by Jared Weiner | 01/26/2021
New Research Available: The Global Market for Industrial Networking Infrastructure Components
Industry 4.0 makes it possible for industrial organizations to dramatically increase profitability by realizing unprecedented levels of production efficiency and flexibility, supply chain control, and worker safety. To attain these goals, however, operators must have secure, timely access to data that is accurate, relevant, and usable. Industrial networking infrastructure components are critical to meeting today’s intensifying connectivity requirements and are vital to any effort to increase not only visibility and connectivity on the factory floor but also the financial performance of the entire industrial enterprise.
Spending within this market―which covers more than a dozen industrial-grade wireless and wireline networking devices and interconnect products―is greatest in the Americas, as shown in the exhibit below. Investments in networking technologies within this region have been driven in large part by the rate at which industrial organizations have embraced digitization and the IIoT as compared to those in other world areas. Market growth will be uneven in the short term due to the staggered impact of the coronavirus in different world areas. The Asia-Pacific region will provide the greatest revenue growth for industrial networking component vendors over the next five years, as this area is slightly further along in the economic recovery timeline than the Americas or EMEA.
Global Share of Industrial Networking Components Revenue by Geographic Region, 2020
While major industrialized nations will continue to account for the majority of total market revenue, the most compelling growth opportunities will be generated within countries where economic growth is occurring at a much steeper trajectory. As countries such as Brazil, China, India, and Pakistan continue their economic and industrial progression, resources from both the public and private sectors will be dedicated to projects such as improving transportation or utilities infrastructures and modernizing operations at local factories. Such initiatives will undoubtedly leverage connected OT networks to facilitate intelligent analytics and other advanced automation techniques, creating opportunities for industrial networking vendors. Suppliers with local ties will be best-positioned to capitalize on the growth opportunities within these growing economies, though vendors with strong global brands will also perform well.
How will the COVID-19 pandemic affect market growth? Will cellular 5G or Wi-Fi 6 have a significant impact on the industrial space? Which suppliers command the greatest shares of the wireless and wireline markets? How will end-user preferences shape market growth? VDC’s recently published industrial networking studies explain.
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