PUBLISHER: Daedal Research | PRODUCT CODE: 1524073
PUBLISHER: Daedal Research | PRODUCT CODE: 1524073
Global Industrial Software Market: Analysis By Platform, By End User, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2029
Industrial software is a collection of application programs, processes, methods, and functions that can help with data collection, manipulation, and management on a large scale. Industrial software is used in a variety of industries, including operations, manufacturing, design, construction, mining, textile mills, chemicals, food processing, and service providers. Industrial software is used to manage the overall industrial process. The global industrial software market was valued at US$110.52 billion in 2023 and is expected to be worth US$189.68 billion by 2029.
The global industrial software market has been positively growing over the period as a result of positive shift towards automation, rising adoption of smart manufacturing practices, rapid industrialization in emerging economies, growing demand for qualitative & reliable manufacturing, increased need for mass production with reduced operation costs, emergence of Industry 4.0 technologies, and increasing complexity of industrial operations across various end user industries. Also, factors like rising acceptance of cloud-based industrial software solutions, growing emphasis on cybersecurity, emergence of digital twins, and growing demand for predictive analytics and AI-based solutions will continue to boost the growth of global industrial software market in the forecasted period. The market is expected to grow at a CAGR of 9.42 % over the projected period of 2024-2029.
Market Segmentation Analysis:
By Platform: The report provides the bifurcation of the global industrial software market into two segments on the basis of platform: on premise and cloud. The on premise segment held the highest share in the market. The increasing concern over security and the problem of transferring data in the cloud, especially when companies are dealing with big data are the contributing factors supporting the on-premise industrial software market growth. On the other hand, cloud segment is expected to be the fastest growing segment in the forecasted period. Factors such as need for agility and flexibility, real time information and customer behavior have supported the growth of the market in the past few years. Most of the industrial software and solutions are going cloud-based as they cost less and are easy to manage. Moreover, a cloud-based industrial software allows the user to access data from any device. These benefits would surge the adoption of cloud-based platform in the industrial software market.
By End User: The report has segmented the global industrial software market into eight end users, namely, BFSI, IT & telecom, manufacturing, government, healthcare, retail, aerospace & defense and others. BFSI segment held the highest share in the market in 2023. BFSI software serves as a means of communication between a bank and a user. Its purpose is to improve the workflow within the company and its branches, to facilitate investment policies, and to provide services that meet the needs of the users. Easy data access, digital banking, and fintech startups are driving the growth of the BFSI industrial software market. In addition, others industrial software market is expected to be fastest growing segment of the market. The primary goal of educational software development is to improve the learning experience of students while also improving training for administrators, educators, and anyone else involved in the school management process. The numerous benefits associated with industrial software such as efficiency, scale and low cost, could bring in more transparency, visibility & cost efficiency to advertising agencies in advertising and design sector.
By Region: The report provides insight into the global industrial software market based on regions namely, North America, Europe, Asia Pacific, and rest of the world. North America held the dominant share in the global industrial software market in 2023. Due to the increasing adoption of electronic health record, cloud services and presence of advanced healthcare facilities and IT companies, North America market has witnessed a significant increase in the adoption of industrial software solutions. Furthermore, North America is occupied with leading industrial software market players, who continue to drive innovation in their software solutions by introducing new features. Due to the rising trend of automation and increasing deployment of industrial robots, the need of industrial software to manage complex operations is rising and thereby is likely to propel the growth of the industrial software market in North America in coming years.
Asia pacific is the fastest growing region of the global industrial software market, driven by an increase in demand for operational efficiency and transparency in business processes, the adoption of cloud and mobile applications, and an increase in demand for data-driven decision-making. Factors such as increased emphasis on improving process efficiencies and lowering production costs across various industry verticals is expected to continue to augment market growth in the forecasted period. China remains the largest market in the Asia Pacific. China's society and economy have been transformed by dramatic expansions in manufacturing capabilities and rising consumer consumption. China is a major producer of industrial and consumer goods in the world. China's robust manufacturing sector, which is one of the largest in the world, continues to expand and upgrade. The need for automation, efficiency, and innovation in manufacturing processes drives the demand for industrial software solutions such as MES, PLM, and ERP.
Market Dynamics:
Growth Drivers: The global industrial software market has been rapidly growing over the past few years, due to factors such as surging adoption of industrial cloud computing technology, rapid installations of industrial robots, growing IT Spending, rise of industry 4.0 and 5.0 technologies, increased need to improve operational efficiency, etc. The deployment of industrial robots necessitates sophisticated programming software to define and control their operations. Industrial robots generate vast amounts of data related to their performance, which needs to be monitored in real-time. Software solutions for data analytics and monitoring are essential to track efficiency, detect anomalies, and prevent downtime. Therefore, rapid installation of industrial robots is driving the demand for a wide range of industrial software solutions, needed for programming and control to integration, monitoring, optimization, safety, and compliance. In addition, industrial software provides tools for detailed production planning and scheduling, ensuring that resources are used efficiently and production goals are met on time. Furthermore, advanced analytics capabilities in industrial software allow companies to predict trends, identify potential issues, and take proactive measures to optimize operations.
