According to the new research report titled "Communications Interface Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 10,388.04 million by 2028 and register a CAGR of 8.9% from 2022 to 2028.
The rising awareness of the benefits of automation across the world has influenced the adoption of the same across various industries such as manufacturing, automotive, mining, and food & beverages. The growing demand for automobiles globally has increased the requirement for automation systems as it helps speed up production while decreasing the manufacturing cost and risk to human workers. Thus, the adoption of collaborative robots, robotic arms, and the Internet of Things (IoT) is rising across the automotive industry. According to the International Federation of Robotics report, in 2019, the robot density in the US automotive industry was 1,287 installed units per 10,000 employees.
Additionally, the mining industry is constantly focusing on automation to improve its mining processes and reduce injuries at work. According to a white paper published by Accenture and the World Economic Forum in 2020, smart mining is expected to reduce fatalities by 10% and injuries by 20% over the next decade. The adoption of several connected devices across mines enables the interpretation of data on a real-time basis, reduces operational costs, and enables centralized control of mining fleets. According to a case study published by Telefonaktiebolaget LM Ericsson, automation adoption for drilling and blasting helped save ~US$ 2.48 million annually at the Aitik mine alone. Hence, the rising adoption of automation across industries is fueling the demand for connected devices and other automation solutions, thereby contributing to the growth of the communications interface market.
Industrial automation OEMs play a crucial role in the ecosystem by developing communication interface devices, which enable the system integrators to develop or implement various automation products such as PLC and DCS. This creates a communication link between automated systems that allow plant equipment to communicate efficiently with operators and other machinery. One of the most common types of system integration is supervisory control and data acquisition (SCADA), as it combines software and hardware elements to allow companies to control and monitor their industrial processes on cloud or on-premises. Often the OEM is also the System Integrator as both products are provided by the same company. End users are generally industry verticals, which adopt these industrial and factory automation solutions for improving manufacturing.
The North America communications interface market over the years also showcased significant growth. The wide presence of manufacturing industries and the rapid adoption of advanced and automated technologies by these industries to enhance their manufacturing capabilities are contributing to the market's growth. The presence of several robot and IoT device manufacturers in the country, such as Universal Robots A/S; Clearpath Robotics Inc.; AgEagle Aerial Systems; and Bastian Solutions, Inc., is further propelling the demand for manufacturing components and subcomponents across the region. These factors are expected to contribute to the North America communications interface market growth over the forecast period.
The global communications interface market size is segmented on the basis of product, mode of communication, application, and geography. Based on product, the communications interface market is segmented into 1-Port, 2-Port, and others. Based on mode of communication, the communications interface market is bifurcated into wired and wireless & hybrid. Based on application, the communications interface market is segmented into industrial networking, battery monitoring system, remote sensors communication, railway signalling system, machine to machine communication, and others.
Key Findings of Study:
The communications interface market size is segmented into five regions-North America, Asia Pacific (APAC), Europe, the Middle East & Africa (MEA), and South America (SAM). APAC accounted for the largest communications interface market share in 2021 and is expected to register the highest CAGR over the forecast period of 2022-2028. Government initiatives and policies promoting the adoption of digitization across manufacturing plants are the significant factors boosting the uptake of industrial automation solutions in the region. Under Made in China 2025 initiative, the Chinese government has announced a five-year smart manufacturing plan to digitalize almost 70% of the country's large enterprises or factories. Also, various countries have increased industrial robot installation to automate manufacturing facilities. According to the International Federation of Robotics (IFR), in 2020, China alone installed 154,000 industrial robots. These factors are increasing the demand for robots and their components and subcomponents across the region, thereby contributing to the APAC communications interface market growth.
In terms of revenue, Europe accounted for the second largest communications interface market share. Over the years, the increasing adoption of IoT in the industrial sectors across European countries such as Germany, the UK, and the Netherlands to automate their manufacturing processes is propelling the demand for communication interfaces across the region. Additionally, the presence of communications interface market players such as ABB Ltd. and Eaton Plc in the region is expected to contribute to the growth of the European communications interface market in the coming years.
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