Industrial Networking Solutions Market

Industrial Networking Solutions Market Overview

The global Industrial Networking Solutions Market size was valued at USD 27.85 billion in 2023 and is predicted to reach USD 89.56 billion by 2030 with a CAGR of 20.1% from 2024-2030.

The industrial networking solutions market encompasses the sector dedicated to delivering advanced networking technologies and services tailored for industrial environments. These solutions facilitate secure and efficient communication between machines, devices, and systems within industries such as manufacturing, energy, and transportation. By utilizing technologies such as Industrial IoT (IIoT), ethernet, and wireless communication, these solutions enable businesses to optimize their operations and enhance productivity. They also provide real-time monitoring and control, ultimately driving operational excellence and competitive advantage. 

Market Dynamics and Trends

The global growth of 5G wireless connections is significantly driving the industrial networking solutions market trends by enabling faster, more reliable, and low-latency communication across industrial environments. 5G's capabilities allow seamless real-time data exchange between machines, sensors, and systems, that is essential for advanced applications such as predictive maintenance and autonomous operations.

According to the 5G Americas, global 5G wireless connections increased by 76% from 2021 to 2022, reaching 1.05 billion, and is projected to reach 5.9 billion by the end of 2027. This widespread adoption of 5G technology is enhancing industrial networking solutions, fueling the market growth worldwide.

Moreover, the worldwide growing telecommunications industry is another factor driving the industrial networking solutions market demand by providing the essential infrastructure for reliable and high-speed communication in industrial settings. According to the Telecom Regulatory Authority of India, the country's tele density as of March 31, 2023, stood at 84.15%, reflecting an increase of nearly 10% since March 2014.

Additionally, in 2022, the U.S. telecom industry invested USD 102 billion in broadband infrastructure. These advancements in telecommunications infrastructure are crucial for enabling seamless data exchange and connectivity in industrial settings, thereby fueling the demand for advanced networking solutions worldwide.

Also, the growing emphasis on cybersecurity across the globe further drives the industrial networking solutions market growth by increasing the demand for secure and robust networking technologies. According to a report published by the Business Continuity Institute (BCI) in June 2024, 93% of organizations are able to manage their cybersecurity risks, marking an increase from 89.9% in 2023. As industrial systems become more interconnected and data-driven, the risk of cyber threats and attacks on critical infrastructure intensifies. To safeguard against these risks, industries are investing in advanced networking solutions that offer enhanced security features, such as encryption, threat detection, and access control.

However, the high upfront investment required to implement industrial networking solutions serves as a barrier for small and medium-sized enterprises (SMEs) that lack the financial resources needed to adopt these technologies.

On the contrary, the adoption of Industrial IoT (IIoT) platforms is expected to create future opportunities in the market by enabling seamless connectivity and data exchange between industrial devices. As more industries integrate IIoT platforms, they will achieve greater efficiency, predictive maintenance, and improved decision-making, leading to increased demand for networking solutions and technologies that support these advancements.

Market Segmentations and Scope of the Study

The industrial networking solutions market report is segmented on the basis of component, technology, deployment type, application, end-user industry, and region. On the basis of component, the market is segmented into hardware, software, and services. The hardware segment is further divided into routers, switches, gateways, access points, cables & connectors, and others. The software segment is further distributed into network management software, network monitoring software, and security software. The services segment is further divided into consulting services, integration & deployment services, managed services, and support & maintenance services. On the basis of technology, the market is classified into wired networking and wireless networking. The wired networking segment is further classified into ethernet, industrial ethernet, and fieldbus. The wireless networking segment is further segmented into Wi-Fi, Cellular (4G/5G), Zigbee, Bluetooth, and others. On the basis of deployment type, the market is divided into on-premises, cloud-based, and hybrid. On the basis of application, the market is distributed into remote monitoring, predictive maintenance, asset tracking, security & surveillance, process automation, and data management & analytics. On the basis of end-user industry, the market is categorized into manufacturing, energy & utilities, transportation, healthcare, mining, telecommunications, and others. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

North America dominates the industrial networking solutions market share and is expected to continue its dominance during the forecast period. This is attributed to the increasing demand for advanced networking technologies in the aviation industry to support complex and critical aviation operations. According to the International Civil Aviation Organization (ICAO), the U.S. aviation sector is the fastest growing sector, with air transport expected to increase by an average of 4.3% annually over the next 20 years. As the aviation sector expands, there is a heightened need for robust and reliable networking solutions to ensure real-time data exchange and seamless integration between aircraft systems, air traffic control, and maintenance operations.

