System Integrator Market Size, Share, industry Growth, Trends & Analysis by Technology (Human Machine Interface, Machine Vision, Industrial Robotics, Industrial PC, IIoT, Distributed Control System, SCADA, PLC), Service Outlook (Consulting, Software Integration Service) - Global Forecast to 2029
[239 Pages Report] The global system integrator market is expected to reach USD 40.3 billion in 2029 from USD 29.7 billion in 2024, at a CAGR of 6.3% during the forecast period. The rising automation in industries and increasing adoption of IIoT have driven the demand for system integrators. Also, the expanding adoption of cloud computing in industries fuels the market's growth.
System Integrator Market Forecast to 2029
To know about the assumptions considered for the study, Request for Free Sample Report
Market Dynamics:
Driver: Increasing adoption of internet of things (IoT) in various industries
The widespread use of IoT devices across various industries has resulted in a substantial increase in data generation. System integrators play a crucial role in creating solutions that enable efficient collection, processing, and analysis of this extensive data. By integrating analytics platforms, databases, and visualization tools, they assist organizations in extracting actionable insights from IoT-generated data. This, in turn, enhances decision-making processes and improves operational efficiency. Security is also a significant consideration. The interconnected nature of IoT devices introduces potential vulnerabilities that must be addressed. System integrators are essential in implementing robust cybersecurity measures to protect IoT ecosystems from cyber threats. Their expertise lies in developing secure communication channels, encryption protocols, and access controls, ensuring the safeguarding of sensitive data transmitted and processed by IoT devices. As a result, the increasing adoption of IoT in industries is positively impacting the system integrator market.
Restraint: Lack of standardization
Standardization involves creating and adopting common protocols, interfaces, and communication methods universally applicable across various systems and industries. Without widely accepted standards, system integrators often face challenges in establishing consistent connections among diverse components, leading to compatibility issues that can hinder the integration process. A notable consequence of the lack of standardization is the necessity for custom interfaces and connectors for each integration project. This results in additional time and costs as system integrators must customize solutions to meet the unique specifications of each system. Furthermore, the absence of standardized interfaces poses challenges in developing reusable components, limiting efficiency and scalability in future integration efforts.
Opportunity: Continued adoption of cloud computing in industries
The manufacturing sector is experiencing a significant transformation driven by the adoption of cloud technology. This shift offers heightened flexibility, improved collaboration, cost efficiencies, enhanced data security, and the potential to foster innovation. Manufacturing companies incorporating cloud technology into their operations can optimize efficiency, increase productivity, and retain a competitive edge in a continually evolving business landscape. As the widespread adoption of the cloud continues, manufacturers should recognize its substantial advantages and strategically leverage it to propel their businesses forward in the digital era.
Challenge: Complexity of integration Projects
Projects within the system integrator market are inherently intricate, primarily because of the diverse array of components, technologies, and systems involved. The integration process involves bringing together various hardware and software elements, each with its own specifications and requirements, thereby introducing layers of complexity to the project lifecycle. Clients typically demand personalized solutions that align with their specific business needs. This customization may encompass adapting off-the-shelf software or hardware components, developing bespoke software modules, or integrating proprietary systems. Navigating through these customization requirements is a challenge for system integrators, as they must ensure seamless compatibility and interoperability throughout the integration process.
System Integrator Market Ecosystem
The system integrator market is consolidated, with major companies such as John Wood Group PLC (UK), ATS Corporation (Canada), JR Automation (US), Tesco Controls (US), Avanceon (US), Burrow Global, LLC (US), Prime Controls LP (US), Maverick Technologies LLC (US), BW Design Group (US), Intech (US) and numerous small- and medium-sized enterprises. Almost all players offer various services in the system integrator market. These products are used for oil & gas, automotive, chemical & petrochemical, aerospace, electronics and other industries.
Based on service outlook, the hardware integration service segment is expected to dominate during the forecast period.
Hardware integration is often a fundamental aspect of system integration projects. It seamlessly incorporates diverse hardware components, such as servers, storage devices, sensors, and control systems, into a cohesive and functional system. With the proliferation of devices in various industries, the demand for system integrators specializing in hardware integration has surged. This includes integrating IoT devices, industrial machinery, computing hardware, and other physical components integral to modern technological ecosystems.
Based on the industry, the electronics segment is projected to grow fastest during the forecast period
Continuous technological innovations and advancements characterize the electronics industry. The fast-paced evolution of electronic components and devices necessitates the expertise of system integrators to ensure seamless integration of the latest technologies into existing systems. Moreover, the electronics manufacturing sector actively embraces Industry 4.0 principles, focusing on integrating digital technologies for smart and connected manufacturing. System integrators are instrumental in facilitating the adoption of Industry 4.0 by seamlessly integrating digital technologies into electronic manufacturing processes.
