Industrial Routers Market Size, Share, Opportunities, And Trends By Type (Wired, Wireless), By Component (Control Processing Unit (CPU), Random Access Memory (RAM), Read-Only Memory (ROM), Network Interface Cards (NIC)), By Enterprise Size (Small, Medium, Large), By End-User (BFSI, IT & Telecommunications, Healthcare, Government, Educations, Others), And By Geography - Forecasts From 2023 To 2028
- Published : Dec 2023
- Report Code : KSI061615839
- Pages : 128
The industrial routers market was valued at US$20.327 billion in 2021.
The industrial routers market is predicted to grow at a constant rate during the forecast period. An industrial router is a device whose primary function is to facilitate secured connectivity and communication over a cellular network, all while maintaining resilience against challenging operational conditions. Such devices can either be wired or wireless and are designed to withstand harsh environmental conditions. The expanding machine-to-machine (M2M) connections and burgeoning industrial automation are key drivers propelling the growth of the industrial routers industry.
Growth in M2M connections bolsters the industrial routers market growth.
Industrial routers play a critical role in machine-to-machine (M2M) connections, between various devices, machines, and systems in an industrial setup, as they provide stable, secure, and efficient connectivity for M2M communication. The increasing trend of automation and digitalization in industries has created a surge in M2M connections and as more machines are interconnected, the demand for industrial routers that can handle the increased data communication load has grown. According to the Cisco “Annual Internet Report”, the proportion of Machine-To-Machine (M2M) connections is projected to experience substantial growth, increasing from 33% in 2018 to an estimated 50% in 2023. The number of M2M connections is also set to soar, reaching an impressive 14.7 billion by 2023.
Emerging industrial automation drives the industrial routers market expansion.
Industrial routers are used in industrial automation to facilitate efficient and reliable communication between machines which is essential for the smooth operation of automated systems. These robust devices enable secure data exchange between various components of an industrial network, ensuring stable connectivity even in challenging environmental conditions. The surge in industrial automation can be attributed to the pursuit of increased operational efficiency, reduced human intervention, enhanced safety, and ongoing investments. For instance, in February 2022, United States Steel and Carnegie Foundry jointly declared a strategic investment and partnership which aimed to expedite the expansion of industrial automation in manufacturing through the deployment of advanced robotics and artificial intelligence.
Innovations drive the industrial routers market growth.
Technological advancements have led to the development of industrial routers with enhanced functionalities such as higher data transfer speeds, superior security features, and robustness in harsh environmental conditions. Furthermore, the development of routers with improved wireless connectivity options caters to the growing trend of wireless communication in industrial settings. For instance, in April 2023, Queclink unveiled its first high-performance 5G dual SIM dual mode wired and wireless industrial router, the WR300FG. Also, in February 2021, HMS Networks introduced its industrial 5G router. This Wireless Router 5G is compatible with Ericsson Industry Connect 5G networks, facilitating user-friendly access to 5G connectivity at their respective locations.
Asia-Pacific is projected to dominate the market.
The Asia-Pacific region is expected to hold a significant share of the industrial router market primarily due to substantial initiatives and investments by governments & company giants aimed at bolstering industrial automation. For instance, In November 2022, Coupang Inc., a leading e-commerce company in Korea, announced plans to allocate $4 billion towards automating its logistics infrastructure. Also, In April 2023, an IIT Kanpur-incubated startup received funding of INR 4.12 crores from the Technology Development Board (TDB) to assist in the commercialization of its Machine Vision and Robotics System, a solution aimed at automating processes in the manufacturing industry.
Cybersecurity concerns may restrain the industrial routers' market growth.
Industrial routers, serving as pivotal communication nodes within industrial networks, are often targeted in cyber-attacks due to their crucial role in network traffic control. If compromised, these routers can provide an entry point for hackers to infiltrate the entire industrial network, leading to potential data breaches, disruptions in operations, or even sabotage. The risk of cyber-attacks and the potential consequences of a security breach can make some organizations hesitant to fully integrate such networked technologies, thereby restraining the growth of the industrial router industry. For instance, In May 2023, researchers discovered a total of 11 security vulnerabilities within products from three different industrial cellular router manufacturers. These vulnerabilities could be exploited by attackers through multiple methods.
Key Developments
- March 2023: Actility, a leading figure in the realm of LPWAN, announced that it will incorporate Cisco's LoRaWAN module for the IR1110 industrial router into its ThingPark platform. This integration aims to streamline and expedite the provision of LPWAN connectivity to distant sites, thus fulfilling the connectivity needs of businesses regardless of their operational locations. By offering an enhanced capability to extend network reach, this strategic move underscores Actility's commitment to supporting businesses in their varied connectivity requirements.
