System Integration Services Market by Service Type (Infrastructure Integration Services, Enterprise Application Integration Services, and Consulting Services), Vertical (BFSI, Government & Defense, and Healthcare) and Region - Global Forecast to 2028
The global System Integration Services Market size was valued at USD 483.0 billion in 2023 and is expected to expand at a CAGR of 6.6% during the forecast period, reaching revenue forecast $665.6 billion by 2028.
The reasons for the growth of the system integration services market are the continued improvement and use of cloud technologies and growing demand from end-use industries due to higher productivity and lower costs. System integration services connect various individual software, hardware, and network components within an organization’s IT infrastructure to work together as a cohesive and unified system. The primary goal of system integration is to streamline business processes, improve operational efficiency, and enhance overall performance by ensuring seamless communication and data exchange between different systems. System integration connects disparate software, hardware, and network components to create a unified and seamless IT infrastructure. It facilitates efficient data exchange, process automation, and decision-making, improving productivity and a competitive edge in the market.
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System Integration Services Market Dynamics
Drivers: The rising demand for robust and efficient IT infrastructure
In the world of IT infrastructure, system integration plays a vital role. IT infrastructure combines hardware, software, network resources, and services organizations need to manage their IT environment. System integration ensures that all IT infrastructure components work together efficiently. Companies across different industries are undergoing digital transformations to stay competitive and enhance their operational efficiency. System integration is vital in integrating new digital technologies and modernizing existing IT systems to support these transformations. As part of this transformation, businesses are adopting new software applications, cloud-based services, and IoT technologies. However, integrating these diverse systems and technologies requires expert IT infrastructure and system integration services. IT infrastructure provides the network connectivity and communication channels necessary to facilitate easy data exchange and component-to-component communication. For a robust IT infrastructure, there must be a set up of Local area networks (LANs), wide area networks (WANs), and the Internet. The main objective of system integration is to achieve seamless data transfer between various systems. The rise in demand for IT infrastructure and system integration services is due to technological advancements, digital transformation, data-driven decision-making, security concerns, and seamless experiences across various platforms.
Restraint: Concerns associated with privacy and data security
Lately, many companies are transitioning from private cloud and on-premises servers to the public cloud. However, this has raised concerns about the privacy and security of their data. With increasing cyberattacks and data breaches, organizations suffer tangible and intangible losses, especially when working with third-party integrations. To address these concerns, hiring system integration services using the latest tools and technologies is vital to avoid mishaps.
Enterprises across all industries can benefit from the growth potential of system integration services. However, these services come with the risk of potential threats that could lead to significant financial and data losses. One of the main challenges businesses in this market faces is ensuring their data’s security and privacy. Intelligent devices and sensors in the system generate a large amount of data that can provide valuable insights into competitors’ market positions. Companies seek better security and privacy protections as the demand for system integration services grows. Unfortunately, the increased number of IoT devices introduces new security and privacy concerns. Every endpoint, gateway, sensor, and smartphone becomes a potential target for hackers. Enterprises must prioritize system integration-related security and privacy protection to address these issues.
Opportunities: Implementation of AI and ML in system integration
System integration is when different IT systems and applications work together seamlessly. AI allows machines to perform tasks that require human intelligence. Combining AI with system integration unlocks new capabilities and efficiencies. AI algorithms rely on high-quality data for accurate predictions and decisions, AI. System integration helps connect data from various sources, making it accessible to AI models.
Additionally, organizations can incorporate AI capabilities into their existing services and applications. For example, the creation of intelligent chatbots aids in customer service applications that can understand and respond to customer inquiries. Furthermore, AI can optimize the system integration process itself. AI-driven automation can identify potential integration issues, suggest optimal integration paths, and speed up the deployment of integrated systems. Combining AI with system integration enables organizations to harness the full potential of their data and systems, offering a powerful synergy. It empowers businesses to deliver better services, improve operational efficiency, gain a competitive edge, and drive innovation in various industries.
Challenges: Integration issues of legacy infrastructure and complex & diverse IT networks
Organizations often have complex and diverse IT environments with legacy systems, on-premises solutions, and cloud-based services. Integrating these disparate technologies while ensuring data consistency and compatibility can be challenging.
