Unmanaged Industrial Ethernet Switches Market Outlook

The global unmanaged industrial Ethernet switches market is projected to reach USD 1.5 billion by 2035, growing at a CAGR of 8.5% during the forecast period of 2025-2035. This growth can be attributed to the increasing demand for robust networking solutions in industrial settings, driven by the rising adoption of IoT and Industry 4.0 applications. Additionally, the need for reliable and high-speed data transfer in manufacturing and automation processes has propelled the adoption of unmanaged industrial Ethernet switches. With industries moving towards digitalization, the demand for seamless connectivity and communication among devices is expected to fuel market growth. Furthermore, the trend of smart factories and smart grids is propelling the adoption of these switches, making them essential components in modern industrial environments.

Growth Factor of the Market

The growth of the unmanaged industrial Ethernet switches market can be primarily attributed to several factors, including the increasing complexity of industrial networks, which demand reliable and efficient communication solutions. As industries continue to adopt automation technologies, the need for switches that can handle multiple devices while ensuring minimal downtime becomes crucial. Moreover, the rise of industrial IoT applications, where the interconnectivity of devices is paramount, further drives the demand for unmanaged switches. Additionally, the ongoing investments in infrastructure development across various sectors such as transportation, oil and gas, and manufacturing are contributing to the market's expansion. Furthermore, the shift towards smart manufacturing practices, which require enhanced data communication capabilities, is fostering growth in this market segment.

Key Highlights of the Market

• The global market for unmanaged industrial Ethernet switches is expected to reach USD 1.5 billion by 2035.
• The CAGR for the market is predicted to be 8.5% from 2025 to 2035.
• Rising demand for IoT solutions in various industries is a significant growth driver.
• Investment in infrastructure development is fostering the adoption of unmanaged switches.
• The trend towards smart manufacturing is increasing the reliance on robust networking solutions.

By Product Type

Rackmount:

Rackmount unmanaged industrial Ethernet switches are specifically designed to be installed in standard server racks, making them ideal for data centers and industrial control systems. Their form factor allows for efficient use of space, enabling the organization of multiple networking devices in a single rack. This type of switch typically offers a higher port density and is capable of supporting higher data traffic, which is critical in environments that demand constant connectivity. As industries increasingly prioritize network reliability and performance, the demand for rackmount switches is expected to rise, particularly in sectors such as telecommunications and data management.

DIN-Rail:

DIN-rail switches are designed for easy installation in industrial environments, particularly in control cabinets and panels. Their compact design allows them to fit securely onto DIN rails, making them a popular choice for automation applications. These switches are often engineered to withstand harsh conditions, including extreme temperatures and vibrations, which are common in industrial settings. The growing emphasis on space optimization and the need for reliable networking in areas with limited real estate are driving the adoption of DIN-rail switches. As manufacturers look to streamline operations and increase efficiency, the demand for robust DIN-rail switches continues to grow.

Wall-Mounted:

Wall-mounted unmanaged industrial Ethernet switches are versatile networking solutions that can be installed directly onto walls, making them suitable for a variety of applications, including retail environments and manufacturing facilities. Their installation flexibility allows organizations to utilize available wall space effectively and facilitate easy access for maintenance. As industries modernize their facilities and adapt to evolving technology needs, the demand for wall-mounted switches is expected to rise. These switches are often used in scenarios where quick deployment and minimal installation disruption are essential, further enhancing their appeal in various sectors.

Panel-Mounted:

Panel-mounted unmanaged industrial Ethernet switches are specifically designed to be integrated into control panels, providing seamless connectivity within industrial systems. Their robust design ensures durability and reliability, making them suitable for use in demanding environments. Panel-mounted switches are often employed in situations where space is at a premium, allowing for efficient use of control panel real estate. As factories and industrial operations increasingly embrace automation, the need for integrated and reliable networking solutions like panel-mounted switches is anticipated to grow, particularly in sectors such as manufacturing and process control.

Desktop:

Desktop unmanaged industrial Ethernet switches are typically used in small-scale applications or in offices that require basic network connectivity. Their compact design makes them suitable for desktop or tabletop placement, providing flexibility in various setups. While they may not offer the high performance of rackmount or DIN-rail switches, desktop switches are ideal for small businesses or branch offices that need straightforward, reliable networking solutions. As the trend of remote work and flexible office setups continues, the demand for easy-to-use desktop switches is expected to rise, catering to small office environments and less demanding industrial applications.

