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Global Industrial Ethernet Switches Market - Increasing Use of WLAN Solutions a Major Hindrance | Technavio
[March 08, 2018]

Global Industrial Ethernet Switches Market - Increasing Use of WLAN Solutions a Major Hindrance | Technavio

The global industrial Ethernet switches market is expected to grow at a CAGR of above 10% during the period 2018-2022, according to a new market research study by Technavio.

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Technavio has published a new market research report on the global industrial Ethernet switches mark ...

Technavio has published a new market research report on the global industrial Ethernet switches market from 2018-2022. (Graphic: Business Wire)

The report presents a comprehensive research of the global industrial Ethernet switches market by product, including unmanaged industrial Ethernet switches and managed industrial Ethernet switches. The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.

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Market driver: growing preference for managed switches with the increasing adoption of IIoT

The adoption of IIoT in the process and discrete industries worldwide have increased due to the need to develop a connected working environment. IIoT has features such as easy monitoring and control, reduced downtime, and increased efficiency of manufacturing and production processes. The increasing competition between players in the market and the need to satisfy the diverse need of customers is expected to increase the adoption of IIoT during the forecast period.

According to a senior analyst at Technavio for automation research, "The high adoption of IIoT has created a need for dedicated automation network solutions. Ethernet has proven to be the perfect solution for industry managers as it offers higher bandwidth. With characteristics such as flexibility for prioritizing data flow, support for scalability, port mirroring, and sequencing of data transfer, managed Ethernet switches are preferred for IIoT solutions."

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Market trend: increasing Power over Ethernet (PoE) speeds

With the release of 802.3bz protocol, Ethernet switches are set to provide higher data speeds, which will allow users to jump from 1 Gbps to 10 Gbps speed. This will eliminate the expensive recabling cost. At present, the speed achieved with Ethernet is slightly over 1 Gbps and lies in between 1.3 Gbps to 4.6 Gbps. The IEEE802.3bz protocol allows a speed of 2.5 Gbps over the Cat 5e cabling and a speed of 5 Gbps over the Cat 6 cabling. This protocol is compatible with Wave 2 Wi-Fi technology and at the same time offers high physical data transfer rates. The density of connected devices is expected to increase, and so is the preference for Wave 2, due to the increasing implementation of IIoT during the forecast period.

Market challenge: increasing use of WLAN solutions

In the process industries, there is an increase in adoption of WLAN solutions. They offer installation flexibility and cost advantages to end-users when compared with other networking protocols such as Ethernet. Reduced wiring within industries, extended coverage area, and low installation costs are some of the benefits offered by WLANs when compared to Ethernet protocols. Nevertheless, WLANs do not provide an uninterrupted flow of traffic, and they are not preferred within an industrial environment where magnetic interference is high. Such disadvantages of WLANs have restricted its use for industrial purposes.

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About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 10,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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