Challenges: However, the global industrial software market growth would be negatively impacted by various challenges such as, problem of cyber security, high installation and maintenance cost of industrial software, etc. Industrial software systems are often targets for cybercriminals looking to steal sensitive data, including intellectual property, operational data, and personal information. The fear of data breaches can deter companies from adopting industrial software solutions.
Trends: The global industrial software market is projected to grow at a fast pace during the forecasted period, due to integration of artificial intelligence (AI) and machine learning (ML), increasing adoption of industrial internet of things (IIoT), rising implementation of digital twin, ongoing integration of industrial software such as MES with ERP and PLM solutions, etc. Increasing integration of AI and ML technologies into industrial software solutions enables enhanced operational efficiency, improved process optimization, increased automation, advanced data analytics, and better data management & security. Also, by leveraging IIoT technologies, industries can achieve predictive maintenance, real-time monitoring, and automation of processes, which results in substantial cost savings and increased productivity. IIoT and edge computing solutions aid in the simplification of device management and shop floor software throughout the lifecycle.
Impact Analysis of COVID-19 and Way Forward:
COVID-19 brought in many changes in the world in terms of reduced productivity, loss of life, business closures, closing down of factories and organizations, and shift to an online mode of work. Government-imposed factory and plant closures, as well as travel restrictions, had a significant impact on manufacturing facilities and other industries. Raw material shortages, labor shortages, and supply chain disruptions all harmed production volumes. The COVID-19 pandemic had a negative impact on industrial automated solutions manufacturing facilities around the world, resulting in low production volumes. Furthermore, demand for industrial software fell precipitously as a result of the temporary closure of end-use manufacturing and other retail outlets.
Competitive Landscape:
The global industrial software market is moderately fragmented. Those with significant exposure to these aforementioned segments like cloud infrastructure and services, cybersecurity, and data analytics would continue to gain a larger share of the overall industrial software spend as more businesses digitize and modernize their software infrastructure. The key players of the market are:
IBM Corporation
Microsoft Corporation
Oracle Corporation
Salesforce Inc.
SAP
Siemens AG (Siemens Digital Industries Software)
ABB Group
Honeywell International Inc.
Dassault Systemes SE
Amazon.Com, Inc. (Amazon Web Services, Inc.)
Cadence Design Systems, Inc.
Synopsys Inc.
Technological advances, new easily accessible software solutions, and increasing trend of automation and robotics are creating higher opportunities for new market entrants in the industrial software market. For instance, on June 18, 2024, Salesforce announced LLM benchmark for CRM to help businesses evaluate the rapidly growing number of large language models (LLMs) for use in their customer relationship management (CRM) systems. The new benchmark is a comprehensive evaluation framework that measures the performance of LLMs against four key measures: accuracy, cost, speed, and trust and safety.
Table of Contents
- 2.1 Industrial Software: An Overview
- 2.1.1 Definition of Industrial Software
- 2.1.2 Benefits of Industrial Software
- 2.1.3 Aspects of Industrial Software
- 2.2 Industrial Software Segmentation: An Overview
- 2.2.1 Industrial Software Segmentation
- 3.1 Global Industrial Software Market: An Analysis
- 3.1.1 Global Industrial Software Market: An Overview
- 3.1.2 Global Industrial Software Market by Value
- 3.1.3 Global Industrial Software Market by Platform (Cloud and On Premise)
- 3.1.4 Global Industrial Software Market by End User (BFSI, IT & Telecom, Manufacturing, Government, Healthcare, Retail, Aerospace and Defense, And Others)
- 3.1.5 Global Industrial Software Market by Region (North America, Europe, Asia Pacific, and Rest of the World)
- 3.2 Global Industrial Software Market: Platform Analysis
- 3.2.1 Global Industrial Software Market by Platform: An Overview
- 3.2.2 Global Cloud Industrial Software Market by Value
