Common Tech Benefits Offset by Variety of Implementations
Firmly established at the control or factory level of conventional industrial automation hierarchies, industrial Ethernet is just now coming into its own as a viable contender at the I/O or field level. Shipments of industrial Ethernet devices at this level remained small in 2010, particularly relative to the large number of serial network devices that continue to be shipped. This leaves significant incremental opportunity for Ethernet at the device level in the form of both displacement of these legacy networks and new growth opportunities that Ethernet’s capabilities unlock.
The number and variety of value propositions industrial Ethernet offers at the device level continues to grow. ARC’s previous analyses of this market highlighted benefits such as commercial standardization and vertical integration for customers looking to adopt a single common network, but the advent of dedicated motion control networks and rising interest in process automation applications are further examples of a broader variety of potential benefits.
Strategic Issues
Strategies vary for component vs. solutions suppliers when targeting industrial Ethernet at the device level. Ongoing market segmentation further drives the need to appeal to the right benefits.
- How do Ethernet value propositions vary by target market?
- How best to differentiate your offering given the common technology base?
- In which segments are embedded switching a differentiator, and where is it not?
- How to appeal to both IT and engineering requirements at the end customer?
