The Global Industrial Services Market size is expected to reach $68.8 billion by 2030, rising at a market growth of 8.2% CAGR during the forecast period.
The Internet of Things involves the interconnectedness of devices and systems, enabling real-time data exchange. These services providers leverage IoT technologies to create smart, connected solutions. This connectivity allows for remote monitoring, predictive maintenance, and data-driven decision-making, enhancing the efficiency of industrial assets. Consequently, the operational improvement and maintenance segment would acquire nearly 50% of the total market share by 2030. Artificial intelligence plays a transformative role in the services by enabling machines to analyze data, learn from it, and make autonomous decisions. Predictive analytics, machine learning, and cognitive computing enable industrial service providers to give more proactive and intelligent solutions, optimizing operations and reducing downtime. Some of the factors impacting the market are increasing complexity of industrial processes, enhanced focus on core competencies and cost sensitivity and budget constraints.
Integrating advanced technologies such as IoT, AI, machine learning, and automation into industrial processes has increased complexity. Industries often lack the in-house expertise to manage these technologies effectively, driving the need for specialized service providers with the requisite skills. In addition, different industries have unique operational requirements and challenges. Offerings that are customized to the complexities of particular processes are made available by specialized service providers to address the unique requirements of each industry. These aspects will drive the demand for these services in the upcoming years. Additionally, by outsourcing non-core services, firms may focus on their strengths and strategies. Businesses can channel their internal resources and efforts toward areas with a competitive advantage by entrusting specialized service providers with tasks like maintenance and repair. Additionally, industrial service providers specialize in specific areas such as equipment maintenance, technical support, and repairs. By outsourcing, companies gain access to the expertise of professionals who are dedicated to these functions, often resulting in higher quality outcomes and faster problem resolution. These factors will lead to rapid expansion in the market.
However, when facing budget constraints, industrial clients tend to prioritize essential services critical to sustaining their core operations. Routine maintenance, repairs, and services directly impacting production efficiency and safety often precede more advanced or non-essential offerings. Additionally, service providers need to carefully craft their value proposition to align with the cost considerations of industrial clients. Demonstrating the strategic value of advanced services, such as increased productivity, reduced downtime, or long-term cost savings, becomes crucial to overcoming budgetary constraints. These aspects will restrain the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Application Outlook
On the basis of application, the market is divided into motor & drives, distribution control system (DCS), PLC & SCADA, manufacturing execution system (MES), industrial robotics & PC, industrial 3D printing, and others. In 2022, the distribution control system (DCS) segment witnessed a substantial revenue share in the market. The proliferation of industrial automation in diverse industries has substantially influenced the growing demand for DCS. It is crucial to manage and control complex industrial processes, provide real-time monitoring, and ensure efficient and seamless operations. Therefore, the segment will grow rapidly in the upcoming years.
End User Outlook
Based on end user, the market is divided into aerospace, automotive, chemical, energy & power, food & beverages, healthcare & pharmaceuticals, metal & mining, oil & gas, paper & pulp, semiconductor, and others. In 2022, the oil and gas segment witnessed a substantial revenue share in the market. The growing global population and expanding industrialization drive an increase in energy demand. As a major contributor to the global energy mix, the oil and gas sector experiences sustained demand for exploration, production, and related services to meet the world's energy needs. Therefore, the segment will expand rapidly in the upcoming years.
Type Outlook
Based on type, the market is segmented into engineering & consulting, installation & commissioning, and operational improvement & maintenance. The engineering and consulting segment held a substantial revenue share in the market in 2022. As industrial processes and technologies become more sophisticated, the complexity of projects has increased. Engineering and consulting services are crucial in providing specialized expertise to navigate intricate challenges associated with designing, implementing, and optimizing complex industrial systems. These factors will help in the expansion of the segment.
Regional Outlook
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Asia Pacific segment acquired the highest revenue share in the market. The region is witnessing extensive infrastructure development projects, including construction roads, bridges, airports, and energy facilities. Many of these services are required to meet the demands of these endeavors, including engineering, procurement, and construction (EPC) services, operational support, and maintenance. These aspects will pose lucrative growth prospects for the segment.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include ABB Group, Honeywell International, Inc., Rockwell Automation, Inc., Schneider Electric SE, Siemens AG, General Electric Company, Emerson Electric Co., Yokogawa Electric Corporation, Mitsubishi Electric Corporation and Samson AG.
Strategies Deployed in the Market
- Dec-2023: Emerson Electric Co. has entered into a partnership with SungEel HiTech Co., Ltd., a specialist in lithium-ion battery recycling. In this partnership, Emerson will supply advanced automation solutions to enhance sustainable production and operational efficiency at SungEel's latest lithium-ion recycling plant situated at the Hydro Center complex in Gunsan, Jeollabuk-do. The partnership also aims to establish a robust resource cycle, contributing to a more stable supply of battery materials for electric vehicles and supporting the global increase in production capacity.
- Aug-2023: Honeywell International, Inc. has enhanced the features of its Honeywell Forge Sustainability+ for Industrials | Emissions Management software application. This upgrade is intended to empower industrial clients to measure and oversee both direct and indirect greenhouse gas (GHG) emissions within their operations. Honeywell has expanded the capabilities of its Honeywell Forge Sustainability+ for Industrials | Emissions Management software, enabling industrial enterprises to evaluate and manage both direct and indirect greenhouse gas (GHG) emissions originating from their operational activities.
- May-2023: Rockwell Automation, Inc. has established a strategic partnership with Autonox Robotics Gmbh, an automation machinery manufacturer. This partnership aims to empower customer companies in North America, Europe, the Middle East, and Africa to explore new manufacturing opportunities with integrated robot control solutions. The partnership positions the companies to optimize their current manufacturing assets and provides flexibility in addressing future demands.