Based on region, China in the Asia Pacific region is expected to dominate in the forecasted period
China has experienced rapid economic growth over the past few decades. A growing economy often leads to increased investments in technology and infrastructure, driving demand for system integration services. Moreover, China is a global manufacturing hub, producing a significant portion of the world's electronics and industrial goods. This manufacturing strength may contribute to a high demand for system integration services in the automation and control sectors.
System Integrator Market by Region
To know about the assumptions considered for the study, download the pdf brochure
Key Market Players
The system integrator companies is dominated by a few globally established players such as John Wood Group PLC (UK), ATS Corporation (Canada), JR Automation (US), Tesco Controls (US), Avanceon (US), Burrow Global, LLC (US), Prime Controls LP (US), Maverick Technologies LLC (US), BW Design Group (US), Intech (US).
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
Request Sample Scope of the Report
Get online access to the report on the World's First Market Intelligence Cloud
- Easy to Download Historical Data & Forecast Numbers
- Company Analysis Dashboard for high growth potential opportunities
- Research Analyst Access for customization & queries
- Competitor Analysis with Interactive dashboard
- Latest News, Updates & Trend analysis
|
Report Metric |
Details |
|
Market Size Availability for Years |
2020–2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024–2029 |
|
Forecast Units |
Value (USD) |
|
Segments Covered |
By service outlook, technology, industry, and region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the world |
|
Companies Covered |
John Wood Group PLC (UK), ATS Corporation (Canada), JR Automation (US), Tesco Controls (US), Avanceon (US), Burrow Global LLC (US), Prime Controls LP (US), Maverick Technologies LLC (US), BW Design Group (US), Intech (US) |
System Integrator Market Highlights
This research report categorizes the system integrator market based on service outlook, technology, industry, and region
|
Segment |
Subsegment |
|
Based on Service Outlook: |
|
|
Based on Technology: |
|
|
Based on Industry: |
|
|
Based on Region: |
|
Recent Developments
- In November 2023, INTECH secured a project to upgrade control systems at a significant LNG plant in West Africa. This initiative involves the modernization of the current control systems and lays the groundwork for potential improvements to essential infrastructure within the facility.
- In July 2023, ATS Corporation declared the successful acquisition of Yazzoom BV, a Belgium-based company specializing in artificial intelligence and machine learning tools designed for industrial production. With a primary emphasis on advanced data analytics for monitoring and optimizing production processes, Yazzoom will be key in advancing ATS Corporation's strategy to enhance productivity through digital solutions.
- In April 2023, INTECH was entrusted with the comprehensive automation responsibilities for outfitting a significant water treatment facility in the United States with control and networking technology. With a project history spanning three continents over almost two decades, this Houston-based industrial automation and digitalization company has consistently empowered its clients to enhance the efficiency of their processes and systems.
- In February 2023, JR Automation introduced FlexChassis, a dynamic modular automation platform that enhances the company's range of comprehensive solutions for manufacturers. Revealed at ATX West 2023, this high-speed linear chassis reduces initial system conceptualization, design, and construction time, offering customers unparalleled flexibility for high-speed and high-volume assembly across various industries.
- In December 2022, ATS Corporation has officially finalized its acquisition of IPCOS Group nv, a company headquartered in Belgium that offers solutions for process optimization and digitalization. IPCOS operates across six locations spanning Europe, the United States, and India.
- In June 2022, Wood collaborated with C-Capture, creators of cutting-edge chemical processes for carbon dioxide removal, who have received USD 1.8 million in funding from the BEIS USD 1 billion Net Zero Innovation Portfolio (NZIP). This funding is a component of the £ USD 20 million Carbon Capture, Usage, and Storage (CCUS) Innovation 2.0 program, designed to expedite the implementation of advanced CCUS technology in the United Kingdom.
Frequently Asked Questions (FAQs):
Which are the major companies in the system integrator market? What are their significant strategies to strengthen their market presence?
The major companies in the system integrator market are – John Wood Group PLC (UK), ATS Corporation (Canada), JR Automation (US), Tesco Controls (US), Avanceon (US). The major strategies adopted by these players are product launches and developments, collaborations, acquisitions, and expansions.
What is the potential market for the system integrator in terms of the region?
The North American region is expected to dominate the system integrator market due to the presence of major companies in various industries.
What are the opportunities for new market entrants?
There are significant opportunities in the system integrator market for start-up companies. These companies provide innovative and diverse service portfolios for automotive, electronics, oil & gas, aerospace, and other applications.
What are the drivers and opportunities for the system integrator market?
Factors such as governmental strategic initiatives in developing nations and the increasing need for energy-efficient production processes fuel the growth of system integrators.
What are the major system integrator applications expected to drive the market's growth in the next five years?