Despite the emergence of modern technologies, many companies still use outdated computer software and hardware known as legacy systems. These systems are essential to organizations as they support key business functionalities. Yet, it can be challenging to integrate with newer technologies, and vendors may discontinue their services. Unfortunately, most legacy systems lack the configuration to connect with smart devices and advanced communication networks. Replacing them can be expensive for companies, and market vendors may struggle to integrate them with various components in the system integration ecosystem. Organizations must upgrade legacy systems through system integration to modernize and make them compatible with newer applications.
System Integration Services Market Ecosystem
Based on service type, the enterprise application integration services segment significantly contributes to the system integration services market during the forecast period.
Application integration services refer to the services and solutions offered by specialized companies or IT teams to integrate different software applications within an organization’s IT ecosystem. The main goal of application integration is to enable seamless data exchange, streamline processes, and improve the overall functionality and performance of the integrated applications.
The programs can range from CRM and eCommerce platforms to financial and ERP systems and serve various corporate purposes. Application integration helps users maintain, manage, and keep all their applications updated while reducing data repetition and redundancy. Application integration services can include the development of custom integration solutions tailored to specific business requirements; this involves designing and implementing connectors, APIs, middleware, or integration platforms to enable smooth application communication. APIs play a crucial role in allowing application integration. Service providers may assist in developing APIs for applications and managing API usage to ensure security, scalability, and performance. System integration services for applications help organizations optimize their processes, improve data visibility, and enhance collaboration between different teams and departments.
The uses of application integration services include:
- Integrating cloud-based applications with on-premises systems or other cloud services; allows organizations to leverage the benefits of cloud computing while ensuring seamless interactions with existing applications.
- Many businesses still use legacy systems that may not be compatible with modern applications. Integration services help connect these older systems with newer technologies, ensuring they communicate effectively.
- With the growing use of mobile devices, application integration services involve connecting mobile applications with back-end systems or databases to enable smooth data exchange and user experiences.
Based on the vertical, the BFSI segment will dominate the system integration services market more during the forecast period.
The proliferation of neo-banking services, rising fintech startups, significant demand for banking-as-a-service (BaaS), and shifting various governments’ attention toward the digital economy are all critical factors driving the BFSI system integration market expansion. Meeting customer expectations, complying with regulations, controlling risk, optimizing operations, and capitalizing on technological improvements are all critical aspects of the BFSI sector. In the BFSI sector, successful system integration leads to improved customer service, a competitive advantage, and long-term growth. System integration enables banks to aggregate data from various sources, facilitating advanced analytics and business intelligence. Insights gained from integrated data help banks make informed decisions, create targeted marketing campaigns, and develop new products and services.
The uses of system integration services in the BFSI sector are:
- Core Banking Integration: System integration allows banks to connect their core banking systems with various front-end and back-end applications. This integration ensures the smooth handling of customer transactions, account management, and financial operations.
- Multi-channel Banking: System integration enables consistent customer experiences across different banking channels, such as online banking, mobile apps, ATMs, and physical branches. This integration ensures customers can access their accounts and perform transactions seamlessly through different channels.
- Payment Systems Integration: Integration of payment systems, including real-time payments, card processing, and online payment gateways, ensures efficient and secure fund transfers and payment processing for customers and businesses.
- Customer Relationship Management (CRM): Integrating CRM systems with banking applications gives banks a holistic view of customer interactions, preferences, and needs. This integration enhances personalized customer service and targeted marketing efforts.
Asia Pacific to grow at the highest CAGR during the forecast period.
Factors such as the rising demand for enhanced customer experiences, increasing focus on customer engagement, and the need for cost-effective solutions have driven the market’s expansion. The presence of many SMEs and high investments in the startup ecosystem for system integration technologies would drive the market’s growth in the Asia Pacific. Reliable and advanced cloud infrastructure presents attractive opportunities for cloud technologies. The immediate lockdowns and stop in business activities due to the pandemic led to a slowdown in business activities. However, the rising internet penetration and digital transformation would increase the demand for system integration services in the region. The Asia Pacific region witnessed significant growth in system integration solutions, leading to increased demand for system integration services. Governments across the Asia Pacific region actively invest in digital initiatives to enhance public services and governance, and system integration services help support these modernization efforts. The mobile and telecommunications sector in the Asia Pacific region requires system integration services to support the development and deployment of advanced mobile technologies. The regional growth is driven by the rapid economic expansion in Asian countries, leading to increased investments in system integration services.
