PUBLISHER: The Business Research Company | PRODUCT CODE: 1436731
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436731
A system integrator is an entity that combines hardware, software, networking, and storage solutions from various suppliers to create computer systems tailored for clients. This approach allows corporations to align cost-effective, pre-set components and commercial off-the-shelf software to meet essential business goals, avoiding the need for more expensive, customized solutions that may involve original programming or the creation of unique components.
The system integrator service outlook encompasses hardware integration service, software integration service, and consulting service. Hardware integration involves linking hardware and software, combining components such as hardware, software, sensors, and connections. Various system integrator technologies include human-machine interface (HMI), supervisory control and data acquisition (SCADA), manufacturing execution system (MES), functional safety system, machine vision industrial, robotics industrial PC, industrial internet of things (IIoT), machine condition monitoring, and plant asset management. End-users of system integrators span across IT and telecom, BFSI, healthcare, retail, manufacturing, energy and utility, and other industries.
The system integrator market research report is one of a series of new reports from The Business Research Company that provides system integrator market statistics, including system integrator industry global market size, regional shares, competitors with a system integrator market share, detailed system integrator market segments, market trends and opportunities, and any further data you may need to thrive in the system integrator industry. This system integrator market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The system integrator market size has grown strongly in recent years. It will grow from $37.57 billion in 2023 to $39.76 billion in 2024 at a compound annual growth rate (CAGR) of 5.8%. The growth in the historic period can be attributed to several factors, including the increasing complexity of IT environments, the demand for customized solutions, business process optimization, integration of legacy systems, and compliance and regulatory requirements.
The system integrator market size is expected to see strong growth in the next few years. It will grow to $52.1 billion in 2028 at a compound annual growth rate (CAGR) of 7.0%. The anticipated growth in the forecast period can be attributed to various factors, including digital transformation initiatives, the integration of cloud services, incorporation of IoT (Internet of Things) and edge computing, enhancement of cybersecurity integration, and a focus on global expansion and scalability. These elements collectively contribute to a positive growth outlook during the projected timeframe.
The increasing use of industrial robots in manufacturing is expected to drive the growth of the system integrator market. Industrial robots automate manufacturing operations on a constantly moving assembly line, providing efficiency and precision. Robotic systems integrators play a key role in analyzing manufacturing needs, offering custom solutions, and designing and supporting robotic systems. The demand for automation solutions has led to a significant increase in the installation of industrial robots worldwide. For instance, in October 2022, the International Federation of Robotics reported a 31% year-on-year increase in the installation of 517,385 new industrial robots in 2021. This surge surpassed the pre-pandemic record set in 2018 by 22%, bringing the global fleet of operational robots to over 3.5 million units. The growing adoption of industrial robots is expected to fuel the system integrator market.
The increasing use of Internet of Things (IoT) technology is anticipated to contribute to the growth of the system integrator market. IoT involves connecting physical devices, vehicles, buildings, and other objects embedded with sensors, software, and network connectivity to collect and exchange data. This interconnected network allows system integrators to develop integrated solutions, enabling data-driven decision-making, improved operational efficiency, scalability, enhanced visibility, energy efficiency, and improved security. The proliferation of IoT devices is evident, with projections indicating around 25.4 billion IoT devices by 2030, as reported by Exploding Topics in March 2023. The widespread adoption of IoT technology is a significant driver for the growth of the electrical and electronics market.
The system integrator market is witnessing a prominent trend towards product innovations, with major companies increasingly embracing cloud computing solutions. In December 2021, IBM Corporation, a US-based technology company, introduced the IBM Z and Cloud Modernization Center to expedite hybrid cloud adoption. This digital portal provides IBM Z clients with a range of tools, training, resources, and ecosystem partnerships aimed at accelerating the modernization of their applications, data, and processes within an open hybrid cloud architecture. Notable features of this center include business acceleration, developer productivity, infrastructure cost efficiency, regulatory compliance, security, and deployment flexibility.
Key players in the system integrator market are actively forming partnerships to drive product development and fortify their market positions. Collaborations and partnerships foster innovation by leveraging complementary expertise, combining resources, and accelerating the development and commercialization of advanced solutions. In September 2023, Arduino LLC, a US-based open-source hardware and software company, joined forces with DMC Inc., a US-based consulting firm. This collaboration seeks to integrate open technology into embedded applications and manufacturing automation. By combining their respective product lines and expertise, the two companies aim to create cutting-edge solutions for various sectors, responding to the growing demand for Arduino PRO hardware and software.
In March 2022, CGI Inc., a Canada-based information technology company, announced the successful completion of its acquisition of Unico for an undisclosed amount. This strategic move is expected to expand and expedite CGI's presence in Australia, positioning it as a leading provider of end-to-end services encompassing business and strategic IT consulting, systems integration, managed services, and intellectual property-based business solutions. Unico, a US-based provider of innovative solutions for oil and gas production, including variable speed drives, controllers, artificial lift pumping units, and remote monitoring systems, aligns with CGI's objectives for growth and diversification.
Major companies operating in the system integrator market report are Siemens AG, Accenture PLC, The International Business Machines Corporation, Mitsubishi Electric Corporation, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Tata Consultancy Service Limited, Capgemini SA, Infosys Limited, Emerson Electric Co., Control4 Corporation, Delta Electronics Inc., Wipro Limited, Rockwell Automation Inc., Omron Corporation, Fanuc Corporation, Hexagon AB, John Wood Group PLC, KUKA AG, Yokogawa Electric Corporation, ATS Automation Tooling Systems Inc., National Instruments Corporation, Beckhoff Automation GmbH & Co. KG, Cognex Corporation, B&R Industrial Automation GmbH, INTECH Process Automation Inc., Burrow Global LLC, JR Automation Technologies LLC, L&T Technology Services Limited, MAVERICK Technologies LLC, Barry-Wehmiller Design Group Inc., Prime Controls LP, Avanceon Limited, Tesco Controls Inc.
North America was the largest region in the system integrator market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global system integrator market during the forecast period. The regions covered in the system integrator market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the system integrator market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The system integrator market consists of revenues earned by entities by providing system integrators software services such as legacy system integration, enterprise application integration (EAI), third-party system integration, business-to-business integration, integration platform as a service (Ipaas), and hybrid integration platform (HIP). The market value includes the value of related goods sold by the service provider or included within the service offering. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
System Integrator Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on system integrator market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for system integrator ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The system integrator market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.