Continued Growth for Industrial Ethernet and Wireless Networks Industrial Networks Market Shares in 2023 According to HMS Networks

Every year, HMS Networks analyzes the industrial networking market to gain insight into the spread of
new connected nodes in factory automation. This year's study shows that industrial
network market is expected to grow by 7% in 2023. Industrial Ethernet still shows the
largest growth and now accounts for 68% of all new installed nodes (66% last year). Fieldbuses
drop to 24% (27), while wireless grows to 8% market share (7% last year). PROFINET and EtherNet/IP
share the top spot on the network ranking with 18% market share, followed by strong competitor
EtherCAT, now on 12%.

Every year HMS Networks presents its analysis of the industrial network market, focusing on new
installed nodes within factory automation worldwide. As an independent supplier of
solutions within Industrial ICT (Information and Communication Technology) HMS has a
substantial insight into the industrial networking market. The 2023 research includes estimated market shares and
growth percentages for fieldbuses, Industrial Ethernet and wireless technologies.

In its 2023 analysis, HMS concludes that the industrial network market will continue to grow and that the total
Market growth in 2023 is expected to reach 7%, confirming the continued importance of
network connectivity in factories.

Industrial Ethernet is growing steadily
With 10% growing, Industrial Ethernet continues to gain market share. It currently has a
market share 68% of the global market of newly installed nodes in factory automation
(compared to 66% last year). The battle between PROFINET and EtherNet/IP continues. With each having a market share
18% is at the top of the 2023 network rankings, but EtherCAT is also growing strongly and is
now in an unthreatened third place with a market share of 12%.

Declining trend for field buses
The growth in fieldbuses last year was temporary. In 2023 new fieldbus installations with 5% will decrease.
PROFIBUS tops the list here with 6% market share, but this is barely more than the 5%
market share of Modbus-RTU.

The fieldbuses together account for 24% (27) of the market in 2023. But although the number of new
fieldbus nodes decreases, many devices, machines and factories will continue to rely on them for many years to come
the well-functioning and proven field buses.

Wireless fastest growing
Wireless growth will continue to accelerate in 2023 to 22% as more wireless industrial
Network solutions are being introduced in factory automation. Typical use cases are listed below
more cable replacement, wireless machine access and connectivity to mobile industrial installations.

Industrial networks are the key to productivity and sustainability in the manufacturing sector
“Solid industrial network connectivity is the key to efficient production, necessary to realize
productivity and sustainability goals in factory automation,” says Magnus Jansson,
Product Marketing Director at HMS Networks, Business Unit Anybus. “Quality, security, safety and the
Gaining insight through device and machine data are the key drivers we see for the
further expansion of industrial networks.”

Regional network variations
EtherNet/IP, PROFINET and EtherCAT are leading in Europe and the Middle East, with PROFIBUS
and Modbus-TCP in second place. The US market is dominated by EtherNet/IP, while
EtherCAT is developing strongly here and gaining market share. PROFINET is leading in a fragmented
Asian market, followed by EtherNet/IP and strong competitors CC-Link/CC-Link IE Field, EtherCAT,
PROFIBUS and Modbus (RTU/TCP).

Scope:
The market research provides an overview of HMS' estimates of the industrial network market for 2023
based on the number of newly installed nodes within the factory automation. A node is
hereby defined as a machine/device connected to an industrial fieldbus network. The
The figures presented are based on the consolidated view of HMS, taking into account
with the insights of industry colleagues, HMS' own sales statistics and the general perception of
the market.