Ottawa, April 28, 2023 (GLOBE NEWSWIRE) -- North America has generated 36% of the revenue share in 2022. The system integration market is poised to grow at a registered compound annual growth rate (CAGR) of around 14.18% from 2023 to 2032. Factors such as growing demand for low-cost, energy-efficient production processes, rising security and safety concerns, rising adoption of automation technologies, inclination towards virtualization, and increasing adoption of cloud computing are fueling the system integration market.
However, the high investments and high costs obstruct market growth. Furthermore, the rising use of the internet of things and the development of machine learning and big data analytics are expected to drive the market.
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Regional Landscape
Asia Pacific is estimated to grow faster during the forecast period. The region’s growth is due to the rapid growth of the Asian economies resulting in a rise in investments in system integration. The expanding IT and telecom sectors in India, Singapore, South Korea, and China drive demand for network integration services. Key regional market players are forming a strategic partnership for business development, which is expected to propel industry growth. In March 2022, tech Mahindra Limited announced a collaboration with Bharti Airtel, a telecommunications service provider, to develop innovative solutions for India's economy. Both companies bring enterprise-grade private networks to this partnership, focusing on Ariel's integrated connectivity portfolio of 5G mobile network, SDWAN, fiber, and IoT, as well as Tech Mahindra's system integration capabilities.
Service Landscape
The consulting segment is expected to grow faster during the forecast period. The growth of this segment is driven by the rising need for enterprises to help users design their Business Continuity & Disaster Recovery Planning (BCP & DRP) and conduct rehearsals for effective and efficient workflow. The system integration solution provider provides consulting services to clients to assist them in effectively digitally integrating their services and modernizing their IT systems. Praruh, an ICT integration specialist firm, introduced a system integration portfolio across various spectrums such as data center, application, networking, security, and storage in December 2021. The company will also provide consulting services to ensure that the newly launched system integration solutions are used effectively, as well as post-integration troubleshooting and support.
End-Use landscape
The IT & telecom segment is anticipated to grow faster during the forecast period. Key players' increased spending on system integration solutions has improved IT infrastructure management and significantly reduced redundancies. Furthermore, system integration facilitates the integration of hardware and software solutions obtained from diverse IT players. The growing demand for telecommunications systems to improve network coverage encourages various telecom companies to diversify their operations. Telenor, for instance, partnered with Google Cloud in November 2021 to digitally transform Telenor's current infrastructure and integrate AI & ML to enhance its technical capabilities. Telenor will be able to manage its connected devices, improve 5G services, and achieve holistic transparency as a result of the partnership.
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Scope of this Report
| Report Coverage | Details | |
| Market Revenue By 2032 | USD 1492.95 Billion | |
| CAGR | 14.18% | |
| North America Share | 36% in 2022 | |
| Key Players | Capgemini, IBM, Infosys Limited, Tata Consultancy Services, Accenture, John Wood Group, Wipro, Johnson Controls, JR Automation, Cognizant and Others | |
Market Dynamics
Driver: Adoption of Cloud Computing
Cloud computing adoption has been rapidly increasing, with cloud-specific spending expected to grow more than six times that of general IT is spending through 2022. Furthermore, cloud providers are providing strong native optimization capabilities to assist organizations in selecting the most cost-effective architecture capable of delivering the required performance, thereby contributing to the growth of the system integration industry.
Furthermore, several market participants are acquiring small cloud providers to increase cloud adoption. For instance, in June 2020, IBM Corporation signed a definitive agreement to acquire Spanugo, a cloud cybersecurity posture management solution provider based in the United States. IBM integrated Spanugo software into its public cloud to meet the security demands of its clients in highly regulated industries. This acquisition of Spanugo software has aided in developing a security control center that will allow IBM clients to define compliance profiles, manage controls, and monitor compliance across their organizations in real-time.
Restraint: High Investments
The high initial investment is a significant factor required for the installation of supervisory solutions such as DCS, MES, advanced process control (APC), and SCADA, which limits the growth of the process automation market and obstructs the growth of the system integration market.
Moreover, common technology standards and network protocols like IPv5 and IPv6 improve connectivity between corporate IT networks. This allows decision-makers to access data from anywhere, allowing them to make more effective and timely decisions. However, sharing the network on a common platform makes it more vulnerable to external attacks. The availability of real-time data is more critical than data confidentiality when building a SCADA system. As a result, cyberattacks pose a significant threat to the industrial automation system integrator market.
Opportunity: Hybrid Cloud Solutions for SMEs
The integration of cloud services among IT industries and business organizations has grown dramatically in recent years as organizations recognize the value of hybrid cloud solutions. A hybrid cloud enables small and medium-sized businesses to gain the benefits of private and public clouds, as well as efficiency, with the assistance of expertise and operational quality. Furthermore, a hybrid cloud is a significant strategic choice for small and medium-sized businesses to acquire a platform for an alliance with customers and partners rather than a cost-cutting measure. Furthermore, the evolution of infrastructure as a service (IaaS) and software as a service (SaaS) has allowed small businesses and start-ups to explore and deploy ideas with greater agility.
Furthermore, SMEs frequently face high costs, monitoring, and cloud migration challenges. However, by implementing system integration services, SMEs can continue to use their legacy applications. In contrast, most of the services are hosted in the cloud for backup and high availability, creating numerous market opportunities.
COVID-19 Impact
The COVID-19 outbreak significantly impacted the industrial automation system integration market. The spread of COVID-19 worldwide has prompted several government-imposed strategies, resulting in several businesses' temporary closures and widespread restrictions on travel and mobility. This pandemic began as a direct result of shutdowns, significantly impacting global demand for system integration services.
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Key Developments in the Marketplace
- In 2022, Control and Information Management Ltd. ("CIM"), an Irish industrial automation system integrator, was acquired by ATS Automation Tooling Systems Inc., an industry-leading automation solutions provider, in June 2021. ATS expands its automation and service capabilities for the biopharma, pharmaceutical, and other manufacturing and service industries and strengthens its digitization strategy with the acquisition of CIM.
- In March 2022, Cisco Systems, Inc. announced that its new Cisco Intersight platform integrations with public cloud integration would enable Kubernetes clusters and virtual machines to be observable across multiple clouds. In addition, Cisco HyperFlex Hyper-Converged Infrastructure was introduced to improve edge computing and expand users' hybrid cloud capabilities. This would allow the company to deliver infrastructure and applications for cloud integrations more quickly.
- In 2022, Capgemini announced a partnership with Qualcomm, a wireless technology company, to develop solutions and services that will assist organizations in realizing the benefits of 5G private networks and in their digital transformation journeys. Capgemini would act as a system integrator in the collaboration, utilising Qualcomm's 5G private network system to enable clients' business transformations and expand the benefits of 5G.
Market Segmentation
By Services
- Infrastructure Integration
- Application Integration
- Consulting
By End-Use
- IT & Telecom
- Defense & Security
- BFSI
- Oil & Gas
- Healthcare
- Transportation
- Retail
- Food and & Beverages
- Automotive
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- The Middle East and Africa
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