Industrial Ethernet Switch Global Market Report 2024

The industrial ethernet switch market size has grown strongly in recent years. It will grow from $2.8 billion in 2023 to $3.01 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth during the historical period can be attributed to automation in manufacturing, the rise of Industry 4.0, the growing need for high-speed data transmission, increased adoption of Ethernet-based protocols, and the demand for robust and reliable networking.

The industrial ethernet switch market size is expected to see strong growth in the next few years. It will grow to $3.88 billion in 2028 at a compound annual growth rate (CAGR) of 6.5%. The projected growth in the forecast period can be attributed to integration with 5G networks, the rapid expansion of edge computing, escalating cybersecurity concerns, growth in remote monitoring and maintenance, and the continued expansion of IIoT (Industrial Internet of Things). Key trends in the forecast period encompass the integration of time-sensitive networking (TSN), migration to gigabit and 10-gigabit Ethernet, enhanced security features, robustness for harsh environments, and remote management and monitoring.

The industrial ethernet switch market is poised for growth due to the increasing adoption of the industrial Internet of Things (IoT). The industrial IoT involves applying IoT in industrial sectors, and industrial ethernet switches play a crucial role in providing high-bandwidth or high-density networking solutions. For example, a report by Ericsson in September 2022 indicated that nearly 60% of cellular IoT connections are expected to be broadband IoT by the end of 2028, with 4G being the primary connectivity. The global IoT connections are projected to reach 34.7 billion by 2028, indicating an 18% growth rate. Thus, the rising adoption of industrial IoT is a driving force behind the industrial ethernet switch market.

The industrial ethernet switch market is poised for growth due to the expanding trend of industrial automation. Industrial automation involves the use of control systems, computer technology, and information tech to replace human intervention in industry processes, enhancing efficiency, productivity, and safety. Industrial ethernet switches are essential components providing the communication backbone necessary for the seamless operation and expansion of industrial automation. The World Robotics Report by the International Federation of Robotics in 2022 reported a significant surge in the installation of new industrial robots worldwide, indicating a 31% year-on-year growth. Therefore, the growing trend of industrial automation is driving the industrial ethernet switch market.

In the industrial ethernet switch market, product innovation is a key trend among major companies. In May 2022, the Sweden-based industrial data communications products manufacturer Westermo launched a 10-gigabit industrial Ethernet switch designed to meet growing bandwidth demands. The product features the WeOS operating system, ensuring continuous operation and support for a expanding range of protocols and features while simplifying installation, operation, and maintenance.

Major companies in the industrial ethernet switch market are entering into strategic collaborations to develop crypto-secure switches and maintain their market position. Strategic collaborations are crucial for advancing pumped hydro storage, expanding market reach, mitigating risks, and ensuring successful development and integration into the broader energy landscape. In September 2023, Westermo Network Technologies, a Sweden-based communication device company, and Eviden, a France-based next-gen technology leader in data-driven solutions, announced a strategic partnership to develop security solutions for industrial data communications. This collaboration responds to the increasing demand for crypto-agile solutions in the rail industry and other sectors, emphasizing the growing importance of high-level security solutions using crypto-agile operational technology (OT).

In October 2021, Marvell Technology, Inc., a US-based semiconductor manufacturer, acquired Innovium Inc. for an undisclosed sum. This acquisition enhances Marvell's capabilities in the switch market, particularly in the rapidly growing sector of cloud-optimized solutions. Innovium Inc. is a US-based company specializing in developing ethernet switch systems for cloud and edge data centers.

Major companies operating in the industrial ethernet switch market report are Microsoft Corporation, Dell Technologies Inc., Huawei Technologies Co. Ltd., Hikvision Digital Technology Co. Ltd., Siemens Ag, International Business Machines Corporation, Cisco Systems Inc., Schneider Electric SE, ABB Ltd., Hewlett Packard Enterprise Company, Rockwell Automation Inc., Omron Corp., Juniper Networks Inc., Arista Networks Inc., Phoenix Contact GmbH & Co. KG, Avaya Inc., Hirschmann (a Belden brand), Belden Inc., Advantech Co. Ltd., Polycom Inc., Alcatel-Lucent S.A, Extreme Networks Inc., Netgear Inc., Allied Telesis Inc., Moxa Inc., Beckhoff Automation GmbH & Co. KG, 3onedata Co., Mencom Corporation, Korenix Technology Co. Ltd., Brocade Communication Systems Inc., Weidmüller, Westermo Network Technologies, B&R Industrial Automation GmbH, Harting Technologiegruppe, TRENDnet.

Asia-Pacific was the largest region in the global industrial ethernet switches market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the industrial ethernet switch market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial ethernet switch market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of industrial Ethernet switches are managed industrial Ethernet switches and unmanaged industrial Ethernet switches. Managed switches, designed specifically for industrial use, find applications in smart grids, security and surveillance, intelligent rail and traffic, manufacturing, electric and power, aerospace and defense, automotive, oil and gas, and other industrial sectors.

The industrial ethernet switch market research report is one of a series of new reports that provides industrial ethernet switch market statistics, including industrial ethernet switch industry global market size, regional shares, competitors with an industrial ethernet switch market share, detailed industrial ethernet switch market segments, market trends, and opportunities, and any further data you may need to thrive in the industrial ethernet switch industry. This industrial ethernet switch market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The industrial ethernet switch market consists of sales of fiber cables, and electrical chips. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.