I/O link market revenues surpassed $3.5 billion in 2018 and are expected to grow at a 12.2 percent year-over-year in 2019, as per Future Market Insight’s new study. Key factors responsible for the growth of I/O link market include,
- Rapidly growing industrial communication space with industrial IoT
- Increasing industrial adoption of Ethernet solutions over Fieldbus
- Government initiatives to promote industrial automation and rapid implementation of Industry 4.0
- Consistent efforts to reduce time and cost involved in I/O link development
The FMI study finds that penetration in the medical industry generated $930 million, accounting for one-fourth of the market revenues in 2018. It has an estimated growth of 13.2 percent year-over-year in 2019.
The study finds that the semiconductor and electronics industry is witnessing significant penetration of I/O link systems and accounted for over one-third share of the global I/O link market revenues generated in 2018.
Increasing adoption of I/O link systems in the automotive industry garnered the second largest revenues in the I/O link market in 2018. Revenues generated from the automotive and medical industries are highly equivalent and collectively held over half the market revenues in 2018.
The FMI study also shows that I/O link devices garner greater revenues as compared to I/O link masters.
In 2018, I/O link devices held over 56 percent of global revenues, equaling turnover of nearly $2 billion, whereas I/O link masters held remaining share in the I/O link market.
Penetration of I/O link systems in the handling assembly automation remains higher and according to the study, the application held over 28 percent of the global revenues in 2018.
The study finds that intralogistics is the second largest revenue stream for the I/O link system owing to automation-based activities in goods maintenance. In terms of revenues, intralogistics closely followed handling assembly automation in 2018 and the status-quo is likely to continue in 2019.
The I/O link market is projected to grow at the highest rate in the packaging application as the industry has witnessed greater penetration of automation and associated overall operational output. FMI points out that I/O link application in the packaging industry will grow at the highest rate of 13.4 percent in 2019 over 2018. I/O link application in machine tools will also account for over one-fifth revenues in 2019.
Europe followed by North America collectively held over two-fifths of the global revenues wherein industry automation witnessed rapid penetration as compared to developing countries owing to favorable infrastructure needed for industry 4.0.