The global IO-link market size is expected to reach $74.08 billion by 2030 from $6.10 billion in 2020, growing at a CAGR of 29.0% from 2021 to 2030.
IO-link is an open standard serial communication protocol that allows for the bidirectional exchange of data from sensors and devices that support IO-link and are connected to a master. The master works as a gateway for the connection of up to eight IO-link devices including sensors, valves, or binary IO modules. The IO-link master can transmit the data over various networks, fieldbuses, or backplane buses, making the data accessible for immediate action or long-term analysis via an industrial information system. Each IO-link sensor has an IO device description (IODD) file that describes the device and its IO-link capabilities.
Multiple advantages have been associated with IO-link system, such as it requires standardized & reduced wiring, has increased data availability, enables remote configuration & monitoring, and requires simple device replacement. A key benefit of IO-link for many industries is that the IO-link does not require any special or complicated wiring. Rather, the devices can be connected using the same cost-effective standard unshielded 3-wire cables as conventional discrete I/O, which helps keep wiring simple. In addition, IO-link eliminates the need for analog sensors and reduces variety of cord sets required for sensors, which saves inventory costs. Furthermore, IO-link supports a master-slave configuration with passive connection points, which further reduces wiring requirements.
The growth of the global IO-link market size is anticipated to driven by factors such as the ability to support much higher level Fieldbus and Ethernet communication protocols, surge in demand for Industry 4.0, and rise in government initiatives toward the adoption of industrial automation drive the IO-link market growth. Moreover, with increase in awareness regarding benefits associated with IO-link, the trend of automation is being increasingly implemented since the onset of government’s Make in India campaign. Automation in India plays a major role in improving operational excellence, enhancing return on investment, productivity, and quality improvement, thus gaining popularity in the Indian manufacturing industry. In recent years, IO-link systems have witnessed increased adoption for industrial automation. IO-link is an open standard serial communication protocol that allows bidirectional exchange of data from IO-link supported sensors that are also connected through a master.
However, consumption of compact machines is a major restraint of the global IO-link market growth. In addition, the continuous adoption of next-generation technologies is expected to create opportunities for the IO-link industry. The continuous adoption of next-generation connected technologies such as IoT, industrial robotics, and cloud technologies is one of the prominent factors that is expected to boost the I/O-link market during the forecast period. Moreover, availability of cloud interface in IO-link and release of IO-link safety specifications are expected to offer remunerative opportunities for the growth of the global IO-link market revenue.
The global IO-link market share is segmented into type, component, application, industry vertical, and region. By type, the market is bifurcated into IO-link wired and IO-link wireless. On the basis of component, it is divided into IO-link master and IO-link devices. The IO-link devices segment is subsegmented into sensor nodes, modules, actuators, RFID read heads, others. The sensor nodes segment is further categorized into position sensor, temperature sensor, pressure sensor, vibration sensor, and others. The applications covered in the study include machine tool, handling & assembly automation, intralogistics, and packaging.
Depending on industry vertical, the market is fragmented into oil & gas, energy & power, automotive, aerospace & defense, pharmaceuticals, food & beverages, chemicals, and others.
Region wise, the IO-link market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Europe held the largest share of the IO-link market, owing to the presence of automotive, aerospace & defense, and industrial manufacturing verticals in the region. This region comprises major growing economies, such as the UK, Germany, and France, which offer significant growth opportunities for the IO-link industry.
By Type
IO-Link Wired segment is projected as one of the most lucrative segments.
Top Impacting Factors
The prominent factors that impact the IO-link market size are ability to support much higher level Fieldbus and Ethernet communication protocols, increase in penetration of Industry 4.0, and government initiatives toward the adoption of industrial automation. However, consumption of compact machines restricts the market growth. On the contrary, the continuous adoption of next-generation technologies is expected to create lucrative opportunities for the market.
By Industry Vertical
Automotive segment is expected to secure leading position during forecast period.
