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Installed Base of Wireless Devices in Industrial Automation Reached 56.5 Million in 2023
September 11, 2024 | Berg InsightEstimated reading time: 2 minutes
A new research report from the IoT analyst firm Berg Insight says that annual shipments of wireless devices for industrial automation applications reached 10.7 million units worldwide in 2023, accounting for approximately 9 percent of all new connected nodes. Growing at a compound annual growth rate (CAGR) of 12.3 percent, annual shipments are expected to reach 19.1 million by 2028. The installed base of wireless devices in industrial automation reached at the same time 56.5 million in 2023. While wired networking solutions are still predominantly used for industrial communications between sensors, controllers and systems, wireless solutions have gained a strong foothold in a number of applications. Wireless solutions are used in hard-to-reach locations or hazardous areas where wired solutions are impractical, ineffective or cost-prohibitive. In factory automation, wireless solutions are widely used to connect mobile industrial equipment such as automated guided vehicles and to remotely access machines for programming and servicing. In process automation, wireless technologies are increasingly used in non-mission critical applications to remotely monitor and optimise processes while also ensuring worker safety. Today, a growing number of wireless field devices are provided by many major industrial automation vendors including ABB, Emerson, Hitachi, Honeywell, OMRON, Schneider Electric, Siemens and Yokogawa.
Wi-Fi has emerged as the most widely used wireless technology in industrial environments largely due to the wide availability of compatible hardware. Providers of industrial Wi-Fi devices include Siemens, Cisco, Belden, Moxa, Phoenix Contact, HMS Networks and Advantech. The 802.15.4-based protocol WirelessHART is the second largest wireless technology used in field devices. The technology is widespread in remote monitoring applications for process industries. Emerson became the first company to market WirelessHART products in 2008 and has today an installed base of more than 10 million wireless pressure transmitters. Cellular solutions are typically used for data acquisition and backhaul communications in distributed automation applications. The largest providers of cellular IoT gateways and routers in the industrial space include Semtech, Cisco, Digi International, Moxa, GE Vernova, HMS Networks, Robustel, InHand Networks and Teltonika Networks. Devices featuring Wi-Fi, WirelessHART and cellular connectivity accounted for 70 percent of the installed base in 2023.
“Partnerships and collaborations between industrial automation players and technology companies are increasingly focused on artificial intelligence”, said Veronika Barta, IoT Analyst at Berg Insight. During 2023–2024, the industrial automation market witnessed both the emergence of new partnerships as well as the extension of existing collaborations focusing on AI. For instance, both ABB and Siemens extended their respective partnerships with Microsoft to focus on generative AI applications in digital solutions. In addition, both Schneider Electric and Siemens have partnerships with NVIDIA to advance the use of AI-powered industrial solutions. Most recently in June 2024, Rockwell Automation announced a collaboration with NVIDIA to scale the use of AI in industrial mobile robots. “More collaborations and partnerships can be expected in the coming years as solution providers bet on AI to optimise industrial processes”, concluded Ms. Barta.
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