IO-Link Global Market Report 2026

IO-Link is an open standard communication link designed for sensors and actuators in industrial automation. It facilitates a point-to-point connection, serving as a standardized interface between the control system and sensors/actuators. This standardization simplifies the integration, configuration, and maintenance processes in industrial automation.

The primary components of IO-Link include the IO-Link master, IO-Link devices, sensor nodes, modules, actuators, RFID read heads, and other related components. The IO-Link master functions as the communication interface connecting IO-Link sensors, actuators, and control systems. These components find applications in various industrial sectors such as machine tools, handling and assembly automation, packaging, and intralogistics. Industries such as oil and gas, energy and power, automotive, aerospace and defense, pharmaceuticals, food and beverages, chemicals, and others utilize IO-Link for their automation needs.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have influenced the IO-Link market by raising costs for imported sensors, actuators, RFID modules, cabling, and semiconductor components critical for automation infrastructure. Industries such as automotive, pharmaceuticals, food and beverage, and energy across Asia-Pacific, Europe, and North America face longer procurement cycles and higher system integration budgets. Nonetheless, tariffs have also encouraged localized module production, strengthened domestic automation ecosystems, and accelerated innovation in cost-effective IO-Link devices and communication architectures.

The IO-link market research report is one of a series of new reports from The Business Research Company that provides IO-link market statistics, including the IO-link industry global market size, regional shares, competitors with an IO-link market share, detailed IO-link market segments, market trends, and opportunities, and any further data you may need to thrive in the IO-link industry. This IO-link market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The io-link market size has grown exponentially in recent years. It will grow from $16.42 billion in 2025 to $20.3 billion in 2026 at a compound annual growth rate (CAGR) of 23.6%. The growth in the historic period can be attributed to increasing use of standardized sensor communication, early adoption in machine tool automation, growth in modular actuator systems, expansion of industrial connectivity solutions, rising demand for simplified device commissioning.

The io-link market size is expected to see exponential growth in the next few years. It will grow to $47.66 billion in 2030 at a compound annual growth rate (CAGR) of 23.8%. The growth in the forecast period can be attributed to rising deployment of digital factories, adoption of smart packaging automation, expansion of intralogistics automation, growing need for real-time device-level communication, increasing demand for intelligent sensor networks. Major trends in the forecast period include expansion of industry 4.0-enabled io-link networks, growth of IoT-based sensor interoperability, adoption of cloud-integrated io-link diagnostics, integration of AI-driven predictive maintenance, advancement of robotics-oriented io-link automation.

The IO-link market is anticipated to experience substantial growth, primarily driven by the increasing penetration of the Internet of Things (IoT). The IoT involves a network of interconnected devices, both digital and mechanical, as well as individuals, animals, or objects, each assigned unique identifiers (UIDs). These entities can communicate over a network without requiring direct human-to-human or human-to-computer interaction. IO-link facilitates real-time communication, remote configuration, and diagnostics for sensors and actuators in the context of IoT. For example, in January 2023, the World Economic Forum, a Switzerland-based non-profit organization, estimated that the number of connected IoT devices would reach 30 billion by 2025. This surge in IoT penetration is a key factor fueling the growth of the IO-link market.

Leading companies in the IO-link market are intensifying their focus on creating innovative products, such as the G3 IO-Link Master, to offer customers a cost-effective solution for smart and analog sensor connectivity. A Class A IO-Link master, in this context, refers to a port class establishing a point-to-point connection between an IO-Link master and an IO-Link device (sensor or actuator) using an unshielded three-core cable. In August 2023, Emerson Electric Co., a prominent US-based manufacturing company, launched a new Class A IO-Link master, the G3 IO-Link Master. This product is well-suited for machine architectures featuring numerous sensors and pneumatic valves, emphasizing the importance of reliable digital data communication between field devices, such as sensors, and the machine controller. The commitment to developing cutting-edge solutions underscores the ongoing emphasis on next-generation technologies within the IO-link market.