Also, the rising demand for networking solutions to support the complex and automated manufacturing processes of automotive production in this region further drives the market. According to the data provided by the International Trade Administration (ITA), total automotive production in Canada stood at USD 64,565 million in 2022 as compared to USD 54,892 million in 2021. As automotive manufacturers expand their operations, the growing need for reliable and scalable networking solutions to connect machinery, monitor production lines, and optimize operations is fueling the industrial networking solutions market expansion.

On the other hand, in Asia-Pacific, the global market is experiencing steady growth due to the expansion of the industrial production, that seeks to enhance production efficiency and connectivity through advanced networking technologies. As per the data provided by the Government of China, China's total value-added industrial production reached USD 5.57 trillion, accounting for 31.7% of its GDP. This rising industrial production increases the demand for reliable networking solutions to integrate machines, sensors, and control systems, facilitating real-time data exchange and operational coordination.

Moreover, the growing necessity for advanced networking systems to manage and optimize production, logistics, and research operations within the pharmaceutical industry further drives the market in this region. According to InvestIndia, the pharmaceutical industry in India is expected to reach USD 65 billion by 2024 and to USD 130 billion by 2030. This rising pharmaceutical production and the push for digital transformation is growing demand for reliable and secure networking solutions to ensure seamless communication between systems, and enhance overall operational efficiency.

Competitive Landscape

Various key players operating in the industrial networking solutions industry Cisco Systems, Inc., Juniper Networks, Inc., Huawei Technologies Co., Dell Inc., Rockwell Automation, Inc., Eaton Corporation Plc., Nokia Corporation, Hewlett Packard Enterprise Company, ABB Ltd, Belden Incorporated, and others. These market players continue to adopt various market development strategies including product launches to maintain their dominance in the market.

For instance, July 2024, Huawei launched the Xinghe Intelligent Network Solution at the Huawei Network Summit 2024 in Johannesburg, South Africa. This initiative is designed to accelerate the advancement of digital-intelligent development.

Also, in January 2024, Juniper Networks launched the industry's first AI-native networking platform, designed to enhance user experiences and reduce operational costs. This platform integrates AI capabilities to ensure reliable, measurable, and secure connections across campus, branch, and data center infrastructures.

Additionally, in June 2023, Cisco launched its networking cloud platform, designed to simplify the management of networking equipment through a unified interface. This platform addresses common challenges in network management, including fragmentation, limited visibility, security threats, and integration difficulties. By streamlining these aspects, Cisco aims to enhance operational efficiency and improve the overall user experience.

Key Benefits

• The report provides quantitative analysis and estimations of the industrial networking solutions market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future industrial networking solutions market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porter's Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Industrial Networking Solutions Market Key Segments

By Component

• Hardware

  • Routers

  • Switches

  • Gateways

  • Access Points

  • Cables & Connectors

  • Others

• Software

  • Network Management Software

  • Network Monitoring Software

  • Security Software

• Services

  • Consulting Services

  • Integration & Deployment Services

  • Managed Services

  • Support & Maintenance Services

By Technology

• Wired Networking

  • Ethernet

  • Industrial Ethernet

  • Fieldbus

• Wireless Networking

  • Wi-Fi

  • Cellular (4G/5G)

  • Zigbee

  • Bluetooth

  • Others 

By Deployment Type

• On-Premises

• Cloud-Based

• Hybrid

By Application

• Remote Monitoring

• Predictive Maintenance

• Asset Tracking

• Security & Surveillance

• Process Automation

• Data Management & Analytics 

By End-User Industry

• Manufacturing

• Energy & Utilities

• Transportation

• Healthcare

• Mining

• Telecommunications

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Key Players

• Cisco Systems, Inc.

• Juniper Networks, Inc.

• Huawei Technologies Co.

• Dell Inc.

• Rockwell Automation, Inc.

• Eaton Corporation Plc.

• Nokia Corporation

• Hewlett Packard Enterprise Company

• ABB Ltd.

• Belden Incorporated