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A00441 | Pages: 339 | Charts: 79 | Tables: 132 |
The global supervisory control and data acquisition (scada) market was valued at $9.5 billion in 2022, and is projected to reach $26.6 billion by 2032, growing at a CAGR of 11.2% from 2023 to 2032. SCADA is a combined system of hardware and software that allows industrial organizations to monitor, gather, and process real time data in various fields. In addition, it aids in controlling industrial processes locally or from a remote location. Moreover, SCADA helps in establishing interaction with devices, sensors, valves, pumps, and motors, and maintain log files.
Increase in penetration of mobile SCADA system and surging trend of industry 4.0 across manufacturing and processing industries is boosting the growth of the global market. In addition, Rapid growth in utilization of cloud computing technology positively impacts supervisory control and data acquisition (SCADA) market growth. However, huge investment costs for insertion and sustentation of SCADA systems and escalating cyberattacks in the industrial networks are hampering the market growth. On the contrary, increasing advancements in wireless sensor networks is expected to offer remunerative opportunities for expansion of the SCADA market during the forecast period.
The supervisory control and data acquisition (SCADA) market is segmented on the basis of offering, component, deployment type, application, and region. On the basis of offering, the market is categorized into hardware, software and services. On the basis of component, the market is fragmented into human machine interface (HMI), remote terminal unit (RTU), programmable logic controller (PLC), communication system, and others. On the basis of deployment type, the market is bifurcated into on-premise, and cloud. By end-user, it is classified into process industries, discrete manufacturing, and utilities. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[COMPONENTGRAPH]
In terms of component, the remote terminal unit (RTU) segment holds the highest supervisory control and data acquisition (SCADA) market size, owing to rise in adoption of RTU devices in various industrial process, such as pressure tests, circulation pumps from a central location, to improve operational efficiency, and control various processes. However, the communication system segment is expected to grow at the highest rate during the forecast period, as it helps to improve business operational efficiency, reduce infrastructure costs, and improve product quality.
[REGIONGRAPH]
Region wise, the supervisory control and data acquisition (SCADA) market share was dominated by Asia-Pacific in 2022, and is expected to retain its position during the forecast period, due to stable power management, as well as massive investment in technologies. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increase in investment by the government in automation for a wide range of industries.
The key players that operate in the supervisory control and data acquisition (SCADA) industry are ABB Ltd., Alstom SA, Emerson Electric Co., Hitachi Ltd., Honeywell International Inc., IBM Corporation, Rockwell Automation Inc., Schneider Electric SE, JFE Engineering Corporation, and Mitsubishi Electric Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the supervisory control and data acquisition (SCADA) industry.
The modern supervisory control and data acquisition (SCADA) system was designed to help manufacturers to take advantage of digital transformation and should run on modern technology. This could limit the expansion of SCADA to marketing agencies and creators that primarily use emotional appeal to persuade their customers. Moreover, industrial operational data is mostly obtained from devices such as sensors, switches, and relays through input/output (I/O) modules but is also acquired from higher level devices such as controllers and remote terminal units (RTUs). It then makes its way to a supervisory control and data acquisition (SCADA) system, which has the primary function of data acquisition and data logging
SCADA system was versatile and practical, as it provide fast, scalable and secure visualization on desktops, web browsers and mobile devices. SCADA support rich WPF and script-less, thin client HTML5 technology that allows for consistent visualization on all platforms. Hence, it can be anticipated that the SCADA market will expand over the course of the forecast period considering the various factors promoting its growth.
The global SCADA market is expected to register high growth due to rise of advance software solutions to meet production target are expected to drive industry growth. Thus, increase in adoption of SCADA, owing to its demand for high-speed, data collection through a historian in the business operation field is one of the most significant factors driving the growth of the market. With surge in demand for SCADA, various companies have established alliances to increase their capabilities.
For instance, in December 2021, ABB Limited partnered with Indore smart city development limited (ISCDL) to implement digital technology of the next generation that guaranteed a constant supply of power to households and businesses. This project utilized digitally integrated SCADA (supervisory control and data acquisition) technologies, and Compact Secondary Substations (CSS) to save downtime by supplying a stable and reliable power supply. This strategic move improved the market image of ABB limited in the SCADA industry.