By Application

Factory Automation:

In the realm of factory automation, unmanaged industrial Ethernet switches play a crucial role in ensuring efficient communication between various devices and systems. These switches facilitate the seamless transfer of data among machinery, sensors, and control systems, enabling real-time monitoring and management of production processes. Moreover, their ability to support multiple devices with minimal latency makes them essential for the smooth operation of automated manufacturing lines. The increasing trend towards automation in factories, driven by the need for higher productivity and lower operational costs, is significantly boosting the demand for these switches in this application sector.

Smart Grid:

Unmanaged industrial Ethernet switches are integral to the development and operation of smart grids, which require robust and reliable communication networks to manage electricity distribution. These switches help in connecting various components of the grid, including substations, distribution systems, and renewable energy sources, ensuring efficient data exchange and system monitoring. As the global focus shifts towards sustainable energy solutions and the modernization of power infrastructure, the need for effective communication platforms like unmanaged switches in smart grid applications is expected to grow substantially, enhancing grid reliability and efficiency.

Transportation:

In the transportation sector, unmanaged industrial Ethernet switches are increasingly utilized for various applications, such as traffic management systems, public transport networks, and logistics operations. These switches facilitate communication between sensors, cameras, and control systems, enabling real-time monitoring of traffic conditions and improving overall transportation efficiency. As urbanization continues to rise and cities seek to implement smart transportation solutions, the demand for reliable networking infrastructure is expected to drive the adoption of unmanaged switches within this sector significantly.

Oil & Gas:

The oil and gas industry relies heavily on unmanaged industrial Ethernet switches for communication and control in challenging environments. These switches are designed to operate reliably in harsh conditions, such as extreme temperatures, vibrations, and exposure to chemicals. As this sector increasingly adopts digital technologies for monitoring and automation, the demand for robust and reliable switches that can support the connectivity of various devices and systems is growing. The ongoing exploration and production activities in remote locations further enhance the need for efficient networking solutions like unmanaged Ethernet switches in the oil and gas application.

Others:

The "Others" category encompasses a variety of applications that utilize unmanaged industrial Ethernet switches, including healthcare, retail, and building automation. In healthcare, these switches facilitate reliable communication in medical equipment and monitoring systems, enhancing patient care and operational efficiency. In retail, they support point-of-sale systems and inventory management solutions, ensuring seamless connectivity. Additionally, in building automation, unmanaged switches help integrate various systems, such as lighting, HVAC, and security. The versatility of these switches across multiple sectors contributes to their growing demand and highlights their importance in modern industrial and commercial applications.

By Distribution Channel

Direct Sales:

Direct sales channels for unmanaged industrial Ethernet switches enable manufacturers to establish a direct relationship with customers, ensuring that clients receive specialized guidance and support tailored to their specific needs. This approach often results in higher satisfaction levels and fosters long-term customer loyalty as businesses can communicate their requirements directly to manufacturers. Moreover, direct sales channels allow companies to better manage pricing, inventory, and product availability, ensuring that clients receive the most up-to-date products. As the complexity of industrial networks increases, the direct sales channel is expected to grow, providing customers with valuable insights and assistance in selecting appropriate networking solutions.

Distributors:

Distributors play a vital role in the unmanaged industrial Ethernet switches market by bridging the gap between manufacturers and end-users. They typically carry a diverse range of products, allowing customers to explore various options and select the best-fit solutions for their applications. Distributors are often equipped with a wealth of industry knowledge, enabling them to provide valuable support and assistance to clients throughout the purchasing process. As industries continue to evolve and require specialized networking solutions, the reliance on distributors for efficient procurement and product availability is expected to increase, fostering growth in this distribution channel.

Online Retailers:

The rise of e-commerce has transformed the way businesses purchase unmanaged industrial Ethernet switches. Online retailers provide a convenient platform for customers to browse and compare various products, enabling them to make informed purchasing decisions from the comfort of their offices. This distribution channel often offers competitive pricing and promotions, making it an attractive option for businesses looking to optimize their procurement processes. As the world becomes increasingly digital, the trend of purchasing networking solutions through online retailers is expected to continue growing, making it a significant player in the unmanaged industrial Ethernet switches market.

