Industrial Ethernet Switch Market Size & Industry Share - Growth Trends & Forecasts (2023 - 2030)

Based on the Type :

The type segment is bifurcated into managed and unmanaged switches. In 2022, the Unmanaged segment accounted for the highest industrial ethernet switch market share and is also projected to witness the fastest CAGR during the forecast period. Unmanaged switches are extremely easy to handle and require no configuration and management. Additionally, they are plug-and-play devices, allowing users to simply connect the devices and immediately start using the network. Moreover, they are more cost-effective in comparison to other fixed configuration switches, further driving the market proliferation. Assessment of market trends suggests that they have the ability to withstand harsh environmental conditions and are manufactured using corrosion-resistant material, thus contributing considerably in boosting the proliferation of the segment. For instance, in April 2022, Versitron Inc. launched unmanaged industrial switches with 100/1G SFP slots and 10/100/1000 RJ45 ports. The switches are designed for basic plug-and-play installations and are corrosion-resistant to withstand harsh environmental conditions, hence contributing in promoting market expansion.

Based on the Enterprise Size :

The enterprise size segment is bifurcated into large enterprise and small-medium enterprise. In 2022, the Large enterprise segment accounted for the highest industrial ethernet switch market share as large enterprises have extensive operations with multiple sites, production facilities, and distributed networks. The enterprises require robust and scalable network infrastructure to connect various devices and systems across different locations. The switches provide the necessary connectivity and management capabilities to support complex networks, thus contributing notably in driving the proliferation of large enterprise segment. Additionally, managed switches provide advanced features including remote configuration, monitoring, and control, enabling efficient network management across multiple locations. Assessment of market trends suggests that Centralized management simplifies network administration and reduces the complexity associated with managing large-scale networks, hence promoting the proliferation of large enterprise segment.

Small-medium enterprises are anticipated to register the fastest CAGR in the market during the forecast period. The growth of the market is attributed to the increasing adoption of industrial automation by small-medium enterprises to improve operational efficiency. The switches play a vital role in enabling connectivity and communication between automated systems, machines, and devices. Additionally, they also provide scalability, allowing small enterprises to easily add or upgrade switches to accommodate the growing network requirements. In conclusion, with the increasing number of small-medium enterprises leading to increasing requirement of switches is also expected to increase industrial ethernet switch market growth. For instance, in December 2022, according to a report by The House of Commons Library, 99% of businesses in the United Kingdom are small or medium-sized businesses and SMEs accounted for 61% of the United Kingdom's economy. Additionally, the UK has approximately 217,000 small businesses and 36,000 medium-sized enterprises, thus contributing significantly in driving the expansion of small-medium enterprise segment.

However, the powdered segment is expected to be the fastest-growing segment during the forecast period. This is due to the increasing adoption of powdered sugar for its sweet, rich flavor and caramel-like aroma. Such powdered sugar is widely used in baked goods such as cakes and cookies, baked beans, barbecue sauces, and seasoning rubs.

Based on the Application :

The application segment is trifurcated into smart grid, intelligent rail and traffic, and security & surveillance. Security & surveillance holds the largest market share of 50.9% in 2022 as video surveillance systems are employed in various industries including commercial, residential, transportation, and public safety. The systems require reliable and high-bandwidth networks to transmit and manage large volumes of video data. The switches offer the necessary connectivity and bandwidth to handle the demands of video surveillance, thus becoming essential components of security infrastructure. Additionally, the switches are designed to withstand harsh environmental conditions, temperature variations, and electromagnetic interference. The switches provide features namely redundant power supplies, fault tolerance mechanisms, and network redundancy protocols, ensuring continuous operation and minimal downtime. For instance, in May 2021, Maiwe Communication launched embedded IE switches for mine video surveillance system and mine safety monitoring system. The advanced switches adjust in low and high temperatures, have strong anti-electromagnetic interference, and anti-vibration to meet the harsh working industrial environment.