- 3.2.3 Global On Premise Industrial Software Market by Value
- 3.3 Global Industrial Software Market: End User Analysis
- 3.3.1 Global Industrial Software Market by End User: An Overview
- 3.3.2 Global BFSI Industrial Software Market by Value
- 3.3.3 Global IT & Telecom Industrial Software Market by Value
- 3.3.4 Global Manufacturing Industrial Software Market by Value
- 3.3.5 Global Government Industrial Software Market by Value
- 3.3.6 Global Healthcare Industrial Software Market by Value
- 3.3.7 Global Retail Industrial Software Market by Value
- 3.3.8 Global Aerospace & Defense Industrial Software Market by Value
- 3.3.9 Global Others Industrial Software Market by Value
- 4.1 North America Industrial Software Market: An Analysis
- 4.1.1 North America Industrial Software Market: An Overview
- 4.1.2 North America Industrial Software Market by Value
- 4.1.3 North America Industrial Software Market by Region (The US, Canada, and Mexico)
- 4.1.4 The US Industrial Software Market by Value
- 4.1.5 Canada Industrial Software Market by Value
- 4.1.6 Mexico Industrial Software Market by Value
- 4.2 Europe Industrial Software Market: An Analysis
- 4.2.1 Europe Industrial Software Market: An Overview
- 4.2.2 Europe Industrial Software Market by Value
- 4.2.3 Europe Industrial Software Market by Region (Germany, UK, France, Italy, and Rest of Europe)
- 4.2.4 Germany Industrial Software Market by Value
- 4.2.5 UK Industrial Software Market by Value
- 4.2.6 France Industrial Software Market by Value
- 4.2.7 Italy Industrial Software Market by Value
- 4.2.8 Rest of Europe Industrial Software Market by Value
- 4.3 Asia Pacific Industrial Software Market: An Analysis
- 4.3.1 Asia Pacific Industrial Software Market: An Overview
- 4.3.2 Asia Pacific Industrial Software Market by Value
- 4.3.3 Asia Pacific Industrial Software Market by Region (China, Japan, South Korea, India, and Rest of Asia Pacific)
- 4.3.4 China Industrial Software Market by Value
- 4.3.5 Japan Industrial Software Market by Value
- 4.3.6 South Korea Industrial Software Market by Value
- 4.3.7 India Industrial Software Market by Value
- 4.3.8 Rest of Asia Pacific Industrial Software Market by Value
- 4.4 Rest of the World Industrial Software Market: An Analysis
- 4.4.1 Rest of the World Industrial Software Market: An Overview
- 4.4.2 Rest of the World Industrial Software Market by Value
- 5.1 Impact of COVID-19 on Industrial Software Market
- 5.2 Post Impact of COVID-19 on Industrial Software Market
- 6.1 Growth Drivers
- 6.1.1 Surging Adoption of Industrial Cloud Computing Technology
- 6.1.2 Rapid Installations of Industrial Robots
- 6.1.3 Growing IT Spending
- 6.1.4 Rise of Industry 4.0 and 5.0 Technologies
- 6.1.5 Increased Need to Improve Operational Efficiency
- 6.2 Challenges
- 6.2.1 Problem of Cyber Security
- 6.2.2 High Installation and Maintenance Cost of Industrial Software
- 6.3 Market Trends
- 6.3.1 Integration of Artificial Intelligence (AI) and Machine Learning (ML)
- 6.3.2 Increasing Adoption of Industrial Internet of Things (IIoT)
- 6.3.3 Rising Implementation of Digital Twin
- 6.3.4 Ongoing Integration of Industrial Software such as MES with ERP and PLM solutions
- 7.1 Global Industrial Software Players by Market Share
- 7.2 Global Industrial Software Market Players: Services & Products Offering
- 7.3 Global Industrial Software Market Players: Recent Developments
- 8.1 IBM Corporation
- 8.1.1 Business Overview
- 8.1.2 Operating Segments
- 8.1.3 Business Strategy
- 8.2 Microsoft Corporation
- 8.2.1 Business Overview
- 8.2.2 Operating Segments
- 8.2.3 Business Strategy
- 8.3 Oracle Corporation
- 8.3.1 Business Overview
- 8.3.2 Operating Revenues by Businesses
- 8.3.3 Business Strategy
- 8.4 Salesforce Inc.
- 8.4.1 Business Overview
- 8.4.2 Revenues From Sources
- 8.4.3 Business Strategy
- 8.5 SAP SE
- 8.5.1 Business Overview
- 8.5.2 Revenue by Geographic Regions
- 8.5.3 Business Strategy
- 8.6 Siemens AG (Siemens Digital Industries Software)
- 8.6.1 Business Overview
- 8.6.2 Operating Segments
- 8.6.3 Business Strategy
- 8.7 ABB Group
- 8.7.1 Business Overview
- 8.7.2 Operating Businesses
- 8.7.3 Business Strategy
- 8.8 Honeywell International Inc.
- 8.8.1 Business Overview
- 8.8.2 Operating Segments
- 8.8.3 Business Strategy
- 8.9 Dassault Systemes SE
- 8.9.1 Business Overview
- 8.9.2 Revenue by Geographic Regions
- 8.9.3 Business Strategy
- 8.10 Amazon.Com, Inc. (Amazon Web Services, Inc.)
