Industrial Ethernet Switch Market (Updated Version Available)
Industrial Ethernet Switch Market Size, Share & Trends Analysis, By Type (Unmanaged Switches, Managed Switches, and Others), By End User (Aerospace & Defense, Food & Beverage, Oil & Gas, Automotive, and Others), By Region, Forecast Period-2023 - 2030.
Report ID : RI_673892 | Date : May 2023 |
Format : 
Key Market Overview:
The Industrial Ethernet Switch Market demonstrated a valuation of USD 3,257.87 Million in 2022, exhibiting a strong CAGR of 7.3% during the forecast period (2023-2030),the Industrial Ethernet Switch Market is anticipated to reach a value of USD 5,609.64 Million, presenting lucrative opportunities for industry players and contributing to the evolution of industrial connectivity.
An industrial ethernet switch, also known as an industrial switch, refers to a type of networking technology that is particularly designed for utilization in industrial settings. Industrial ethernet switches offer high-speed, reliable data transmission for industrial networks. Moreover, industrial ethernet switches offer a range of benefits including high-temperature ratings, improved durability, better network determinism, and enhanced data integrity, among others. The benefits of industrial ethernet switches are key determinants for increasing its utilization in aerospace & defense, food & beverage, oil & gas, automotive, and other industries.
Factors such as increasing aircraft production, growing trend for investments in air defense systems, and the rising installation of industrial ethernet switches in modern aircraft are among the key factors driving the adoption of industrial ethernet switches. Additionally, the rising trend of automation in the manufacturing sector and increasing automobile production are significant factors fostering the market demand for industrial ethernet switches.
In February 2020, Advantech launched its new series of industrial ethernet switches. The industrial ethernet switch series aims to expand the Advantech\'s 10G product line by providing a diverse range of 10G ethernet selections integrated with mass data accumulation and transmission for hyper-converged infrastructure associated with heavy data transmission. Therefore, the rising developments of advanced industrial ethernet switches are further driving the growth of the market.
Industrial Ethernet Switch Report Coverage:
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Market Dynamics:
Driver:
The growing automotive industry is spurring the market growth for industrial ethernet switch
The automotive industry is rapidly moving forward with the electrification and automation of automobiles, making vehicles part of the growing IoT landscape. Industrial ethernet switches are primarily utilized in the automotive industry to offer secure and safe products for interconnection of microprocessors, connection of PHYs (physical layers), and for expansion of the ethernet port count in MCU/MPU/SOC. Moreover, industrial ethernet switches are often employed in automobiles to simplify the in-vehicle network by bringing IP to the edge in cross-domain or zonal architectures.
Factors including the rapid pace of industrialization, increasing automobile production, advancements in autonomous driving systems, and the rising trend of EV adoption are among the key factors driving the adoption of industrial ethernet switches. According to the International Organization of Motor Vehicle Manufacturers, the total automobile production in the European region reached 13,801,210 units in 2022, depicting an increase of 5% from 13,129,583 units in 2021. Thus, the rising automobile production is fostering the demand for industrial ethernet switches for efficient interconnection among in-vehicle networks, thereby driving the growth of the market.
Restraint:
The high cost of industrial ethernet switches is restraining the market growth
The integration of industrial ethernet switches is often associated with high cost, which is a prime factor restricting the growth of the market. The overall cost of digital cameras is primarily dependent on the cost of production, followed by the cost of raw materials including plastic, copper, aluminum, and others used in the manufacturing of industrial ethernet switches.
For instance, Cisco offers a range of industrial ethernet switch series that typically ranges from USD 1,300 to USD 5,000 or more, depending on the specification and functionality of the industrial ethernet switch. Therefore, the high cost associated with the integration of industrial ethernet switches is restraining the growth of the market.
Industrial Ethernet Switch Market Segmentation:
By Type
The type segment is divided into unmanaged switches and managed switches.
The managed switches segment is anticipated to contribute a substantial share during the forecast period. A managed industrial ethernet switch enables ethernet devices to easily communicate with each other and consists of multiple features for managing, configuring, and monitoring traffic on a network. Moreover, managed industrial ethernet switches offer higher control over how data travels over the network and its accessibility. Managed industrial ethernet switches also offer enhanced security by providing greater control over how sensitive data is transmitted over the network.
Further, factors including the growing trend of industrial automation and the rising need for real-time network analysis and control are among the vital factors driving the segmental growth of managed switches.
