MENA Industrial Ethernet Switches and Gateways Market - Forecast(2024 - 2030)

MENA Industrial Ethernet Switches and Gateways Market Overview

The MENA Industrial Ethernet Switch and Gateways Market is set to reach $178.12 Million by 2027 growing at a CAGR of 6.2% over the forecast period 2022-2027. As automation across industry verticals grows at a rapid pace, the need for an effective communication network that connects all of the components develops. As a result, industrial ethernet protocol is in high demand to create a scalable, flexible, and omnipresent network. The most prevalent type of network switch is the industrial Ethernet switch, particularly Power over Ethernet and managed switches, which is a computer networking device used in Ethernet to link multiple Ethernet devices for Programmable Logic Controllers (PLC), Supervisory Control and Data Acquisition (SCADA) and other network infrastructure. It uses packet switching to connect devices by receiving, processing, and forwarding data from one source device to another destination device. Furthermore, An Ethernet switch can link dozens of devices to a network, allowing administrators to monitor traffic, regulate machine connections, securely manage user access, and troubleshoot quickly.

Report Coverage

The report: “MENA Industrial Ethernet Switches and Gateways Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the MENA Industrial Ethernet Switch market

By Switch Type: Gateway, Switch (POE, Managed, Unmanaged, Lightly Managed).
By End-Use Industry: Oil and Gas, IT and Telecom, Power Generation, Smart City, Utilities, Water and Wastewater, Transportation, Chemical, Food and Beverage, Medical and Pharmaceutical, Mining and Metal and Others.
By Number of Ports: 1 Ports, 2-4 Ports, 5-8 Ports, 9-16 Ports, 17 Ports and Above.
By Sales Channel: Direct, Indirect.
By Location: Hazardous Area, Non – Hazardous Area.
By Form Factor: Fixed, Stackable, Modular.
By Geography: KSA, UAE, Qatar, Oman, Bahrain, Kuwait, Iran, Egypt, Algeria, Morocco, Others.

Key Takeaways

• There is an increasing adoption of industrial ethernet switches particularly in the fast growing nations such as UAE, Egypt, Morocco, Oman, Bahrain and others developing countries of Middle East and North Africa. The improved research and development activities coupled with the increasing public awareness of such industrial switches and gateways in the field of oil and gas as well as in the development of smart cities are all precited to create new window of opportunity for the MENA Industrial Ethernet Switches and Gateways market.
• However, given the significant capital investments required for initial installations and additional services, the MENA market for Industrial Ethernet switches may encounter constraints. Another challenge for its operation is a dearth of skilled workers in a number of nations.
• Despite the pandemic, the market is forecasted to gradually recover and grow in the coming years. The companies with higher funding and revenue are expected to acquire smaller innovative players with unique ethernet switches and gateways that are used in the industrial sectors while expanding to new locations of MENA. The other key strategies including partnership, product launch, and agreement are also predicted to increases during the forecast period 2022-2027.
• Moreover, some companies are extending marketing focus through digital-marketing capabilities, while improving their presence and number of product registrations in UAE, Qatar, Egypt regions going forward.

MENA Industrial Ethernet Switches and Gateways Market, By Region, 2021

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MENA Industrial Ethernet Switches and Gateways Market Segment Analysis – By Switch Type

Switch dominated the MENA Industrial Ethernet and Gateways Market in 2021 with a revenue of $109.42m and is projected to reach $150.99m by 2027 growing at a CAGR of 65.9% during the forecast period 2022-2027. Industrial ethernet switches are majorly designed to connect devices in adverse weather conditions and environments and are built to exceed the specifications of regular switches with industrial safety certification and approval for hazardous locations, making them ideal for use at sites with harsh environmental conditions. Furthermore, with the rapid development of food and beverages, medical and pharmaceutical, power generation and other industries, the demand for industrial switches is also growing in the region. For instance, in Dubai, rise in smart cities leveraging the power of Wi-Fi and communication networks to enhance daily life for residents and businesses and promote sustainability is aiding the market. However, gateways is set to be the fastest growing with a higher CAGR of 6.9% during the forecast period 2022-2027. This is owing to growing usage of industrial IoT gateway which is increasing in logistics transportation management as it provide high-speed wireless internet connection ensuring smooth progress of logistics and transportation management and inbound network access for maintenance and telemetry data. Additionally, the rising strategic initiatives such as partnership and agreement among gateway manufacturing companies in order to meet the demand is expected to create an opportunity in the gateways product segment.

MENA Industrial Ethernet Switches and Gateways Market Segment Analysis – By Sales Channel

Indirect sales channel dominated the MENA Industrial Ethernet and Gateways Market in 2021 with a revenue of $104.3m growing at a CAGR of 6.0% during the forecast period 2022-2027. Indirect sales channel are adopted by various manufacturers as it helps to distribute their products more rapidly in various industries which increase the sales of products. The importance of channel intermediaries has grown in recent years, largely owing to increased size, improved level of product knowledge, technical competence, specialization and many more. So, companies are selling their products through indirect sales. Also, these channels allow manufacturer to sell the products at higher margin which increases the cash flow owing to 100% payment from the customer. However, sometimes these channels lead to greater difficulty in forecasting the mix of products and the timing of orders from customers. However, direct sales channel is set to be the fastest growing with a higher CAGR of 6.6% during the forecast period 2022-2027. This is owing to the fact that it becomes a powerful way to increase profit and strengthen control on the product hence, increase adoption for many manufacturers. Additionally, manufacturers are looking to shorten their supply chain and move their operations closer to customer markets owing to COVID-19 pandemic. So, manufacturers such as ABB, Schneider Electric etc. are selling their products through direct sales channel which indicate that the majority of revenues are generated with the help of direct sales channel.