Additionally, the IT & telecom sector in countries like India, Singapore, South Korea, and China is expanding, resulting in a growing demand for network integration services. Regional players are forming strategic partnerships to drive business development and fuel industry growth. For instance, in March 2022, Tech Mahindra Limited and Bharti Airtel, a prominent telecommunication service provider, announced a partnership to create innovative solutions for the Indian economy. This collaboration aims to leverage enterprise-grade private networks, focusing on Bharti Airtel’s integrated connectivity portfolio, including 5G mobile network, SDWAN, fiber, IoT, and Tech Mahindra’s system integration capabilities. This joint effort would further propel the system integration market in the Asia Pacific region.
Key Players
Accenture (Ireland), Capgemini (France), Cisco (US), HCLTech (India), HPE (US), IBM (US), Oracle (US), Infosys (India), Atos (France), Microsoft (US), Deloitte (UK), TCS (India), Wipro (India), Cognizant (US), DXC Technology (US), Dell (US), Fujitsu (Japan), Aspire Systems (India), CGI (Canada), Itransition (US), Celigo (US), 3Insys (US), Work Horse Integrations (US), DocInfusion (India), Flowgear (South Africa), Jitterbit (US), SnapLogic (US), Tray.io (US), and Workato (US) are the key players in the system integration services market.
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Report Metric |
Details |
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Market size value in 2023 |
USD 483.0 billion |
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Revenue forecast for 2028 |
USD 665.6 billion |
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Growth Rate |
6.6% CAGR |
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Market size available for years |
2017–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Billion (USD) |
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Segments Covered |
Service type, Vertical, and region |
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Key Market Drivers |
|
|
Key Market Opportunities |
|
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Geographies covered |
North America, Asia Pacific, Latin America, Europe, and the Middle East & Africa |
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Companies covered |
Accenture (Ireland), Capgemini (France), Cisco (US), HCLTech (India), HPE (US), IBM (US), Oracle (US), Infosys (India), Atos (France), Microsoft (US), Deloitte (UK), TCS (India), Wipro (India), Cognizant (US), DXC Technology (US), Dell (US), Fujitsu (Japan), Aspire Systems (India), CGI (Canada), Itransition (US), Celigo (US), 3Insys (US), Work Horse Integrations (US), DocInfusion (India), Flowgear (South Africa), Jitterbit (US), SnapLogic (US), Tray.io (US), and Workato (US). |
This research report categorizes the system integration services market based on service types, verticals, and regions.
Based on Service Type, the System Integration Services market segments are as follows:
- Infrastructure Integration Services
- Enterprise Application Integration Services
- Consulting Services
Based on vertical, the System Integration Services market segments are as follows:
- BFSI
- Retail & eCommerce
- IT & Telecommunications
- Government & Defense
- Healthcare
- Manufacturing
- Other Verticals (Energy & Utilities, and Transportation & Logistics)
Based on regions, the System Integration Services market segments are as follows:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
-
Middle East and Africa
- United Arab Emirates (UAE)
- Saudi Arabia
- South Africa
- Rest of the Middle East and Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In February 2021, Accenture launched a new business group with VMware to help organizations move to the cloud faster. The new business group aimed to bring together dedicated professionals with deep expertise in hybrid cloud and cloud migrations, cloud-native and application modernization, and security across critical industries.
- In October 2022, Capgemini collaborated with Panasonic. Capgemini has successfully created a data ecosystem for a longstanding client Panasonic Automotive Systems Company of America. The new platform will improve the organization’s data-driven decision-making and innovation capabilities to drive efficiencies and more reliable extracts.
- In December 2021, Airtel and Capgemini aimed to bring their capability in connectivity and 5G solutions and System Integration (SI) capabilities to innovate with a range of India-focused use cases.