VARs:

Value-Added Resellers (VARs) specialize in providing tailored solutions and services around unmanaged industrial Ethernet switches. They often add significant value by integrating these switches into larger networking solutions, offering customers customized packages that meet their specific operational requirements. VARs typically possess deep technical knowledge, enabling them to deliver comprehensive support and advice, ensuring that customers receive the most effective networking solutions for their needs. As industries continue to seek integrated solutions that combine hardware, software, and services, the role of VARs in the unmanaged industrial Ethernet switches market is expected to expand significantly.

System Integrators:

System integrators are instrumental in deploying unmanaged industrial Ethernet switches within complex networking environments, ensuring that these solutions are seamlessly integrated with existing infrastructure. They possess expertise in designing and implementing networking systems tailored to the specific needs of businesses across various sectors. By leveraging their knowledge of both hardware and software components, system integrators provide organizations with comprehensive solutions that optimize performance and reliability. As the demand for interconnected systems increases, the reliance on system integrators to deploy unmanaged switches will continue to grow, solidifying their importance in the overall market.

By Port Type

10/100 Mbps:

10/100 Mbps unmanaged industrial Ethernet switches are designed to support fast Ethernet connections, making them suitable for basic networking needs in various industrial applications. These switches provide reliable connectivity for devices that do not require high bandwidth, making them an attractive option for small-scale operations. With their cost-effectiveness and sufficient speed for many applications, 10/100 Mbps switches cater to industries focusing on budget-friendly networking solutions while maintaining essential communication capabilities. As industrial facilities continue to evolve, the demand for such switches is expected to persist, particularly in less data-intensive environments.

1 Gbps:

1 Gbps unmanaged industrial Ethernet switches are increasingly recognized for their ability to offer higher data transfer rates, making them ideal for applications that require faster communication speeds. These switches are suitable for connecting multiple devices, such as servers, computers, and industrial machinery, ensuring smooth data exchange in various settings. As industries increasingly adopt advanced technologies and automation, the need for 1 Gbps switches is expected to grow, facilitating the transition toward more efficient and responsive networking solutions. Their ability to handle larger data volumes positions them as a preferred choice in fast-paced industrial environments.

10 Gbps:

10 Gbps unmanaged industrial Ethernet switches are engineered for high-performance networking, delivering exceptional speeds suitable for data-intensive applications and environments that demand rapid communication. These switches are particularly beneficial in industries such as telecommunications, manufacturing, and data centers, where high bandwidth is crucial to maintaining operational efficiency and productivity. With the increasing complexity of industrial networks and the need for seamless connectivity between devices, the demand for 10 Gbps switches is expected to surge. Their capacity to support advanced applications and future-proof networking infrastructure makes them an attractive option for businesses striving to enhance their digital capabilities.

Others:

The "Others" category encompasses various port types that cater to specific networking requirements, offering flexibility and adaptability for different applications. These may include switches with hybrid port configurations, which can support a combination of speeds and protocols, allowing organizations to optimize their network infrastructure based on their unique needs. As industries seek customizable solutions that can accommodate a range of devices and communication demands, the "Others" segment is expected to gain traction. The diversity of port types available ensures that there are solutions tailored to meet the varying requirements of industrial applications.

By Region

The North American region is anticipated to lead the unmanaged industrial Ethernet switches market, with a market share of approximately 35% and a CAGR of 8.2% from 2025 to 2035. This growth is driven by the rapid industrialization and adoption of advanced automation technologies in the manufacturing sector, coupled with significant investments in infrastructure development. The presence of major players and a robust distribution network further contribute to the region's strong market positioning. With industries increasingly embracing IoT and smart factory concepts, the demand for reliable networking solutions such as unmanaged industrial Ethernet switches is set to rise significantly in North America.

Meanwhile, the European market is projected to account for around 30% of the global market share, driven by the region's focus on enhancing industrial connectivity and adopting Industry 4.0 technologies. The increasing need for efficient communication solutions in various sectors, including transportation, oil, and gas, is further propelling the demand for unmanaged industrial Ethernet switches. As European countries continue to invest in smart infrastructure and manufacturing practices, the growth of the unmanaged switches market in this region is expected to accelerate, complementing global trends. Additionally, the Asia Pacific region is also showing promise, with an anticipated CAGR of 9.0%, fueled by rapid urbanization and industrial expansion.

