Industrial Ethernet Switch Market Size, Share, Analysis, Trends, Growth, 2032

Industrial Ethernet Switch Industry Prospective:

The global industrial ethernet switch market size was worth around USD 3.43 billion in 2023 and is predicted to grow to around USD 6.45 billion by 2032, with a compound annual growth rate (CAGR) of roughly 7.28% between 2024 and 2032.

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Industrial Ethernet Switch Market: Overview

An industrial ethernet switch is a form of networking tool specifically designed for use in an industrial setting. One of the key roles of an industrial ethernet switch includes providing high-speed and reliable data transmission for industrial networks. It also includes working with 10G industrial switches for faster speeds. When used optimally, industrial ethernet switches are a highly efficient and cost-effective method of managing communication between industrial equipment.

For instance, 10G industrial switches support 10 Gigabit Ethernet (10GbE) speeds and can survive in the temperature range of -40℃ to 75℃. Hence, they are considered ideal for an industrial setting that works with the support of heavy machinery.

Apart from being functional in extreme temperatures and harsh environments, industrial ethernet switches provide fast redundancy and Ring networks. The most common applications of an industrial ethernet switch include managing noise & distraction reduction, harsh environment tolerance, enhancement in capabilities, and simplification of the network.

During the forecast period, the industry for industrial ethernet switches is expected to generate significant growth revenue led by increased applications in end-user industries. However, high cost and complex configuration may impact the overall revenue in the coming years.

Key Insights:

• As per the analysis shared by our research analyst, the global industrial ethernet switch market is estimated to grow annually at a CAGR of around 7.28% over the forecast period (2024-2032)
• In terms of revenue, the global industrial ethernet switch market size was valued at around USD 3.43 billion in 2023 and is projected to reach USD 6.45 billion by 2032.
• The industrial ethernet switch market is projected to grow at a significant rate due to the increased use in the transportation industry.
• Based on protocol, the PROFINET segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on end-user industry, the automotive & transportation segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Industrial Ethernet Switch Market: Growth Drivers

Increased use in the transportation industry will drive the market demand rate

The global industrial ethernet switch market is expected to grow due to the increasing applications of the technology in the transportation industry. According to market analysis, industrial ethernet switches are coated with industrial-grade protection, allowing the device to withstand extreme shock and vibrations. Thus, they are considered ideal for applications in the transportation sector, where information is obtained from moving objects. Industrial ethernet switches have been used in all forms of transportation, including roadways, railways, maritime, and airways.

For instance, ethernet switches made using industrial-grade solutions are widely popular for managing and regulating traffic. It is used for coordinating information between sensors, surveillance cameras, and traffic signals. In a maritime setting, an industrial ethernet switch assists in cargo management and vessel tracking. The surge in investments toward improving the transportation sector worldwide is expected to create demand for industrial ethernet switches.

For instance, in December 2024, Delta Airlines, a leading airway carrier, announced the launch of nonstop service between Seattle-Tacoma International Airport (SEA) and Ronald Reagan Washington National Airport (DCA) from 5th March 2025 onwards. The company has received approval from the U.S. Department of Transportation.

Smart city projects to create growth scope for industry players in the future

An emerging application for solutions available in the global industrial ethernet switch market is in the form of providing support to smart city surveillance solutions for managing traffic and crowds. The ongoing investments in the development of new smart cities with robust infrastructure worldwide can help the industry players generate more revenue in the coming years.

In December 2024, the Indian Ministry of Housing and Urban Affairs (MoHUA) announced the extension of the unit’s Smart City Mission. The ministry has earmarked INR 8,000 crore as a performance-based challenge fund and incubated the development of 8 cities. Similarly, other countries, including developed and developing nations, have initiated new development projects aimed at organized residential and commercial space construction.

Industrial Ethernet Switch Market: Restraints

High initial investment and changing economic index worldwide to restrict market expansion rate

The global industrial ethernet switch industry is expected to be restricted due to the high cost of initial investment. Compared to conventionally used switches, industrial counterparts are more expensive due to the rugged nature of the technologies. Businesses have to make a higher upfront investment, which can be resource-consuming, especially in the case of large-scale investments. The global economic conditions are currently volatile, and businesses are seeking ways to reduce operating costs, which can impact their final decisions regarding the use of industrial Ethernet switches.

Industrial Ethernet Switch Market: Opportunities

Ongoing launch of new solutions with improved functions to generate growth opportunities

The global industrial ethernet switch market is projected to generate growth opportunities due to the ongoing launch of new solutions offering extensive features. In August 2024, CTC Union Technologies, a Taiwan-based leading producer of telecommunications, data communications, and industrial-grade networking products, announced the launch of a new slim-size ITP-500A ethernet switch. The product offers EN 50155 and EN 45545-2 standards and best suits railway-based applications.

