The industrial communication market is projected to grow from USD 21.9 billion in 2023 to USD 29.0 billion by 2028; it is expected to grow at a CAGR of 5.7% from 2023 to 2028. Initiatives undertaken by governments of different countries to promote the adoption of industrial automation, the growing need for scalable, faster, reliable, and interoperable communication protocols, increasing use of machine-to-machine communication technology, and increasing use of digital twin to safely monitor smart manufacturing operations are among the factors driving the growth of industrial communication market.
Driver: Increasing use
of machine-to-machine communication technology
Better connectivity for
smooth communication and low power requirements are the key reasons for the
increased adoption of new machine-to-machine (M2M) technologies. To achieve
effective M2M communication, the existing capacity of mobile networks must be
able to handle billions of nodes that are expected to be deployed in the next
couple of years. Currently, the network capacity is not capable of handling M2M
and human-based communications, as well as their different communication
patterns, including latency time. For this reason, a next-level cellular
network for mobile communication featuring hyper-connectivity and larger
bandwidth (e.g., 5G) is required. The M2M communication technology will be
widely used in the coming years in heavy manufacturing industries and process
industries (e.g., food industry) to increase the efficiency of different
processes and reduce human intervention for machines.
M2M technology has
opened new avenues for the industrial communication market. It enables
enterprises to improve their productivity and safety in work environments, thus
allowing them to attain better efficiencies. Such benefits of M2M communication
are expected to further drive the industrial communication market.
Restraint: Absence of
standardization in industrial communication protocols and interfaces
Industrial equipment or
devices communicate through various interfaces, technologies, and protocols.
The lack of standardization in these communication interfaces and protocols may
result in the misrepresentation of data. The lack of standardization
complicates the integration of systems and hinders the use of plug-and-play
features for unrelated systems. For instance, most equipment manufacturers use
their proprietary interface protocols to communicate with their devices, which
results in communication challenges for the devices developed by other
manufacturers.
Opportunity: Upsurge in
demand for wireless networks
The rapid growth in the
demand for wireless technologies, such as Bluetooth Smart, WirelessHART, WLAN,
and Zigbee, is opening new growth opportunities for the industrial
communication market, mainly for the oil & gas, electronics, and energy
& power generation industries. Zigbee helps drive the market for low-cost wireless
network solutions. The Zigbee IEEE 802.15.4 technology has been adopted by many
organizations worldwide. Similarly, WirelessHART-enabled communication is
becoming one of the most widely used options for signal transmission in process
industries using HART communication. WLAN (IEEE 802.11) is used for
high-performance infrastructure networks that are also suitable for industrial
applications. Advancements in wireless communication technologies, especially
cellular technologies, are helping various industries to monitor their assets
across the world. These technologies enable efficient and universal
communication for all industrial applications. In process and infrastructure
applications, industrial wireless systems simplify the process of recording data
from remote stations and field devices, which would otherwise be inaccessible
for accomplishing the process. The speed and simplicity of the installation of
wireless networks have also made them popular among industries, as they can be
deployed to facilitate M2M communication even under extreme environments. All
these factors have contributed to the growth of the market for wireless
technologies for industrial communication, especially in highly industrialized
regions, and are expected to drive the overall market in the coming years.
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Challenge: Harsh field
site conditions such as high-voltage transients, severe shocks and vibrations,
and extremely high temperatures
Industrial communication
technology is increasingly being deployed at remote field locations. Remote
field locations are more prone to the effects of unfavorable and harsh
conditions, such as high-voltage transients, shocks and vibrations, and
extremely high temperatures. High voltage transients result from electrostatic
discharge (ESD), surge, burst, electrical fast transients (EFT), and lightning
strikes. Industrial switches should be capable of preventing high-voltage
transients by providing high electromagnetic protection. Shock and vibration in
machinery can separate networking wires meant for long-term exposure to shock
and vibration, eventually resulting in electrical shorts, broken solder joints,
loose printed circuit board (PCB) components, PCB delamination, and cracked
device housings. Moreover, remote onsite locations may not have air
conditioning; this raises the demand for switches with high-temperature
tolerance and optimal heat dissipation to keep the switch lifecycle intact.
Therefore, there is a requirement for robust industrial communication equipment
to withstand harsh conditions.
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