- In October 2021, Accenture announced the acquisition of Advoco, one of the major systems integrators for Infor EAM, an enterprise asset management software-as-a-service suite. Accenture expects the investment to help it extend its capacity to assist clients in developing safer, more sustainable, cost-effective operations and supply chain services.
Frequently Asked Questions (FAQ):
What is the projected market value of the system integration services market?
The global system integration services market is expected to grow from 483.0 Billion in 2023 to USD 665.6 Billion by 2028 at a Compound Annual Growth Rate (CAGR) of 6.6% during the forecast period.
Which region has the highest market share in the system integration services market?
North America has the highest market share in the system integration services market.
What is the market definition of the system integration services market?
System integration services refer to connecting and combining diverse IT systems, applications, and technologies to work together as a unified and cohesive IT ecosystem. It integrates hardware, software, databases, and networking infrastructures to streamline data flow, improve efficiency, and ensure seamless system communication. This integration can be between legacy systems, newer technologies, on-premises solutions, and cloud-based services.
Which are the major vendors in the system integration services market?
Accenture (Ireland), Capgemini (France), Cisco (US), HCLTech (India), HPE (US), IBM (US), Oracle (US), Infosys (India), Atos (France), Microsoft (US), Deloitte (UK), TCS (India), Wipro (India), Cognizant (US), DXC Technology (US), Dell (US), Fujitsu (Japan), Aspire Systems (India), CGI (Canada), Itransition (US), Celigo (US), 3Insys (US), Work Horse Integrations (US), DocInfusion (India), Flowgear (South Africa), Jitterbit (US), SnapLogic (US), Tray.io (US), and Workato (US) are the key vendors in the system integration services market.
What are the drivers in the system integration services market?
The increasing internet ubiquity and IoT expansion, demand for tailored-made system integration services, and cost and risk reduction are the major factors fueling the growth of the system integration services market.
What are some challenges in the system integration services market?
The common challenges in the system integration services market are the lack of technical knowledge, rapid changes in the integration landscape, and lack of accountability. .
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The study involved four major activities in estimating the market size for system integration services. An exhaustive secondary research helped to collect information on the market, peer, and parent markets. The next step was to validate these assumptions, findings, and sizing with the industry experts across the value chain through primary research. Both bottom-up and top-down approaches were employed to estimate the complete market size. After that, market breakup and data triangulation were used to estimate the overall market size of segments and sub-segments.
Secondary Research
We determined the system integration services market’s size based on the secondary data available via paid and unpaid information sources. It was also arrived at by analyzing significant vendors’ products and rating the companies based on their performance and quality. Secondary research analysis helped to obtain critical information about the supply chain, country-wise technology spending, the total pool of key players in the market, market classification according to market trends to the bottom-most level, global region-wise markets, key developments from both demand and technology-oriented perspectives, economic trends, and currency exchange rates – primary sources helped validate numbers. For example, the market size of companies offering system integration services is based on the secondary data available through publicly available information or our paid databases.
In the secondary research process, we referred to various secondary sources for identifying and collecting information for this study. The secondary sources include press releases, annual reports, & investor presentations, white papers, certified publications, articles from recognized associations, and government publishing sources.
Primary Research
We interviewed various sources from the supply and demand sides to obtain qualitative and quantitative information for this report in the immediate research process. The supply side primary sources included various market experts, CEOs, VPs, marketing directors, technology and innovation directors, independent consultants, and key executives. Extensive primary research during the study helped gather information and verify and validate the market numbers. We connected with primaries to identify the segmentation types; industry trends; market overview; the competitive landscape of the system integration services vendor, and the fundamental market dynamics, such as drivers, restraints, opportunities, challenges, and key strategies.
Primary interviews helped gather insights, such as new market trends, new use cases implemented, revenue data collected from services, market splits, market estimations, market forecasts, and data triangulation. Primary research also helped understand technology trends, service types, deployment, and regions. Demand-side stakeholders, such as Chief Technology Officers (CTOs), Chief Information Officers (CIOs), Chief Security Officers (CSOs), and the installation team of end-users using system integration services, were interviewed to understand the buyer’s perspective on products, suppliers, service vendors, and their use of services, which would affect the overall growth of system integration services market.