Additionally, the unmanaged switches segment is expected to grow steadily during the forecast period. Unmanaged switches are particularly designed for connecting equipment in network environments that are susceptible to extreme operating temperatures, shocks, and vibrations. Unmanaged industrial ethernet switches are often integrated with industrial safety certification along with approval for hazardous locations, which makes it ideal for utilization at sites with harsh environmental conditions such as oil & gas, industrial and factory automation, and others. According to Invest India, the oil and gas sector in India witnessed a growth of around 5% in FY 2021-22 as compared to the previous year. Additionally, the total oil refining capacity of India is equivalent to 251 MMTPA as of October 2022, comprising of 23 refineries. Hence, the growing oil & gas industry and the prevalence of various refineries is driving the adoption of unmanaged switches, owing to its above-mentioned features, in turn fostering the growth of the segment.
Furthermore, factors such as the expansion of oil & gas refineries and the growing need for cost-effective and durable switches for harsh operating conditions are prime factors driving the growth of the unmanaged switches segment.
By End Use
The end user segment is divided into aerospace & defense, food & beverage, oil & gas, automotive, and others.
The aerospace & defense segment is expected to account for a substantial share in the industrial ethernet switch market. Industrial ethernet switches are employed in the aerospace & defense sector, particularly for applications including unmanned aerial vehicles, helicopters, and commercial aircraft among others. Industrial ethernet switches ensure high interoperability, reliability, along with high-speed efficient communication even in harsh conditions, which are key aspects for driving its deployment in the aerospace & defense sector.
Factors such as increasing aircraft production, rising commercial flight activities, growing investments in air defense systems, and the increasing need for efficient communication solutions during air travel are major factors driving the growth of the aerospace & defense segment.
According to the Defense & Security Monitor, Boeing delivered 99 commercial aircraft in the fourth quarter of 2021, depicting a significant increase from 59 deliveries in comparison to the fourth quarter of 2020. Thus, the rising production of aircraft is fostering the adoption of industrial ethernet switches to ensure high interoperability and efficient communication systems, in turn, driving the growth of the segment.
By Region:
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The adoption of industrial ethernet switches in the North American region is primarily driven by its usage in the aerospace, military, and other sectors. The deployment of industrial ethernet switches in aviation and military applications to offer seamless network connectivity in connected aircraft, unmanned vehicles, systems, and other ground-based military vehicles is further increasing the demand for industrial ethernet switches in the region.
Additionally, the rising investment in the military and defense sector is a significant factor fostering the market demand in the region. For instance, the Department of Defense of the United States recently invested around USD 50 million for the automation of future army ground vehicles that is led by the Armys Robotic Combat Vehicle program. The main motive of the investment is to support military vehicles mainly designed for surveillance, reconnaissance, and high-risk missions. The above factors are further boosting the adoption of industrial ethernet switches in the North American region, in turn driving the market growth during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The rapid pace of industrialization, development, and globalization are creating lucrative opportunities for the growth of the market in the region. Moreover, the growth of multiple industries in the Asia-Pacific region such as oil & gas, automotive, aerospace & defense, and others, are contributing to the market growth for industrial ethernet switches.
Additionally, the increasing government investments in the aerospace & defense sector are further increasing the adoption of industrial ethernet switches in the region. For instance, the Government of India allocated approx. USD 72.4 billion to the Ministry of Defense as part of its Union Budget 2023-24. The prime focus of the budget allocation to the Indian Ministry of Defense is to aid in the development of military ground vehicles, new unmanned vehicles, and other related systems. Thus, the aforementioned factors are further driving the deployment of industrial ethernet switches for seamless network connectivity in unmanned vehicles, systems, and other ground-based military vehicles, thereby, driving the market growth in the region in the upcoming years.
Industrial Ethernet Switch Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Industrial Ethernet Switch Market. Key players in the market include-
• Cisco Systems Inc.
• Belden Inc.
• Alcatel-Lucent
• Hewlett Packard Enterprise
• Avaya Inc.
• IBM Corporation
• Broadcom Inc.
• Siemens AG
• ZTE Corporation
• Omron Corporation
• Rockwell Automation
• Moxa Inc.
Recent Developments
• In November 2022, Siemens AG launched its new series of industrial ethernet switches, XC/XR-300 series. The new series of industrial ethernet switches offer high port density, which enables multiple devices to be connected within large network infrastructures.
• In April 2020, Westermo introduced its industrial ethernet switch platform with the aim of fulfilling the needs of future data communication networks. The platform is integrated with software hardware, and network design support and offers advanced capabilities for the creation of reliable networks across various industries.
The Industrial Ethernet Switch Market demonstrated a valuation of USD 3,257.87 Million in 2022, exhibiting a strong CAGR of 7.3% during the forecast period (2023-2030),the Industrial Ethernet Switch Market is anticipated to reach a value of USD 5,609.64 Million, presenting lucrative opportunities for industry players and contributing to the evolution of industrial connectivity.