The major applications for the system integrator are oil & gas and automotive. The system integrators are also in demand in chemical & petrochemical, energy & power, metals & mining, electronics, aerospace, pulp & paper industries. They are expected to have a significant share in this market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study utilized four major activities to estimate the system integrator market size. Exhaustive secondary research was conducted to gather information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources have been referred to for identifying and collecting information for this study on the system integrator market. Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
|
SOURCE NAME |
WEBLINK |
|
International Society of Automation |
|
|
Industrial Automation Exchange |
|
|
Control System Integrators Association (CSIA) |
Primary Research
Primary interviews were conducted to gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting. Additionally, primary research was used to comprehend the various technology, application, vertical, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customers/end-users using system integrator, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of system integrator, which will impact the overall market. Several primary interviews were conducted across major countries of North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
To estimate and validate the size of the system integrator market and its submarkets, both top-down and bottom-up approaches were utilized. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The entire process involved studying top players' annual and financial reports and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, which were verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
Global System Integrator Market Size: Botton Up Approach
- Companies offering system integrator services have been identified, and their mapping with respect to different parameters, such as service outlook, technology, and industry has been carried out.
- The market size has been estimated based on the demand for different system integrators for different applications. The anticipated change in demand for system integrator offered by these companies in the recession and company revenues have been analyzed and estimated.
- Primary research has been conducted with a few major players operating in the system integrator market to validate the global market size. Discussions included the impact of the recession on the system integrator ecosystem.
- The size of the system integrator market has been validated through secondary sources, which include the International Trade Centre (ITC), the World Trade Organization, and the World Economic Forum.
- The CAGR of the system integrator market has been calculated considering the historical and future market trends and the impact of the recession by understanding the adoption rate of system integrator for different applications.
- The estimates at every level have been verified and cross-checked through discussions with key opinion leaders, such as corporate executives (CXOs), directors, and sales heads, and with the domain experts in MarketsandMarkets.
- Various paid and unpaid information sources, such as company websites, annual reports, press releases, research journals, magazines, white papers, and databases, have also been studied.
Global System Integrator Market Size: Top Down Approach
The top-down approach has been used to estimate and validate the total size of the system integrator market.
- Focusing initially on R&D investments and expenditures being made in the ecosystem of the system integrator market; further splitting the market on the basis of service outlook, technology, and industry and region and listing key developments
- Identifying leading players in the system integrator market through secondary research and verifying them through brief discussions with industry experts
- Analyzing revenue, product mix, geographic presence, and key applications for which all identified players serve products to estimate and arrive at percentage splits for all key segments
- Discussing splits with industry experts to validate the information and identify key growth pockets across all key segments
- Breaking down the total market based on verified splits and key growth pockets across all segments.
Data Triangulation
Once the overall size of the system integrator market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. To triangulate the data, various factors and trends from the demand and supply sides were studied. The market was validated using both top-down and bottom-up approaches.
Market Definition
System integrators are entities, whether companies or individuals, that assist manufacturing plants in the deployment and installation of hardware and software solutions. Specifically within the realm of industrial automation, these professionals offer services encompassing consultation, hardware installation, software integration, and ongoing system maintenance. Their role is pivotal in enabling the seamless collaboration of various versions of automation hardware and software, effectively amalgamating multiple subsystems into a cohesive and unified large system.
Industrial automation, in broader terms, refers to the utilization of automatic control systems, such as computers, robots, vision systems, and information technology, to manage diverse processes and machinery in the industrial sector. This approach provides manufacturing companies with advantages such as reduced operational costs, heightened productivity, superior quality, increased flexibility, and enhanced safety measures.
Key Stakeholders
- Raw Material and Manufacturing Equipment Suppliers
- Original Equipment Manufacturers (OEMs)
- Integrated Device Manufacturers (IDMs)
- Original Design Manufacturers (ODMs)
- Technology, Service, and Solution Providers
- Intellectual Property (IP) Core and Licensing Providers
- Suppliers and Distributors
- System Integrators
- Government and Other Regulatory Bodies
- Technology Investors
- Research Institutes and Organizations
- Market Research and Consulting Firms
Report Objectives
- To describe and forecast the system integrator market, by service outlook, technology, industry, and region, in terms of value
- To describe and forecast the market for various segments across four central regions, namely, North America, Europe, Asia Pacific, and Rest of the World (RoW), in terms of value
- To strategically analyze the micromarkets with regard to the individual growth trends, prospects, and contribution to the market
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To analyze opportunities for stakeholders by identifying high-growth segments in the market
- To provide a detailed overview of the value chain
- To strategically analyze the ecosystem, regulatory landscape, patent landscape, Porter’s five forces, import and export scenarios trade landscape, and case studies pertaining to the market under study
- To strategically profile key players in the system integrator market and comprehensively analyze their market shares and core competencies
- To strategically profile the key players and provide a detailed competitive landscape of the market
- To analyze competitive developments such as partnerships, acquisitions, expansions, collaborations, and product launches, along with research and development (R&D) in the system integrator market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the system integrator market
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the system integrator market.
Generating Response ...
Growth opportunities and latent adjacency in System Integrator Market