In addition, with further growth in investment across the world and the rise in demand for SCADA industry, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in October 2020, Emerson electric purchased progea group (Italy) in order to expand its range of embedded software controls by incorporating progea’s analytics, IIoT and industrial visualization capabilities. For instance, In December 2022, Canva Company launched new functions to its Canva Doc platform including a Magic Write feature that assists in copyrighting processes and generates text content by using AI technology.
For instance, In March 2023, Honeywell Internationale Inc. launched Versatilis transmitters for condition-based monitoring of rotating machinery, including fans, blowers, pumps, motors, compressors, and gearboxes. This software helped in reducing cost expenditure and unplanned downtime for manufacturers. This strategic move improved the brand image of Honeywell International Inc.
Moreover, with the increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, in September 2022, Hitachi Ltd. acquired Flexible Innovation Inc., a leading manufacturing systems integrator company. This acquisition helped Hitachi to strengthen their supervisory control and data acquisition (SCADA) capability in North America. Furthermore, Hitachi was able to provide seamless solution through SCADA to the manufacturing leaders for improving corporate value.
The rise in trend of cloud-based solutions for improving security and optimizing operations directly influences the growth of the global operational technology security market. The need for secure and efficient cloud-based solutions for OT security has increased due to the surge in interconnection among operational technology systems and Information Technology (IT) systems and the internet. Cloud-based OT security solutions offer benefits such as scalability, flexibility, cost-effectiveness, and help organizations to manage OT security in a more streamlined and centralized manner. Thus, these inherent features associated with cloud-based OT solutions are likely to contribute to the increased installation of operational technology security market across the globe.
Furthermore, the integration of cloud-based solutions allows organizations to collect and analyze security data from several OT and IT systems, including logs, network traffic, and security alerts, in a centralized cloud-based platform. Cloud-based Security Information and Event Management (SIEM) solutions provide real-time visibility, threat detection, and can help organizations respond to security incidents quickly and effectively. Hence, these multiple benefits offered by cloud-based OT security solutions are expected to boost demand in the market.
Moreover, several private and public companies are continuously involved in promoting digitalization in security operations and maintenance, as digitalization has become a necessary step in managing security operations and maintaining safety. For instance, in October 2021, Orca Security raised a fund of $550 million, led by Temasek, which focused on extending the transformation of the cloud security industry. Such investment pooling in the digitalization of the security solution is anticipated to fuel the demand for cloud-based OT security solutions, which in turn, is projected to augment the market growth on a global scale.
Rise in the Industry 4.0 initiatives across the manufacturing and processing industries is expected to drive the growth of SCADA market. Industry 4.0 has transformed the business approach to transform the digital initiatives in production processes to enhance produce enhancements and distribution. The Internet of Things (IoT), cloud computing, analytics, artificial intelligence (AI), and machine learning (ML) are the popular and innovative technologies that manufacturers are increasingly incorporating into their manufacturing processes. Furthermore, advanced sensors, embedded software, and robotics are all major part of the Industry 4.0 revolution, which help to collect and analyze data in making efficient and productive decision-making. Thus, these aforementioned factors are expected to aid the growth of SCADA market.
In addition, the surge in the number of practical application of Industry 4.0 in the field of digital production fosters market growth. For instance, inventory overstocking and understocking can be avoided via the Industrial Internet of Things (IIoT). As a result, this above-mentioned factor is expected to pave the way for SCADA market, especially in the warehouse management related-aspects, due to the ability to track inventory, process data, streamline processes, and improve quality control.
Moreover, Industry 4.0 technology, such as machine learning models and data visualization helps in applying powerful computational algorithms to large data sets, and comprehending the data information respectively, thus helping in data analytics. Hence, it can be stated that the ongoing trends of industry 4.0 is expected to boost market growth across the globe.
The study provides an in-depth analysis of the global supervisory control and data acquisition (SCADA) market forecast along with current & future trends to explain the imminent investment pockets.
Information about key drivers, restraints, & opportunities and their impact analysis on global supervisory control and data acquisition (SCADA) market trends is provided in the report.
The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The supervisory control and data acquisition (SCADA) market analysis from 2023 to 2032 is provided to determine the market potential.
Key Market Segments
Key Market Players