Smart manufacturing and industrial Ethernet have become important paths for the transform and upgrade of China’s manufacturing industry since the Made in China 2025 plan was issued in 2015. The industrial Ethernet industry is a deep integration of equipment manufacturing and information technology，where Shanghai has the first-mover advantage in both development foundation and industrial policies. At the same time，as the primate city in the Yangtze River Delta integration region，Shanghai has developed a significant radiation ability on the other three manufacturing provinces through the industrial Ethernet industry. However，Shanghai’s industrial Ethernet industry also faces challenges of increased competition，enterprise migration，and insufficient supply of industrial talents. In the future，Shanghai’s industrial Ethernet industry should consolidate its dominant position，cultivate leading enterprises，strengthen technology and standard output capabilities，and expand the new breakthrough direction.