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Market Size Estimation
We employed multiple approaches to estimate and forecast the size of the system integration services market. In the market engineering process, we used the top-down and bottom-up approaches and data triangulation procedures to perform market forecasts and estimations for the global market segments and sub-segments listed in this report.
We used top-down and bottom-up approaches to estimate and validate the size of the global system integration services market and the size of various dependent sub-segments. The research methodology used to analyze the market size includes these details:
- We identified key players in the market through secondary market analysis and their revenue contributions in respective regions through primary and secondary research.
- This procedure included studying top market players’ financial reports and interviews for key insights from experts.
- All percentage breakups were determined using secondary sources and verified through primary inputs.
Primary research has accounted for and verified all possible market parameters affecting the market. MarketsandMArkets consolidated the data with detailed inputs and analysis.
Bottom-Up Approach
The bottom-up approach identified the adoption rate of system integration services by different verticals in critical countries concerning the region that contributes most of the market share. Further, the adoption rate of system integration services in various industries and use cases concerning their geographies were identified and extrapolated for cross-validation. In addition, weights are assigned to the use cases identified in regions such as North America, Europe, etc., for the calculation.
We determined the geographic split with primary and secondary sources based on these numbers. The procedure included an analysis of the system integration services market’s region-wise penetration. Various factors considered are – ICT spending and strategic vendor analysis of system integration service providers. Other factors analyzed were the socioeconomic analysis of each country and local and global players’ organic and inorganic business strategies.
With the data triangulation process and data validation via primaries, this study determined and confirmed the exact values of the overall system integration services market and its segments’ market size.
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Top-Down Approach
The top-down approach prepared a detailed list of vendors offering services in the system integration services market. The revenue contribution for all vendors in the market was estimated through annual reports, PRs, investor presentations, funding, paid databases, and expert interviews. We evaluated players based on their offerings. The summation of all companies’ revenues was extrapolated to reach the overall market size. Each subsegment was further studied and analyzed for its global market size and regional penetration. The primary procedure included obtaining critical insights from industry leaders, such as VPs, CEOs, directors, and marketing executives. We derived the system integration services market from system integration services subscriptions adopted by different verticals. The market numbers were then triangulated with the existing MarketsandMarkets KS repository for validation.
Data Triangulation
A research technique called data triangulation uses two or more methods to confirm findings and outcomes. It is employed to verify the findings’ integrity and ensure that the data support the hypothesis. Data triangulation, used frequently in qualitative research, entails confirming data by those who collected and analyzed it. With the data triangulation process and data validation through primaries, we established the exact values of the overall system integration services market and its segments’ market size.
Market Definition
System integration services refer to connecting and combining diverse IT systems, applications, and technologies to work together as a unified and cohesive IT ecosystem. It integrates hardware, software, databases, and networking infrastructures to streamline data flow, improve efficiency, and ensure seamless system communication. This integration can be between legacy systems, newer technologies, on-premises solutions, and cloud-based services.
Key Stakeholders
- Professional IT service providers
- Cloud Service Providers (CSPs)
- Independent Software Vendors (ISVs)
- System Integrators
- Information Technology (IT) directors
- Small and Medium-sized Enterprises (SMEs)
- Consulting service providers and consulting companies
- Government organizations, forums, alliances, and associations
- Technology providers
- Research organizations
- System Integrators (SIs)
- Value-added Resellers (VARs) and distributors
- Venture capitalists, private equity firms, and startup companies
- End users
Report Objectives
- To define, describe, and forecast the system integration services market by service type, vertical, and region
- To provide detailed information about the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To forecast the size of the market segments concerning five regions: North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
- To analyze sub-segments of the market concerning individual growth trends, prospects, and contributions to the overall market
- To profile the major players of the market and comprehensively analyze their market size and core competencies
- To analyze the competitive developments, such as product launches and enhancements; acquisitions; and partnerships and collaborations, in the system integration services market globally.
Available Customizations
With the given market data, MarketsandMarkets offers customizations based on the company’s requirements. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of five additional market players
Growth opportunities and latent adjacency in System Integration Services Market