Intelligence Hub | Category Market Intelligence

Decision at a glance

Top move

HMS Networks study shows industrial Ethernet now dominates new automation installs, creating a clear procurement pivot from legacy fieldbus to Ethernet architectures

Key takeaways

HMS Networks study shows industrial Ethernet now dominates new automation installs, creating a clear procurement pivot from legacy fieldbus to Ethernet architectures.[1]
The Ethernet shift raises contract and service exposure for connectivity, remote access and managed-edge services — buyers should expect more recurring-service (OPEX) elements in supplier offers.[1][2]
IEC 62443 and new industrial gateways/5G/edge devices are becoming standard buy criteria; verify cyber-resilience, remote-access ownership, and patch cadence in LTSA and RFx documents.[2]

Why this matters for the category manager

HMS Networks study shows industrial Ethernet now dominates new automation installs, creating a clear procurement pivot from legacy fieldbus to Ethernet architectures. The Ethernet shift raises contract and service exposure for connectivity, remote access and managed-edge services — buyers should expect more recurring-service (OPEX) elements in supplier offers. IEC 62443 and new industrial gateways/5G/edge devices are becoming standard buy criteria; verify cyber-resilience, remote-access ownership, and patch cadence in LTSA and RFx documents. Intrinsic safety guidance reiterates that safer, lower-cost ‘intrinsically safe’ device options exist for many hazardous areas — this affects device selection, spare strategies and vendor approvals

What changed

New vendor and market study data added: HMS Networks report confirms industrial Ethernet now represents the majority share of newly installed nodes, adding a strong connectivity signal vs the prior hydrogen-mobilisati...
Added practical cybersecurity and device-tech signals: Process Online topic pieces flag IEC 62443 compliance and industrial gateways (edge/5G/PoE+) as procurement-relevant items not present in the prior run.

Category impact

Cost / money

Migration to industrial Ethernet increases demand for Ethernet-capable hardware and managed edge services, shifting some lifecycle cost from one-off hardware buys to recurring managed-service fees (OPEX).[1][2]
Choosing intrinsically safe devices where feasible can reduce unit and installation costs compared with traditional explosion-proof enclosures, but may change spare-part strategies and approved-vendor lists.[3]

Supplier / commercial

Suppliers that offer validated Ethernet stacks, IEC 62443 evidence, and edge-managed services will gain commercial leverage in negotiations; require discrete pricing to avoid bundled lock-in.[1][2]
Local integrators and network gateway vendors may push longer managed-service scopes tied to remote-diagnostics and 5G/edge connectivity; buyers should demand named-subcontractor and scope limits in LTSAs.[2][1]

Safety / operations

Standardising on Ethernet and remote access increases the operational need to define patch cadence, remote-access ownership and incident response in contracts to preserve uptime and safe operations.[2][1]
Where hazardous-area equipment is used, adopting intrinsically safe (IS) devices can lower ignition risk and simplify device selection, but buyer teams must verify device approvals and zone suitability before acceptance.[3]

What to watch

Watch for supplier quotes that bundle hardware, edge connectivity and managed services without disaggregated pricing — this reduces comparability and can lock buyers into recurring costs.[1][2]
Early-signal: some vendors are trialling 5G gateways and novel edge switches; adoption pace and real-world resilience are still evolving—verify field trials before defaulting to new tech.[2]

Category manager actions

Action detail for this brief

Today's priorities

Request Ethernet/IEC 62443 compliance packs and remote-access models from shortlisted suppliers and integrators.

Do this because the HMS Networks study and Process Online coverage make IEC 62443 and Ethernet capabilities procurement gating factors for selection and LTSA scope.

Due 3d

high

Inventory hazardous-area device families in current scopes and flag candidates for intrinsically safe substitution for validation.

Do this because the intrinsic-safety article highlights cost and safety benefits where IS options are feasible and this affects approval and spare strategies.

Due 3d

high

Update RFx and LTSA templates to require disaggregated line items for Ethernet hardware, edge connectivity, managed services and mobilisation, and mandate named subcontractors f...

Do this because market signals show suppliers will bundle connectivity and managed services; disaggregation preserves buyer negotiation leverage and cost comparability.

Due 21d

high

Supplier radar

Processonline

high

Observed supplier signal

Suppliers that offer validated Ethernet stacks, IEC 62443 evidence, and edge-managed services will gain commercial leverage in negotiations; require discrete pricing to avoid bundled lock-in.

Commercial implication

Suppliers that offer validated Ethernet stacks, IEC 62443 evidence, and edge-managed services will gain commercial leverage in negotiations; require discrete pricing to avoid bundled lock-in.

Next step: Validate the source-backed signal with incumbents and alternates before the next award or pricing decision.

Processonline

high

Observed supplier signal

Local integrators and network gateway vendors may push longer managed-service scopes tied to remote-diagnostics and 5G/edge connectivity; buyers should demand named-subcontractor and scope limits in LTSAs.