In August 2023, ifm group, a Germany-based industrial automation technology company, acquired Sentinum GmbH for an undisclosed amount. Through this acquisition, ifm group aims to enhance its IoT and wireless sensor portfolio by incorporating Sentinum's expertise in radar and radio sensor technologies for smart city and smart building applications. Sentinum GmbH is a Germany-based manufacturer providing IO-Link solutions.

Major companies operating in the io-link market are Siemens AG, Balluff GmbH, ifm electronic GmbH, SICK AG, Rockwell Automation Inc., Omron Corporation, PepperlFuchs GmbH, Banner Engineering Corp., Emerson Electric Co, Datalogic S.p.A., Beckhoff Automation GmbH And Co KG, Baumer Holding AG, Bosch Rexroth AG, Weidmuller Interface GmbH And Co KG, Comtrol Corporation, Phoenix Contact GmbH & Co KG, WAGO Kontakttechnik GmbH & Co KG, Turck duotec GmbH, Wenglor Sensoric GmbH, NXP Semiconductors N.V., Murrelektronik GmbH, Festo AG & Co KG, SMC Corporation, Leuze electronic GmbH Co KG, ABB Ltd, Advantech Co Ltd., BihlWiedemann GmbH, Carlo Gavazzi S.p.A., Elobau Sensor Technology GmbH, Euchner GmbH Co KG

Europe was the largest region in the IO-Link market in 2025. The regions covered in the io-link market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the io-link market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IO-link market consists of revenues earned by entities by providing services such as system installation and commissioning, maintenance support, consulting and training services, and software tools related to IO-Link technology. The market value includes the value of related goods sold by the service provider or included within the service offering. The IO-Link market also includes sales of IO-link hubs, IO-link repeaters, IO-link converters, and IO-link accessories such as connectors, cables, and adapters, position sensors, temperature sensors, pressure sensors, vibration sensors, and other sensor nodes. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

IO-Link Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses io-link market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for io-link ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The io-link market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Component: IO-link Master; IO-link Devices; Sensor Nodes; Modules; Actuators; RFID Read Heads; Other Components
• 2) By Application: Machine Tool; Handling And Assembly Automation; Packaging; Intralogistics
• 3) By Industry Vertical: Oil And Gas; Energy And Power; Automotive; Aerospace And Defense; Pharmaceuticals; Food And Beverages; Chemicals; Other Industry Verticals
• Subsegments:
• 1) By IO-Link Master: Single Port IO-Link Master; Multi-Port IO-Link Master
• 2) By IO-Link Devices: IO-Link Sensors; IO-Link I Or O Devices; IO-Link Actuators
• 3) By Sensor Nodes: Proximity Sensors; Temperature Sensors; Pressure Sensors
• 4) By Modules: Communication Modules; Gateway Modules; Power Modules
• 5) By Actuators: Pneumatic Actuators; Electric Actuators; Hydraulic Actuators
• 6) By RFID Read Heads: Fixed RFID Read Heads; Handheld RFID Read Heads
• 7) By Other Components: Cables And Connectors; Software Tools; Interface Devices
• Companies Mentioned: Siemens AG; Balluff GmbH; ifm electronic GmbH; SICK AG; Rockwell Automation Inc.; Omron Corporation; PepperlFuchs GmbH; Banner Engineering Corp.; Emerson Electric Co; Datalogic S.p.A.; Beckhoff Automation GmbH And Co KG; Baumer Holding AG; Bosch Rexroth AG; Weidmuller Interface GmbH And Co KG; Comtrol Corporation; Phoenix Contact GmbH & Co KG; WAGO Kontakttechnik GmbH & Co KG; Turck duotec GmbH; Wenglor Sensoric GmbH; NXP Semiconductors N.V.; Murrelektronik GmbH; Festo AG & Co KG; SMC Corporation; Leuze electronic GmbH Co KG; ABB Ltd; Advantech Co Ltd.; BihlWiedemann GmbH; Carlo Gavazzi S.p.A.; Elobau Sensor Technology GmbH; Euchner GmbH Co KG
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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