According to a new market research report, the industrial communication market is expected to be worth USD 130.33 Billion by 2022, growing at a CAGR of 12.36% between 2016 and 2022. The major factor behind growth is the rising demand for industrial automation and the growing adoption of Industrial Revolution 4.0.
The report by MarketsandMarkets analyses the market by Offering (Component, Software, and Services), Communication Protocol (Fieldbus, Industrial Ethernet, and Wireless), End-Use Application, and Geography.
The industrial communication market has a huge potential across electronics and automotive applications. A wide range of communication protocols are used in industrial networks for monitoring and automation, many of them developed for specific applications which results in incompatibility issues.
Indeed, the report finds that the market for the wireless communication protocol would grow at the highest CAGR between 2016 and 2022. The speed and simplicity of the installation of wireless networks and their operability in extreme environments are making them sought after for industrial applications. The market for ZigBee is expected to grow at a high rate compared to other wireless industrial communication protocols mainly because it supports IoT applications and thousands of nodes networks, and has security mechanisms such as AES-128 for encryption of devices.
The water and waste water industry will make the most use of industrial communications. This market segment is expected to grow at the highest CAGR between 2016 and 2022. Water level monitoring sensors, AC drives, and controllers are crucial components of a water treatment system and the industrial communication network is used to integrate and enable communicate between these devices. All these factors are expected to drive the industrial communication market for the water and wastewater industry during the forecast period.
APAC held the largest share of the industrial communication market in 2015. One of the main reasons for the large share of APAC in this market is the growing industrialization in the region. China is the major market for industrial communication in the APAC region. It is the world's largest manufacturer of automobiles, which is one of the prospective applications of industrial communication.
The companies that are profiled in the report are Schneider Electric SE (France), Texas Instruments Incorporated (U.S.), TE Connectivity Ltd (Switzerland), Siemens AG (Germany), ABB LTD (Switzerland), Rockwell Automation, Inc. (U.S.), Emerson Electric Company (U.S.), National Instruments (U.S.), Infineon Technologies AG (Germany), General Electric (U.S.), and Advantech Industrial Automation Group (U.S.).