Industrial Ethernet Switch Market Outlook – 2028
The global industrial Ethernet switch market size was valued at $2.94 Billion in 2020, and is projected to reach $4.99 Billion by 2028, to register a CAGR of 7.1% from 2021 to 2028. Ethernet switch is a multiport network switch that connects all the computer networking devices together on a computer. These industrial-grade Ethernet Switches are particularly designed for connecting the devices in industrial network environments that are subject to extreme operating temperatures of -40°C to 75°C, shocks, and vibrations. Such type of Ethernet switches find applications in industrial and factory automation; rail and intelligent transportation systems (ITSs); marine; and oil and gas sectors.
Factors such as increase in adoption of industrial Ethernet switches due to its benefits along with rising need to ensure efficiency in communication infrastructure in the automotive & transport environment significantly drives the growth of the market. In addition, rise in application of industrial Ethernet switch in industrial infrastructures such as smart grid, intelligent rail & traffic, security & surveillance, and other utilities, fuels the industrial Ethernet switch market growth.
However, the technological complexity involved in Ethernet switches makes it vulnerable toward security attacks, which is anticipated to restrain the industrial Ethernet switch market share. On the contrary, factors such as emergence of Industry 4.0 is anticipated to provide lucrative opportunities for the market growth. In addition, emergence of connected vehicles in the automotive & transportation industry is expected to be opportunistic for growth of the industrial Ethernet switch industry during the forecast period.
The global industrial Ethernet switch market has been significantly impacted by the COVID-19 outbreak. The production facilities of the electronics and semiconductors have been halted, owing to the slowdown and unavailability of the workforce across the globe. COVID-19 outbreak has caused a significant and protracted drop in manufacturing utilization, and travel bans & facility closures kept workers out of their factories, which led to slowdown in the growth of the market in 2020.
By Type
Managed Switches segment will dominate the market throughout the forecast period
Segment Overview
The global industrial Ethernet switch market is segmented on the basis of type, industry vertical, and region. On the basis of type, the market is bifurcated into managed and unmanaged. By industry vertical, the market is classified into manufacturing, electric and power, aerospace and defense, automotive and transportation, oil and gas, and others.
By Industry Vertical
Manufacturing segment is expected to secure the leading position during 2021 - 2028
Region wise, the industrial Ethernet switch market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). APAC region is expected to develop at highest growth rate during the conjecture time frame. The need to automate the manufacturing process as well as continuous industrialization, primarily drives the growth of the Asia-Pacific Ethernet switch market. Developing countries such as China and India are anticipated to be the largest market. This is attributed to the fact that industries in the region are investing heavily in the automation process.
By Region
Asia-Pacific region would exhibit the highest CAGR of 9.4% during 2021 - 2028
Leading market players such as Arista Networks, Cisco Systems, Inc., Belden Inc., Siemens Ag, and Brocade Communication Systems Inc., are focusing their investment on technologically advanced and cost-effective products. For instance, in April 2020, DIGISOL Systems Ltd., a provider of IT networking solutions extended their Industrial Grade switches portfolio by launching DG-IS4512E, 8 port L2 Managed Din-Rail Industrial Gigabit Switch. This switch is tailored for special requirements in industrial environments. Moreover, the companies aim for business expansion through mergers & acquisitions, partnerships, and product launches to prevent the new entrants from capturing/entering the market
Top Impacting Factors
Factors such as increase in adoption of industrial Ethernet switches due to its benefits along with the increasing need to ensure efficiency in communication infrastructure in the automotive & transport environment significantly drives the growth of the market. In addition, rise in application of industrial Ethernet switch in industrial infrastructures such as smart grid, intelligent rail & traffic, security & surveillance, and other utilities, fuels the market growth.
However, the technological complexity involved in Ethernet switches makes it vulnerable toward security attacks, which is anticipated to restrain the market growth. On the contrary, factors such as emergence of Industry 4.0 is anticipated to provide lucrative opportunities for the market growth. In addition, emergence of connected vehicles in the automotive & transportation industry is expected to be opportunistic for growth of the industrial Ethernet switch market during the forecast period.
Competitive Analysis
Competitive analysis and profiles of the major industrial Ethernet switch market players such as Arista Networks, Cisco Systems Inc., Belden Inc., Siemens Ag, Brocade Communication Systems Inc., Hewlett-Packard, Juniper Network, Microsoft Corporation, Alcatel-Lucent, and Huawei. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the industry.
COVID-19 Impact Analysis
Global industrial Ethernet switch market has been significantly impacted by the covid-19 outbreak. The production facilities of the electronics and semiconductors have been halted, owing to the slowdown and unavailability of the workforce across the globe. COVID-19 outbreak has caused a significant and protracted drop in manufacturing utilization, and travel bans & facility closures kept workers out of their factories, which led to slowdown in the growth of the industrial Ethernet switch market in 2020.
