Industrial Communication Market – Global Industry Size, Share, Trends, Opportunity, and Forecast. Segmented By Offerings (Software, Hardware, Services), By Communication Protocol (Industrial Ethernet, Fieldbus, Wireless), By End User (Automotive and Transportation, Aerospace & Defense, Food & Beverages, Electrical & Electronics, Industrial Manufacturing, Others), By Region, By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 150.29 Billion
CAGR (2026-2031)	9.76%
Fastest Growing Segment	Industrial Ethernet
Largest Market	Asia Pacific
Market Size (2031)	USD 262.78 Billion

Market Overview

The Global Industrial Communication Market will grow from USD 150.29 Billion in 2025 to USD 262.78 Billion by 2031 at a 9.76% CAGR. Industrial communication encompasses the specialized hardware and software protocols designed to facilitate secure and reliable data exchange between diverse automation devices and enterprise networks within a production environment. The primary drivers fueling the expansion of this market include the accelerating adoption of Industry 4.0 principles and the critical necessity for real-time data transparency to optimize operational efficiency. Manufacturers are increasingly investing in robust network infrastructures to support predictive maintenance and reduce unplanned downtime. According to PROFIBUS and PROFINET International, in 2025, the installed base of PROFINET devices grew significantly with an addition of 9.5 million new nodes during the preceding year.

Despite the positive momentum, the market faces a significant impediment regarding cybersecurity risks associated with interconnected industrial systems. As operational technology converges with information technology, the expanded attack surface leaves critical infrastructure vulnerable to sophisticated cyber threats and data breaches. This challenge forces organizations to allocate substantial resources toward protective measures, potentially delaying the deployment of advanced communication architectures and slowing the overall rate of market expansion.

Key Market Drivers

Advancements in Wireless Communication Technologies and 5G Network Integration are revolutionizing the market by enabling unprecedented flexibility and mobility within production environments. These technologies support critical applications such as autonomous mobile robots and remote asset monitoring by eliminating the physical constraints of traditional cabling while ensuring low-latency data transmission. This operational shift is delivering tangible financial benefits to early adopters, incentivizing further investment in cellular infrastructures. According to Nokia, June 2024, in the '2024 Industrial Digitalization Report', 93% of surveyed enterprises achieved a return on investment within 12 months of deploying private wireless networks. Such rapid value realization is accelerating the deployment of robust wireless solutions designed specifically for mission-critical industrial tasks.

The Transition from Legacy Fieldbus Systems to High-Speed Industrial Ethernet serves as a second major catalyst, driven by the need for higher bandwidth and seamless integration between factory floors and enterprise systems. Industrial Ethernet protocols provide the speed and data handling capacity required for modern IIoT applications, effectively displacing older serial communication methods that struggle with large data volumes. According to HMS Networks, June 2024, in the 'Industrial Network Market Shares 2024' analysis, Industrial Ethernet accounted for 71% of all newly installed nodes in factory automation. This dominance underscores a broader trend toward digital maturity, as according to Rockwell Automation, in 2024, 95% of manufacturers were using or evaluating smart manufacturing technology to enhance their operational resilience.

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Key Market Challenges

The significant impediment regarding cybersecurity risks associated with interconnected industrial systems poses a direct threat to the growth of the Global Industrial Communication Market. As operational technology converges with information technology, the resulting expansion of the attack surface makes critical infrastructure highly susceptible to data breaches and systemic sabotage. This vulnerability forces manufacturers to prioritize the hardening of existing defenses over the expansion of network capabilities. Consequently, the fear of operational disruption leads to prolonged procurement cycles and a hesitation to integrate the advanced, open-standard protocols that drive market revenue.

This reluctance to adopt new communication architectures is quantifiable and reflects a tangible contraction in capital expenditure. When organizations perceive that the risks of connectivity outweigh the efficiency gains, they pause or cancel modernization projects. According to Make UK, in 2024, 37 percent of manufacturers stopped investing in technological advances involving interconnectivity specifically due to cyber risks. This data highlights how security concerns directly stifle demand for communication hardware and software, forcing the market to contend with reduced adoption rates and diverted investment streams.

Key Market Trends

The Incorporation of Edge Computing and AI Capabilities into Network Hardware is transforming standard connectivity devices into intelligent processing hubs. Instead of merely transporting raw data to the cloud, modern switches and gateways are equipped with onboard processors to execute analytics locally, reducing latency and bandwidth usage. This shift is critical for enabling real-time decision-making in automated processes, as organizations seek to process data closer to the source of generation. According to Rockwell Automation, March 2024, in the '9th Annual State of Smart Manufacturing Report', 83% of manufacturers expect to use Generative AI (GenAI) in their operations in 2024, creating a direct demand for network infrastructure capable of supporting these compute-intensive workloads at the edge.