Commercial implication

Local integrators and network gateway vendors may push longer managed-service scopes tied to remote-diagnostics and 5G/edge connectivity; buyers should demand named-subcontractor and scope limits in LTSAs.

Next step: Validate the source-backed signal with incumbents and alternates before the next award or pricing decision.

Negotiation levers

Lever

Request Ethernet/IEC 62443 compliance packs and remote-access models from shortlisted suppliers and integrators.

Use when

Do this because the HMS Networks study and Process Online coverage make IEC 62443 and Ethernet capabilities procurement gating factors for selection and LTSA scope.

Expected outcome

Comparable vendor responses showing protocol support, IEC 62443 evidence and remote-access ownership to feed RFx and LTSA clauses.

high confidence

Lever

Inventory hazardous-area device families in current scopes and flag candidates for intrinsically safe substitution for validation.

Use when

Do this because the intrinsic-safety article highlights cost and safety benefits where IS options are feasible and this affects approval and spare strategies.

Expected outcome

Shortlist of device candidates and procurement notes for IS evaluation and vendor qualification.

high confidence

Lever

Update RFx and LTSA templates to require disaggregated line items for Ethernet hardware, edge connectivity, managed services and mobilisation, and mandate named subcontractors f...

Use when

Do this because market signals show suppliers will bundle connectivity and managed services; disaggregation preserves buyer negotiation leverage and cost comparability.

Expected outcome

RFx returns that allow apples-to-apples cost comparison and reveal recurring OPEX exposure by supplier.

high confidence

Talking points

HMS Networks study shows industrial Ethernet now dominates new automation installs, creating a clear procurement pivot from legacy fieldbus to Ethernet architectures.

The Ethernet shift raises contract and service exposure for connectivity, remote access and managed-edge services — buyers should expect more recurring-service (OPEX) elements in supplier offers.

IEC 62443 and new industrial gateways/5G/edge devices are becoming standard buy criteria; verify cyber-resilience, remote-access ownership, and patch cadence in LTSA and RFx documents.

Recommended actions

Do now

Request Ethernet/IEC 62443 compliance packs and remote-access models from shortlisted suppliers and integrators.
Why: Do this because the HMS Networks study and Process Online coverage make IEC 62443 and Ethernet capabilities procurement gating factors for selection and LTSA scope.
Owner: Contracts
Expected outcome: Comparable vendor responses showing protocol support, IEC 62443 evidence and remote-access ownership to feed RFx and LTSA clauses.
[1][2]
Inventory hazardous-area device families in current scopes and flag candidates for intrinsically safe substitution for validation.
Why: Do this because the intrinsic-safety article highlights cost and safety benefits where IS options are feasible and this affects approval and spare strategies.
Owner: Category
Expected outcome: Shortlist of device candidates and procurement notes for IS evaluation and vendor qualification.
[3]

Next few weeks

Update RFx and LTSA templates to require disaggregated line items for Ethernet hardware, edge connectivity, managed services and mobilisation, and mandate named subcontractors f...
Why: Do this because market signals show suppliers will bundle connectivity and managed services; disaggregation preserves buyer negotiation leverage and cost comparability.
Owner: Contracts
Expected outcome: RFx returns that allow apples-to-apples cost comparison and reveal recurring OPEX exposure by supplier.
[1][2]
Draft an LTSA annex specifying remote-access ownership, patch cadence, and IEC 62443 acceptance evidence to be delivered at handover.
Why: Do this because Process Online flags IEC 62443 and remote-access ambiguity as key operational risks that must be contractually allocated to preserve uptime and security.
Owner: Legal
Expected outcome: LTSA annex ready to insert into awards that reduces ambiguity on cyber ownership and patch responsibilities.
[2]

Watch

Run a supplier validation exercise (tabletop or lab demo) for Ethernet/edge connectivity and intrinsically safe device integration with shortlisted integrators and primes.
Why: Do this because live demos and validation reduce downstream mobilisation and execution risk by confirming interoperability, supportability and safety integration assumptions.
Owner: Ops
Expected outcome: Validation report identifying integration gaps, preferred vendors, and contract clauses to mitigate execution risk.
[1][3][2]

What to watch

Watch for supplier quotes that bundle hardware, edge connectivity and managed services without disaggregated pricing — this reduces comparability and can lock buyers into recurring costs
Early-signal: some vendors are trialling 5G gateways and novel edge switches; adoption pace and real-world resilience are still evolving—verify field trials before defaulting to new tech
Watch for supplier quotes that bundle hardware, edge connectivity and managed services without disaggregated pricing — this reduces comparability and can lock buyers into recurring costs.: Watch for supplier quotes that bundle hardware, edge connectivity and managed services without disaggregated pricing — this reduces comparability and can lock buyers into recurring costs
Early-signal: some vendors are trialling 5G gateways and novel edge switches; adoption pace and real-world resilience are still evolving—verify field trials before defaulting to new tech.: Early-signal: some vendors are trialling 5G gateways and novel edge switches; adoption pace and real-world resilience are still evolving—verify field trials before defaulting to new tech
HMS Networks study shows industrial Ethernet now dominates new automation installs, creating a clear procurement pivot from legacy fieldbus to Ethernet architectures
The Ethernet shift raises contract and service exposure for connectivity, remote access and managed-edge services — buyers should expect more recurring-service (OPEX) elements in supplier offers
IEC 62443 and new industrial gateways/5G/edge devices are becoming standard buy criteria; verify cyber-resilience, remote-access ownership, and patch cadence in LTSA and RFx documents
Intrinsic safety guidance reiterates that safer, lower-cost ‘intrinsically safe’ device options exist for many hazardous areas — this affects device selection, spare strategies and vendor approvals

