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The global industrial ethernet connector market size was valued at USD 708.6 million in 2022. The market is projected to grow from USD 729.8 million in 2023 to USD 1,078.9 million by 2030, exhibiting a CAGR of 5.7% during the forecast period.
Industrial ethernet is a technological innovation in traditional ethernet used for data communication in the industrial sectors. Industrial ethernet technology has a large address space for data communication. Also, it has an IPV6 (Internet Protocol Version 6.0) address and can give access to unlimited participants. It gives coverage for up to 80 km. It has features, such as seamless data transmission, transmitting high-speed data, and being easy to install. Industrial ethernet technology is based on an internet protocol named “ProfiNet (Process Field Network). Industrial ethernet connectors are based on ethernet, such as EtherNet/IP, Ether-CAT, and other network protocols. RJ45 connectors, M12 connectors, M8 connectors, and iX industrial interfaces, are some of the industrial ethernet connectors used on industrial premises.
Increasing adoption of these products in industrial applications, such as automotive and telecommunication, drives market growth. In addition, growth in the automotive industries and the number of e-vehicles, cars, and bikes sold across the globe are factors driving the industrial ethernet connector market growth. For instance, according to the Source of MarkLines, the number of vehicles sold in India grew by 4.5% from 2021 to 2022. Such growth in the number of vehicles sold, which provides lucrative opportunities for manufacturers of ethernet connection, fuels the demand for ethernet, and drives the market growth.
Halted Industrial Production and Manufacturing Operations During COVID-19 Pandemic Hampered Market Growth
The COVID-19 pandemic has created significant disruption for manufacturers across their offices and production facilities. Lockdown restrictions and government-imposed regulations have disrupted the supply chain, and logistics activities have impacted the manufacturing company’s operation across several countries. The pandemic had initially negatively impacted industrial manufacturing, majorly affecting supply chain and distribution activities. With challenging times for industrial manufacturing, end-market users are adopting technology and connectivity solutions to optimize the processes.
During the pandemic, manufacturing has increasingly grown across various sectors, including agriculture, electrical utilities, mining, oil & gas, transport, and logistics. The COVID-19 pandemic showed the importance of the Internet of Things in most businesses to optimize their value chains. The pandemic has made businesses realize the importance of IoT in industries owing to secure and reliable networks. Although the market has shown a drop during the COVID-19 crisis, with a large number of manufacturing companies focusing on process optimization, operational efficiency, and automation, the demand for industrial ethernet technology is projected to show significant market growth over the projected period. Small and medium scale companies are subjected to an incline toward industrial ethernet technology, creating a huge demand for connectors across geographies.
Increasing Demand for Miniaturization and Compact Designs to Trigger Market Growth
With rising developments in Industrial IoT, the number of sensors, actuators, and other electronic components is increasing to make a reliable connection. Several manufacturing companies focus on developing miniature-sized ethernet connectors with large data transmission abilities. For instance, in 2019, HIROSE Electric developed a series of iX connectors for space-constrained industrial applications that require a high-speed data signal transmission of up to 10Gbps. The iX range of connectors can be used in ethernet and non-ethernet applications.
Additionally, the deployment of robotic systems is growing rapidly in more flexible applications, such as collaborative workspaces, creating a strong demand for miniaturized ethernet connectors. Manufacturing companies are concentrating on developing rugged connectors with small sizes that have higher efficiency in data transmission between connected devices. For instance, in September 2019, the iX ethernet connector developed by HIROSE Electric had a socket size up to 70% smaller than a traditional RJ45 ethernet connector. Such factors boost the demand for machine-to-machine connection devices, increasing the market share.
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Growing Automation in the Automotive Sector to Boost Market Growth
Ethernet connectors connect electronic circuit modules, sensors, and control systems. Electrification and connectivity are the current trends in the automotive industry for managing high-speed, high-bandwidth, and data transmission. The number of interconnections is growing as data transmission is increasing progressively. The rising adoption of autonomous vehicles drives the demand for ethernet connectors across the automotive industry. Ethernet connectors are further involved in connected car technologies, which require reliable and efficient communication systems such as battery management systems, power electronics, and other automotive infrastructure.
The IEA report shows electric car sales doubled to 6.6 million units in 2022. The strong growth for EVs across several countries is projected to create strong demand for ethernet connectors in the automotive sector. Furthermore, rising awareness about safe car driving, supportive government regulations, and rising technological advancements in the automotive sector are a few factors driving the ethernet connectors market. All such aforementioned factors drive the market growth.
Data Security and Cybersecurity Threats to Limit Market Growth
Data security has been a prominent factor that might limit ethernet network connectivity's market growth. Due to rising virus and other malware attacks on devices, cybersecurity threats may negatively affect the market. Several industries, such as healthcare, energy, and utilities, are prone to cyber-attacks. Cybersecurity attacks might disrupt the data flow between systems or devices.
Thereby, industries using ethernet communications are prone to such malware attacks, creating hindrances in the demand for ethernet systems. Attackers may attempt to hamper this data to manipulate industrial processes, cause equipment failures, or introduce safety hazards. Additionally, with the rise in cyberattacks over the past decade, data security has become a central concern among industrial users and vendors, restraining the market growth. All such factors provide restraints for the growth of the market.
RJ 45 Connector to Dominate the Market Owing to Increasing Demand across Industries
Based on type, the market is segmented into RJ45 connectors, M12 connectors, M8 connectors, and iX industrial interface.