- 8.10.1 Business Overview
- 8.10.2 Operating Segments
- 8.10.3 Business Strategy
- 8.11 Cadence Design Systems, Inc.
- 8.11.1 Business Overview
- 8.11.2 Revenue by Geographic Regions
- 8.11.3 Business Strategy
- 8.12 Synopsys Inc.
- 8.12.1 Business Overview
- 8.12.2 Operating Segments
- 8.12.3 Business Strategy
1. Executive Summary
2. Introduction
3. Global Market Analysis
4. Regional Market Analysis
5. Impact of COVID-19
6. Market Dynamics
7. Competitive Landscape
8. Company Profiles
List of Tables
- Table 1: Global Industrial Software Market Players: Services & Products Offering
List of Figures
- Figure 1: Benefits of Industrial Software
- Figure 2: Aspects of Industrial Software
- Figure 3: Industrial Software Segmentation
- Figure 4: Global Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 5: Global Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 6: Global Industrial Software Market by Platform; 2023 (Percentage, %)
- Figure 7: Global Industrial Software Market by End User; 2023 (Percentage, %)
- Figure 8: Global Industrial Software Market by Region; 2023 (Percentage, %)
- Figure 9: Global Cloud Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 10: Global Cloud Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 11: Global On Premise Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 12: Global On Premise Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 13: Global BFSI Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 14: Global BFSI Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 15: Global IT & Telecom Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 16: Global IT & Telecom Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 17: Global Manufacturing Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 18: Global Manufacturing Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 19: Global Government Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 20: Global Government Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 21: Global Healthcare Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 22: Global Healthcare Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 23: Global Retail Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 24: Global Retail Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 25: Global Aerospace & Defense Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 26: Global Aerospace & Defense Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 27: Global Others Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 28: Global Others Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 29: North America Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 30: North America Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 31: North America Industrial Software Market by Region; 2023 (Percentage, %)
- Figure 32: The US Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 33: The US Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 34: Canada Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 35: Canada Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 36: Mexico Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 37: Mexico Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 38: Europe Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 39: Europe Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 40: Europe Industrial Software Market by Region; 2023 (Percentage, %)
- Figure 41: Germany Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 42: Germany Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 43: UK Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 44: UK Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 45: France Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 46: France Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 47: Italy Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 48: Italy Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 49: Rest of Europe Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 50: Rest of Europe Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 51: Asia Pacific Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 52: Asia Pacific Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 53: Asia Pacific Industrial Software Market by Region; 2023 (Percentage, %)
- Figure 54: China Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 55: China Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 56: Japan Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 57: Japan Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 58: South Korea Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 59: South Korea Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 60: India Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 61: India Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 62: Rest of Asia Pacific Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 63: Rest of Asia Pacific Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 64: Rest of the World Industrial Software Market by Value; 2019-2023 (US$ Billion)
- Figure 65: Rest of the World Industrial Software Market by Value; 2024-2029 (US$ Billion)
- Figure 66: Global Annual Spending On Cloud IT Infrastructure; 2021-2024 (US$ Billion)
- Figure 67: Global Annual Installation of Industrial Robots; 2019-2024 (Thousand Units)
- Figure 68: Global IT Spending; 2022-2024 (US$ Trillion)
- Figure 69: Global Artificial Intelligence Market Size; 2022-2026 (US$ Billion)
- Figure 70: Global Industrial IoT Market Revenue; 2020-2027 (US$ Billion)
- Figure 71: Global Industrial Software Players by Market Share; 2023 (Percentage, %)
- Figure 72: IBM Corporation Revenue by Segments; 2023 (Percentage, %)
- Figure 73: Microsoft Corp. Revenue by Segment; 2023 (Percentage, %)
- Figure 74: Oracle Corporation Revenues by Businesses; 2024 (Percentage, %)
- Figure 75: Salesforce Inc. Revenues From Sources; 2024 (Percentage, %)
- Figure 76: SAP SE Revenue by Geographic Regions; 2023 (Percentage, %)
- Figure 77: Siemens AG Revenue by Segments; 2023 (Percentage, %)
- Figure 78: ABB Group Revenues by Business Areas; 2023 (Percentage, %)
- Figure 79: Honeywell International Inc. Net Sales by Segment; 2023 (Percentage, %)
- Figure 80: Dassault Systemes SE Revenue by Geographic Regions; 2023 (Percentage, %)
- Figure 81: Amazon.Com, Inc. Net Sales by Segment; 2023 (Percentage, %)
- Figure 82: Cadence Design Systems, Inc. Revenue by Geographic Regions; 2023 (Percentage, %)
- Figure 83: Synopsys Inc. Revenue by Segments; 2023 (Percentage, %)