An industrial ethernet switch, also known as an industrial switch, refers to a type of networking technology that is particularly designed for utilization in industrial settings. Industrial ethernet switches offer high-speed, reliable data transmission for industrial networks. Moreover, industrial ethernet switches offer a range of benefits including high-temperature ratings, improved durability, better network determinism, and enhanced data integrity, among others. The benefits of industrial ethernet switches are key determinants for increasing its utilization in aerospace & defense, food & beverage, oil & gas, automotive, and other industries.
Factors such as increasing aircraft production, growing trend for investments in air defense systems, and the rising installation of industrial ethernet switches in modern aircraft are among the key factors driving the adoption of industrial ethernet switches. Additionally, the rising trend of automation in the manufacturing sector and increasing automobile production are significant factors fostering the market demand for industrial ethernet switches.
In February 2020, Advantech launched its new series of industrial ethernet switches. The industrial ethernet switch series aims to expand the Advantech\'s 10G product line by providing a diverse range of 10G ethernet selections integrated with mass data accumulation and transmission for hyper-converged infrastructure associated with heavy data transmission. Therefore, the rising developments of advanced industrial ethernet switches are further driving the growth of the market.
Industrial Ethernet Switch Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 (USD Million) | 5,609.64 million |
| CAGR (2023-2030) | 7.3 % |
| Base Year | 2022 |
| By Type | Unmanaged Switches, Managed Switches, and Others |
| By End Use | Aerospace & Defense, Food & Beverage, Oil & Gas, Automotive, and Others |
| By Geography |
|
| Key Players | Cisco Systems Inc., Belden Inc., Alcatel-Lucent, Hewlett Packard Enterprise, Avaya Inc., IBM Corporation, Broadcom Inc., Siemens AG, ZTE Corporation, Omron Corporation, Rockwell Automation, and Moxa Inc. |
Market Dynamics:
Driver:
The growing automotive industry is spurring the market growth for industrial ethernet switch
The automotive industry is rapidly moving forward with the electrification and automation of automobiles, making vehicles part of the growing IoT landscape. Industrial ethernet switches are primarily utilized in the automotive industry to offer secure and safe products for interconnection of microprocessors, connection of PHYs (physical layers), and for expansion of the ethernet port count in MCU/MPU/SOC. Moreover, industrial ethernet switches are often employed in automobiles to simplify the in-vehicle network by bringing IP to the edge in cross-domain or zonal architectures.
Factors including the rapid pace of industrialization, increasing automobile production, advancements in autonomous driving systems, and the rising trend of EV adoption are among the key factors driving the adoption of industrial ethernet switches. According to the International Organization of Motor Vehicle Manufacturers, the total automobile production in the European region reached 13,801,210 units in 2022, depicting an increase of 5% from 13,129,583 units in 2021. Thus, the rising automobile production is fostering the demand for industrial ethernet switches for efficient interconnection among in-vehicle networks, thereby driving the growth of the market.
Restraint:
The high cost of industrial ethernet switches is restraining the market growth
The integration of industrial ethernet switches is often associated with high cost, which is a prime factor restricting the growth of the market. The overall cost of digital cameras is primarily dependent on the cost of production, followed by the cost of raw materials including plastic, copper, aluminum, and others used in the manufacturing of industrial ethernet switches.
For instance, Cisco offers a range of industrial ethernet switch series that typically ranges from USD 1,300 to USD 5,000 or more, depending on the specification and functionality of the industrial ethernet switch. Therefore, the high cost associated with the integration of industrial ethernet switches is restraining the growth of the market.
Industrial Ethernet Switch Market Segmentation:
By Type
The type segment is divided into unmanaged switches and managed switches.
The managed switches segment is anticipated to contribute a substantial share during the forecast period. A managed industrial ethernet switch enables ethernet devices to easily communicate with each other and consists of multiple features for managing, configuring, and monitoring traffic on a network. Moreover, managed industrial ethernet switches offer higher control over how data travels over the network and its accessibility. Managed industrial ethernet switches also offer enhanced security by providing greater control over how sensitive data is transmitted over the network.
Further, factors including the growing trend of industrial automation and the rising need for real-time network analysis and control are among the vital factors driving the segmental growth of managed switches.
