The LAN: The Basis for More Intelligence
January 13, 2025 - R&M | Reichle & De-Massari AG
Adapting the LAN for the future
Every year, R&M’s expert teams dare to look ahead to the development of the markets and megatrends. Their insights are based on the company’s investigations and the evaluation of forecasts by leading market researchers. In particular, we inform our customers about the future of technologies in our traditional market segments.
LAN infrastructures in office and corporate environments are currently facing new challenges. It is all about creating new, more intelligent, and more efficient solutions for the future. For example, hybrid infrastructures, the expansion of Power over Ethernet (PoE), and the integration of intelligent monitoring can be adaptable approaches that overcome the challenges of today and are equipped for the requirements of tomorrow.
The need for faster and more reliable wireless connections will further drive the rollout of WiFi 6 and higher as well as 5G in buildings. The convergence of IT and OT networks is expected to accelerate. PoE, devices for the Internet of Things (IoT) and edge devices will be increasingly used.
A universal, holistic LAN backbone is useful. Convergence brings together the world of data and intelligent building automation. LAN convergence is largely driven by the need to simplify complexity, improve efficiency, and reduce costs. At the same time, functionality and flexibility can be improved.
New approaches: ALL-IP and SPE
The ALL-IP approach, which has been intensively promoted by R&M, is very popular. The aim here is to operate building networks and building applications consistently with Internet Protocol (IP). Approaches such as digital ceiling–zoned ceiling cabling – lend themselves to the necessary LAN infrastructures. PoE can also be used efficiently here.
Numerous end devices can be connected to ALL-IP building automation via pre-installed connection points on the ceiling. Operators only need to manage a single network. All devices involved in building technology and management can communicate via Ethernet/IP in the same way and without barriers, whereby the LAN forms the basis for communication.
The prospects for the spread of Single Pair Ethernet (SPE) are improving. We expect the technology to be more widely accepted. SPE works on the basis of xBASE-T1 standards with a single twisted two-wire line for data transmission. It enables the integration of field devices, sensors, and actuators into an existing LAN environment and does not require any additional gateways or interfaces.
Thanks to the longer transmission length, the smaller cable diameter and the smaller connector size, SPE technology can supplement the existing RJ45 cabling. However, due to the limited bandwidth and power supply capabilities of SPE, RJ45 technology will not usually be replaced by SPE. Well-informed decision-making will be essential.
More need for flexibility
In the future, operators will probably also be interested in obtaining hybrid solutions. Hybrid cabling in which fiber optic and copper cables are combined with the power supply could become an important technology for LAN environments.
This is because certain application situations will require hybrid solutions. It will be important to support high-speed data transmission and reliable power distribution in the same network infrastructure. This will make it possible to manage and network remote peripherals.
With data and power demand expected to grow exponentially, hybrid solutions offer an easy way to ensure network scalability. They offer great flexibility and the ability to efficiently handle increased data loads and electrical requirements. This can be of interest to industrial and intelligent building applications.
More capabilities of PoE
Power over Ethernet (PoE) is still on the rise. The ability to supply end devices with power at the same time via LAN cabling is compelling. The trend toward PoE supports initiatives for intelligent buildings and for creating edge computing environments. Market Research Future predicts that the PoE market will grow from USD 1.72 billion in 2024 to USD 8.9 billion by 2032*.
The growing capabilities of PoE make it the ideal solution for the integration of networked devices such as sensors, door locks, and IP cameras in the LAN and beyond. At the same time, PoE can help to improve energy efficiency and reduce «cable clutter».
The technology of the RJ45 connectors remains the connectivity basis in the LAN segment and for PoE. It supports the increasing requirements of remote power supply and the further spread of PoE. However, the limits of the possible applications are gradually becoming clear. This in turn leads to the hybrid approach that combines copper and optical fiber, RJ45, and fiber optic connectivity to meet the requirements of bandwidth, power supply, and distance. SPE network technology is also possible in some cases, but it cannot completely replace hybrid fiber optic/power solutions.
More LAN in the factory
LAN infrastructures are also spreading in industrial production. We are talking about industrial LAN or Industrial Ethernet. It supports the path to Industry 4.0, to intelligent factories. However, industrial applications require higher power density and network racks with built-in intelligence for monitoring and controlling production and infrastructure.
Intelligent cabinets and miniature data centers for factories have modular designs. They have integrated cooling and adaptable monitoring tools for network functions, monitoring, access and much more. Standardized integrated rack solutions are increasingly in demand, as are solutions that enable intelligent energy management for industry. Automated monitoring ensures reliable LAN performance in complex environments.
Expansion is being driven by increasing demand for industrial automation, the spread of IIoT devices, and the implementation of Industry 4.0 and smart manufacturing initiatives. Modular design is in demand because it enables simple upgrades and adaptations to new requirements. Grand View Research estimates the global market for Industrial Ethernet at around USD 10.5 billion in 2023 and forecasts that it will reach around USD 20 billion by 2032**.
More intelligence in buildings
The trend toward smart buildings is driving the expansion and renovation of LAN infrastructure. These developments are expected to increase sales significantly.
As premises are becoming increasingly networked, LAN cabling has to take over or support additional functions. First, it must enable seamless communication between devices and central control systems. At the same time, the LAN should help ensure that premises meet climate targets and efficiency specifications.
Grand View Research estimated the universal market for intelligent buildings at USD 108 billion in 2023 and predicted an annual growth rate of 28.5 %*** for the period from 2024 to 2030.
Renovations and the retrofitting of existing infrastructures are necessary in order to enable intelligent functions and make full use of them. The integration of IoT and AI-powered systems in facility networks will be necessary for real-time data and resource management.
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