IO-Link Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The IO-link market size reached around USD 16.62 Billion in 2024. The market is projected to grow at a CAGR of 20.20% between 2025 and 2034 to reach nearly USD 104.63 Billion by 2034.

Global IO-Link Market Growth

The demand for IO-links is being influenced by the growth of the Industrial Internet of Things (IIoT). An average factory present anywhere in the world is aged around 25 years, and it relies on disconnected machines that are around 9 years old. Globally, around 77% of all organisations have limited resources and technological know-how to track their excessive power consumption patterns. As per the American Society for Quality, the digitisation of processes by manufacturing companies has led to an 82% improvement in overall efficiency and 45% in customer satisfaction. There has also been a 49% reduction in product defects. This is expected to prompt an increasing number of producers to switch towards digitally advanced factories, thereby increasing the IO-link market value in the upcoming years.

Frontier connectivity ensures reliable, low-latency, and wireless communication between assembly lines across different manufacturing plants, which can add a value of USD 200 billion to the global manufacturing industry by reducing defects and preventing breakdowns and rework. Moreover, the introduction of next-generation autonomously guided vehicles, which can make sophisticated coordination and navigation decisions in real-time, is expected to drive the rate of IO-link market development. This can have a potential economic impact worth USD 130-USD 200 billion on global GDP.

Key Trends and Developments

Establishment of smart factories; rising reliance on digital twins; the emergence of 5G; and the growing need for extra device intelligence are the major factors favouring the IO-link market growth

November 2024

SICK, a German sensor producing company, established a partnership with CoreTigo to launch a new range of IO-link wireless products, including IO-Link Wireless Master, IO-Link Wireless Bridge, and IO-Link Wireless Multiport Hub. This is expected to pave the way towards smarter and flexible industrial automation solutions.

November 2024

Orca Semiconductor launched OS2000, which is an advanced IO-link communications transceiver designed for industrial applications. This transceiver guarantees higher performance delivery and flexibility and is expected to play a critical role in meeting the growing demand for application-specific analogue solutions.

April 2024

In 2023, the number of IO-link devices installed in industrial plants recorded a y-o-y growth of 89% in North America, reaching 51.6 million. This is creating a favourable IO-link market outlook.

January 2023

Renesas Electronics Corporation launched two new semiconductor solutions, CCE4511 and ZSSC3286, to cater to the growing demand from the IO-Link market. CCE4511 is a four-channel master IC which facilitates control over multiple devices efficiently, while ZSSC3286 is a sensor signal conditioner IC that supports IO-link connectivity and processes sensor data accurately.

Establishment of smart factories

By the end of 2024, major power, energy, and utility companies are expected to convert 43% of their production centres into smart factories. This is expected to favourably impact the IO-link market dynamics.

Rising reliance on digital twins

In 2020, 24% of enterprises were using digital twin technology, with 42% expected to adopt it in the upcoming years. This can help them in reducing operational inefficiencies while deriving accurate insights.

Emergence of 5G

By 2030, the global manufacturing sector can potentially generate an additional GDP impact of USD 400 billion to USD 650 billion by relying on 5G networks for enabling critical industrial communication, including wireless control of machines. This can accelerate the rate of the IO-link market development.

Growing need for extra device intelligence

IO-Link devices have built-in intelligence features, which enable the performance of advanced functions. For instance, sensors equipped with IO-link predict maintenance needs, perform self-diagnostics, and provide a detailed error report. This facilitates improved decision-making.

Global IO-Link Market Trends

Smart manufacturing technologies have significantly impacted production-defined industries. As per the market analysis, global enterprises invest 3.24% of their revenue towards building 40% additional smart factories during 2020-2023. This is nearly 1.7 times higher than the investment made during 2016-2019, indicating the numerous possibilities for the IO-link market expansion. Moreover, machine-to-machine connections supporting IoT applications support over 50% of the world’s connected devices (28.5 billion), due to which IO-links are expected to become increasingly important.

Global IO-Link Industry Segmentation

The EMR’s report titled “Global IO-Link Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Breakup by Technology

• IO-Link Wired
• IO-Link Wireless

Breakup by Component

• IO-Link Masters
• IO-Link Devices

Breakup by Application

• Monitoring
• Predictive Maintenance
• Process Automation
• Quality Control
• Others

Breakup by End Use

• Aerospace and Defence
• Automotive
• Manufacturing
• Electronics and Semiconductors
• F&B (Food and Beverages)
• Pharmaceuticals
• Chemicals
• Oil and Gas
• Packaging
• Utilities
• Others

Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global IO-Link Market Share

Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period of 2024-32, the demand for IO-link in the Asia Pacific is estimated to grow at a CAGR of 23.3% due to the rapid industrial automation of manufacturing processes in countries such as India and China. Moreover, as per the IO-link market analysis, the large-scale deployment of 5G networks is also expected to facilitate the market growth in the forecast period.

Leading Companies in the Global IO-Link Market

The rapid shift towards industrial automation solutions is expected to fuel the IO-link market revenue over the forecast period.

Balluff GmbH

Balluff GmbH was founded in 1921 and is headquartered in Baden-Württemberg, Germany. It specialises in the production of object detection sensors, RFID tags, and IO-links.

Beckhoff Automation GmbH & Co. KG

Beckhoff Automation GmbH & Co. KG was founded in 1953 and is headquartered in Verl, Germany. It is amongst the world's leading specialists for PC-based control technologies and automation solutions.

Belden Inc.

Belden Inc. was founded in 1902 and is headquartered in Missouri, United States. It specialises in providing digitisation solutions and industrial automation solutions to various businesses.

Bosch Rexroth Corporation

Bosch Rexroth Corporation was founded in 1795 and is headquartered in Lohr am Main, Germany. It is engaged in offering industrial and mobile automation solutions for leading corporations globally.

Other players included in the IO-link market report are Datalogic S.p.A., Emerson Electric Co., OMRON Corporation, Rockwell Automation, Inc., SICK AG, and Siemens AG, among others.