The Proliferation of Private 5G Networks in Manufacturing Facilities represents a structural shift toward dedicated cellular infrastructure to overcome the reliability limitations of shared Wi-Fi spectrums. Unlike public networks, these private deployments offer manufacturers complete control over network scheduling and coverage, ensuring consistent uptime for mission-critical control loops in dense industrial environments. This trend is moving rapidly from proof-of-concept to widespread implementation as organizations prioritize secure and interference-free communication channels. According to the Global mobile Suppliers Association, February 2024, in the 'Private Mobile Networks – Market Status Update', the total number of cataloged private mobile network deployments globally reached 1,384, indicating a substantial maturing of the ecosystem beyond initial trial phases.

Segmental Insights

Industrial Ethernet is identified as the fastest-growing segment in the Global Industrial Communication Market due to its ability to support high-speed data transmission and unify disparate network environments. This growth is largely propelled by the increasing integration of Information Technology with Operational Technology, a requirement for effective Industry 4.0 implementation. Manufacturers prefer these solutions over traditional fieldbus options because they enable consistent real-time communication and handle larger data volumes efficiently. As industries prioritize scalable and standardized network infrastructures to optimize production monitoring, the adoption rate of Ethernet-based protocols continues to accelerate globally.

Regional Insights

Asia Pacific commands the leading position in the Global Industrial Communication Market, primarily due to its status as the world’s central manufacturing hub. The region benefits from a dense concentration of automotive and electronics production facilities in nations like China, Japan, and South Korea, which drives the demand for reliable connectivity solutions. This dominance is bolstered by strategic government frameworks, such as China’s "Made in China 2025" and Japan's "Society 5.0," which actively incentivize the adoption of Industry 4.0 technologies. These factors collectively accelerate the deployment of advanced industrial networks to support automation and real-time data exchange across the region.

Recent Developments

• In August 2025, Digi International acquired Jolt Software, a provider of digital operations execution software, for a purchase price of USD 145.5 million. This acquisition was executed to bolster the company's industrial Internet of Things (IIoT) offerings by integrating advanced task management and compliance reporting capabilities into its existing connectivity solutions. The transaction was aligned with the company’s strategy to expand its recurring revenue base and provide a more comprehensive platform for operational intelligence. By combining its hardware expertise with the acquired software, the company aimed to deliver enhanced value to customers in sectors requiring rigorous monitoring and process automation.
• In April 2025, Belden Inc. introduced the Hirschmann GREYHOUND2000 Standard Switch, a ruggedized 19-inch industrial Ethernet switch developed to deliver exceptional flexibility and fiber port density. The device featured a modular design with up to 34 ports, allowing network engineers to customize connectivity for specific operational needs in harsh environments like power substations and railway systems. This launch addressed the market's growing demand for resilient communication hardware that supports advanced redundancy protocols and operates reliably under extreme temperature conditions. The product was positioned to help organizations modernize their networks and ensure high availability for mission-critical applications.
• In July 2024, Moxa announced the launch of its MRX Series Layer 3 rackmount Ethernet switches, engineered to support high-bandwidth requirements in industrial settings. These switches were designed with high port density, offering up to 64 ports including 16 10GbE ports, to facilitate massive data aggregation for applications such as high-definition video surveillance and artificial intelligence. The new product line aimed to assist industrial operators in building futureproof network infrastructures that could handle increasing data volumes while maintaining reliability. The release highlighted the company's focus on enabling the convergence of operational technology and information technology systems.
• In April 2024, HMS Networks completed the acquisition of Red Lion Controls, a US-based provider of industrial automation and networking solutions, for a cash consideration of USD 345 million. This strategic transaction significantly expanded the company's footprint in the North American market and complemented its existing portfolio of industrial information and communication technology products. The integration allowed the combined entity to leverage Red Lion’s strong position in access and connectivity solutions, creating synergies with the acquirer’s Anybus and Ewon brands. The move was designed to strengthen the company’s ability to serve the evolving demands of the industrial internet of things landscape.

Key Market Players

• Siemens AG
• ABB Ltd.
• Schneider Electric SE
• Rockwell Automation, Inc.
• Mitsubishi Electric Corporation
• Honeywell International Inc.
• Belden Inc.
• Omron Corporation
• General Electric Co.
• Cisco Systems, Inc.
• HMS Industrial Networks
• Advantech Co., Ltd.

By Offerings	By Communication Protocol	By End User	By Region
Software Hardware Services	Industrial Ethernet Fieldbus Wireless	Automotive and Transportation Aerospace & Defense Food & Beverages Electrical & Electronics Industrial Manufacturing Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Industrial Communication Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Industrial Communication Market, By Offerings:

• Software
• Hardware
• Services

• Industrial Communication Market, By Communication Protocol:

• Industrial Ethernet
• Fieldbus
• Wireless

• Industrial Communication Market, By End User:

• Automotive and Transportation
• Aerospace & Defense
• Food & Beverages
• Electrical & Electronics
• Industrial Manufacturing
• Others

• Industrial Communication Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE