System Integration Market Research, 2031
The global system integration market was valued at $351.8 billion in 2021, and is projected to reach $1838.6 billion by 2031, growing at a CAGR of 18.1% from 2022 to 2031.
System integration is defined in engineering as the process of bringing together the component sub-systems into one system and ensuring that the subsystems function together as a system, and in information technology as the process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole.
Increasing adoption of cloud computing and rapid growth of small & medium enterprises (SMEs) is boosting the growth of the global system integration market. In addition, demand for low-cost and energy-efficient production processes is positively impacts growth of the system integration market. However, lack of awareness among the customers and enterprise budgetary constraints is hampering the system integration market growth. On the contrary, technological advances such as the integration of edge computing, internet of things (IoT), and artificial intelligence is expected to offer remunerative opportunities for expansion of the system integration market during the forecast period.
The system integration market is segmented into Service Type, Enterprise Size and Industry Vertical.
The system integration market is segmented on the basis of by service type, enterprise size, industry vertical, and region. On the basis of service type, the market is categorized into infrastructure integration, application integration, data integration, and others. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. By industry vertical, it is classified into BFSI, IT and telecom, government and defense, retail and ecommerce, education, healthcare, media and entertainment, manufacturing, transportation and logistics, energy and utilities, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players that operate in the system integration market are Accenture, Capgemni SE, Cisco Systems Inc, Fujitsu, Cognizant, Delloite, IBM Corporation, Infosys, Tata Consultancy services, Tech Mahindra Limited, Oracle Software, HCL Technology, Tesco Controls, Burrow Global, INTECH, Crystalloids Inc, and Mangrovia Blockchain Solutions. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The Infrastructure Integration segment is expected to garner the highest market share due to surge in adoption of data centers and cloud services.
By Service Type
In terms of service type, the infrastructure integration segment holds the highest system integration market share due to increasing adoption of data centers and cloud services among businesses. However, the data integration segment is expected to grow at the highest rate during the forecast period as the volume data stored in cloud is increasing with the need for sharing existing data efficiently.
Asia-Pacific countries are expected to adopt a high rate owing to, the growing digital and economic transformation of the region.
By Region
Region-wise, the system integration market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the presence of major players that offer advanced solutions and invest heavily in solutions offers lucrative opportunity for the market. However, Asia-Pacific is expected to witness significant growth during the forecast period owing to growth in awareness regarding importance of system integration among employers adopting cloud service.
COVID-19 Impact Analysis
The system integration indutry has witnessed stable growth during the COVID-19 pandemic, owing to an increase in the number of industries across various end-use sectors. In addition, the COVID-19 pandemic has resulted in changes in model performance, as more continuous monitoring and validation is required to mitigate various types of risks, compared to static validation and testing methods, which, in turn, drive the development of advanced machine learning models. In addition, with rapid digital transformation, various governments have introduced stringent regulations to protect end users data such as General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Thus, governments in various countries have taken strict actions toward the defaulters of COVID-19 regulations, and natural language processing technology is helping financial institutes to scan their internal policies as well as claims documents to check their compliance with different regulatory policies. However, COVID-19 pandemic is making it even harder for larger insurers to keep pace, and even more difficult for midsize and smaller insurers to adopt AI/ML technologies, owing to long development timelines and high investment requirements.
Top Impacting Factors
Increasing adoption of cloud computing
Cloud computing adoption has been increasing rapidly, as cloud-specific spending is growing at more than six times the rate of general IT spending through 2022, which is the growing market trend. In addition, cloud providers are offering strong native optimization capabilities to help organizations select the most cost-effective architecture that can deliver the required performance, which notably contributes toward the growth of the system integration industry.
Furthermore, several market players are acquiring small cloud provides to boost cloud adoption. For instance, in June 2020, IBM Corporation signed a definitive agreement to acquire Spanugo, a U.S.-based provider of cloud cybersecurity posture management solutions. To further meet the security demands of its clients in highly regulated industries, IBM integrated Spanugo software into its public cloud. This acquisition of Spanugo software helped accelerate the availability of a security control center that will enable IBM clients to define compliance profiles, manage controls, and, in continuous real-time, monitor compliance across their organizations.
Rapid growth of Small & Medium Enterprises (SMEs)
Integration of cloud services among IT industries and business organizations has increased drastically in the last few years as organizations are realizing the importance of hybrid cloud solutions. Hybrid cloud allows small and medium organizations to accumulate the advantage of private and public cloud and efficiency together with assistance of expertise and operational quality. Furthermore, for small and medium-sized organizations, hybrid cloud is not much of a tactic to save money but rather a major strategic choice to acquire a platform for alliance with customers and partners. Moreover, the evolution of infrastructure as a service (IaaS) and software as a service (SaaS) has provided opportunities for small enterprises and startups to explore and deploy their ideas with greater agility. Furthermore, SMEs often face rigorous challenges in terms of costs, monitoring, and migration to the cloud. However, by implementing system integration services, SMEs can continue with their legacy applications with majority of the services hosted over the cloud through backup and high availability that creates numerous opportunities for the market.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the global system integration market forecast along with current & future system integration market trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global system integration market trend is provided in the report.
- The Porter's five forces analysis illustrates the potency of the buyers and suppliers operating in the system integration industry.
- The system integration market analysis from 2022 to 2031 is provided to determine the market potential.
System Integration Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 1.8 trillion |
 Growth Rate | CAGR of 18.1% |
 Forecast period | 2021 - 2031 |
 Report Pages | 325 |
 By Service Type |
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 By Enterprise Size |
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 By Industry Vertical |
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 By Region |
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 Key Market Players | delloite, Tata Consultancy services, HCL Technology, Infosys, Oracle Software, Cisco System Inc., Mangrovia Blockchain Solutions, INTECH, Capgemni SE, Accenture, Fujitsu, Crystalloids Inc, IBM Corporation, Tech Mahindra Limited, Burrow Global, Tesco Controls, Cognizant |
Analyst Review
System integration is a process of linking multiple sub-systems (components) into a larger system. In addition, this function covers all physical and virtual components of an organization's system. Physical components include things like machine systems, computer hardware, and inventory. Furthermore, advent of cloud computing and automation drives the adoption of system integration among enterprises to improve efficiency of existing systems and reduce operational costs of managing every single system individually.
The global system integration market is expected to register high growth due to rapid centralization and digitization of business processes to streamline all operations into a single platform are expected to drive industry growth. Thus, increase in adoption of system integrations, owing to their benefits, is one of the most significant factors expected to drive the growth of the market. Various companies have established alliances to increase their capabilities with surge in demand for system integration. For instance, in March 2021, Omron partnered with Valiant TMS to develop intelligent automation solutions around the globe leveraging the latest technologies to create smart and sustainable factories for the world's leading companies.
In addition, various companies have expanded their current product portfolio with increased diversification among customers, with growth in investment across the world and the rise in demand for system integration. For instance, in August 2020, atSpoke has unveiled an Integrations Command Center for support teams to perform multiple tasks in one place. Further, the company announced its integration with Okta. The integration will enable IT teams to trigger Okta actions directly within Slack and atSpoke tickets.
Moreover, with increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, July 2021, NEC Corporation acquired Aspire Technology, a Network Solutions and System Integration Company increased capacity to deliver End-to-End Open RAN ecosystems, along with system design and integration for legacy networks, to operators globally.
Increasing adoption of cloud computing and rapid growth of small & medium enterprises (SMEs) is boosting the growth of the global system integration market. In addition, demand for low-cost and energy-efficient production processes is positively impacts growth of the system integration market.
Region-wise, the system integration market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the presence of major players that offer advanced solutions and invest heavily in solutions offers lucrative opportunity for the market.
The global system integration market was valued at $351.76 billion in 2021, and is projected to reach $1,838.59 billion by 2031, registering a CAGR of 18.1% from 2022 to 2031.
The key players that operate in the system integration market are Accenture, Capgemni SE, Cisco Systems Inc, Fujitsu, Cognizant, Delloite, IBM Corporation, Infosys, Tata Consultancy services, Tech Mahindra Limited, Oracle Software, HCL Technology, Tesco Controls, Burrow Global, INTECH, Crystalloids Inc, and Mangrovia Blockchain Solutions. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
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