This report is HMS Networks’ annual analysis of the industrial networking market, with a focus on new installed nodes in global factory automation. As an independent provider of industrial ICT (Information and communication technology) solutions, HMS has deep knowledge and insight into the industrial networking market. The 2023 study shows that the industrial networking market continues to grow, with total market growth expected to reach 7% in 2023, reflecting the importance of network connectivity to factories.

Industrial Ethernet is growing steadily

Industrial Ethernet is strong, growing by as much as 10% and accounting for 68% of new plant automation installations globally (up from 66% last year). PROFINET and EtherNet/IP are tied for first place with 18% each, while EtherCAT continues to climb to third place with 12%.

Fieldbus is down again

Last year, Fieldbus saw an uptick after a series of declines that now looks short-lived. In 2023, the share of fieldbus newly installed nodes decreased by 5% from last year. In terms of network protocol market share, PROFIBUS leads with 6%, followed by Modbus-RTU with 5%.

Fieldbus market share in 2023 is 24% (up from 27% last year). Despite the decline in the number of newly installed nodes, a large number of devices, machines and factories will continue to rely on well-functioning, mature and reliable fieldbus networks for many years to come.

Wireless communication is unstoppable

Wireless communications will grow 22% in 2023 compared to last year as more wireless industrial network solutions are introduced into factory automation. Typical application scenarios include replacement cables, wireless access to machines, and connectivity to mobile industrial equipment.

Industrial networks are key to improving productivity and sustainability in manufacturing

“In factory automation, reliable industrial network connectivity is key to maintaining manufacturing uptime, which is an important factor in achieving productivity and sustainability goals. The drive for quality and safety, as well as insights into data from devices and machines, continue to drive the evolution of industrial networks.” Magnus Jansson, Product Marketing Director, Anybus Business Unit, HMS Networks.

Regional difference

In Europe and the Middle East, EtherNet/IP, PROFINET and EtherCAT lead the way, followed by PROFIBUS and Modbus-TCP. The US market is dominated by EtherNet/IP, and EtherCAT has a strong development momentum and is expanding its market share. The Asian market is relatively fragmented, with PROFINET having the highest market share, followed by EtherNet/IP, while CC-Link/CC-Link IE Field, EtherCAT, PROFIBUS and Modbus(RTU/TCP) are also strong competitors.

Scope description:

HMS estimates and research for 2023 are based on the number of new nodes installed in factory automation. Here, a node refers to a machine or device that is connected to an industrial site network. The figures presented in this report represent a comprehensive view of HMS, combining the insights of industry peers, HMS sales statistics, and a holistic view of the market.