Industrial Ethernet riding out the storm, says IMS

Wellingborough, UK – Although over 5 million new Ethernet nodes were installed in industrial automation networks in 2008 the number will fall to less than 4.7 million in 2009, according to a recently published report from IMS Research.

The market study analysed 16 major product groups to assess their Ethernet networking connectivity and use. Forecasts of industrial production by sector was used to give a realistic projection of Ethernet use in industrial automation to 2013.

“Although the worldwide downturn in industrial activity will reduce the number of new nodes being installed in 2009, the percentage decline is less than for industrial automation as a whole, indicating that Ethernet is continuing to gain favour with users”, commented John Morse, author of the report. “Despite the short term decline, the report predicts that industrial Ethernet networking installations will grow by over 10% a year from 2011.

Morse estimates that over half the Ethernet nodes deployed in most industrial automation applications are of the standard Ethernet TCP/IP variety. However, he said, new installations of dedicated industrial variants are projected to grow by 40% from 2008 to 2013. Different regions have different dominant suppliers, so there is considerable regional difference in which variant is chosen.

The report also analyses industrial Ethernet infrastructure components. The estimated value of the world market was $720 million in 2008, but is projected to fall to around $650 in 2009.

“This is a fast changing market. Despite the worldwide industrial slowdown, the next 5 years will see dramatic changes in the way Ethernet is used in industrial automation,” Morse concluded.