Industrial Ethernet Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Offering (Hardware, Software, Services), By Protocol (PROFINET, EtherNet/IP), By End-use Industry (Automotive & Transportation, Electrical & Electronics), By Region & Competition, 2021-2031F

Market Overview

The Global Industrial Ethernet Market will grow from USD 13.45 Billion in 2025 to USD 20.62 Billion by 2031 at a 7.38% CAGR. Industrial Ethernet refers to the application of standard Ethernet protocols within ruggedized industrial environments to facilitate deterministic, real-time control and communication across automation systems. The market is primarily supported by the fundamental operational necessity for high-bandwidth data exchange to facilitate the convergence of Information Technology and Operational Technology. Additionally, the increasing reliance on real-time analytics for process optimization serves as a foundational driver for adoption, distinct from transient technological shifts. According to PROFIBUS & PROFINET International (PI), in 2025, the association reported that the installed base of PROFINET devices expanded by 9.5 million nodes during 2024, culminating in a total of 78.8 million utilized globally.

However, market expansion faces a significant challenge regarding the integration of modern Ethernet solutions with aging legacy infrastructure. The substantial capital expenditure and technical complexity required to retrofit existing fieldbus systems create a barrier to entry for many enterprises. Furthermore, this transition exposes previously isolated networks to heightened cybersecurity threats, necessitating rigorous and often costly protection measures that can impede rapid implementation.

Key Market Drivers

The implementation of Industry 4.0 and smart manufacturing initiatives acts as a primary catalyst for market growth, necessitating a fundamental overhaul of communication architectures. As industrial facilities increasingly automate complex processes, the requirement for robust network architectures capable of handling vast data volumes becomes critical. This operational shift compels organizations to invest heavily in modernizing their digital infrastructure to support real-time control and data transparency. According to Rockwell Automation, March 2024, in the '9th Annual State of Smart Manufacturing Report', 83% of surveyed global manufacturers planned to increase their technology investment budgets for the year to support these digital transformations. Consequently, the adoption of Industrial Ethernet accelerates as it provides the necessary bandwidth and scalability to support the dense interconnectivity required by smart factories.

Simultaneously, the transition from legacy fieldbus systems to Ethernet-based protocols fundamentally alters the connectivity landscape. Industrial enterprises increasingly prioritize Ethernet solutions for their superior speed, larger data packet capacity, and seamless integration with enterprise-level systems, moving away from the constraints of serial communication. This preference is quantified by current adoption trends; according to HMS Networks, in 2024, Industrial Ethernet protocols captured 71% of the global market for newly installed nodes in factory automation. The drive for this transition is further validated by the tangible economic benefits realized through advanced connectivity. According to Nokia, June 2024, in the 'Industrial Digitalization Report', 93% of surveyed enterprises reported achieving a positive return on investment following the deployment of private wireless and robust industrial connectivity solutions.

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Key Market Challenges

The integration of modern Ethernet solutions with aging legacy infrastructure constitutes a significant restraint on the expansion of the Global Industrial Ethernet Market. Industrial enterprises frequently operate brownfield facilities where fieldbus systems have functioned reliably for decades, creating a financial and operational reluctance to undertake complex retrofitting projects. The capital expenditure required to replace or bridge these entrenched systems often outweighs the immediate perceived benefits of higher bandwidth, leading organizations to defer necessary network upgrades. Furthermore, connecting these previously air-gapped legacy environments to broader Ethernet networks introduces substantial cybersecurity vulnerabilities, forcing companies to divert potential investment funds toward defensive measures rather than network expansion.

The scale of this incumbency is illustrated by the persistent volume of non-Ethernet nodes remaining in operation, which compete directly with new Ethernet deployments for market share. According to PROFIBUS & PROFINET International (PI), in 2025, the association reported that the cumulative installed base of PROFIBUS fieldbus devices reached 70 million utilized globally by the end of 2024. This massive footprint of legacy technology demonstrates the magnitude of the replacement task, effectively slowing the rate at which Industrial Ethernet can penetrate established markets and hampering the overall growth trajectory of the sector.

Key Market Trends

The Implementation of Zero Trust Security Models is becoming a critical necessity within the Global Industrial Ethernet Market as the dissolution of traditional air gaps exposes Operational Technology (OT) to external threats. Unlike legacy architectures that relied on physical isolation, modern Industrial Ethernet networks increasingly interface with enterprise IT and cloud environments, rendering perimeter-based defenses insufficient. This connectivity expansion requires a security paradigm where every user and device is continuously verified, regardless of their location within the network. The urgency for this architectural shift is underscored by the prevalence of vulnerabilities in connected systems. According to Claroty, September 2025, in the 'Global State of CPS Security 2025: Navigating Risk in an Uncertain Economic Landscape' report, 46% of surveyed security professionals reported experiencing a breach in the preceding 12 months that leveraged third-party vendor access, a statistic that is driving the rapid deployment of granular, identity-based network segmentation.

