HMS Networks has released its yearly analysis of the industrial network market, revealing key trends and developments. After an exceptional surge in 2023, the market experienced a slight slowdown in 2024, with a decrease of approximately 10–11% in newly installed nodes. This dip is primarily attributed to a more challenging economic environment, ongoing uncertainties, and excess production capacity in highly automated sectors such as automotive and manufacturing, particularly in Europe.
In spite of the overall slowdown, the study confirms that industrial Ethernet continues to strengthen its position, while traditional fieldbus technologies are declining at an accelerating pace. During the last two years, shortages in electronic components sustained the demand for serial-based fieldbus solutions as companies turned to any available technology. However, with components now more readily available and economic pressures mounting, the focus has shifted toward more cost-efficient and scalable Ethernet-based communication.
In the 2025 study, HMS concludes that the industrial network market continues to grow, with total market growth over the next five years estimated at +7.7%. Although 2025 is expected to be below this average due to current market conditions, a ramp-up is anticipated in the following years, confirming the continued importance of network connectivity in factories.
Ethernet-based networks now represent 76% of new installations
The analysis reflects that Ethernet-based industrial networks now account for 76% of new nodes, up from 71% in 2024.
Leading the Ethernet pack:
- PROFINET strengthens its lead at 27% (up from 23%)
- EtherNet/IP follows at 23% (up from 21%)
- EtherCAT continues a strong trajectory at 17% (up from 16%)
- Modbus TCP holds steady at 4%
- POWERLINK, CC-Link IE, and other Ethernet networks remain stable, with slight adjustments
Fieldbus technologies now represent just 17% of new nodes, down from 22% in 2024.
Within Fieldbus:
- PROFIBUS remains the largest but drops to 5% (from 7%)
- DeviceNet, CC-Link, and Modbus RTU each decline by 1 percentage point
- CAN/CANopen holds steady at 2%
- Other Fieldbus protocols collectively make up 4%
Wireless remains steady a 7%
Wireless technologies interconnect 7% of new node installations, remaining stable compared to 2024. Wireless continues to be an important complement for non-real-time critical communications, predominantly for use cases requiring mobility, flexible networking, or hard-to-reach areas such as in AGVs (automated guided vehicles), mobile industrial equipment, and retrofitting legacy systems.
5G wireless technology is still experiencing slow adoption in industrial automation. 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, particularly in Asia, are already underway, and the technology holds exciting potential for the future of industrial communication.
Regional insights
Europe: Strong adoption of PROFINET and EtherCAT, with increasing interest in new infrastructure technologies like APL (Advanced Physical Layer) to enable Ethernet communication for process automation applications, and SPE (Single Pair Ethernet) for Ethernet communication up to sensors.
North America: EtherNet/IP remains the leading protocol in North America, but adoption of smart device-friendly technologies like IO-Link, APL, and SPE is clearly growing, with strong market momentum projected in the coming years.
Asia: PROFINET and EtherCAT are both growing in the Chinese market, while CC-Link IE, the first industrial protocol with TSN mechanism, maintains a strong regional foothold.
“This year’s data clearly confirms the ongoing shift from traditional fieldbuses to Industrial Ethernet. It’s a transition driven by the need for more modern network capabilities in today’s automation systems,” said Magnus Jansson, VP Marketing, HMS Networks. “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. The Ethernet infrastructure also paves the way for further innovation toward gigabit Ethernet, TSN, Single Pair Ethernet, and OT/IT convergence.”
The average growth expectation over the coming 5 years is estimated at 7.7%, despite the short-term political and economic uncertainties and upcoming cybersecurity regulations that will require automation companies to rethink the way they connect automation systems.
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