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:
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