"They're too one-dimensional." That's probably the one common critique I hear from customers regarding most market share reports. They typically cover one product, not solutions. Ideally, customers would like to see a wider lens view that measures vendor market share of more complete solutions.

That's one of the reasons I find the new Omdia report so compelling. It measures vendors' market share inclusive of the entire industrial edge - switching, routing and wireless - creating a unique and comprehensive assessment of the IIoT landscape.

For reference, Omdia was formed in 2020 following the merger of IHS Markit, Tractica, Ovum and Heavy Reading. Omdia reaches over four million technology decision makers, influencers and practitioners and has specialist research practices focusing on Enterprise IT, AI, Internet of Things, Communications Service Providers, Cybersecurity, Components & Devices, Media & Entertainment and Government & Manufacturing.

Omdia's latest report, "Industrial Edge Networking Components - 2024 Analysis" provides a detailed analysis of this $4.3B market, covering over 25 countries and 19 industries. Here are a few of the highlights.

Digitalization, automation and sustainability are key themes

Not surprisingly, the report highlights digital transformation as a core driver of the market. According to Omdia, "over 70% of companies have deployed digital projects, with the remainder in proof-of-concept stages. The need to increase productivity and improve energy management and costs are top objectives."

Global labor shortages continue to plague the market, and customers continue to invest in more automation. The report states "The push for more automation, as well as more monitoring-for applications such as predictive maintenance, remote monitoring, and repair-all drive an increase in industrial networks." This was consistent with Cisco's recent 2024 State of Industrial Networking Report that cited shortage of skilled workers as the number one external obstacle to growth.

The report also cited sustainability as a secondary benefit to digitalization and mentions the growing amount of government funding in this important area.

Cybersecurity has become a major concern

OT cybersecurity continues to be a major concern globally, as a high growth in connected legacy devices and lack of comprehensive cyber protection has created significant new attack vulnerabilities. This has not gone unnoticed by hackers, with the volume and value of ransomware attacks soaring in recent years. According to Omdia's Security Breaches Tracker 1Q24, breaches increased by over 30% from 2022 to 2023. Cybersecurity risks were the top customer concern and the top barrier to growth in the 2024 State of Industrial Networking Report.

The report also points to the growth in managed switches being driven by the need to improve network security. It stated specifically that cybersecurity regulations "may result in shorter lifespans for some equipment as devices may not be able to keep up with the level of change more common in IT and consumer products." Many operational networks are ensuring full understanding and visibility of what's connected as a first step to discovering vulnerabilities and improving cyber protection.

Recently, the analyst firm Forrester released a report on OT security, titled "The Forrester Wave: Operational Technology Security Solutions, Q2 2024." The report delves deep into OT security demands and includes vendor rankings

Cisco leads the market - by a wide margin

Cisco's 2023 market share in the Industrial Edge surged 7% from 2022 to 26%. 10% higher than the next closest competitor. (See Figure 1) Shameless, I know, but it's Omdia's findings. What I would say, and what we hear more and more from customers, is that along with great core switching, routing and wireless products, there are additional critical requirements that Cisco delivers in its solutions approach. Namely embedded cyber security protection, advanced remote access capabilities with tools to accelerate IT/OT convergence, and an AI-ready foundation.

In addition, most companies highly value our Cisco Validated Designs. This library of over 80 different technical blueprints and architectures are tested and proven across a number of industries, including a wide range of ecosystem partners. Please visit our CVD library to see what we've done for your industry.

Figure 1: 2023 Industrial Edge market share by vendor

Building a secure, scalable and AI ready industrial foundation

Organizations globally are increasing investments in operational networks to improve cybersecurity, standardize and simplify operations, and build a foundation for AI. This report provides a unique lens of how companies are selecting their strategic partners today, across routing, switching and wireless, and with a mind towards security, automation, and AI. Cisco is the market leader in both enterprise and industrial networking, and we look forward to working with you to help you navigate today's complex operational landscape.

A "Thank You" to our customers and partners

At Cisco, we continue to take a customer-first approach to our products, services, and support. We're humbled and energized by this recognition and appreciate the trust our customers and partners place in us. For more information about our products or services, or to schedule a call with our customer team, please contact us.

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