Market pulse

Index	Latest	Change	As of
WTI Crude (WTI)	71.23 /bbl	+0.00 (+0.00%)	Aug 12, 2026, 10:10 PM
Brent Crude (BRENT)	74.89 /bbl	+0.00 (+0.00%)	Aug 12, 2026, 10:10 PM
Natural Gas (NG)	3.12 /MMBtu	+0.00 (+0.00%)	Aug 12, 2026, 10:10 PM
Baker Hughes (BKR)	32	+0.00 (+0.00%)	Aug 12, 2026, 10:10 PM
GE Vernova (GEV)	175	+0.00 (+0.00%)	Aug 12, 2026, 10:10 PM

Baker Hughes: Baker Hughes activity is a demand proxy for equipment and service market tightness; useful to monitor alongside Ethernet migration signals
Natural Gas: Natural gas pricing can influence brownfield retrofit and automation capex timing for upstream and midstream projects

Evidence and sources

Inline citations jump here. Expand a source to read stored evidence excerpts.

[1] The accelerating decline of fieldbus as Ethernet takes over

processonline.com.au · n.d.

Original linkExpand

Source excerpts

Industrial Ethernet reaches 79% of new installations The 2026 analysis shows that industrial Ethernet now accounts for 79% of new nodes, up from 76% in 2025

For the industrial Ethernet protocols: Profinet has strengthened its lead at 30% (up from 27%). EtherNet/IP followed at 25% (up from 23%)

As expected, in North America EtherNet/IP remains the dominant protocol, particularly in automotive and discrete manufacturing. Adoption of IO-Link, APL and SPE is gaining clear momentum, supported by interest in OT cybersecurity ahead of the regulatory landscape taking shape around CRA and IEC 62443

Open original source

[2] Industrial networks & buses :: Process Online

processonline.com.au · n.d.

Original linkExpand

Source excerpts

Tosi Lock 675 industrial remote access device 01 February, 2026 | Supplied by: LAPP Australia Pty Ltd The Tosi Lock 675 industrial remote access device is designed to deliver robust, reliable communications, even in harsh environments

EtherCAT certified cybersecure to IEC 62443 23 April, 2026 | Supplied by: EtherCAT Technology Group Independent safety company UL Solutions has issued certificates confirming that EtherCAT meets IEC 62443 requirements for Security Level 2 without modifications

ProSoft Technology ELX3 ProLinx edge gateway 16 July, 2026 | Supplied by: Belden Australia Pty Ltd The ELX3 ProLinx edge gateway is designed to unite OT protocol conversion with lightweight, Docker-based edge application hosting

Open original source

[3] The advantages of using intrinsic safety in hazardous locations

processonline.com.au · n.d.

Original linkExpand

Source excerpts

Use of standard, safe area devices Intrinsic safety technology permits the use of some safe area devices in lieu of explosion-proof devices as long as they meet certain requirements. US and global requirements for hazardous location wiring practices allow two types of devices to be used in an ‘intrinsically safe circuit’ (NEC article 504

What’s so great about being able to use a normal area (safe area) device? Typically, safe area/non-Ex devices cost less and are more readily available than hazardous area-rated devices

With an explosion-proof design, you need to choose the proper hazardous area enclosure, and the same with intrinsic safety. In addition, there are only two more pieces of information needed: the properly associated apparatus (intrinsic safety isolator), and then making sure the parameters of the field device, the intrinsic safety isolator, and the cabling make up an intrinsically safe circuit

Open original source

[4] Baker Hughes

finance.yahoo.com · n.d.

Original linkExpand

No stored excerpt is attached to this source.

Open original source

[5] Natural Gas

finance.yahoo.com · n.d.

Original linkExpand

No stored excerpt is attached to this source.

Open original source

Rebalance Contracts and Connectivity for Ethernet Migration contract

Decision at a glance

What changed

Category impact

Cost / money

Supplier / commercial

Safety / operations

What to watch

Action detail for this brief

Today's priorities

Supplier radar

Negotiation levers

Talking points

Recommended actions

Do now

Next few weeks

Watch

Top stories

The accelerating decline of fieldbus as Ethernet takes over

Industrial networks & buses :: Process Online

The advantages of using intrinsic safety in hazardous locations

Market pulse

Evidence and sources