Additionally, the unmanaged switches segment is expected to grow steadily during the forecast period. Unmanaged switches are particularly designed for connecting equipment in network environments that are susceptible to extreme operating temperatures, shocks, and vibrations. Unmanaged industrial ethernet switches are often integrated with industrial safety certification along with approval for hazardous locations, which makes it ideal for utilization at sites with harsh environmental conditions such as oil & gas, industrial and factory automation, and others. According to Invest India, the oil and gas sector in India witnessed a growth of around 5% in FY 2021-22 as compared to the previous year. Additionally, the total oil refining capacity of India is equivalent to 251 MMTPA as of October 2022, comprising of 23 refineries. Hence, the growing oil & gas industry and the prevalence of various refineries is driving the adoption of unmanaged switches, owing to its above-mentioned features, in turn fostering the growth of the segment.
Furthermore, factors such as the expansion of oil & gas refineries and the growing need for cost-effective and durable switches for harsh operating conditions are prime factors driving the growth of the unmanaged switches segment.
By End Use
The end user segment is divided into aerospace & defense, food & beverage, oil & gas, automotive, and others.
The aerospace & defense segment is expected to account for a substantial share in the industrial ethernet switch market. Industrial ethernet switches are employed in the aerospace & defense sector, particularly for applications including unmanned aerial vehicles, helicopters, and commercial aircraft among others. Industrial ethernet switches ensure high interoperability, reliability, along with high-speed efficient communication even in harsh conditions, which are key aspects for driving its deployment in the aerospace & defense sector.
Factors such as increasing aircraft production, rising commercial flight activities, growing investments in air defense systems, and the increasing need for efficient communication solutions during air travel are major factors driving the growth of the aerospace & defense segment.
According to the Defense & Security Monitor, Boeing delivered 99 commercial aircraft in the fourth quarter of 2021, depicting a significant increase from 59 deliveries in comparison to the fourth quarter of 2020. Thus, the rising production of aircraft is fostering the adoption of industrial ethernet switches to ensure high interoperability and efficient communication systems, in turn, driving the growth of the segment.
By Region:
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The adoption of industrial ethernet switches in the North American region is primarily driven by its usage in the aerospace, military, and other sectors. The deployment of industrial ethernet switches in aviation and military applications to offer seamless network connectivity in connected aircraft, unmanned vehicles, systems, and other ground-based military vehicles is further increasing the demand for industrial ethernet switches in the region.
Additionally, the rising investment in the military and defense sector is a significant factor fostering the market demand in the region. For instance, the Department of Defense of the United States recently invested around USD 50 million for the automation of future army ground vehicles that is led by the Armys Robotic Combat Vehicle program. The main motive of the investment is to support military vehicles mainly designed for surveillance, reconnaissance, and high-risk missions. The above factors are further boosting the adoption of industrial ethernet switches in the North American region, in turn driving the market growth during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The rapid pace of industrialization, development, and globalization are creating lucrative opportunities for the growth of the market in the region. Moreover, the growth of multiple industries in the Asia-Pacific region such as oil & gas, automotive, aerospace & defense, and others, are contributing to the market growth for industrial ethernet switches.
Additionally, the increasing government investments in the aerospace & defense sector are further increasing the adoption of industrial ethernet switches in the region. For instance, the Government of India allocated approx. USD 72.4 billion to the Ministry of Defense as part of its Union Budget 2023-24. The prime focus of the budget allocation to the Indian Ministry of Defense is to aid in the development of military ground vehicles, new unmanned vehicles, and other related systems. Thus, the aforementioned factors are further driving the deployment of industrial ethernet switches for seamless network connectivity in unmanned vehicles, systems, and other ground-based military vehicles, thereby, driving the market growth in the region in the upcoming years.
Industrial Ethernet Switch Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in Research and Development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the Global Industrial Ethernet Switch Market. Key players in the market include-
• Cisco Systems Inc.
• Belden Inc.
• Alcatel-Lucent
• Hewlett Packard Enterprise
• Avaya Inc.
• IBM Corporation
• Broadcom Inc.
• Siemens AG
• ZTE Corporation
• Omron Corporation
• Rockwell Automation
• Moxa Inc.
Recent Developments
• In November 2022, Siemens AG launched its new series of industrial ethernet switches, XC/XR-300 series. The new series of industrial ethernet switches offer high port density, which enables multiple devices to be connected within large network infrastructures.
• In April 2020, Westermo introduced its industrial ethernet switch platform with the aim of fulfilling the needs of future data communication networks. The platform is integrated with software hardware, and network design support and offers advanced capabilities for the creation of reliable networks across various industries.
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| Multi user | : $5460 |
| Corporate user | : $7460 |
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| Single user | : $3860 |
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| Multi user | : $5460 |
| Corporate user | : $7460 |
Buy Now
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