- February 2023: Siemens announced the launch of its first industry-ready 5G routers in India, marking a significant step towards empowering digital transformation within the country's manufacturing industry. These routers, designed to provide the connectivity backbone for private industrial 5G networks, will facilitate the implementation of various applications enabled by Industrial 5G. This development is expected to bring substantial benefits to a broad array of customer segments, further boosting India's industrial progress.
- August 2022: Nokia unveiled its Industrial 5G field router in Japan, to accelerate the nation's digital transformation via private wireless networks. This ruggedized 5G field router will enable enterprises to securely and reliably access operational data from vehicles and industrial equipment. The product launch marks a significant step towards enhancing industrial connectivity, thereby facilitating the seamless flow of data within various operational contexts.
Company Products
- Digi IX10 Cellular Router: Digi International offers the Digi IX10 Cellular Router, a compact and cost-effective connectivity solution with an industrial feature set suitable for both public and private cellular networks. This device is equipped with an Ethernet port and a single RJ-45 serial port, catering to a variety of connectivity requirements, underlining its versatility and functionality in a compact form factor.
- EDR-810 Series: Moxa Inc. offers the EDR-810 Series, a comprehensive networking solution combining firewall, NAT, VPN, router, and switch functionalities in a single device. This 8+2G all-in-one solution delivers secure remote access tunnels using VPN and incorporates PacketGuard technology for a thorough inspection of industrial protocols. The EDR-810 Series is the integration of diverse network functionalities into a singular device, ensuring robust and efficient management of industrial networks.
Segmentation
- By Type
- Wired
- Wireless
- By Component
- Control Processing Unit (CPU)
- Random Access Memory (RAM)
- Read-Only Memory (ROM)
- Network Interface Cards (NIC)
- By Enterprise Size
- Small
- Medium
- Large
- By End-User
- BFSI
- IT & Telecommunications
- Healthcare
- Government
- Educations
- Others
- By Geography
- North America
- USA
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Others
- Europe
- Germany
- UK
- France
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- Other
- North America
1. INTRODUCTION
1.1. Market Overview
1.2. Market Definition
1.3. Scope of the Study
1.4. Market Segmentation
1.5. Currency
1.6. Assumptions
1.7. Base, and Forecast Years Timeline
2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Market Opportunities
4.4. Porter’s Five Force Analysis
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Power of Buyers
4.4.3. Threat of New Entrants
4.4.4. Threat of Substitutes
4.4.5. Competitive Rivalry in the Industry
4.5. Industry Value Chain Analysis
5. INDUSTRIAL ROUTERS MARKET ANALYSIS, BY TYPE
5.1. Introduction
5.2. Wired
5.3. Wireless
6. INDUSTRIAL ROUTERS MARKET ANALYSIS, BY COMPONENT
6.1. Introduction
6.2. Control Processing Unit (CPU)
6.3. Random Access Memory (RAM)
6.4. Read-Only Memory (ROM)
6.5. Network Interface Cards (NIC)
7. INDUSTRIAL ROUTERS MARKET ANALYSIS, BY ENTERPRISE SIZE
7.1. Introduction
7.2. Small
7.3. Medium
7.4. Large
8. INDUSTRIAL ROUTERS MARKET ANALYSIS, BY END-USER
8.1. Introduction
8.2. BFSI
8.3. IT & Telecommunications
8.4. Healthcare
8.5. Government
8.6. Education
8.7. Others
9. INDUSTRIAL ROUTERS MARKET ANALYSIS, BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. USA
9.2.2. Canada
9.2.3. Mexico
9.3. South America
9.3.1. Brazil
9.3.2. Argentina
9.3.3. Others
9.4. Europe
9.4.1. Germany
9.4.2. UK
9.4.3. France
9.4.4. Spain
9.4.5. Others
9.5. Middle East and Africa
9.5.1. Saudi Arabia
9.5.2. UAE
9.5.3. Others
9.6. Asia Pacific
9.6.1. China
9.6.2. Japan
9.6.3. South Korea
9.6.4. India
9.6.5. Australia
9.6.6. Others
10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. COMPANY PROFILES
11.1. Cisco
11.2. Digi International
11.3. Phoenix Contact
11.4. D-Link Corporation
11.5. Moxa Inc.
11.6. ANTAIRA TECHNOLOGIES, LLC.
11.7. InHand Networks
11.8. Siemens AG
11.9. Westermo (Ependion AB)
11.10. Siretta Limited
Cisco
Digi International
Phoenix Contact
D-Link Corporation
ANTAIRA TECHNOLOGIES, LLC.
InHand Networks
Siemens AG
Westermo (Ependion AB)
Siretta Limited
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