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Members of industrial ethernet switch market find new areas to grow

SUBNET Solutions Inc | Wednesday, May 08, 2013

The market for industrial ethernet switches has long been supported and even dependent on the growth of discreet automation applications, however new trends are emerging that show growth could now be underpinned by more infrastructure projects and automation installation. 

According to the Arc Advisory Group, new research shows that the upcoming growth drivers are expected to push expansion figures into the double digits in the coming years, with such projects including the substation automation and even the still-nebulous internet of things. Such are the findings of the most recent update to industry representatives' outlook on growth in the ethernet switch market. 

Whether it's smart grid rollouts like substation automation or broader projects like smart rails, highways and other forms of transportation, the industrial ethernet is expected to become increasingly important to the power, utilities and industrial sectors. In China, where growth tied to expanding infrastructure has been well documented, advancements in electric power generation, transmission and distribution and transportation are some of the largest users of industrial ethernet switches. 

In North America, automation installations already use industrial ethernet functions on the control end, however the most recent push has been to use the system in the devices installed on the grid. 

"Industrial Ethernet switch suppliers are faced with a widening landscape upon which to direct their strategies.  Device characteristics, standards support, toolsets supplied, and a myriad of other decisions must be driven by which market subsets are targeted," said Arc vice president Chantal Polsonetti, the principal author of the company. 

In Arc's report, "Industrial Ethernet Switches Global Market Research Study," the group discussed how mergers and acquisitions in the industrial ethernet switch market will continue to take off as it grows as a whole. Although electrical substation automation deals have also been thriving as new players enter the market, several other deals have been made as growth had led to a greater number of suppliers to the sector. 

These secondary products, such as connectors, panel maters human machine interfaces and smart grid technologies, will likely see major new deal activity as the market expands, the report noted.

SUBNET has developed several solutions that help utilities install substation automation and all necessary components over any communication system that is available. This Unified Substation Communications solution allows utilities to install a single intelligent server that addresses all current and future substation information needs.

As new vendors enter the market, the solution will ensure all functions can be performed no matter what disparate intelligent electronic devices or communication platforms are used. 

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