Industrial I/O Modules Market - Forecast(2024 - 2030)

Industrial I/O Modules Market Overview

The Industrial I/O Modules Market size is estimated to reach $2.35 billion by 2027, growing at a CAGR of 5.85% during the forecast period 2022-2027. The growth is attributed to the increasing emphasis on power grid projects, growing adoption of distributed control systems & programmable logic controllers in varied industry verticals, etc. I/O modules are an important part of industrial networking as they connect different systems, processes, and devices. They ensure that data from incompatible peripheral devices and outdated equipment is collected using the specified industrial standards. They play an important function in an organization by permitting data interchange between peripheral devices and their network. I/O modules are increasingly used due to the deployment of robots across the automotive manufacturing, electrical, and electronics industries. Additionally, the increasing adoption of artificial intelligence internet of things coupled with an increasing focus on industry 4.0, growing tendency towards automation & data sharing in industrial technologies and processes, increase in the usage of communication modules in manufacturing technologies are some of the major factors set to transform the global Industrial I/O Modules industry outlook in the coming time. 

Industrial I/O Modules Report Coverage

The “Industrial I/O Modules Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Industrial I/O Modules Market.

Key Takeaways

• Programmable Logic Controller I/O (PLC I/O) segment dominated the  Industrial I/O Modules Market in 2021, owing to the increasing usage of modern technologies in the area of supply chain management, growing adoption of robotics, AI & IoT for increasing automation in industries and so on.
• Industrial I/O Modules  for Automotive industry is analysed to grow with the fastest rate during 2022-2027, owing to the factors such as increasing automation in manufacturing sector, government initiatives towards increasing vehicle safety, integration of advanced technologies in automotive manufacturing using sensors, actuators, peripheral devices and so on.
• Europe dominated the  Industrial I/O Modules Market in 2021 with a share of 32%, attributed to the increasing implementation of Industrial Standards across the continent, rising adoption of advanced technologies in industries contributing to the fourth industrial revolution, the expansion of power grid projects in the region and so on.
• Growing trend towards automation and data exchange in industries and increase in expansion projects of power grid are analysed to significantly drive the market growth of Industrial I/O Modules Market during the forecast period 2022-2027.

Industrial I/O Modules Market Value Share, by Region, 2021 (%)

Industrial I/O Modules Market Segment Analysis- By Type

Programmable Logic Controller I/O (PLC I/O) segment dominated the  Industrial I/O Modules Market with a share of 36% in 2021, increasing usage of modern technologies in the area of supply chain management, growing adoption of robotics, AI & IoT for increasing automation in industries and so on. Additionally, the growing shift towards upgrading industrial production standards, alongside increasing number of embedded processing and connectivity requirements for I/O modules has also been  aiding the market growth. PLC I/O assist in identification & rectification of errors and initiate quick responses even in the absence of human participation. PLC remote I/O modules are serial bus compatible and can be installed and run separately. These modules assist in flexible setup, low-cost data acquisition, equipment monitoring, environmental monitoring and industrial process control. Integration of IIoT technologies with industrial modules increase cybersecurity, ensures connectivity and boosts performance. In November 2020, Softing Inc. launched tManager AWS IoT SiteWise to provide seamless connectivity between Rockwell PLCs and AWS IoT SiteWise cloud computing services for large-scale industrial analytics. The Softing tManager is the only ControlLogix or CompactLogix PLC module that plugs into the PLC chassis and provides direct and secure transactions between the PLC and the cloud - no server, coding, or protocol translation required. Softing and AWS collaborated to develop the latest edition of tManager, which integrates directly into the AWS IoT Core, making it easier to connect the factory floor to analytics, dashboards, and business results. These factors have been significantly impacting the growth of Programmable Logic Controller I/O (PLC I/O) segment in Industrial I/O Modules industry overtime.