Smart grids are predicted to witness the fastest CAGR in the market during the forecast period. The switches play a key role in enabling reliable communication and data exchange among various components of the smart grid infrastructure namely substations, distribution automation systems, and advanced metering infrastructure. The switches provide the necessary connectivity and bandwidth to support real-time monitoring, control, and optimization of energy flow, leading to improved energy management and efficiency. Additionally, smart grids facilitate the integration of renewable energy sources, including solar and wind power, into the existing energy infrastructure. The integration requires advanced communication and control capabilities to manage the fluctuating generation and distribution of renewable energy. The industrial ethernet switch market analysis concluded that the switches enable the integration of renewable energy sources by providing the network infrastructure for real-time monitoring and grid balancing, hence contributing remarkably in boosting the industrial ethernet switch market growth.

Based on the End-User :

The end-user segment is classified into electric and power, manufacturing, aerospace and defense, automotive, oil and gas, and others. The manufacturing sector accounted for the largest market share in 2022 as the switches are utilized in industrial automation. The switches enable seamless communication and data exchange between programmable logic controllers (PLCs), human-machine interfaces (HMIs), sensors, and other automation devices. Additionally, the switches also support real-time data transfer, ensuring efficient control and monitoring of manufacturing processes. Moreover, in manufacturing environments, multiple machines and devices need to communicate with each other for coordinated operation and process optimization. The switches facilitate machine-to-machine communication by providing reliable and high-bandwidth connectivity, allowing for real-time data exchange and coordination between machines. Examination of market trends concludes that the increasing adoption of the switches in manufacturing sector to allow real-time data transfer is spurring the market proliferation.

Electric and power segment is predicted to witness the fastest CAGR in the market during the forecast period. The growth of the market is endorsed by the ability of switches to provide reliable and high-bandwidth communication between different devices and systems within a substation. The switches enable real-time monitoring, control, and protection of power distribution equipment namely transformers, circuit breakers, and relays. Additionally, the switches also facilitate the seamless exchange of data between substation devices and control centers, improving the efficiency and reliability of power distribution. Moreover, Supervisory Control and Data Acquisition (SCADA) systems are extensively employed in the electric and power industry for monitoring and controlling power generation, transmission, and distribution processes. The switches form the backbone of SCADA networks, connecting SCADA servers, remote terminal units (RTUs), and intelligent electronic devices (IEDs). The industrial ethernet switch market analysis concluded that the switches provide the necessary bandwidth, low latency, and reliability for real-time data acquisition and control in SCADA applications, hence contributing notably in propelling the market expansion.

Based on the Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America accounted for the largest revenue share of USD 1,158.91 million in 2022 and is predicted to reach USD 2,012.76 million in 2030 in the market. In addition, in the region, the U.S. accounted for the maximum revenue share of 62.65% in the year 2022. The growth is attributed to the expanding manufacturing sector that drives the demand for the switches to provide real-time data transfer, ensuring efficient control and monitoring of manufacturing processes. Additionally, the presence of numerous large enterprises with extensive networking requires high-performance and scalable networking solutions, including switches to support the operations. Analysis of industrial ethernet switch market trends concludes that the expanding manufacturing sector and the presence of key players are the major factors responsible for driving the market proliferation in the region. For instance, in January 2021, L-com launched WM8-4G-4GP+, an eight port industrial gigabit Ethernet switch to offer high-speed connectivity in the manufacturing sector. The advanced Ethernet switch is designed to enable efficient monitoring of various manufacturing processes, hence contributing significantly in bolstering the market proliferation.

Asia Pacific accounted is expected to register the fastest CAGR of 7.5% in the market. The growth is credited to the rapid industrialization and infrastructure development in Asia Pacific countries including India, China, and Japan, and others. The infrastructure development includes smart city initiatives, transportation systems, manufacturing facilities, and energy networks. The Switches play a vital role in providing connectivity and networking capabilities in infrastructure projects, supporting efficient communication and data exchange. Analysis of industrial ethernet switch trends market concludes that the governments in the Asia Pacific are also investing heavily in the development of smart cities and the switches are essential for building the networking infrastructure, hence contributing to market proliferation.