Industrial Services Market Report 2025

The industrial services market size has grown strongly in recent years. It will grow from $35.06 billion in 2024 to $37.06 billion in 2025 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to economic growth and industrialization, increasing demand for automation and efficiency, government investments in infrastructure development, digital transformation in various industries.

The industrial services market size is expected to see strong growth in the next few years. It will grow to $46.96 billion in 2029 at a compound annual growth rate (CAGR) of 6.1%. The growth in the forecast period can be attributed to growing demand for distributed control systems (DCS), expansion of industry 4 and Internet of Things (IoT) technologies, integration of artificial intelligence (AI) and data analytics in industrial processes, increased focus on predictive maintenance and remote monitoring. Major trends in the forecast period include technological advancements in industrial processes, IoT sensors, development of human-machine interfaces (HMI) and manufacturing execution systems (MES).

The industrial services market size is expected to see strong growth in the next few years. It will grow to $44.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. In the forecast period, the growth can be attributed to the increasing demand for distributed control systems (DCS), driven by the expansion of Industry 4 and Internet of Things (IoT) technologies. Additionally, the The growing demand in the automation industry is expected to drive the growth of the industrial services market in the coming years. The automation industry encompasses the sector that employs various technologies and systems to execute tasks with minimal human involvement. This rising demand is fueled by factors such as the need for greater efficiency, cost savings, enhanced safety, and improved data analytics. Automation plays a crucial role in industrial services by boosting operational efficiency, reducing labor costs, enhancing accuracy, and ensuring consistent quality across diverse manufacturing and processing activities. For example, in December 2023, a report from Formstack, a US-based software company, revealed that 76% of organizations utilize automation to streamline their daily workflows, with 58% automating data and reporting for planning, and 36% focusing on regulatory compliance. Consequently, the growth of the automation industry is significantly impacting the industrial services market.

The increasing demand within the automation industry is anticipated to drive the growth of the industrial services market in the foreseeable future. The automation industry comprises the sector that employs various technologies and systems to carry out tasks with minimal human involvement. This rising demand is attributed to several factors, including the need for enhanced efficiency, cost reduction, improved safety, and better data analytics. Automation is implemented in industrial services to boost operational efficiency, lower labor costs, enhance accuracy, and maintain consistent quality across a range of manufacturing and processing tasks. For example, a December 2023 report from Formstack, a US-based software company, indicated that 76% of organizations utilize automation to streamline their daily workflows, with 58% automating data and reporting for planning, while 36% focus on regulatory compliance. As a result, the expanding automation industry is significantly contributing to the growth of the industrial services market.

Anticipated growth within the industrial services market is closely tied to the burgeoning demand within the automotive industry. This sector encompasses the complete spectrum of activities involving the conception, creation, production, marketing, and distribution of vehicles. Within the automotive manufacturing realm, industrial services play a pivotal role by implementing predictive maintenance methods, including the deployment of sensors and IoT devices. These technologies monitor equipment health and facilitate maintenance and refurbishment tasks. For instance, based on data from the European Automobile Manufacturers Association in May 2023, global motor vehicle production surged to 85.4 million units in 2022, representing a substantial 5.7% increase from the previous year. Additionally, according to Brand Finance plc in February 2022, the automobile sector witnessed a remarkable uptick, achieving approximately 78 million unit sales, marking a substantial 10% rise. Consequently, the mounting demand within the automotive industry is the primary driver behind the growth trajectory of the industrial services market.

Collaborations and strategic partnerships are emerging as prominent trends within the application testing services market. Major companies in the industrial services sector are increasingly leveraging partnerships to fortify their positions. For instance, in August 2022, Tech Mahindra, an India-based company operating in industrial services, forged a partnership with Soroco, a US-based work graph company, the terms of which remained undisclosed. This collaboration is geared towards empowering customers to cultivate a culture of improvement while integrating industry-leading practices into their operations. Through this alliance, customers gain access to AI-based process discovery and mining technologies, enabling them to achieve enhanced outcomes within their operations. This partnership underscores the industry's commitment to leveraging innovative solutions and fostering improved practices through strategic collaborations.

Major players in the industrial services market are prioritizing the implementation of advanced solutions, particularly digital transformation, to offer dependable services to their clientele. Digital transformations entail integrating digital technology across all aspects of a business, fundamentally reshaping its operations and value delivery to customers. For example, in February 2023, Schneider Electric SE, a French firm specializing in digital automation and energy management, unveiled its Industrial Digital Transformation Consulting and Deployment Service. This service assists industrial enterprises in achieving successful digital transformations by providing specialized end-to-end support. The aim is to expedite strategic planning and seamless implementation of digital transformation initiatives, aiming for tangible outcomes in areas such as operational efficiency, sustainability, energy optimization, asset management, and cybersecurity.

In June 2022, Industrial Service Solutions, a US-based provider of field, shop, and supply services, acquired Servo South Inc. for an undisclosed amount. This strategic acquisition is aimed at enhancing Industrial Service Solutions' capabilities by adding motor repair, electronics repair, and other industrial services to its portfolio. Servo South Inc., also based in the US, is known for its expertise in providing industrial services.

Major companies operating in the industrial services market include Mitsubishi Electric Corporation, Siemens AG, General Electric Company, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Schlumberger Limited, Baker Hughes Company, Halliburton Company, Bechtel Corporation, Jacobs Engineering Group Inc., Fluor Corporation, Emerson Electric Co., SKF AB, McDermott International Inc., Rockwell Automation Inc., WorleyParsons Ltd., TechnipFMC plc, KBR Inc., SNC-Lavalin Group Inc., Metso Outotec Oyj, Weatherford International plc, Yaskawa Electric Corporation, Fuji Electric Co. Ltd., Yokogawa Electric Corporation, Petrofac Limited, Wood Group Mustang lnc., Samson AG, Wunderlich-Malec Engineering Inc., Dynamysk Automation Ltd., National Oilwell Varco Inc., Cameron International Corporation, Endress+Hauser AG, Eaton Corporation plc, Parker Hannifin Corporation, Danaher Corporation, Johnson Controls International plc, 3M Company, Illinois Tool Works Inc., Stanley Black & Decker Inc.

Industrial services are provided to customers primarily engaged in processes that convert raw or unfinished resources into another form or product, facilitating industrial processes.

The primary types of industrial services include engineering and consulting installation and commissioning, and operational improvement and maintenance. Operational improvement and maintenance form an interconnected ecosystem of training, management, budgeting, maintenance, and business practices that collaborate to ensure the smooth operation of an organization. These services are applied in various fields such as distributed control systems, programmable logic controllers, supervisory control and data acquisition, electric motors, and drives, valves and actuators, human-machine interfaces, manufacturing execution systems, safety systems, industrial PC, industrial 3D printing, and industrial robotics, used across industries including oil and gas, healthcare and pharmaceuticals, chemicals, automotive, water and wastewater, food and beverages, energy and power, semiconductor and electronics, paper and pulp, metals and mining, aerospace, and others.

The industrial services market size has grown strongly in recent years. It will grow from $33.34 billion in 2023 to $35.24 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to economic growth and industrialization, increasing demand for automation and efficiency, government investments in infrastructure development, digital transformation in various industries.

Asia-Pacific was the largest region in the industrial services market share in 2024. The regions covered in the industrial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the industrial services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The industrial services market includes revenues earned by entities by improvement and maintenance, system integration, technical support, and other services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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.

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