PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410172
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410172
The industrial routers market was valued at US$20.327 billion in 2021.
The industrial routers market is predicted to grow at a constant rate during the forecast period. An industrial router is a device whose primary function is to facilitate secured connectivity and communication over a cellular network, all while maintaining resilience against challenging operational conditions. Such devices can either be wired or wireless and are designed to withstand harsh environmental conditions. The expanding machine-to-machine (M2M) connections and burgeoning industrial automation are key drivers propelling the growth of the industrial routers industry.
Industrial routers play a critical role in machine-to-machine (M2M) connections, between various devices, machines, and systems in an industrial setup, as they provide stable, secure, and efficient connectivity for M2M communication. The increasing trend of automation and digitalization in industries has created a surge in M2M connections and as more machines are interconnected, the demand for industrial routers that can handle the increased data communication load has grown. According to the Cisco "Annual Internet Report", the proportion of Machine-To-Machine (M2M) connections is projected to experience substantial growth, increasing from 33% in 2018 to an estimated 50% in 2023. The number of M2M connections is also set to soar, reaching an impressive 14.7 billion by 2023.
Industrial routers are used in industrial automation to facilitate efficient and reliable communication between machines which is essential for the smooth operation of automated systems. These robust devices enable secure data exchange between various components of an industrial network, ensuring stable connectivity even in challenging environmental conditions. The surge in industrial automation can be attributed to the pursuit of increased operational efficiency, reduced human intervention, enhanced safety, and ongoing investments. For instance, in February 2022, United States Steel and Carnegie Foundry jointly declared a strategic investment and partnership which aimed to expedite the expansion of industrial automation in manufacturing through the deployment of advanced robotics and artificial intelligence.
Technological advancements have led to the development of industrial routers with enhanced functionalities such as higher data transfer speeds, superior security features, and robustness in harsh environmental conditions. Furthermore, the development of routers with improved wireless connectivity options caters to the growing trend of wireless communication in industrial settings. For instance, in April 2023, Queclink unveiled its first high-performance 5G dual SIM dual mode wired and wireless industrial router, the WR300FG. Also, in February 2021, HMS Networks introduced its industrial 5G router. This Wireless Router 5G is compatible with Ericsson Industry Connect 5G networks, facilitating user-friendly access to 5G connectivity at their respective locations.
The Asia-Pacific region is expected to hold a significant share of the industrial router market primarily due to substantial initiatives and investments by governments & company giants aimed at bolstering industrial automation. For instance, In November 2022, Coupang Inc., a leading e-commerce company in Korea, announced plans to allocate $4 billion towards automating its logistics infrastructure. Also, In April 2023, an IIT Kanpur-incubated startup received funding of INR 4.12 crores from the Technology Development Board (TDB) to assist in the commercialization of its Machine Vision and Robotics System, a solution aimed at automating processes in the manufacturing industry.
Industrial routers, serving as pivotal communication nodes within industrial networks, are often targeted in cyber-attacks due to their crucial role in network traffic control. If compromised, these routers can provide an entry point for hackers to infiltrate the entire industrial network, leading to potential data breaches, disruptions in operations, or even sabotage. The risk of cyber-attacks and the potential consequences of a security breach can make some organizations hesitant to fully integrate such networked technologies, thereby restraining the growth of the industrial router industry. For instance, In May 2023, researchers discovered a total of 11 security vulnerabilities within products from three different industrial cellular router manufacturers. These vulnerabilities could be exploited by attackers through multiple methods.