Industrial Ethernet has increased its share of newly installed network nodes in factory automation worldwide to 79%. This is according to the annual market analysis by HMS Networks, which has examined the distribution of new network nodes for the twelfth time. Last year, the share stood at 76%; in 2015, it was 34%.

Following a market slowdown in 2024, the automation market stabilized again in 2025. According to HMS Networks, supply chains have normalized and inventory levels have largely been reduced. Despite the ongoing weakness in the European automotive sector, investment in new automation projects has resumed in most regions. For the next five years, the company expects an average annual growth rate of approximately 7.7% in newly installed nodes.

According to PI (Profibus & Profinet International), the number of newly installed Profibus nodes declined from 1.1 million in 2024 to 1.0 million in 2025. Modbus RTU holds a 3% share, while CC-Link, DeviceNet, and CAN/CANopen each account for between 1% and 2%. Other fieldbus protocols account for only 2%.

Wireless remains steady

Wireless network technologies account for 7% of new installations. They are primarily used in mobile applications such as automated guided vehicles (AGVs), autonomous mobile robots (AMRs), machine retrofits, and IIoT sensors.

According to the study, however, the rollout of 5G is proceeding more slowly than many had expected. The complexity of private 5G infrastructure is considered a major hurdle. The first industrial applications are emerging primarily in Asia.

Regional Differences

Profinet and EtherCAT continue to dominate the European market. At the same time, technologies such as Advanced Physical Layer (APL) and Single Pair Ethernet (SPE) are gaining ground. The decline of Profibus is particularly pronounced here.

In North America, EtherNet/IP remains the leading protocol, particularly in the automotive industry and discrete manufacturing. In addition, interest in IO-Link, APL, and SPE is growing, in part due to operational technology (OT) cybersecurity requirements.

Profinet and EtherCAT continue to grow in the Chinese market. CC-Link IE maintains its strong market position there.

The focus is shifting to higher levels

“Twelve years of market analysis tell a remarkably consistent story. The transition from fieldbus to Industrial Ethernet is now in its final stages. The exciting question today is what happens next. Once nearly everything is based on Ethernet, the discussion shifts from ‘Which protocol?’ to ‘What builds on top of it?’. For example, functional safety, cybersecurity, TSN, OPC UA, Single Pair Ethernet, or IT/OT convergence. That is precisely where both complexity and differentiation will lie in the future,” says Magnus Jansson, Director of Product Marketing at HMS Networks.

In addition to its market analysis, HMS Networks also publishes the “State of Industrial Networking” report, which examines, among other things, developments in cybersecurity, industrial communications, and regional market trends.