IO-Link Market Size, Share & Analysis

Updated on : Sep 12, 2024

IO-Link Market Size, share & Growth

[231 Pages Report] The IO-Link Market Size is projected to reach USD 33.9 billion by 2028 from an estimated USD 13.6 billion in 2023, at a compound annual growth rate (CAGR) of 20.0% from 2023 to 2028. Ability to support all fieldbus protocols and growing demand for remote configuration, monitoring, and maintenance are among the factors driving the growth of the IO-Link industry.

IO-Link Market Analysis Forecast to 2028

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IO-Link Market Trends & Dynamics:

Driver: Rising demand for industry 4.0

Industry 4.0 aims at fully integrating the communication process used in manufacturing to improve the efficiency of factories and transform them into smart factories. This is achieved through the Industrial Internet of Things (IIoT), industrial automation, data exchange, and deployment of smart field devices. The benefits of Industry 4.0 and IIoT include the integration of IO-Link solutions with overall industrial automation systems, easy replacement of sensors, elimination of manual parameter settings, continuous data monitoring and status diagnostics, and increased uptime.

Restraint: Use of compact machines

IO-Link solutions help reduce cables and wiring for industrial machines. Manufacturing industries demand compact and reliable solutions for their operational processes. This leads to the requirement for compact machines on a factory floor. Apart from being small, such compact machines consume less power and offer better performance than other industrial solutions. Also, the wiring in compact machines is already short. In such cases, deploying IO-link solutions is costlier for IO-Link Industry players. In addition, these machines are efficient and require lesser space than traditional machines and other industrial solutions. Hence, the use of compact machines for industrial automation is a key hurdle for the growth of the IO-Link market.

Opportunity: Increasing adoption of IO-Link in automotive industry

A minor shutdown can result in huge losses in a manufacturing unit in the automotive industry. A fault can hamper the entire production process. IO-Link devices eliminate such downtimes, improve product and production processes, and ensure regular preventive maintenance. IO-Link masters are developed according to AIDA specifications for the automotive industry and provide improved performance. The Automation Initiative of German Domestic Automobile manufacturers (AIDA) has defined a standard for IO-Link masters in the automotive industry. The L-coded power connection with functional earth is to be used for all field modules. Vertical integration in automation for the automotive industry includes the support of EtherCAT and EtherNet/IP. Also, IO-Link products are used for seamless integration with controllers. Thus, the automotive industry is expected to create a huge opportunity for the IO-Link ecosystem players in the near future.

Challenge: Cyber risks associated with automation systems

IO-Link solutions are vulnerable to threats such as cross-site request forgery (CSRF), reflected cross-site scripting (XSS), blind command injection, and denial-of-service (DoS) issues. Other risks associated with IO-Link include spear phishing, watering holes, and database injection. In a phishing assault, a digital criminal can steal data from devices by deceiving them into sharing the security key for an application. Cyber risks threaten industrial automation and control systems (IACS). However, cybersecurity measures are taken to secure IACS against such risks. These assaults are used to threaten manufacturing industries and gain monetary benefits or critical business information. These dangers begin from the web, corporate systems, programming overhauls, and unapproved access.

IO-Link Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of IO-Link solutions. These IO-Link Companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Siemens AG (Germany), Rockwell Automation, Inc. (US); OMRON Corporation (Japan); Hans Turck GmbH & Co. KG (Germany); Balluff GmbH (Germany); ifm electronic GmbH (Germany); Pepperl+Fuchs (Germany); Sick AG (Germany); Festo SE & Co. KG (Germany); SMC Corporation (Japan). The demand Product R&D and Production Distributors/Suppliers End Users (OEM) Prominent Companies Small- and Medium-sized Enterprise Suppliers & Retailers Prominent Companies Small and Private Enterprises Joint Ventures (Prominent Companies and Startups) Researchers/Organizations Regulatory Bodies IO-Link solution Manufacturers ? Private Contractors End Users (Aftermarket) Regulatory Bodies

By type, IO-Link wireless segment is expected to grow with the highest CAGR during 2022

The IO-Link wireless segment is expected to experience the second highest CAGR of 100.2% during 2022. IO-link wireless supports roaming capabilities and the possibility to include sensors with low energy consumption in real-time networks. IO-Link wireless is compatible with factory and process automation protocols. The rising demand for the IO-Link wireless protocol and increasing adoption of smart manufacturing across industries are expected to create lucrative opportunities for the growth of the IO-Link wireless segment in the near future. 