- May-2023: Siemens Ltd., China, a subsidiary of Siemens AG, has established a partnership with Farsoon Technologies Co., Ltd., to develop integrated industrial solutions for additive manufacturing. This partnership aims to promote the widespread adoption of additive technology in large-scale manufacturing applications. Farsoon Technologies expresses enthusiasm about expanding the collaboration's scope and pace in the development of future products and solutions with Siemens AG.
- Apr-2023: Mitsubishi Electric Corporation's subsidiary, Mitsubishi Electric India Pvt. Ltd., has formed a partnership with SolidCAM GmbH, a provider of innovative CAM software for CNC machining and distribution solutions. This partnership involves the establishment of a Technology Centre at Mitsubishi Electric India's Peenya location, aiming to position the brand as a comprehensive solution provider for Machine Tool End-users.
- Apr-2023: Honeywell International, Inc. has entered into an agreement with Compressor Controls Corporation (CCC), a provider of turbomachinery control and optimization solutions under INDICOR, LLC. In this arrangement, Honeywell International, Inc. seeks to acquire Compressor Controls Corporation (CCC) and incorporate it into its Honeywell Process Solutions Business. This move is intended to enhance Honeywell's position in industrial control, automation, and process solutions, empowering customers to expedite their energy transition.
- Nov-2022: Schneider Electric SE has entered into an Collaboration with SAP SE, a leading global provider of management solutions. In this collaboration, both companies have solidified their dedication to collaborating on applications that integrate Information Technology (IT) and Operational Technology (OT). Additionally, Schneider Electric and SAP will collaboratively investigate opportunities to elevate industry innovation and digital transformation. Their joint efforts aim to champion open standards and enable the smooth integration of IT and OT technologies, providing industrial customers with significant advantages.
- Jun-2022: GE Digital, a subsidiary of General Electric Company, has established a partnership with Visionaize Inc., a provider of advanced operational 3D Digital Twin solutions. Within this partnership, GE Digital will leverage Visionaize's technology, crafted to empower data-driven businesses with precise visualization capabilities for operational use cases. This technology aims to enhance efficiency, cut costs, and improve safety.
- Jan-2021: Rockwell Automation, Inc., has successfully finalized the purchase of Fiix Inc., a Canadian company specializing in AI-enabled computerized maintenance management systems (CMMS). This acquisition is aimed at enhancing the capabilities of Rockwell Automation's Lifecycle Services division, providing an extensive range of industrial automation services to help customers optimize the value of their production assets, systems, plants, and processes. Additionally, the integration of a CMMS allows businesses to improve operational efficiency by reducing waste and energy consumption.
- Oct-2020: Emerson Electric Co. has successfully concluded the acquisition of Progea Group, a leading provider of industrial internet of things (IIoT), plant analytics, human-machine interface (HMI), and supervisory control and data acquisition (SCADA) technologies. As part of this acquisition, Progea will be integrated into Emerson, enhancing its ability to offer customers a comprehensive package of control, visualization, and IoT solutions to enhance overall equipment efficiency and expedite the digital transformation journey of clients. Furthermore, Progea's proficiency in machine and plant-level visualization and analytics provides customers with a flexible, scalable solution for their programmable logic controller (PLC) applications in discrete and hybrid markets.
- Jul-2020: ABB India, a subsidiary of the ABB Group, has declared the inauguration of a new robotics facility in India. This expansion is aimed at facilitating the digital transformation of the manufacturing sector in India. Furthermore, the company aims to empower Indian customers with the advantages of Industry 4.0, encompassing advanced robotics and digitalization technologies, with the overarching goal of positioning India as a robust and technologically advanced manufacturing economy globally. As part of this expansion, ABB India will provide robotic applications and digital solutions tailored for diverse industries in India, such as automotive, food and beverage, electronics, among others.
- Oct-2019: Rockwell Automation, Inc., has completed the acquisition of MESTECH Services Private Limited, a firm specializing in Manufacturing Execution Systems (MES) and Manufacturing Operations Management (MOM). This strategic move enhances Rockwell Automation's capacity to extend Information Solutions and Connected Services on a global scale, thereby advancing its customers' digital transformation endeavors. Leveraging MESTECH's well-established presence in India and specialized expertise, Rockwell is positioned to expedite the deployment of solutions, aiding customers in enhancing connectivity, efficiency, and productivity.
Scope of the Study
Market Segments Covered in the Report:
By End User- Automotive
- Aerospace
- Metal & Mining
- Energy & Power
- Food & Beverages
- Chemical
- Healthcare & Pharmaceuticals
- Oil & Gas
- Semiconductor
- Pulp & Paper
- Others
By Type- Operational Improvement & Maintenance
- Installation & Commissioning
- Engineering & Consulting
By Application- Manufacturing Execution System (MES)
- Distribution Control System (DCS)
- Industrial Robotics & PC
- Motor & Drives
- PLC & SCADA
- Industrial 3D Printing
- Others
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- ABB Group
- Honeywell International, Inc.
- Rockwell Automation, Inc.
- Schneider Electric SE
- Siemens AG
- General Electric Company
- Emerson Electric Co.
- Yokogawa Electric Corporation
- Mitsubishi Electric Corporation
- Samson AG
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Table of Contents
Companies Mentioned
- ABB Group
- Honeywell International, Inc.
- Rockwell Automation, Inc.
- Schneider Electric SE
- Siemens AG
- General Electric Company
- Emerson Electric Co.
- Yokogawa Electric Corporation
- Mitsubishi Electric Corporation
- Samson AG
Methodology
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