System Integration Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Integration Model (Vertical Integration, Horizontal Integration, Star Integration, Common Data Format), By Type (Enterprise Application Integration, Data Integration, Electronic Document Integration), By Industry Vertical (BFSI, Aerospace And Defense, Information Communication & Technology, Retail, Government), And By Geography - Forecasts From 2021 To 2026

The global system integration market is expected to grow at a compound annual growth rate of 10.13% over the forecast period to reach a market size of US$708.747 billion in 2026 from US$360.705 billion in 2019.

A systems integrator specialises in connecting component subsystems together into a whole and ensuring that those subsystems function properly, a process known as system integration. They also handle automation issues. System integration encompasses both physical and virtual system components of an organization. Physical components include diverse machine systems, computer hardware, and inventories, among other things. The most common virtual components are data stored in databases, software, and applications.

The growing Internet of Things (IoT) in industrial automation, rising safety and security concerns, demand for low-cost, energy-efficient manufacturing processes, and advancements in cloud computing technology are driving the growth of the system integration market globally. 

Furthermore, growing R&D activities and rising demand from emerging economies would open up new possibilities for the system integration market throughout the forecast period.

However, increased investments required for automation implementation and maintenance, as well as declining crude oil prices affecting investments in infrastructure automation, are among the major factors restraining market growth and will pose additional challenges to the system integration market.

Growth Factors

• Increased demand for automation systems

Safety and security are top priorities in sectors such as oil and gas, energy and electricity, and chemicals and petrochemicals. Companies involved in these sectors must develop their strategies in line with the rules and environmental standards established by the different nations. Oil and gas refineries are often located in remote and dangerous locations. To avoid accidents and equipment malfunctions, these industrial units require automation solutions. Process automation aids in the monitoring and analysis of equipment and malfunctions. Automation also aids in the collection of relevant data and the development of plans to improve efficiency.

Furthermore, growing solar and distributed energy resources (DER) on the electrical grid will require the integration of more high-power electronic devices that convert energy from one form to another. According to the United States Department of Energy's Solar Energy Technologies Office (SETO), by 2030, up to 80% of electricity will be generated by power electronic devices.

Restraints

• High investment requirement

The high initial investment is a significant factor limiting the expansion of the market. Installation of supervisory solutions, as well as instruments such as process analyzers, control valves, actuators, smart sensors, and communication networks, necessitates capital spending. Process analyzers, smart sensors, and actuators, for example, have significant installation and maintenance expenses, which raises the cost for consumers. This limits the market for system integration.

Impact of Covid-19

The COVID-19 pandemic had a detrimental impact on system integration market demand due to the halting of construction activities. The resumption of the system integration process across regions, on the other hand, has resulted in a steady increase in market demand. System integration has been used in residential buildings to facilitate remote working and e-learning. 

Competitive Insight

September 2021 - The Taipei City Government's Systemwide E&M Project Office Department of Rapid Transit Systems (SEMPO) granted the contract for Taipei's fully automated metro line to an Alstom-led collaboration with CTCI, a Taiwanese engineering and contracting services company.

September 2021 – Task Force 59, an unmanned Systems Integration Task Force, was formed by the US Naval Forces Central Command (NAVCENT). This group will be responsible for integrating unmanned systems and artificial intelligence inside the 5th Fleet's operational area.

Global System Integration Market Scope:

Report Metric	Details
Market size value in 2019	US$360.705 billion
Market size value in 2026	US$708.747 billion
Growth Rate	CAGR of 10.13% from 2019 to 2026
Base year	2019
Forecast period	2021–2026
Forecast Unit (Value)	USD Billion
Segments covered	Integration Model, Type, Industry Vertical, And Geography
Regions covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies covered	Tyco Integrated Security, Convergint Technologies LLC, Johnson Controls Inc.,   Schneider Electric, Tech Systems Inc., Accenture Plc, Harris Corporation, Lockheed   Martin Corporation, Northrop Grumman Corporation
Customization scope	Free report customization with purchase

 

Market Segmentation

• By Integration Model
  • Vertical Integration
  • Horizontal Integration
  • Star Integration
  • Common Data Format
• By Type
  • Enterprise Application Integration
  • Data Integration
  • Electronic Document Integration
• By Industry Vertical
  • BFSI
  • Aerospace and Defense
  • Information Communication & Technology
  • Retail
  • Government
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Israel
    • Saudi Arabia
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others

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Frequently Asked Questions (FAQs)

Q1. What is the size of the global system integration market?
A1. System Integration Market was valued at US$360.705 billion in 2019.

Q2. What will be the system integration market size by 2026?
A2. The global system integration market is expected to reach a total market size of US$708.747 billion by 2026.

Q3. What are the growth prospects for the system integration market?
A3. The system integration market is expected to grow at a CAGR of 10.13% during the forecast period.

Q4. What factors are anticipated to drive the system integration market growth?
A4. Rising advancements in cloud technologies and virtualization is a crucial factor accelerating the system integration market growth.

Q5. How is the global system integration market segmented?
A5. The global system integration market has been segmented by integration model, type, industry vertical, and geography.

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