Industrial Communication Market Report 2025

The industrial communication market size has grown strongly in recent years. It will grow from $24.0 billion in 2024 to $26.38 billion in 2025 at a compound annual growth rate (CAGR) of 9.9%. During the historical period, growth was driven by the wider implementation of wireless communication technologies, heightened emphasis on predictive maintenance and condition monitoring, government programs supporting smart manufacturing, broader adoption of industrial IoT solutions, and the rising demand for seamless interoperability among various industrial systems.

The industrial communication market size is expected to see strong growth in the next few years. It will grow to $37.99 billion in 2029 at a compound annual growth rate (CAGR) of 9.5%. In the forecast period, growth is expected to be driven by wider adoption of 5G technologies in industrial applications, increased investments in smart manufacturing, growing demand for edge computing capabilities, emphasis on energy-efficient communication solutions, and deeper integration of industrial communication networks with cloud platforms. Key trends anticipated include the expansion of edge computing within industrial networks, adoption of cloud-connected communication systems, enhanced cybersecurity in industrial protocols, development of real-time data analytics for communication networks, and broader implementation of standardized communication protocols.

The rising adoption of the Internet of Things (IoT) is expected to drive growth in the industrial communication market. The IoT is a network of physical devices equipped with sensors, software, and connectivity technologies that collect, exchange, and act on data over the internet or other networks without direct human intervention. IoT adoption is increasing due to enhanced connectivity, which enables real-time automation and smarter decision-making. Industrial communication benefits from IoT as connected devices generate large volumes of data that require fast, reliable networks for seamless connectivity, efficient data sharing, and synchronized industrial operations. For example, in July 2025, the European Commission reported that the number of IoT-connected devices is projected to grow at 7% annually, rising from over 40 billion in 2023 to 49 billion by 2026.

Companies in the industrial communication market are focusing on AI-driven service sensing integration to improve network efficiency, automation, and real-time data exchange across industrial operations. AI-driven service sensing integration uses artificial intelligence algorithms to analyze, predict, and optimize service demands in real time, enabling intelligent and automated network management. In March 2025, Huawei Technologies launched Enterprise Network Solution 5.2, which integrates AI-driven automation with ultra-low latency 5G connectivity. The platform uses intelligent algorithms, coordinated scheduling, and AI-based analytics to create efficient, reliable, and resilient industrial networks.

In May 2024, Amphenol Corporation, a US-based electronics manufacturer, acquired Carlisle Interconnect Technologies for $2.025 billion. This acquisition strengthens Amphenol’s ability to provide reliable interconnect solutions for industrial communication, meeting the needs of commercial air, defense, and industrial sectors. Carlisle Interconnect Technologies is a US-based provider of industrial communication hardware.

Major players in the industrial communication market are Siemens AG, GE Grid Solutions LLC, Cisco Systems Inc., Schneider Electric, Mitsubishi Electric Corporation, Asea Brown Boveri, Texas Instruments Incorporated, TE Connectivity, Infineon Technologies AG, Emerson Electric Co, Rockwell Automation, Omron Corporation, FANUC America Corporation, Endress+Hauser Group Services AG, Belden Inc., Advantech Co. Ltd., SICK AG, NATIONAL INSTRUMENTS CORP, ifm electronic gmbh, HMS Networks, and Moxa Inc.

North America was the largest region in the industrial communication market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in industrial communication report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the industrial communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid rise in U.S. tariffs and the subsequent trade frictions in spring 2025 are having a major impact on the electrical and electronics sector, with semiconductors, display panels, and rare-earth metals (essential for batteries and motors) subject to steep duties. Consumer electronics brands face profit erosion, as competitive markets limit their ability to pass costs to buyers. Industrial electronics manufacturers, meanwhile, grapple with delayed projects due to shortages of tariff-impacted components like printed circuit boards. Companies are responding by relocating assembly to tariff-exempt countries, increasing inventory buffers, and redesigning products to reduce dependency on restricted materials.

Industrial communication encompasses the technologies and systems that allow machines, devices, and control units to exchange data reliably and in real time within industrial settings. It provides low-latency, accurate communication that supports automation, monitoring, and overall operational effectiveness. These networks are essential for maintaining safety, streamlining processes, and boosting productivity in complex industrial environments.

The primary elements of industrial communication include software, hardware, and services. Software consists of applications and programs that manage and control communication networks within industrial operations. Common communication protocols include fieldbus, industrial Ethernet, and wireless technologies. Control mechanisms include programmable logic controllers (PLCs), supervisory control and data acquisition (SCADA) systems, distributed control systems (DCS), and others. Functional levels range from device or field level to control level and operational or supervisory level. Industrial communication is applied across various sectors, including automotive, transportation, electronics, aerospace, defense, oil and gas, food and beverages, energy, chemicals, pharmaceuticals, and manufacturing.

The industrial communication market research report is one of a series of new reports that provides industrial communication market statistics, including the industrial communication industry global market size, regional shares, competitors with the industrial communication market share, detailed industrial communication market segments, market trends, and opportunities, and any further data you may need to thrive in the industrial communication industry. This industrial communication 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 communication market consists of revenues earned by entities by providing services such as network design and consulting, system integration, network monitoring, and support services. The market value includes the value of related goods sold by the service provider or included within the service offering. The industrial communication market also includes sales of networking hardware, industrial switches, and protocol converters. 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.

This product will be delivered within 3-5 business days.