Global Industrial Networking Solutions Market Size, Share, and COVID-19 Impact Analysis, By Network Type (Wired, and Wireless), By Component (Hardware, Software, and Services), By Deployment Type (On-premises, and Cloud), By End-User Industry (Automotive, Financial and Banking Industry, Telecommunication, Manufacturing, Logistics, and Transportation), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The global Industrial Networking Solutions Market attained a substantial value of USD 27.87 billion in 2022. This market is expected to grow exponentially, reaching a staggering USD 66.01 billion by the year 2030, with a compounded annual growth rate (CAGR) of 22.01%. To harness this growth potential, numerous industries are looking to leverage the power of convergence and digitization while embracing new solutions in Industrial Internet of Things (IIoT) and Industry 4.0. By doing so, they aim to enhance the operational efficiency of their assets and production processes.

COVID-19 ANALYSIS

The COVID-19 pandemic will have a considerable influence on global industrial spending over the coming years due to the non-operational state of numerous companies that governments throughout the world have designated non-essential and are experiencing significant losses. To lessen the financial impact of the pandemic and other potential economic issues, COVID-19 is also pushing different manufacturers to rely increasingly on automation and digitalization for long-term operations.

COVID-19 is anticipated to have a transient impact and soon disappear. On the other hand, COVID-19 provides an opportunity for businesses to implement much-needed operational changes with a focus on advancing networking technologies in light of the present pandemic

Increase Uses of Wireless Networks Propel Market Growth 

Growing demand of optimized wireless technologies, is among the primary factors driving the expansion of the industrial networking solutions market, especially during COVID-19 pandemic. As wireless networking becomes more commonplace in industrial settings, the requirement for design of industrial networking is poised to grow further, especially on manufacturing floors.

Moreover, the emergence of IIoT and Ethernet has brought effective data transport and collection capabilities, which can accelerate market growth, particularly with the increasing emphasis on process automation.

Rising Demand for Predictive Maintenance Drives Market Growth

The industrial networking solutions market is witnessing significant growth due to the rising global demand for predictive maintenance. Businesses are leveraging convergence, digitization, data processing and analytics to make operational changes that fuel market expansion. The adoption of Software-defined Wide Area Network (SD-WAN) solutions, coupled with the rising demand for real-time visibility and remote access of systems and assets, further influences market growth. Factors such as fast digitization, high investments, assurance of uninterrupted operation and reliability of business applications, the advent of AI tools in operations, and the adoption of wireless technologies also contribute to the market's positive trajectory.

Concerns Related to Data Privacy and Security

Despite promising growth prospects, the industrial networking solutions market faces obstacles during the forecast period of 2023-2030. Among the significant challenges are data transfer problems and the difficulties in linking outdated systems to smart infrastructures. Furthermore, concerns about data security and privacy are expected to pose a considerable challenge to the market.

SEGMENTATION INSIGHTS

The global Industrial Networking Solutions Market is segmented by Network Type (Wired, Wireless), Component (Hardware, Software, and Services), Deployment Type (On-premises, Cloud), End-User Industry (Automotive, Financial and Banking Industry, Telecommunication, Manufacturing, Logistics, and Transportation) and Region (North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa).

REGIONAL INSIGHTS

The North American region leads the global industrial networking solutions market, predominantly due to the growing adoption of smart connected devices, industrial Internet of things, and agile networks. The continuous demand for IoT sensors and connected devices, alongside the widespread use of cloud and mobile technologies, contributes to the dominance of the North American market.

In South America, the market for industrial networking solutions gains momentum with the widespread deployment of the Industrial Internet of Things and smart linked devices. In Europe, the substantial growth in the network infrastructure fuels its position as the second-largest market for industrial networking solutions. The adoption of industrial IoT solutions further enhances market expansion in the region.

The Asia Pacific region holds the promise of the highest growth rate during the forecast period, primarily due to the rapid development of the region's network infrastructure. With rapid industrialization underway, numerous opportunities for market expansion are created. If supported by the government, China is poised to lead the world in implementing industrial networking technologies, further contributing to market growth. Additionally, the trend toward automation and significant investments by prominent manufacturing organizations will drive the demand for industrial networking solutions in Asia-Pacific.

LIST OF KEY COMPANIES PROFILED:

• Cisco Systems Inc.
• Juniper Networks Inc.
• Dell EMC (Dell Technologies Inc.)
• Rockwell Automation, Inc.
• Sierra Wireless, Inc.
• Huawei Technologies Co., Ltd.
• ABB
• Veryx Technologies
• Belden Inc.
• Moxa, Inc.

KEY INDUSTRY DEVELOPMENTS:

April 2020- Cisco declared its intention to buy privately held wireless backhaul system company Fluidmesh Networks. Fluidmesh will help industries with moving assets and applications where dependable backhaul is mission-critical by expanding Cisco's industrial wireless networking services. With Fluidmesh's solution-based offers, scale, and connections to systems integrators, Cisco's IIoT business will grow faster, enabling successful industrial wireless networking deployments and expanding its reach to more partners and end customers.

May 2020- Dell Technologies introduced Enterprise SONiC Distribution by Dell Technologies, a new collection of fully supported open-source networking technologies. The formerly monolithic and proprietary approach to networking has produced inefficiencies and unnecessary complexity as organizations increasingly rely on new hybrid cloud models to conduct business.  In the context of the open-source Software for Open Networking in the Cloud (SONiC) project, Dell Technologies is expanding on the work pioneered by Microsoft Corporation.

SEGMENTATION:

By Network Type

• Wired
• Wireless

By Component

• Hardware
• Software
• Services

By Deployment Type

• On-premises
• Cloud

By End-User Industry

• Automotive
• Financial and Banking Industry
• Telecommunication
• Manufacturing
• Logistics
• Transportation

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia