According to a new report published by Allied Market Research, titled, “IO-link Market by Type, Component, Application, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global IO-link market size was valued at $6.10 billion in 2020, and is projected to reach $74.08 billion by 2030, registering a CAGR of 29.0%. Europe is expected to be the leading contributor to the global market during the forecast period, followed by Asia-Pacific and North America.
IO-link is an increasingly deployed point-to-point serial communication protocol used to communicate with sensors and actuators. An IO-link configuration consists of a master and network devices. The master can be connected virtually to any fieldbus, and information flow between the master and devices is bidirectional. A key differentiator between IO-link and standard IO is that with IO-link, three types of data can be transmitted between the master and devices, including process data, service data, and events.
One of the key enablers of the smart factories is a communication protocol known as IO-link. IO-Link offers benefits over traditional IO in the form of reduced cost & complexity, improved process efficiency, and increased machine availability. Leading sensor manufacturers and industrial manufacturing companies, including Pepperl+Fuchs Comtrol, have joined the international IO-link Consortium to promote the IO-link communication protocol due to its advantages over standard I/O.
Pepperl+Fuchs Comtrol launched the industry’s highest density IO-link Master Industrial IO-Link gateway in its IO-link Master. The IO-link to EtherNet/IP Master combines the benefits of the IO-link standard with the EtherNet/IP and Modbus TCP protocols. This can easily integrate the IO-link Master into a system network with existing and new industrial Ethernet installations.
The prominent factors that impact the IO-link market growth are ability to support much higher level Fieldbus and Ethernet communication protocols, surge in penetration of Industry 4.0, and government initiatives toward the adoption of industrial automation. However, consumption of compact machines restricts the market growth. On the contrary, continuous adoption of next-generation technologies is expected to create lucrative opportunities for the expansion of the market.
Region wise, the IO-link market trends are analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, and rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Europe held the largest share of the IO-link market, owing to the presence of automotive, aerospace & defense, and industrial manufacturing verticals in the region. This region comprises major growing economies, such as the UK, Germany, and France, which open new avenues for the growth of the global market. The overall IO-link market analysis is determined to understand the profitable trends to gain a stronger foothold.
Covid-19 Impact Analysis
The COVID-19 pandemic has significantly impacted players operating in the IO-link market. Owing to the complete shutdown of all manufacturing plants, public places, and offices due to lockdown across the world, the demand for IO-link solutions decreased dramatically. Moreover, the demand for electronic devices such as sensors, switches, and actuators has decreased significantly worldwide, owing to lockdown imposed by different governments to contain the spread of the COVID-19, which as impacted the IO-link market growth.
However, the latter half of the year is expected to witness normalization in the inventory levels and increased demand for IO-link products, owing to stabilization in the automotive vertical. The slowdown in production by OEMs and reduction in demand for IO-link have declined the market growth. Shortage of components and materials has significantly impacted the global supply chains. In addition, reductions in various capital budgets and delay in planned projects in various industries have hampered the global economy.
Key Findings Of The Study
- In 2020, the IO-link wired segment accounted for the maximum revenue, and is projected to grow at a notable CAGR of 23.30% during the forecast period.
- The IO-link devices segment accounted for more than 70% of the global IO-link market share in 2020.
- The IO-link wireless segment witness highest growth rate during the forecast period.
- UK was the major shareholder in the Europe IO-link market revenue, accounting for approximately 26% share in 2020.
The key players profiled in the report include Siemens (Germany), Hans Turck GmbH & Co. KG (Germany), Balluff GmbH (Germany), ifm electronic GmbH (Germany), SICK AG (Germany), Rockwell Automation, Inc. (U.S.), Omron Corporation (Japan), Pepperl+Fuchs (Germany), Banner Engineering Corp (U.S.), and Emerson Electric Co. (U.S.). These players have adopted various strategies such as partnership, agreement, collaboration, and product launch to expand their foothold in IO-link industry.