Europe Industrial Networking Solution Market Report (2021-2031) by Scope, Segmentation, Dynamics, and Competitive Analysis

The Europe industrial networking solution market is projected to grow significantly, reaching approximately US$ 35,347.37 million by 2031, up from US$ 7,263.40 million in 2023. This growth represents a remarkable compound annual growth rate (CAGR) of 21.9% from 2023 to 2031.

Executive Summary and Market Analysis

Key players in the market are actively engaging in product development, mergers, acquisitions, and strategic partnerships to enhance their offerings. For example, in July 2022, RS Components entered into a strategic alliance with HMS Networks to expand its portfolio of industrial networking solutions. This partnership aims to provide customers with a wider array of options for connecting and integrating their industrial equipment more efficiently.

In April 2023, Deutsche Telekom launched a new campus network solution utilizing an industrial 5G spectrum, allowing businesses to benefit from a private 5G network without needing to invest in additional infrastructure. The Campus Network M with Industrial Frequencies enables companies to use exclusive 5G frequencies in the 3.7–3.8 GHz range, following successful trials with injection molding machine manufacturer Arburg earlier in January 2023. This solution allows businesses to leverage local 5G spectrum advantages without incurring extra infrastructure costs.

Additionally, in February 2024, Westermo, a Swedish company, introduced a new series of compact, unmanaged industrial Ethernet switches known as the SandCat five-port fast Ethernet switch series. These cost-effective, plug-and-play devices are designed to meet the increasing demands for network complexity, reliability, and bandwidth in sectors such as utilities, marine, manufacturing, and energy. Such innovations are expected to drive the growth of the industrial networking solutions market in Europe during the forecast period.

Market Segmentation Analysis

The Europe industrial networking solution market can be segmented based on components, deployment methods, connectivity types, and end-use industries.

Components: The market is divided into hardware and software/services, with hardware holding a larger market share in 2023.
Deployment: The market is categorized into on-premise and cloud solutions, with on-premise solutions dominating in 2023.
Connectivity: The market is split into wired and wireless connectivity, where wired solutions held a larger share in 2023.
End-Use Industries: The market is segmented into automotive, banking, financial services, and insurance (BFSI), manufacturing, telecommunications, logistics and transportation, among others, with manufacturing being the largest segment in 2023.

Market Outlook

The increasing adoption of wireless technologies in industrial operations is a significant trend, driven by the need for flexibility, mobility, and scalability in industrial networks. Wireless networks provide advantages such as easy reconfiguration, adaptability to changing environments, seamless connectivity, and the ability to expand network coverage without extensive infrastructure changes. This trend is enabling organizations to future-proof their network infrastructure and prepare for advancements in wireless technology. The shift towards wireless technologies is transforming the design and deployment of industrial networks, enhancing productivity and operational efficiency, and further propelling the growth of the industrial networking solutions market.

Country Insights

The Europe industrial networking solution market includes key countries such as Germany, the UK, France, Italy, Russia, and others. Germany held the largest market share in 2023. According to the digital industry association Bitkom, accelerating digitalization in Germany could significantly contribute to achieving the country's 2030 climate targets, potentially reducing emissions by over 24%. The analysis highlights the potential for digitalization across various sectors, including energy, industry, transportation, buildings, and agriculture, with the energy and building sectors showing the most promise for leveraging digital technology to combat climate change. As digitization efforts intensify, the demand for industrial networking solutions in Germany is expected to rise during the forecast period.

Company Profiles

Prominent players in the Europe industrial networking solution market include ABB Ltd, Belden Inc, Cisco Systems Inc, Hewlett Packard Enterprise Development LP, Huawei Technologies Co Ltd, Moxa Inc., Nokia Corp, Rockwell Automation Inc, Semtech Corp, and Siemens AG. These companies are pursuing various strategies, including expansion, product innovation, and mergers and acquisitions, to enhance their product offerings and increase market share.

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