The RJ45 connectors segment dominates the market and is projected to grow with the highest CAGR of 6.3% during the forecast period. This is attributed to the growing requirement in automotive, aerospace, railway, and smart factory applications. It has several advantages, such as the ability to transfer huge volumes of data from 10/100 MBPS to 1 GBPS transmission speed.
The M12 connectors and M8 connectors segments are expected to exhibit substantial growth owing to their capability to transfer huge volumes of data from 100 MBPS to 10 GBPS and their ability to work under extremely harsh industrial environments.
The iX industrial interface segment is anticipated to grow significantly during the forecast period as it is a technologically advanced product requiring less space than RJ45 connectors. It can be helpful for industrial sectors such as the automotive, railway, and manufacturing sectors. All such factors mentioned above contribute to the market growth.
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Capacity to Work Under High Industrial Temperatures to Lead Control Cabinets Growth
Based on application, the market is segmented into control cabinets, robotics, motor/motor controls, machinery, and others. 0020
The control cabinets segment dominates the market and is projected to grow with highest growth during the forecast period. Control cabinets segment is also expected to dominate the market due as it operates under extremely harsh temperatures and has reliable connection. It is used for various industrial sectors such as automotive, railway, and construction sectors.
The robotics segment is projected to witness potential growth of 6.0% due to rising demand for ethernet connectors from automotive and manufacturing sectors. In automotive sector, RJ45 and M12 connectors are largely utilized in these applications.
Motor/motor controls and machinery segments are projected to grow with potential growth, owing to increasing the number of connected devices and switches to operate data transfer at high bandwidth.
Also, the others segment includes shares contributed by PLC and input-output stations. Due to increasing machinery and related application demand, the application will grow moderately during the forecast period.
The market report covers an in-depth scope and deep-dive analysis of five main regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Asia Pacific Industrial Ethernet Connector Market Size 2022 (USD Million),
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Asia Pacific is expected to hold the largest industrial ethernet connector market share over the forecast period due to several key regional players, good product offerings, and technological advancements implemented by key players operating in the market. In addition, growth in the automotive sector and increasing sales of automotive cars, bikes, and trucks, which subsequently increase the demand for these connectors, drive the market growth in this region. For instance, according to the India Brand Equity Foundation (IBEF), the export of automobiles increased by 35.9% from 2021 to the fiscal year 2022.
China Witnesses Fastest Growth Owing to Increasing Manufacturing Activities
China dominates the market and is anticipated to grow with the highest growth of 7.1% during the forecast period, owing to rising industrial standards and growing industrial automation across China. Also, China is one of the largest manufacturing hubs for electronics and automotive devices. In addition, key players are planning to invest in research & development activities to launch new technologically advanced industrial ethernet connector products for the manufacturing and automotive sectors. Such factors drive the growth of the Asia Pacific market.
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The North America market is anticipated to grow moderately during the forecast period due to technological advancement, presence of key industries, and increasing demand for ethernet connectors among various industry verticals such as automotive, aerospace, and railway. Also, major players, such as Amphenol Corporation, Hubbell Incorporated, and Belden Incorporated, across North America are engaged in providing new products and business expansion as key developmental strategies to improve their geographical presence across North America.
Europe is anticipated to grow at an adequate rate owing to Industry 4.0 technologies that have gained traction across various European industries, including automotive, aerospace, machinery, chemicals, food & beverages, and metal and mining. These sectors leverage automation, data analytics, and IoT to enhance productivity, optimize supply chain management, improve quality control, and enable customization. Such practices implemented in industrial premises contributed positively to market growth.
South America and the Middle East & Africa markets are expected to have a decent rise, owing to the rising adoption of the Internet of Things across a wide range of industries such as oil & gas, mining, and urbanization, and increasing demand for optimization of manufacturing facilities.
Prominent Players Emphasize Strategies to Improve the Overall Market Presence
Prominent players, such as Amphenol Corporation, Rockwell Automation, TE Connectivity, Belden Inc, Halo Electronics, and Eaton Corporation, are adopting product development, product launch, business expansion, and acquisition as vital developmental strategies to intensify market competition and improve the product portfolio through diversified locations. For instance, in January 2020, HIROSE Electric partnered with Amphenol Corporation to introduce iX industrial ethernet connectors for several applications such as factory and process automation, machine-to-machine communication, robotics, sensors, and human interface devices.
The research report covers a detailed analysis of the types and applications of the product. It provides information about leading players in the industrial ethernet connector and their business overview, product offerings, investments (R&D and expansions), revenue analysis, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the abovementioned factors, the report encompasses several factors contributing to the market's growth in recent years.
An Infographic Representation of Industrial Ethernet Connector Market
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CAGR of 5.7% from 2023 to 2030
Value (USD Million) & Volume (Thousand Units)
According to our insights from the report, the market is expected to be valued at USD 1,078.9 million in 2030.
In 2022, the market was valued at USD 708.6 million.
The market is estimated to have a remarkable CAGR of 5.7% during the forecast period.
RJ45 connectors segment is expected to lead the market.
The rising adoption of ethernet connectors in industrial applications and increasing penetration of industrial connectors drive the market growth.
Dalian Special Steel Products Co. Ltd., BAHCO-Snap Europe, Lenox Tools, and Bichamp Cutting Technology Co. Ltd. are some of the top companies operating in the global market.
Asia Pacific is expected to hold the largest market share.
Based on application, the control cabinets segment is expected to grow with the highest CAGR.
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