Growth predicted in industrial Ethernet devices market

Industrial Ethernet brings together a complex mix of participants. Plant engineering, IT, and independent systems integrators become involved. Ethernet technology is rapidly penetrating the device level of the automation hierarchy. This provides one of those rare opportunities where a new technology can upset the supplier landscape.

05/05/2005


The worldwide market for industrial Ethernet devices is expected to grow at a compounded annual growth rate (CAGR) of 51.4% over the next five years. The market totaled 840,000 units in 2004 and is forecasted to total just over 6.7 million units in 2009, according to ARC Advisory Group’s new "Industrial Ethernet Devices Market Outlook Study." This market study includes revenue for industrial Ethernet switches, which had worldwide sales of $124.4 million in 2004 and is expected to grow to $939.8 million in 2009 for a CAGR of 49.9%.

Ethernet provides users an industrial network that has a lower total cost of ownership with improved adaptability for their changing business needs. This, combined with widespread availability and market familiarity, continues to drive Ethernet's use in industrial automation applications for a broad range of industries.

"Ethernet technology is rapidly penetrating the device level of the automation hierarchy. This provides one of those rare opportunities where a new technology can upset the supplier landscape," according to Research Director Ralph Rio, principal author of the study.

Ethernet devices supported by a vast infrastructure

The aggregate market for industrial Ethernet devices has grown substantially during the last few years despite a difficult market for automation equipment in most areas. The use of commercial-off-the-shelf (COTS) technologies makes the application of Ethernet to industrial networking significantly easier for pilot projects, system extensions, application development, and new automation systems.

Devices and systems that support Ethernet and the Internet protocol suite leverage the vast IT infrastructure. This includes a variety of products including switches, firewalls, network management tools, development tools, and messaging standards.

Industrial switches and environmental protection

While some may start with a cheap office-grade switch purchased at a local retail computer outlet, they soon learn the importance of reliability in an industrial environment. One trip to the plant manager's office to explain why a $30 home office switch brought down production becomes a hard lesson.

Protection for a factory environment requires resilience against heat, vibration, power line noise, dust, and other factors. Currently, most industrial Ethernet switches are rated IP20 to IP40. ARC forecasts an increase in the need for IP67 to IP68 as industrial networking expands deeper into process control applications for those industries where liquids are present.

User survey indicates who buys what

Industrial Ethernet brings together a complex mix of participants. Plant engineering, IT, and independent systems integrators become involved. The user survey helps clarify who is key in the design, purchase, installation and maintenance of an industrial network. User preferences for industrial Ethernet have a few surprises. The ARC user survey shows that price, while a consideration, has not proven to be a key differentiator.

Source: ARC Advisory Group

 

Additional information on this study can be found at: www.arcweb.com/res/Ethernet.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me