Industrial I/O Modules Market Segment Analysis- By Industry Vertical

Industrial I/O Modules  for Automotive industry is analysed to grow with the highest CAGR of 6.15% during 2022-2027. Factors such as increasing automation in manufacturing sector, government initiatives towards increasing vehicle safety, integration of advanced technologies in automotive manufacturing using sensors, actuators, peripheral devices and so on. Additionally, automobiles are incorporating environmental inputs via radars, cameras, lidars and ultrasonic sensors to receive data from the driver and the vehicle. They are that connect directly to a domain controller and modules that assist in the programmable logic controllers to receive input the human occupants and also from the vehicle. Communication modules are used in automotives for transmitting information including sensors measuring temperature, fuel level, and tyre pressure, as well as environmental inputs from radars, cameras, lidars and ultrasonic sensors that connect directly to a domain controller.  In October 2020, Ford announced to introduce the C-V2X module systems in all the new vehicles manufactured by the company from the year 2022. The distributed control systems enhance the safety system of the vehicle and reduce the incidences of traffic congestion, accidents or injuries. Such factors are analysed to impact the Automotive industry within  Industrial I/O Modules Market in the coming time.

Industrial I/O Modules Market Segment Analysis- By Geography

Europe dominated the  Industrial I/O Modules Market with a share of 32% in 2021, attributed to the increasing implementation of Industrial Standards across the continent, rising adoption of advanced technologies in industries contributing to the fourth industrial revolution, the expansion of power grid projects in the region and so on. Additionally, growing use of appropriate safety I/O modules in automotives, government mandates towards safety laws in various industries and rising emphasis towards improving productivity & lowering production costs are some of the major factors accelerating the demand for Industrial I/O Modules in the region. In December 2020, WestEnd Software launched a new industrial supply chain module to assist licensees and manufacturers with product development, production, and distribution programme. The Industrial supply chain module transforms the critical processes and programme required to get consumer products manufactured, shipped, on shelves, and into the hands of customers. The fully integrated module inside the Workspace suite, enabling clients to manage product lifecycles from concept to factory output, encompassing product design, development, testing, ordering, manufacturing, and global distribution to retail partners. Thus, increasing use of such modules in various industries and manufacturing units are some of the major factors set to transform Industrial I/O Modules industry outlook within European markets.

Industrial I/O Modules Market Drivers

Growing Trend towards Automation and Data Exchange in Industries is Positively Impacting the Growth of Industrial I/O Modules Market:

Increasing trend in industries toward automation and data exchange act as a major driver boosting the market growth of Industrial I/O Modules.  Industrial I/O Modules manage CPU-to-network connectivity along with data transfer, power load management and machine tasks. These system integrators communicate with I/O modules to connect various pieces of equipment which gives them greater control over the industrial network. I/O Modules are increasingly used in legacy machinery or systems that are unable to communicate natively. Communication modules help to expand the manufacturer network to cover all manufacturing equipment, allowing for better system control and operational visibility. They also overcome the challenge of collecting peripheral data, which can arrive in a variety of amounts, speeds and formats thereby increasing the usability of these modules in various industries. Additionally, they can be used in automotive sector for transmitting information including sensors measuring temperature, fuel level, and tyre pressure, as well as environmental inputs from radars, cameras, lidars and ultrasonic sensors that connect directly to a domain controller. In July 2022, Acromag launched the BusWorks NT series remote I/O modules to support EtherNet/IP. EtherNet/IP, the Ethernet industrial protocol, combines regular Ethernet with an industrial application layer protocol aimed for industrial automation. Remote monitoring and control, condition monitoring and predictive maintenance, building HVAC energy usage, and other applications are possible with these high-performance Ethernet I/O modules. According to a report published by Association for Advancing Automation (A3) in 2021, strong robot sales in the third quarter of 2021 raise the total number of orders to roughly 29,000 units valued at $1.48 billion. These figures show gains of 37% in units sold (up from 21,072) and 35% in value (up from $1.09 billion) over the same period in 2020. These robots are used in industries to facilitate various operations and ensure the workers safety. Such factors will help in propelling the growth of Industrial I/O Modules industry size in the long run.