The Asian and European countries under lockdowns have suffered a major loss of business and revenue, due to the shutdown of manufacturing units in the region. The operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease; thereby, leading to slowdown in the growth of the market in 2020.
However, the negative impact of COVID-19 on the industrial Ethernet switch market is expected to be there for a short period of time, and by early 2021 the market is anticipated to observe robust recovery rate along with the extensive demand for industrial Ethernet products in the post pandemic period. For instance, a growing number of manufacturing companies around the globe are reassessing their strategies and coming up with quick responses to stabilize their supply chain.
Key Benefits For Stakeholders
- This study comprises analytical depiction of the global industrial Ethernet switch market size along with the current trends and future estimations to depict the imminent investment pockets.
- The overall industrial Ethernet switch market analysis is determined to understand the profitable trends to gain a stronger foothold.
- The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
- The current industrial Ethernet switch market forecast is quantitatively analyzed from 2020 to 2028 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and the industrial Ethernet switch market share of key vendors.
Industrial Ethernet Switch Market Key Segments
By Type
- Managed
- Unmanaged
By Industry Vertical
- Manufacturing
- Electric and Power
- Aerospace and Defense
- Automotive and Transportation
- Oil and Gas
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Sweden
- France
- Germany
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Arista Networks
- Cisco Systems Inc.
- Belden Inc.
- Siemens Ag
- Brocade Communication Systems Inc.
- Hewlett-Packard
- Juniper Network
- Microsoft Corporation
- Alcatel-Lucent
- Huawei Technologies
Industrial Ethernet Switch Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By INDUSTRY VERTICAL |
|
 By Region |
|
 Key Market Players | HUAWEI TECHNOLOGIES CO., LTD., JUNIPER NETWORKS, INC., MICROSOFT CORPORATION, ARISTA NETWORKS, INC., SIEMENS AG, .CISCO SYSTEMS, INC., ALCATEL-LUCENT ENTERPRISE, BROCADE COMMUNICATION SYSTEMS, INC. (BROADCOM INC.), HEWLETT PACKARD ENTERPRISE COMPANY, BELDEN, INC. |
Analyst Review
According to the CXOs of leading companies, the industrial Ethernet switch market is going through enormous transformation and growth. Increase in adoption of Ethernet-based solution in a number of industries as well as improvement of data center capacities are fueling the demand for industrial Ethernet switches.
In addition, increase in adoption of industrial Ethernet switches due to its benefits along with the increasing need to ensure efficiency in communication infrastructure in the automotive & transport environment significantly drives growth of the market. Moreover, rise in application of industrial Ethernet switch in industrial infrastructures such as smart grid, intelligent rail & traffic, security & surveillance, and other utilities fuels the market growth.
However, the technological complexity involved in Ethernet switches that makes it vulnerable towards security attacks is anticipated to restrain the market growth. On the contrary, the factors such as the emergence of Industry 4.0 is anticipated to provide lucrative opportunities for the market growth. In addition, emergence of connected vehicles in the automotive & transportation industry is expected to be opportunistic for growth of the industrial Ethernet switch market during the forecast period.
The industrial Ethernet switch market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, efficiency of the product, and support services. Owing to the competition, vendors operating in the market are offering advanced industrial Ethernet switch solutions to improve the marketing strategies of enterprises.
For instance, in February 2020, Advantech, the leading player in embedded, industrial, IoT, and automation solution platforms launched its latest series of 10G industrial Ethernet switches. This launch extends the coverage of Advantech’s 10G product line by delivering a variety of 10G Ethernet selections. In addition, key players are heavily investing in R&D activities to develop effective industrial Ethernet switch technology and services offerings, which is opportunistic for the market.
The Industrial Ethernet Switch Market is estimated to grow at a CAGR of 7.1% from 2021 to 2028.
The Industrial Ethernet Switch Market is projected to reach $4.99 billion by 2028.
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Increase in adoption of industrial Ethernet switches due to its benefits along with the increasing need to ensure efficiency in communication infrastructure etc. boost the Industrial Ethernet Switch market growth.
The key players profiled in the report include Arista Networks, Cisco Systems Inc., Belden Inc., Siemens Ag, Brocade Communication Systems Inc., and many more.
On the basis of top growing big corporations, we select top 10 players.
The Industrial Ethernet Switch Market is segmented on the basis of type, industry vertical, and region.
The key growth strategies of Industrial Ethernet Switch market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Electric and Power segment would grow at a highest CAGR of 10.2% during the forecast period.
North America region will dominate the market by the end of 2028.
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