Communications Interface Market Research Report and Outlook by 2028

The communications interface sector is projected to expand from US$ 6,228.27 million in 2022 to US$ 10,388.04 million by 2028, reflecting a compound annual growth rate (CAGR) of 8.9% during this period.

The persistent rise in the demand for industrial automation systems globally has prompted robot manufacturers to increase their investments in the creation of new and innovative products, which in turn is fostering the growth of the communications interface market. Below are some notable product advancements:

• In September 2022, Fanuc Corporation unveiled new FANUC SCARA robots tailored for food and cleanroom applications. The FANUC SR-3iA/C and SR-6iA/C are designed to be both fast and precise.
• Also in September 2022, ABB Ltd introduced versatile mobile robots capable of performing tasks such as transporting trolleys weighing up to 5,350 lbs (2,000 kg), towing, and lifting containers, racks, and pallets weighing 4,000 lbs (1,500 kg).
• In May 2022, FANUC Corporation launched the CRX series of collaborative robots, which includes three new models: CRX-5iA, CRX-20iA/L, and CRX-25iA. These robots are marketed as safe, reliable, user-friendly, and adaptable for various tasks including inspection, packing, machine loading/unloading, palletizing, and welding.

The increasing development of advanced robotic systems is driving the demand for various robot components, including control systems, manipulators, locomotion devices, PLCs, and DCS. Consequently, the heightened need for feedback devices like PLCs is propelling the demand for communication interfaces, thereby contributing to the growth of the communications interface market.

In North America, the communications interface market has shown considerable growth over the years. The extensive presence of manufacturing industries and their swift adoption of advanced automated technologies to enhance production capabilities are key factors driving this market. The existence of numerous robot and IoT device manufacturers in the region, such as Universal Robots A/S, Clearpath Robotics Inc., AgEagle Aerial Systems, and Bastian Solutions, Inc., is further stimulating the demand for manufacturing components and subcomponents. These elements are anticipated to continue fueling the growth of the communications interface market in North America throughout the forecast period.

Effects of the COVID-19 Pandemic on the Communications Interface Market

In 2020, several economies in the Asia Pacific region faced a significant decline in GDP due to the abrupt halt of most economic activities. The Organization for Economic Co-operation and Development (OECD) reported that the COVID-19 pandemic impacted major countries such as India, China, Australia, and Japan. The timing of outbreak waves varied across these nations, necessitating multinational companies to adjust their manufacturing operations to maintain competitiveness. Despite the challenging business environment, the uptake of industrial automation solutions continued to grow robustly. In China, the largest adopter in the region, installations surged by 20%, with 168,400 robot units shipped in 2020. The electronics and semiconductor sectors made substantial investments in industrial automation during 2020 and 2021, which are expected to revitalize the communications interface market size in the coming years.

Germany stands out as a leading European nation in the adoption of automated solutions. In 2021, the adoption of robotics and automation in Germany increased by 13%. According to the VDMA Robotics + Automation association, the robotics and automation (R&A) sector is projected to grow by 6% in 2022, with an anticipated industry turnover of US$ 15.17 billion (14.4 billion). They also forecast a 7% rise in sales for integrated assembly solutions, reaching US$ 8.01 billion (7.6 billion) in 2022. This growth in the robotics and automation sector is driving the demand for smart and connected devices that facilitate seamless manufacturing processes across the country. Germany Trade & Invest (GTAI) predicts that sales of collaborative robots (cobots) in Germany will reach 71,000 units by 2025, further increasing the demand for parts and subcomponents, which will enhance the communications interface market share in the country during the forecast period.

Mexico has also seen a surge in investments in its manufacturing sector, particularly in the automotive industry. Major global automotive brands such as Volkswagen, Ford, Toyota, and Nissan have established manufacturing facilities in Mexico. These companies have ramped up investments in technology, including robotics, to accelerate production and lower operational costs. For instance, Lear, an automotive component manufacturer, has integrated robotics into its Mexican plant for drilling vehicle seat bases. Such developments are driving the demand for robot subcomponents in Mexico, contributing to the growth of the communications interface market. Additionally, the implementation of the trade agreement in June 2020 between the US, Mexico, and Canada has further bolstered Mexico's manufacturing sector, enhancing the growth of the communications interface market in the country.

Key players in the global communications interface market include ABB Ltd., Eaton Corp Plc, Honeywell International Inc., Omron Corp, and Rockwell Automation Inc.

The overall size of the communications interface market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast of the communications interface market size across all segments. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the data and gain deeper analytical insights. Participants in this process included VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the communications interface market.