Continued growth for Industrial Ethernet and wireless networks

Every year, HMS Networks analyzes the industrial network market to estimate the distribution of new connected nodes in factory automation. This year’s study shows that the industrial network market is expected to grow by 7% in 2023. Industrial Ethernet still shows the highest growth and now accounts for 68% of all newly installed nodes (66% last year). Fieldbuses decline to 24% (27) while wireless grows to 7% market share (8% last year). PROFINET and EtherNet/IP share first place in the network rankings with 18% market share followed by the strong contender EtherCAT now at 12%.

HMS Networks presents its analysis of the industrial network market, focusing on newly installed nodes within factory automation globally. As an independent supplier of solutions within Industrial ICT (Information and Communication Technology), HMS has a substantial insight into the industrial network market. The 2023 study includes estimated market shares and growth rates for fieldbuses, Industrial Ethernet, and wireless technologies.

In the 2023 study, HMS concludes that the industrial network market continues to grow and that the total market growth in 2023 is expected to be +7%, confirming the continued importance of network connectivity in factories.

Industrial Ethernet is growing steadily
Growing by 10%, Industrial Ethernet continues to take market share. Industrial Ethernet now makes up for 68% of the global market of newly installed nodes in factory automation (compared to 66% last year). The head-to-head battle between PROFINET and EtherNet/IP continues as they lead the 2023 network rankings with 18% market share each, but EtherCAT also continues to grow strongly and is now in an unthreatened third place at 12% market share.

Fieldbuses are decreasing again
Last year’s growth for Fieldbuses was temporary as new fieldbus installations declined by -5% in 2023. PROFIBUS leads the fieldbus rankings with a 6% market share, but not with much as Modbus-RTU is close behind at 5%.

Together, fieldbuses account for 24% (27) of the market in 2023. Although the number of new fieldbus nodes are declining, a lot of devices, machines, and factories will still be relying on well-functioning and proven fieldbuses for many years to come.

Wireless grows fastest

The Wireless growth accelerates to +22% in 2023, as more wireless industrial networking solutions are introduced in factory automation. Typical use cases include cable replacement applications, wireless machine access, and connectivity to mobile industrial equipment.

Industrial networking is key for productivity and sustainability in manufacturing

“Solid industrial network connectivity is key to achieving the manufacturing uptime which is needed to reach productivity and sustainability objectives in factory automation,” said Magnus Jansson, product marketing director at HMS Networks, Business Unit Anybus. “Quality, security, safety, and gaining insights through device and machine data, are key drivers we see for the continued expansion of industrial networking.”

Regional network variations

EtherNet/IP, PROFINET, and EtherCAT are leading in Europe and the Middle East with PROFIBUS and Modbus-TCP as runners-up. The U.S. market is dominated by EtherNet/IP with EtherCAT developing strongly and gaining market share. PROFINET leads a fragmented Asian market, followed by EtherNet/IP and strong contenders CC-Link/CC-Link IE Field, EtherCAT, PROFIBUS, and Modbus (RTU/TCP).

The study includes HMS’ estimation for 2023 based on the number of newly installed nodes within Factory Automation. A node is defined as a machine or device connected to an industrial field network. The presented figures represent HMS’ consolidated view, considering insights from colleagues in the industry, its own sales statistics, and its overall perception of the market.