Covid-19 Impact Analysis
The COVID-19 pandemic has significantly impacted players operating in the IO-link market. Owing to the complete shutdown of all manufacturing plants, public places, and offices due to lockdown across the world, the demand for IO-link solutions decreased dramatically. Moreover, the demand for electronic devices such as sensors, switches, and actuators has decreased significantly worldwide, owing to lockdown imposed by different governments to contain the spread of the COVID-19, which as impacted the IO-link market growth.
However, the latter half of the year is expected to witness normalization in the inventory levels and increased demand for IO-link products, owing to stabilization in the automotive vertical. The slowdown in production by OEMs and reduction in demand for IO-link have declined the IO-link market growth. Shortage of components and materials has significantly impacted the global supply chains. In addition, reductions in various capital budgets and delay in planned projects in various industries have hampered the global economy.
Conversely, roll out of vaccines across the globe and decline cases of COVID-19, especially in North America and Europe are expected to boost the recovery of the IO-link market.
By Region
Asia-Pacific region would exhibit the highest CAGR of 30.50% during 2021-2030
Key Benefits For Stakeholders
- This study comprises analytical depiction of the global IO-link market outlook along with the current trends and future estimations to depict the imminent investment pockets.
- The overall IO-link 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 IO-link market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency
- Porter’s five forces analysis illustrates the potency of the buyers and the IO-link market share of key vendors.
- The report includes the market trends and the revenue share of key vendors.
IO-Link Market Report Highlights
| Aspects | Details |
 By Type |
|
 By Component |
|
 By Application |
|
 By Industry Vertical |
|
 By Region |
|
 Key Market Players | Emerson Electric Co., SICK AG, Omron Corporation, Pepperl+Fuchs, Siemens, Balluff GmbH, ifm electronic GmbH, Rockwell Automation, Inc., Banner Engineering Corp., Hans Turck GmbH & Co. KG |
Analyst Review
The IO-link market holds high potential in the industrial sector. The current business scenario experiences rapid development in smart infrastructure, particularly in the developed and developing regions such as North America, Asia-Pacific, and Europe. Companies in this industry adopt various innovative techniques to provide customers with advanced and innovative features.
The key factors such as ability to support much higher level Fieldbus and Ethernet communication protocols, rise in penetration of Industry 4.0, and government initiatives toward the adoption of industrial automation drive the IO-Link market growth contribute toward the growth of the global IO-link market. Europe held the largest share of the IO-link market, owing to the presence of automotive, aerospace & defense, and industrial manufacturing verticals in the region. Moreover, the region comprises major growing economies, such as the UK, Germany, and France, which offer significant growth opportunities for the IO-link market.
Key players of the market focus on introducing technologically advanced products to remain competitive in the market. Product launch, agreement, collaboration, and partnership are expected to be the prominent strategies adopted by the market players.
The IO-Link Market is estimated to grow at a CAGR of 29.0% from 2021 to 2030.
The IO-Link Market is projected to reach $6.10 billion by 2030
To get the latest version of sample report
The growth of the global IO-link market size is anticipated to driven by factors such as the ability to support much higher level Fieldbus and Ethernet communication protocols, surge in demand for Industry 4.0, and rise in government initiatives toward the adoption of industrial automation drive the IO-link market growth.
The key players profiled in the IO-Link Market include Siemens, Hans Turck GmbH & Co. KG, Balluff GmbH, ifm electronic GmbH, SICK AG, Rockwell Automation, Inc., Omron Corporation, Pepperl+Fuchs and many more.
On the basis of top growing big corporations, we select top 10 players.
The IO-Link Market is segmented on the basis of type, component, application, industry vertical, and region
The key growth strategies of IO-Link Market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
By type, the market is bifurcated into IO-link wired and IO-link wireless.
IO-link wired segment accounted for the maximum revenue, and is projected to grow at a notable CAGR.
Loading Table Of Content...