Increase in Expansion Projects of Power Grid is Accelerating the Market Growth of Industrial I/O Modules:

Rising expansion of power grid projects due to the rising energy demands is boosting the growth of  Industrial I/O Modules Market. Multi-megawatt switching, load balancing, storage, motor drives and other distribution systems necessitate enhanced processing power in their programmable logic controllers. Industrial I/O Modules aid in the creation of self-sufficient power grids by facilitating supply and demand management, distributed energy generation and storage. These technologies have the potential to improve energy efficiency by allowing for more control over generation, use, and storage. The Industrial I/O Modules make optimum use of the available energy without necessitating the installation of new generation and transmission infrastructure.  In June 2021, Asian development bank launched National Power Grid Strengthening Project in Turkmenistan. The project will include the construction of approximately 1,100 kilometres of new transmission lines with capacity of 110-kilovolt, 220-kV, and 500-kV. The project will encompass four regions of Turkmenistan and will aid in the establishment of a linked national transmission grid to improve network reliability and energy efficiency. According to International Energy Alliance report published in 2020, investments in electrical networks are predicted to expand by 10% in 2021, with rising infrastructure spending in Europe, China, and the United States. Policies to develop more robust & digital networks are encouraging ambitious expansion of the effort to attain carbon-free power generation. It goes on to say that grid investment in the Net Zero Emissions by 2050 Scenario triples by 2030, with smart grids and digital investments accounting for around 40% of overall investments in this decade thereby increasing the demands for I/O modules. These factors are set to help in expansion of  Industrial I/O Modules Market size in the coming time. 

Industrial I/O Modules Market Challenges

High Installation Costs combined with Scalability Issues Associated with the Application of Industrial I/O Modules are Limiting the Market Growth:

Installation costs are high and scalability limitations associated with the application Industrial I/O Modules are restricting the market growth. Modules are components that have been pre-assembled and cannot be dismantled or modified. As a result, the number of possible product configurations is restricted. Parameters such as image format are unchangeable. The number of optical configurations is also limited in general which cause the problem for the industries in changing their scalability needs as per the increasing demands. Typically, the number of variations of fields of vision is limited to six to eight. When every component is a cost concern to be examined for economising, industrial modules are not suited for ultrahigh-volume operations.

According to Control Engineering research, The average cost of an Industrial I/O module is approx. $111. The breakeven point between a COM/carrier concept must be identified in order to ascertain the variable cost. Calculation of breakeven point is difficult as the R&D costs and investments in future upgrades must also be considered. Small-scale enterprises lack the capital to adopt such modern technologies. These factors are limiting demand for Industrial I/O Modules and restricting the growth of the Industrial I/O Modules industry.

Industrial I/O Modules Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Industrial I/O Modules Market. The top 10 companies in the Industrial I/O Modules Market are:

Recent Developments

 In January 2022, Rockwell Automation launched Allen-Bradley FLEX 5000, a new analog safety I/O module. It can assist process operators in meeting safety standards and in minimizing associated downtime risks in a variety of process applications. Rockwell Automation analogue safety I/O modules provide integrated safety with systematic capabilities up to SC 3. Additionally, they can be installed in the same I/O bank as regular FLEX 5000 I/O modules and help in reducing system costs and complexity.

In June 2021, NVIDIA has released the Jetson AGX Xavier Industrial I/O Module. The reconfigurable Artificial Intelligence (AI) compute system is designed for both fixed and mobile edge devices, such as deep learning-based cameras, last mile delivery mobile robots, inspection drones, and automated storage and retrieval systems, to operate in harsh operational conditions. The module offers a broader range of applications, including manufacturing, agriculture, construction, energy, and governance.

In June 2021, Mitsubishi Electric Automation launched a new I/O module designed to improve industrial control systems. Its goal is to manage and shrink renewable-energy power converters. The IGBT was designed to provide high efficiency, rapid switching, low conduction and less switching loss.

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