MENA Industrial Ethernet Switches and Gateways Market Segment Analysis – By Geography

KSA (Kingdom of Saudi Arabia) dominated the MENA Industrial Ethernet and Gateways Market in 2021 with a revenue of $35.0m and is projected to reach $50.7 million by 2027 growing at a CAGR of 6.9% during the forecast period 2022-2027. The rapid infrastructure development projects in Saudi Arabia is driving the market for industrial ethernet switches and gateways as they are a crucial component for ensuring network connectivity of the infrastructure. Also, demand of PoE switches is also significantly higher in the region owing to the widespread use of IP surveillance cameras in all the industries. This can be attributed to the Saudi Arabian rule that mandates all businesses to have cameras installed. PoE switches can power IP cameras without the need for installing electrical wiring, thereby saving costs. However, Morocco is set to be the fastest growing with a higher CAGR of 7.6% during the forecast period 2022-2027. This is owing to the growing importance given by Morocco to renewable energy development is increasing demand for industrial ethernet switches in the country. Moreover, according to Kaspersky, Morocco was ranked 34th worldwide in terms of countries targeted by cyber threats and 3rd on attacks against industrial control systems. However, the less developed distribution system for industrial ethernet switches in Morocco when compared to other major MENA countries is challenging demand generation.

MENA Industrial Ethernet Switches and Gateways Market Drivers

Increasing Competition For Scalable, Quick, Reliable, And Interoperable Communication Networks:

Industrial ethernet switches is required for complete transparency both within an industrial plant and between the plant and corporate networks. The core of the Industry 4.0 idea acts as a reliable communication network in the development of Middle East countries such as Qatar and Bahrain. For instance, The use of driverless Grade-of-Automation 4 (GoA4) in Bahrain’s new urban transit system will make it fully automated. Modular DIN rail switches can ensure high reliability in such complex networks that require high port density. Furthermore, The Qatar Railways Development Company (QRDC) started the construction of the 300km long Doha metro rail system in 2012 and the project is projected to be completed before the 2022 FIFA World Cup. The real-time operating needs of industrial automation and industrial communication networks are inextricably linked. As a result, they must be able to deal with data in a deterministic and redundant manner. The networks switches must be scalable over a diverse range of equipment that operates on a variety of standards and interfaces. A industrial switches should be able to respond quickly, while still being efficient and reliable. Designers must choose the optimum communication technology, traverse a multiprotocol environment, and cover a wide range of industrial equipment to accomplish these benefits. As a result of the growing demand for scalable and interoperable protocols; efforts to design a new set of communication products have increased.

The Incorporation Of Industrial Ethernet Switches Is Set To Rise As The Demand For Improved Network Infrastructure Flexibility Grows Across Industry Verticals

The growing demand for improved technology and the investigation of new ways to construct a network for the use of energy and electricity in industrial applications is expected to propel the industry forward in the MENA region. Furthermore, the business is being aided by the widespread use of IoT devices around the region. The requirement for increased network flexibility across the enterprises situated in the countries of Middle East And North Africa is expected to promote ethernet business growth. OEMs are incorporating more computer-based systems, interfaces, and applications into the automobile sector to provide proper interconnection across systems. As wiring harnesses become the third heaviest and most expensive component in cars as a result of this increase in cost, complexity, and weight. By offering a single network for linking all of the systems via a central switch, industrial ethernet switch can greatly minimise the complexity and cost of wiring in the automotive industry.

MENA Industrial Ethernet Switches and Gateways Market Challenges

Industrial communication methods and interfaces lack standardization

Industrial ethernet switches and gateways use a variety of interfaces, technologies, and protocols to communicate. Due to the lack of standardization in various communication interfaces and protocols, data may be misrepresented. It can also make system integration more difficult and prevent the usage of plug-and-play capabilities for unrelated systems. Most equipment manufacturers, for example, utilize proprietary interface protocols to communicate with their devices, posing communication issues when using devices from different manufacturers. In industrial ethernet, several communication protocols are utilized, but only a few companies offer communication modules that support most of them. Many companies offer customized industrial ethernet modules that only support a few communication protocols, making it difficult for end customers to switch to alternative protocols that meet their needs. Lack of technology standards makes system integration more difficult and limits communication device "plug-and-play" capabilities. Another challenge that industrial software and systems developers encounter is a lack of access to plant data. Standardization and interoperability measurements for industrial devices supplied by multiple vendors are challenging to implement due to a lack of this critical data.

MENA Industrial Ethernet Switches and Gateways Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the MENA Industrial Ethernet Switch market. In 2021, the market of MENA Industrial Ethernet Switch market has been consolidated by the top players –

1. Cisco
2. Belden
3. Siemens
4. Moxa
5. HPE
6. Advantech
7. Korenix
8. Emerson
9. Huawei
10. Phoenix Contact

Recent Developments

• In June 2021, Cisco announced the launch of the company’s IoT gateways for both indoor or outdoor connectivity at mass scale. The product is quick and easy to set up while also being highly cost-effective. The new gateways also contain Cisco’s cloud-based IoT Operations Dashboard.

• In October 2019, Emerson announced that they are partnering with Cisco to launch the most advanced industrial wireless network solution. The partnership helped combine the Emerson Wireless 1410S Gateway with the Cisco Catalyst IW6300 Heavy Duty Series Access Point to help provide reliable and highly secure data, even in the harshest industrial environments.
  

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