New industrial networking installations fell by 11% in 2024
28 May 2025 
Source: HMS Networks
The number of new industrial networking nodes installed around the world dropped by 10-11% in 2024, compared to 2023, according HMS Networks’ latest annual analysis of the global industrial networking market. It attributes the dip – which follows an “exceptional” surge in 2023 – to a more challenging economic environment, market uncertainties, and excess production capacity in highly automated sectors such as automotive and manufacturing, especially in Europe.
Despite the overall slowdown, the study confirms that industrial Ethernet continues to strengthen its hold on the market, accounting for 76% of new nodes installed during 2024, up from 71% in 2023. Traditional fieldbus technologies are declining at an accelerating pace and now represent just 17% of new nodes, down from 22% in 2023.
During the previous two years, shortages in electronic components sustained the demand for serial-based fieldbus systems as companies turned to any available technology. However, with components now being more readily available and economic pressures mounting, the focus has shifted toward more cost-efficient and scalable Ethernet-based communications.
HMS’ latest analysis shows that Profinet strengthened its global lead among Ethernet-based industrial networks from 23% in 2023 up to at 27% in 2024. EtherNet/IP also increased its market share from 21% to at 23%, while EtherCat grew slightly from 16% to 17%. Further down the ranks, Modbus TCP, Powerlink, CC-Link IE and other Ethernet networks remained stable, each with 4% or less of the market.
In the fieldbus segment, Profibus remains the leader, but the number of nodes installed dropped from 7% in 2023 to 5% in 2024. DeviceNet, CC-Link, and Modbus RTU each declined by about 1%, while CAN/CANopen held steady at 2%. Other fieldbus protocols together make up 4% of the market.
Wireless technologies accounted for 7% of new node installations in 2024, remaining stable compared to 2023. Wireless continues to be an important complement for non-real-time critical communications, mainly for applications requiring mobility or flexible networking, or for hard-to-reach areas. The main uses for wireless communications are for AGVs (automated guided vehicles), AMRs (autonomous mobile robots), mobile industrial equipment, and retrofitting legacy installations.
Take-up of 5G wireless technology is still slow in industrial automation. HMS says this is due to the complexity of infrastructure management, high implementation costs, and challenges in achieving affordable real-time performance in cellular chips. However, despite these barriers, early industrial deployments are already underway, particularly in Asia, and “the technology holds exciting potential for the future of industrial communication”.
The study reveals significant regional differences in the adoption of industrial networking technologies:
- In Europe, there is strong adoption of Profinet and EtherCat, with increasing interest in new infrastructure technologies such as APL (Advanced Physical Layer) that enable the use of Ethernet for process automation applications, and SPE (Single Pair Ethernet) for Ethernet communications with sensors.
- In North America, EtherNet/IP remains the leading protocol, but adoption of smart device-friendly technologies such as IO-Link, APL and SPE is growing, with strong market momentum expected in the coming years.
- In Asia, Profinet and EtherCat are both making inroads into the Chinese market, while CC-Link IE, the first industrial protocol with the TSN (Time Sensitive Networking) mechanism, maintains a strong regional foothold.
HMS predicts that, following the slowdown in 2024, the industrial network market will return to growth, averaging 7.7% over the coming five years, despite short-term political and economic uncertainties and upcoming cybersecurity regulations that will force automation companies to rethink the way they connect automation systems. HMS expects 2025 to be below the 7.7% average due to the adverse market conditions.
“This year’s data clearly confirms the ongoing shift from traditional fieldbuses to Industrial Ethernet,” says Magnus Jansson, HMS Networks’ vice-president for marketing. “It’s a transition driven by the need for more modern network capabilities in today’s automation systems.
“While industrial Ethernet is now well-established, we still see strong growth due to an appetite for more information and the digitalisation of the industry,” he adds. “The Ethernet infrastructure also paves the way for further innovation toward gigabit Ethernet, TSN, Single Pair Ethernet, and OT/IT convergence.”
HMS Networks’ analysis of the industrial communications market is based on a combination of market insights, internal data, and input from key stakeholders in the industrial automation industry. The study focuses on newly installed nodes in factory automation worldwide, with each node being defined as a device or machine connected to an industrial control network.