Opportunities

The unmanaged industrial Ethernet switches market is poised for significant growth, presenting a wealth of opportunities for stakeholders. As industries around the globe embrace digital transformation, the demand for reliable networking solutions is expected to surge. This trend is particularly evident in sectors such as manufacturing, transportation, and energy, where the integration of IoT devices and smart technologies is becoming commonplace. Companies that prioritize investment in unmanaged switches will be better positioned to capitalize on this growing trend, as these solutions facilitate seamless communication and data exchange among interconnected devices. Furthermore, the development of smart cities and the rising focus on sustainable infrastructure are likely to create new avenues for market growth, as unmanaged switches are essential for supporting the communication networks underpinning smart grid solutions and urban infrastructure.

Additionally, advancements in technology are driving the introduction of innovative unmanaged industrial Ethernet switches that offer improved features, such as enhanced security protocols and increased port density. This evolution provides opportunities for manufacturers to differentiate their products and cater to diverse customer needs. Companies that can leverage emerging technologies, such as artificial intelligence and machine learning, to optimize the performance of unmanaged switches will likely gain a competitive edge. Furthermore, partnerships with system integrators and value-added resellers can enhance market reach and enable businesses to provide comprehensive solutions that address the specific requirements of various industries. As the demand for reliable and cost-effective networking solutions continues to rise, the unmanaged industrial Ethernet switches market presents a range of opportunities for growth and innovation.

Threats

Despite the promising growth prospects for the unmanaged industrial Ethernet switches market, several threats could pose challenges to market participants. One significant threat is the increasing competition from alternative networking solutions, such as managed switches and wireless networking technologies. As businesses become more aware of the advantages offered by managed switches, including enhanced network monitoring and management capabilities, the demand for unmanaged switches may decline. This shift in preference could impact the overall market share and profitability of companies primarily focused on unmanaged solutions, necessitating a strategic reassessment of their product offerings and market positioning.

Additionally, the rapid pace of technological advancements poses a challenge for companies operating in the unmanaged industrial Ethernet switches market. The continuous evolution of networking technologies requires businesses to remain agile and adapt their products to meet changing customer needs and industry standards. Failure to keep pace with these advancements could result in obsolescence and loss of market relevance. Furthermore, fluctuating raw material prices and supply chain disruptions could affect production costs and product availability, creating uncertainties for manufacturers and impacting their bottom line. Companies must proactively address these threats to maintain their competitive edge and ensure sustained growth in the market.

Competitor Outlook

• Cisco Systems, Inc.
• Hewlett Packard Enterprise
• TP-Link Technologies Co., Ltd.
• Belden Inc.
• Siemens AG
• Moxa Inc.
• Schneider Electric SE
• Rockwell Automation, Inc.
• Netgear, Inc.
• Advantech Co., Ltd.
• EtherWAN Systems, Inc.
• Phoenix Contact GmbH & Co. KG
• Allied Telesis, Inc.
• Westermo Teleindustri AB
• Lantronix, Inc.

The competitive landscape of the unmanaged industrial Ethernet switches market is characterized by the presence of several key players, each vying for market share through innovation, product differentiation, and strategic partnerships. Major corporations, such as Cisco Systems and Hewlett Packard Enterprise, leverage their extensive product portfolios and technological expertise to provide advanced networking solutions that cater to a wide range of industries. Furthermore, these companies invest heavily in research and development to stay ahead of market trends and address evolving customer demands. The emphasis on high-performance, reliable, and secure networking solutions underscores the competitive nature of this market, as businesses seek to optimize their operations through effective networking infrastructure.

Smaller and niche players, such as Moxa Inc. and Advantech Co., are also making significant strides in the market by offering specialized products tailored to specific industry needs. These companies often focus on delivering high-quality, durable switches that can withstand harsh environmental conditions, which is particularly appealing to customers in sectors like manufacturing and oil and gas. The diversification of product offerings and a focus on customer-centric solutions enable these players to carve out a niche in the competitive landscape. As the demand for unmanaged industrial Ethernet switches continues to grow, collaboration and strategic alliances between manufacturers and distributors will play a crucial role in ensuring that companies remain competitive in this dynamic market.

Key players such as Siemens AG and Schneider Electric SE are investing in smart manufacturing technologies and integrating their networking solutions with advanced automation systems. This trend positions them favorably for future growth, as industries increasingly adopt IoT and automation technologies that rely on seamless connectivity. Additionally, companies like Belden Inc. and Netgear, Inc. are focusing on enhancing their product offerings by incorporating advanced features such as enhanced security measures and improved performance capabilities. By continuously enriching their product portfolios and aligning their strategies with market trends, these major players are well-positioned to capitalize on the growth opportunities in the unmanaged industrial Ethernet switches market.