Simultaneously, the Integration of Edge Computing Intelligence into Networking Hardware is transforming industrial switches and routers from simple data transport devices into active processing nodes. To support low-latency decision-making required by modern automation, manufacturers are embedding advanced analytics and machine learning capabilities directly into the network edge, minimizing the need to transmit massive datasets to central servers. This decentralization of processing power alleviates bandwidth congestion and enables real-time responses for critical applications such as predictive maintenance and visual quality inspection. This trend toward intelligent edge infrastructure is heavily supported by broader manufacturing investment strategies. According to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', 95% of surveyed manufacturers indicated they have invested in or plan to invest in artificial intelligence and machine learning technologies within the next five years, creating a direct demand for industrial networking hardware capable of supporting these distributed computing workloads.

Segmental Insights

The EtherNet/IP segment represents the fastest-growing category in the Global Industrial Ethernet Market, driven by its unique ability to utilize standard Ethernet hardware and the TCP/IP suite. This compatibility allows organizations to integrate factory floor operations with enterprise-level IT systems seamlessly, facilitating improved data access and decision-making. The protocol is managed by the ODVA, which ensures rigorous interoperability standards among diverse equipment vendors. Consequently, the preference for non-proprietary communication structures that support real-time control and information exchange is fueling the rapid adoption of EtherNet/IP in modern industrial environments.

Regional Insights

North America holds the leading position in the Global Industrial Ethernet Market due to the extensive adoption of Industry 4.0 principles and the Industrial Internet of Things across established manufacturing sectors. The region benefits from significant investments in process automation within the automotive, aerospace, and defense industries. This market dominance is further reinforced by frameworks from organizations such as the National Institute of Standards and Technology, which support standardized communication protocols for smart manufacturing. Consequently, the focus on modernizing legacy infrastructure to ensure secure and reliable connectivity drives the sustained demand for industrial Ethernet solutions in this region.

Recent Developments

• In April 2025, Belden Inc. introduced the Hirschmann GREYHOUND2000 Standard Switch, a next-generation 19-inch Ethernet switch designed to deliver high fiber port density and configurability for rugged industrial environments. The switch was engineered to support up to 34 ports, offering significant flexibility for network designs in sectors such as power generation and transportation. This product launch addressed the increasing demand for fiber-based Ethernet communications by providing a future-ready solution capable of adapting to various connectivity scenarios. The device also incorporated advanced redundancy protocols to ensure maximum network uptime and stability for mission-critical operations.
• In August 2024, Advantech announced the launch of the EKI-8528, a new modular Ethernet switch designed to optimize network management within digital substations and power utilities. Engineered to comply with rigorous IEC 61850-3 standards, the device featured support for up to 24 Gigabit ports and four 10-Gigabit uplink options, providing flexibility for medium-to-large-scale industrial networks. A key advancement in this release was the integration of Time-Sensitive Networking (TSN) protocols, which enabled precise time synchronization and deterministic data transmission essential for critical applications in industrial automation and robotics.
• In July 2024, Moxa unveiled its new MRX Series Layer 3 rackmount Ethernet switches, engineered to accelerate data aggregation for data-intensive industrial applications. These switches, supporting up to 64 ports with 10GbE capabilities, were designed to facilitate high-bandwidth network infrastructure and support the convergence of information technology and operational technology. The launch highlighted the MRX Series' robust design, which included intelligent temperature control and dual power supplies to ensure continuous system operation in harsh environments. This development specifically addressed the growing demand for low-latency networks required by AI-enabled technologies and the Industrial Internet of Things.
• In April 2024, HMS Networks completed the acquisition of Red Lion Controls, a well-established US-based provider of industrial automation solutions, for a cash consideration of USD 345 million on a debt-free basis. This strategic move significantly expanded the company's presence in the North American market while complementing its existing portfolio of industrial information and communication technology. The integration was structured to leverage the combined strengths of both organizations, facilitating the development of unified market strategies and enhanced product offerings. The transaction, financed through a combination of term loans and revolving credit facilities, positioned the combined entity to better serve the evolving needs of the global industrial networking sector.

Key Market Players

• Siemens AG
• Honeywell International Inc.
• Cisco Systems, Inc.
• Rockwell Automation, Inc.
• Moxa Inc.
• Advantech Co., Ltd.
• Belden Inc.
• Phoenix Contact GmbH & Co. KG
• Emerson Electric Company
• WAGO GmbH & Co. KG

Report Scope:

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

• Industrial Ethernet Market, By Offering:

• Hardware
• Software
• Services

• Industrial Ethernet Market, By Protocol:

• PROFINET
• EtherNet/IP

• Industrial Ethernet Market, By End-use Industry:

• Automotive & Transportation
• Electrical & Electronics

• Industrial Ethernet 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