Smart manufacturing no longer runs on machines alone—it runs on the network that moves data between programmable logic controllers (PLCs), edge devices and enterprise applications. As manufacturers connect legacy PLCs to modern Ethernet, wireless and cloud systems, industrial connectivity portfolios have moved from the IT closet to the heart of production infrastructure.
This shift matters now because a single unmanaged switch or insecure gateway can stall an entire line. The vendors supplying ruggedized Ethernet switching, wireless connectivity, network management and security technologies are therefore becoming critical suppliers to every digital plant.
Analyst Insight: The collapse of the air gap between enterprise IT and plant-floor OT networks is the defining catalyst for this market. Industry estimates suggest roughly 68% of manufacturers now run unified IP backbones from the ERP layer down to the PLC tier—making the connectivity layer a strategic control point rather than a commodity.
Industrial connectivity: from afterthought to production infrastructure
For decades, factory networking was an afterthought—proprietary fieldbuses and point-to-point wiring that vendors locked down. Today, industrial connectivity spans managed Ethernet switches, media converters, wireless access points and security appliances engineered for the harsh conditions of the plant floor.
The consequence is structural: manufacturers can no longer treat the network as a cost center. It is the substrate on which predictive maintenance, digital twins and real-time PLC control all depend.
Bridging legacy PLCs to modern Ethernet and edge systems
One of the hardest problems in digital manufacturing is integrating established equipment. Many plants still run PLCs that communicate over legacy protocols, yet production data must reach edge devices and cloud applications in real time.
Connectivity vendors solve this through protocol gateways, media converters and managed switches that translate legacy traffic onto deterministic Ethernet. The goal is not to rip out working automation, but to extend its life while unlocking data.
Ruggedized Ethernet switching
Industrial Ethernet switches form the backbone of modern facilities, enabling secure, deterministic communication between PLCs, SCADA systems and I/O devices. Managed switches now dominate deployments, reflecting the need for remote configuration, VLAN segmentation and real-time diagnostics.
Wireless connectivity and network management
Wireless technologies—from Wi-Fi to private cellular—free mobile assets and hard-to-wire sensors from physical cabling. Network management software, meanwhile, gives operations teams visibility into switch health, traffic patterns and security posture across hundreds of endpoints.
Security and interoperability
As OT networks converge with IT, cybersecurity regulations such as IEC 62443 are pushing manufacturers toward segmented, managed architectures. Interoperability technologies ensure that equipment from different vendors can coexist on a single resilient backbone.
Market Trend: The industrial Ethernet switch market is projected to more than double in value over the next decade as Industry 4.0 adoption accelerates. Managed switches are growing faster than unmanaged hardware, signaling that manufacturers want control and visibility—not just connectivity.
Market data: industrial connectivity at a glance
Industrial Ethernet switch market outlook
The global industrial Ethernet switches market is valued at approximately $11.2 billion in 2025 and is projected to reach $21.94 billion by 2034, a compound annual growth rate (CAGR) of 7.8%.
Managed switches commanded roughly 68.75% of market share in 2025 and are forecast to expand at an 11.31% CAGR, outpacing unmanaged hardware. Layer 2 platforms held about 61.4% share, while Layer 3 devices are projected to grow fastest.
Industrial Ethernet and communication growth
The broader industrial Ethernet market is estimated at $12.5 billion in 2025 and is expected to reach $21.7 billion by 2032, growing at an 8.2% CAGR. The industrial communication market overall is projected to expand at a 5.0% CAGR from 2025 to 2030.
Asia-Pacific is the fastest-growing region, with industrial Ethernet revenue forecast to rise at roughly 10.04% CAGR, driven by smart manufacturing investment in China, Japan and South Korea.
Speed and architecture trends
1 Gbps Ethernet dominates industrial deployments with about 44.2% market share in 2025, balancing performance, cost and compatibility. 100 Mbps still accounts for roughly 28.6% of deployments, concentrated in edge devices and legacy systems, while 10 Gbps is growing fastest at a 12.6% CAGR for data-intensive aggregation points.
What this means for manufacturers
For operations leaders, the message is clear: connectivity is no longer a vendor afterthought or an IT-only concern. The quality of the industrial network directly determines whether PLC data becomes actionable insight or stranded on the plant floor.
When evaluating connectivity suppliers, manufacturers should weigh ruggedization, protocol breadth, management capabilities and security certifications alongside raw throughput. The right partner extends the life of legacy PLCs while preparing the plant for edge computing and cloud analytics.
Frequently asked questions
Why is industrial connectivity critical for PLC-based automation?
PLCs generate the real-time control data that drives production, quality and maintenance decisions. Without reliable industrial connectivity, that data cannot reach edge devices, historians or cloud applications—leaving the plant blind to its own performance.
How do manufacturers connect legacy PLCs to modern networks?
Legacy PLCs are typically integrated through protocol gateways, media converters and managed switches that translate older fieldbus or serial traffic onto deterministic industrial Ethernet. This preserves the investment in existing automation while unlocking data access.
What should manufacturers look for in an industrial connectivity vendor?
Key criteria include ruggedization for harsh environments, support for multiple industrial protocols, managed network features such as VLAN segmentation and diagnostics, and compliance with cybersecurity standards like IEC 62443.
