Keywords: Industrial Ethernet Devices, Industrial Network Protocols, Industrie 4.0, Industrial Internet of Things
The market for industrial Ethernet devices that reside below the controller level, including remote I/O, HMI/OIT, servo drives, and similar products, remains a bright spot in the overall market for industrial automation hardware. ARC Advisory Group’s latest in-depth update on this segment reveals that continued affirmation of the industrial Ethernet value proposition, coupled with lack of saturation in key device segments, will contribute to sustained increases for the foreseeable future.
Expanded availability and use of PROFINET-based devices at the field or I/O level will further fuel shipments, although success in migrating the significant PROFIBUS user base to PROFINET at the device level remains a wildcard. “In many respects, the value proposition for industrial Ethernet parallels those for emerging concepts such as Industrie 4.0 and the Industrial Internet of Things, adding further substance to its longevity prospects. Industrial Ethernet aligns well with both of these concepts by providing flexibility and ease of integration to support Industrie 4.0 and connectivity for the Industrial Internet of Things,” according to Vice President Chantal Polsonetti, the principal author of ARC’s “Industrial Ethernet Devices Global Market Research Study”.
Changing Market Shares for Suppliers and Protocols
As industrial Ethernet continues to penetrate the device level of the automation hierarchy, increased product availability has affected not only the overall market size, but also the relative market shares of the leading participants. New entrants, both control suppliers and third-party device providers, have significantly impacted the competitive landscape. Industrial Ethernet often represents a core strategic platform for control system and device suppliers alike.
While the automation control market at large is now global, with the leading suppliers following their global customers to new facilities around the world, a strong regional orientation remains. This truth extends to the associated device-level industrial Ethernet market, where protocol market shares continue to vary according to the region in question. Application specificity, for example in the important motion control segment, is a primary market share determinant as well.
Lack of Saturation in Key Device Categories
ARC compares current and forecast market sizes for industrial Ethernet devices to its internal database to assess market penetration by device type, a key forecast metric. This approach reveals that industrial Ethernet has already significantly penetrated some device categories, while other segments exhibit more significant upside potential because the interface currently represents a single-digit share of shipments.
Other factors include the suitability of the device type to use of the Ethernet interface and increasing availability of Ethernet-based products in these device categories, including in process automation. Relative ease of displacing existing interface options, including serial networks, is also a factor.
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