By component, IO-Link masters segment is expected to grow with the second highest CAGR during the forecast period

The IO-Link masters of the IO-Link Market Size is expected to grow at the second highest CAGR of 18.6% during the forecast period. IO-Link masters are gateways for connecting up to 8 or 16 IO-Link devices, such as sensors, valves, and binary input or output modules. They reliably transmit machine data, process parameters, and diagnostic data to the controller using 20−30 V supply voltage. The masters simultaneously exchange data with controllers and automation systems. IO-Link masters are used for field applications and control cabinets. These masters have excellent electromagnetic stability, a wide temperature range, high protection rating, and robust housing. Due to these benefits, these are ideal for harsh industrial environment applications.

By IO-Link Industry, hybrid industries segment is expected to grow with the second highest CAGR during the forecast period

The hybrid industries segment is expected to experience the second highest CAGR of 18.9% during the forecast period. In hybrid industries, automation solution requirements are usually a mix of automation solutions for process and discrete industries. Hybrid industries include metals & mining, food & beverages, pharmaceuticals, cement, and glass. Food & beverages and pharmaceuticals industries are the leading hybrid industries in the IO-Link market.

By application, machine tools segment is expected to grow with the second highest CAGR during the forecast period

The machine tools segment is expected to witness the second highest CAGR of 20.3% during the forecast period. Machine tools contain multiple sensors for detecting pressure, level, and temperature. IO-Link-capable sensors are identifiable through their vendor and device ID. The program set by the user in a controller recognizes the connected sensor, checks it, and sets the sensor parameters using the parameter record. Sensors from different manufacturers can be used on a factory floor. IO-Link can also be used for the standard sensors installed on a machine. The signals from these sensors are collected and used in IO-Link sensor hubs and passed along to the controller.

IO-Link Market by Region

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In 2028, Europe is projected to hold the largest share of the overall IO-Link market

Europe region is expected to grow at largest share of ~41% during the forecasted year. Europe comprises major growing economies, such as the UK, Germany, and France, which offer significant growth opportunities for the market. The region focuses on developing highly advanced connected cars and autonomous vehicles, thereby accelerating the demand for IO-Link solutions. The region produces a large number of motor vehicles, aerospace parts, and robots. Thus, the robots manufacturing IO-Link Industry and aerospace industry are an integral part of Europe’s economy.

Top IO-Link Companies - Key Market Players

Siemens AG (Germany), Rockwell Automation, Inc. (US); OMRON Corporation (Japan); Hans Turck GmbH & Co. KG (Germany); Balluff GmbH (Germany); ifm electronic GmbH (Germany); Pepperl+Fuchs (Germany); SICK AG (Germany); Festo SE & Co. KG (Germany); SMC Corporation (Japan) are some of the key players in the IO-Link companies.

IO-Link Market Report Scope :

IO-Link Market Highlights

This research report categorizes the IO-Link market based on by type, by industry, by component, by application, and by region.

Recent Developments

• In August 2022, ifm electronic GmbH acquired a minority share in HiDensity AG, the sole holder of Biel-based HMT microelectronic AG. This acquisition is aimed at future growth potential.
• In June 2022. SICK partners with F1TENTH, which is focused on innovation in the field of autonomous systems for up-and-coming roboticists. This partnership aims at providing students resources in developing autonomous vehicles, including various races throughout the year.
• In June 2022, SICK AG launched Monitoring Box, it is a new Smart Service web application from SICK. It visualizes status data from SICK sensors, offering customers added value from previously unused sensor data. The monitoring box allows for the visualization of internal device parameters to diagnose and monitor fault conditions. It consists of a browser application, server-side data management, an IoT Gateway, and suitable predefined sensor apps for simple connection of SICK sensors.
• In July 2022, Pepperl+Fuchs launched CB10 series I/O hubs that offer the optimal solution for direct integration into the smallest installation spaces. The CB10 modules can be connected directly to an IO-Link master and make push button boxes IO-Link-capable this way.
• March 2022, Balluff GmbH launched BNI IO-Link master and I/O modules are compelling options wherever regular cleaning cycles, among other things, occur in challenging environments. With these new IO-Link devices, the user can better manage difficult conditions.

Frequently Asked Questions (FAQs):

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