2025, and Internet Plus have emerged as the key economic triggers of China's long-term economic strategy. IO-Link is expected to be an important enabler for innovative sensor solutions and support the availability of data and information required by Industry 4.0.
- In March 2023, China-based Hefei Onsoon Intelligent Electronics Co., Ltd. was accredited as a new IO-Link Test Lab. Thus, Onsoon has emerged as the first Test Center in Asia and expanded the number of global test labs to three. Such initiatives in the region also provide a significant growth momentum to the market.
- Further, India is a major manufacturer of machine tools, ranked 17th in production and 12th in the consumption of machine tools globally, according to IBEF. The country is also set to establish a firm foothold in the global machine tools industry and is expected to see substantial high-end machine tool manufacturing.
- Also, with the current trend of 'Make in India' providing the much-needed push to the manufacturing sector, the country is on its way to becoming a major manufacturing giant. Such trends are indicative of the growth potential of the market in the country.
IO-Link System Industry Overview
The competitive rivalry in the IO-Link System market is moderately high, as the market comprises many large vendors that command a prominent market share besides having access to well-established distribution networks. Major vendors in the market studied are involved in M&A activities and partnerships to gain higher penetration and market share. Some prominent vendors in the market include Balluff, Siemens, Endress + Hauser, Rockwell, etc.
In July 2022, Endress+Hauser expanded its location in Switzerland. The company erected a building almost 150 meters long at the Reinach site. Located in the new building are Endress+Hauser Flow, the competence center for flow measurement technology, and Endress+Hauser Digital Solutions, responsible within the group for all topics relating to digital communication and automation solutions.
In March 2022, Balluff added a wireless solution to its extensive IO-Link portfolio. Instead of cables, the wireless master receives the sensor data by radio via a bridge or hub. The wireless IO-Link variant can be used in dynamic, fixed, and mobile applications.
IO-Link System Market Leaders
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Balluff
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IFM Electronics
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Omron
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Siemens
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Festo
*Disclaimer: Major Players sorted in no particular order
IO-Link System Market News
- February 2023: Carlo Gavazzi Automation introduced its new ICF series of inductive sensors in a full metal housing with integrated IO-Link communication. The ICF inductive sensor family offers a robust solution for daily indoor and outdoor operations to ensure accurate and reliable detection of actuating parts.
- November 2022: Turck introduced Analog Inductive Sensors With IO-LINK Protocol. Owing to its accuracy and extremely long range, the sensor was suitable for many applications, including monitoring gap dimensions on industrial drums or detecting wear, such as shaft concentricity.
IO-Link System Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview (Current Trends & Developments, Current Installed Base of IO Nodes & Future Projections, and KPI Analysis)
4.2 Industry Attractiveness- Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Supply Chain Analysis
4.4 An Assessment of the impact of Key Macroeconomic Trends (post-COVID-19 scenario, supply chain issues, and economic uncertainties)
4.5 Technology Evolution (Specifications, Standards including IO-Link Wireless and IO-Link Safety)
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Industry 4.0
5.1.2 Rising Awareness regarding the Benefits Associated with IO-Link
5.2 Market Challenges
5.2.1 Use of Compact Machines
6. MARKET SEGMENTATION
6.1 By Component Type
6.1.1 IO-Link Master
6.1.2 IO-Link Device
6.2 By End-User Application
6.2.1 Machine Tools
6.2.2 Intralogistics
6.2.3 Packaging
6.2.4 Assembly Line
6.3 By End-User Industry
6.3.1 Discrete
6.3.2 Process
6.4 By Geography***
6.4.1 North America
6.4.2 Europe
6.4.3 Asia
6.4.4 Australia and New Zealand
6.4.5 Latin America
6.4.6 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Balluff
7.1.2 IFM Electronics
7.1.3 Omron
7.1.4 Siemens
7.1.5 Festo
7.1.6 Sensata Technologies
7.1.7 Endress + Hauser
7.1.8 Banner Engineering
7.1.9 Rockwell
7.1.10 Pepperl + Fuchs
- *List Not Exhaustive
8. VENDOR RANKING ANALYSIS
9. MARKET OUTLOOK
IO-Link System Industry Segmentation
IO-Link refers to a point-to-point network communications standard and protocol that is an IEC standard for sensors and actuators. It is used in a broad range of applications, serving as an open standard for smart sensor I/O, mainly for discrete devices.
The IO-link system market is segmented by component type (IO-link master, IO-link device), end-user application (machine tools, intralogistics, packaging, assembly line), end-user industry (discrete, process), and geography (North America, Europe, Asia-Pacific, Rest of the World). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
| By Component Type | |
| IO-Link Master | |
| IO-Link Device |
| By End-User Application | |
| Machine Tools | |
| Intralogistics | |
| Packaging | |
| Assembly Line |
| By End-User Industry | |
| Discrete | |
| Process |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Australia and New Zealand | |
| Latin America | |
| Middle East and Africa |
IO-Link System Market Research Faqs
How big is the IO-Link System Market?
The IO-Link System Market size is expected to reach USD 14.01 billion in 2024 and grow at a CAGR of 25.10% to reach USD 42.93 billion by 2029.
What is the current IO-Link System Market size?
In 2024, the IO-Link System Market size is expected to reach USD 14.01 billion.
Who are the key players in IO-Link System Market?
Balluff, IFM Electronics, Omron, Siemens and Festo are the major companies operating in the IO-Link System Market.
Which is the fastest growing region in IO-Link System Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in IO-Link System Market?
In 2024, the North America accounts for the largest market share in IO-Link System Market.
What years does this IO-Link System Market cover, and what was the market size in 2023?
In 2023, the IO-Link System Market size was estimated at USD 10.49 billion. The report covers the IO-Link System Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IO-Link System Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
IO-Link System Industry Report
Statistics for the 2024 IO-Link System market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. IO-Link System analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
