Wireless Ethernet gaining ground in industrial market
In a recently completed six-volume market study on global markets and user requirements for wireless and wireline network infrastructure products used in industrial facilities, Venture Development Corporation (VDC) finds extensive deployment of wireless Ethernet (Wi-Fi) networking, with an increasing trend toward even greater usage.
Current and forecast worldwide shipments of wireless networking infrastructure products* for use in industrial facilities (Millions of Dollars)
* Includes: Antennas, Wireless Networking Components (access points, bridges, console servers, device servers gateways (protocol converters), hubs, modems, multiplexers, repeaters, routers, switches, transceivers), Network Management Software.
** In 400, 800, 900, 2400 MHz, and other frequency bands.
Of the infrastructure products studied, shipments using proprietary protocols, principally in the 900 MHz and 2.4 GHz bands, accounted for the highest share of worldwide shipments in 2006, at about 47% of the total. However, the shipment growth rate for these is forecast at below average, and the shipment share is expected to decline to about 44% in 2011.
Several factors will account for the trend to higher growth in use of wireless standards. These include the established base and familiarity among both engineers and IT departments with IEEE 802.11 and other standards. Advantages of using standard networks include lower prices, interchangeable suppliers and established best practices (including security and interference protection, and ease of installation).
In 2006, products under study incorporating wireless Ethernet IEEE 802.11 standards accounted for almost 44% of worldwide shipments, and are forecast to account for over 48% in 2011. In this explosive market, the highest shipment growth rate is expected for products using the IEE 802.11 standards. Of the total market gain of $868.9 million expected in 2011 compared to the 2006 market, products using wireless Ethernet IEEE 802.11 standards are expected to account for $430.6 million, or almost 50% of the increase.
Above-average growth is also expected in shipments of the infrastructure products under study with use of the mesh networking IEEE 802.15.4 standard and protocols built upon it (most notably ZigBee). These will continue to account for a larger share of shipments as low-power, low-data rate meshed sensor networks find wider acceptance. However, despite the hype, mesh networking is not expected to account for a significant portion of the industrial wireless networking infrastructure market by 2011.
Another shift expected to occur is in shipment shares of products with proprietary protocols from lower frequency bands to the 2.4 GHz band. As the price of components used in 2.4 GHz products continues to decline, the shift to this frequency band follows. Networking products using 2.4 GHz have higher data throughput than those operating in lower frequency bands and can be used in all geographic regions.
Despite this, and the shifting shipment shares to use of standard networks, use of proprietary protocols in lower frequency bands are expected to remain a significant portion of the industrial wireless market. Often, the choice of protocol and frequency is based on the application requirements.
IEEE 802.11 products operate in the 2.4 GHz and 5 GHz frequency bands, which allow for a high data throughput (up to 54 Mbps for 802.11a/g) and a range of up to 100 meters (without repeaters). However, industrial applications in large facilities, such as oil and gas fields or water/wastewater treatment plants require longer distances. Furthermore, signals at higher frequencies are more susceptible to physical interference such as walls, pillars and machinery common in industrial facilities.
Proprietary protocols in lower frequency bands, such as 400 MHz and 900 MHz, are more suitable in these environments. These provide better propagation (especially through walls and other obstructions), and require lower transmission power and/or provide longer transmission distances. The RF components for the products – and thus the products operating at these frequencies – have lower prices. In addition, many of these are in applications where high data rates are not required.
Ultimately, the choice between using a standard like IEEE 802.11 and proprietary protocols comes down to the application. Users needing to transfer large amounts of data, in short time periods, at relatively short distances, may find that IEEE 802.11 fits their needs best. Those with longer range applications may choose to use lower frequency networks. In many industries and applications, a mix of networks may be best, with lower RF frequency ISM bands used at the sensor or field level and IEEE 802.11 networks elsewhere. To meet this need, many suppliers of wireless networking products have worked to develop products for both or have partnered accordingly.