The global industrial communication market is estimated to grow at a CAGR of around 10% during the forecast period. Industrial communication referred to as communication within an industry. To make the whole process smooth, industries are using industrial communication to transmit their data between different systems within the industry and it integrates different data networks. In short, industry communication is used in control systems to pass data between field devices and programmable logic controllers (PLCs), between different PLCs and personal computers used for operator interface, data processing & storage, or management information. With the introduction of industrial communication concepts in industrial application scenarios, industrial automation is undergoing a tremendous change.

To connect sensors, machines, and IT systems in a single enterprise an industrial communication are required. The rising adoption rate of IoT by various industries has generated the need for establishing a link between different devices and exchange data in a safe, secure, and efficient manner. In the era of the fourth industrial revolution industrial communication made it possible to gather and analyze data across machines in a flexible, faster, and efficient way to produce higher-quality products at reduced costs. This automation would increase the productivity of the manufacturing process and promote industrial communication market growth.

The rising rate of cyber security threats is restraining the growth of the global industrial communication market. Data breaching, virus attacks, and hacking are now major concerns for any industry. Malicious viruses can tamper any vital information from an industrial communication system. For these threats, many industries are still choosing the traditional manual communication method over the new automated industrial communication system. Besides this, the complexity of standardization of the equipment and the devices required to install the industrial communication system is also restraining the market growth.

There is no standardization of devices in this market. For instance, many vendors offer hardware systems required for industrial wireless sensor networks (IWSN), however, the end-user often need to deploy software from other vendors. The rising demand for wireless industrial communication networks is an opportunity for the growth of the global industrial communication market. Wireless technologies, such as  WLAN, Wireless HART, Bluetooth smart, and ZigBee is opening up new growth opportunities for the industrial communication market.

Market Segmentation

The global industrial communication market is segmented based on the component, communication protocol, and end-user. Based on the component, the market is segmented into hardware and software and services. Based on the communication protocol, the market is segmented into Fieldbus, industrial ethernet, and wireless. Based on the end-user, the market is segmented into automotive and transportation, oil & gas, food & beverage, water & wastewater, and others.

Industrial Ethernet held a significant share in the communication protocol segment

Industrial communication mostly works with the ethernet communication protocol system. It is mostly used in the office environment as it offers higher speed, increased connection distance, and the ability to connect more nodes. Technological innovation in the Ethernet communication protocol is one of the major driving factors that is propelling the growth of the global industrial communication market. For instance, in May 2018, Siemens AG launched Industrial Ethernet switches with special functions for the process industry. The firmware functions (Profinet S2 device, H-Sync, and configuration in Run/CiR/H-CiR) in interaction with the Simatic PCS 7 process control system make the new products suitable for the flexible, reliable, and high-performance networking of process automation devices.

Global Industrial Communication Market Share by Communication Protocol, 2018 (%)

Regional Outlook

Geographically, the global industrial communication market is segmented into four major regions, such as North America, Europe, Asia-Pacific, and RoW. North America is estimated to have a major contribution in the market in terms of share due to acceleration inthe growing manufacturing sector, food & beverage, and water & wastewater industry in this region. Further, technological advancements, an increase in demand for the industrial communication system and the attempt taken in the research and development of the industrial communication market and the existence of key players are propelling the global industrial communication market. Besides this, the Asia-Pacific region is the fastest-growing region in the market. Growing manufacturing sectors from China, Japan, and India are contributing to the growth of the industrial communication market. China is the global manufacturing hub for semiconductor and automotive manufacturers, where the industrial communication system is extensively used. Rapidly growing automotive industry in China and Japan is likely to create growth opportunities for the market players in this country.

Global Industrial Communication Market Growth,by Region 2019-2025

Competitive Landscape

The major players that are providing industrial communication systems include Sick AG, OMRON Corp., Schneider ElectricSE, Belden, Inc., Moxa Inc., Siemens AG, Rockwell Automation, Inc., ABB Ltd., GE Grid Solutions, LLC, Cisco Systems, Inc., and others.Range of industrial communication systems provided by these key players including fiber sensor, photoelectric sensor, displacement sensor, level switch, basic switch, safety laser scanner, terminal relay, and others. These players adopt various strategies in order to compete in the global market. For instance, in December 2019, OMRON Corp. introduced MOS FET Relay Module G3VM-21MT with the solid-state relay in "T-type Circuit Structure". It contributes to reducing the maintenance frequency of test equipment and improving the productivity of electronic components.

In January 2018, OMRON Corporation introduced a new communication system with artificial intelligence, robotics automation, and sensor control at the 2018 Consumer Electronic Show (CES).

The Report Covers

• Market value data analysis of 2018 and forecast to 2025.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global industrial communication market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.