According to official reports, ITP-500A is equipped with 5x M12 D-Coded 10/100Base-TX and is designed to withstand extremely harsh environmental conditions. In February 2024, Westermo, another leading player in the industry, launched an easy-to-manage and highly compact range of industrial ethernet switches. The series is named SandCat and boasts 5 ports offering plug-and-play, cost-effective features for industrial applications. The changing climate conditions and growing complexities of industrial operations are encouraging market players to invest in innovation, which is crucial to future growth rates.

Industrial Ethernet Switch Market: Challenges

Changing Regulatory Standards and cybersecurity Threats to challenge market expansion rate

The global industrial ethernet switch industry is projected to be challenged by the changes in regulatory standards. This leads to business difficulties in keeping up with recent advancements. In addition to this, industrial ethernet switches are vulnerable to cybercrimes since they are an essential component of connected communication devices.

Industrial Ethernet Switch Market: Report Scope

Industrial Ethernet Switch Market: Segmentation

The global industrial ethernet switch market is segmented based on protocol, offering, end-user industry, and region.

Based on the protocol, the global market segments are CC-Link IE, SERCOS III, POWERLINK, PROFINET, EtherNet/IP, and EtherCAT. In 2023, the highest growth was listed in the PROFINET segment, driven by increased applications in the automation and automotive industries. PROFINET provides excellent scalability, making it ideal for several end-user industries. The surge in demand for efficient protocol systems in the manufacturing and automotive sectors is expected to lead to a future growth rate. According to market analysis, nearly 48 million PROFINET devices were installed worldwide in 2021.

Based on offering, the global industrial ethernet switch industry is divided into services, software, and hardware.

Based on the end-user industry, the global market divisions are chemical & fertilizer, automotive & transportation, food & beverages, oil & gas, energy & power, pharmaceutical & medical devices, water & wastewater management, and others. In 2023, the highest growth was listed in the automotive & transportation segment due to a growing number of transportation-based projects worldwide. The creation of a robust transport infrastructure requires massive quantities of industrial ethernet switches. In 2022, the US government spent nearly USD 423 billion on transportation.

Industrial Ethernet Switch Market: Regional Analysis

Asia-Pacific to generate higher revenue during the forecast period

The global industrial ethernet switch market will be led by Asia-Pacific during the forecast period. The presence of robust electronic components and automobile manufacturing necessitates the use of advanced automation systems. These technologies require excellent and highly reliable communication networks that can be facilitated by industrial ethernet switches.

Furthermore, Asia-Pacific is home to some of the largest producers of industrial ethernet switches. The regional players are investing heavily in innovation-based strategies to continue staying ahead of other international players. In July 2024, Moxa Technologies, a Taiwanese company, announced the launch of MRX Series Layer 3 rackmount Ethernet Switches supporting up to 16 ports of 10GbE speed. The new tool is expected to speed up the data aggregation process for industrial applications. The growing number of connected devices across industries in Asia-Pacific is likely to further accelerate the use of industrial Ethernet switches.

In addition, Asian countries have amplified investments toward smart city projects, which will work in favor of the regional market. According to official statistics, China invested nearly 2.39 trillion yuan in smart city projects in 2020. The country is using Artificial Intelligence (AI), big data, and the Internet of Things (IoT) to develop highly efficient smart city projects.

Industrial Ethernet Switch Market: Competitive Analysis

The global industrial ethernet switch market is led by players like:

• Phoenix Contact
• Cisco Systems
• Beckhoff Automation GmbH & Co. KG
• Antaira Technologies
• Siemens
• GarrettCom (a Belden brand)
• Rockwell Automation
• Red Lion Controls
• Hirschmann Automation and Control GmbH
• Weidmüller Interface GmbH & Co. KG
• Moxa Inc.. Westermo Network Technologies AB
• Advantech Co. Ltd.
• Schneider Electric
• Belden Inc.

The global industrial ethernet switch market is segmented as follows:

By Protocol

• CC-Link IE
• SERCOS III
• POWERLINK
• PROFINET
• EtherNet/IP
• EtherCAT

By Offering

• Services
• Software
• Hardware

By End-User Industry

• Chemical & Fertilizer
• Automotive & Transportation
• Food & Beverages
• Oil & Gas
• Energy & Power
• Pharmaceutical & Medical Devices
• Water & Wastewater Management
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa