ID: MRFR/ICT/2615-HCR | 100 Pages | Author: Ankit Gupta | May 2023
Industrial Services Market Size was valued at USD 30.8 billion in 2021. The industrial services market industry is projected to grow from USD 32.68 billion in 2022 to USD 49.46 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.10% during the forecast period (2022 - 2030). The increase in infrastructure-related developments and the demand for healthy industrial hoses in various applications are the key market drivers enhancing the market growth of industrial services.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Growing Prevalence of various industrial applications to boost market growth
The need for businesses to reduce operating costs has resulted in a sharp rise in the demand for process-related industrial services during the past few years. Across various corporate verticals, operations that provide advice, provide computer or financial services, or provide other comparable essential services are growing and are expected to skyrocket in the coming years. According to additional WTO data, financial, insurance, pension, construction, and other industrial services were recorded at 15%, 4%, and 42% of all other commercial service exports in 2019. Telecommunication, computer, and information services made up 20% of all other commercial service exports. Additionally, the exports of computer, information, and telecommunication services accounted for 81% of the total in 2019, an increase of 11% from 2018.
To control the market, industrial services providers compete with one another. Companies should regularly update their industrial services portfolio to capture a larger market share. A customized service portfolio can help a service provider become more market- and customer-focused. Predictive maintenance services regularly monitor equipment and systems to assess their condition and offer solutions if an issue arises. As the Internet of Things (IoT) develops, there will be greater demand for predictive maintenance services.
A lack of technical skills is one of the key causes encouraging the growth of the industrial services sector. Because they perceive the downtime required for maintenance tasks as a significant financial loss, end users frequently become discouraged from employing automation systems, which results in operational inefficiencies. Vendors who offer industrial services, including engineering and consulting, operational improvement, and maintenance, have overcome the challenges by offering 24/7 remote help, solutions through cloud monitoring, and other enhanced services. Because of these considerations, industrial services providers—particularly small and medium-sized enterprises (SMEs)—earn more money, stimulating market growth and enhancing the industrial services market CAGR ly in recent years.
The increase in demand for sturdy industrial hoses in various applications accelerates the market's expansion. Among other things, a pressure-driven water outflow is one of the purposes of an industrial hose in cities. For instance, the World Bank Group, a US-based international financial organization, estimates that in 2021, urban regions will be home to 56% of the world's population, up from 56% in 2020. Therefore, it is projected that growing urbanization will increase market growth in the next years, another factor driving the growth of the industrial services market revenue.
The industrial services market segmentation, based on type, includes installation & commissioning and engineering & consulting. The engineering & consulting segment held the majority share in 2021 of the market revenue. Companies needing specific skill sets might obtain industrial services and knowledge from engineering consulting firms. The consulting service provider typically has skilled engineers available to offer short-term technical guidance for a charge. Consulting experts collaborate with customers to specify solutions to issues or to identify and suggest the best course of action for a particular undertaking. Companies without the ability or experience to handle a particular task might save time, effort, and money using engineering consulting industrial services.
The market segmentation, based on application, includes human-machine interfaces, distributed control systems, and valves & actuators. The distributed control systems segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. Industrial services are manufactured using distributed control systems (DCS), which are used to manage and control the processes. The DCS's networking capabilities help manage processes, and the inputs or outputs produced can be either discrete or analog signals, positively impacting market growth.
The industrial services market data has been bifurcated by end-users into automotive, metal & mining, food & beverages, paper, and oil & gas. The automotive segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period 2022-2030. The automotive industrial services segment includes all vehicle creation, design, and manufacturing facets. Automation is essential for this sector's supply chain management, inventory management, and performance monitoring. Businesses can reduce manufacturing time and speed up assembly with automation.
Figure 2: Industrial Services Market by End Users, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America Industrial Services market accounted for USD 13.52 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Mechanical technology and interface projects are flooding the market, greatly enhancing the administration sector.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INDUSTRIAL SERVICES MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe industrial services market accounts for the second-largest market share. Due to the services provided there, Europe accounted for the largest percentage of the whole industry. Additionally, the market has essential vitality due to numerous ly active specialist cooperatives. Further, the Germany industrial services market held the largest market share, and the UK industrial services market was the fastest-growing market in the European region.
The Asia-Pacific Industrial Services Market is expected to grow at the fastest CAGR from 2022 to 2030. The trend of embracing cloud accessibility and the Internet of Things (IoT) to handle situations with remote-based checking and vision maintenance benefits successfully indicates that the market is growing. Moreover, China industrial services market held the largest market share, and the India industrial services market was the fastest-growing market in the Asia-Pacific region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the industrial services market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the industrial services industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies manufacturers adopt in the industrial services industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, the industrial services industry has provided some of the most significant benefits. The industrial services industry major player such as Siemens AG (Germany), Emerson Electric (US), ABB (Switzerland), General Electric (US), and others are working on expanding the market demand by investing in research and development activities.
With its headquarters in Munich and branch offices worldwide, Siemens is a German multinational conglomerate corporation and the biggest industrial manufacturing enterprise in Europe. Digital Industries, Smart Infrastructure, Mobility, Healthcare (marketed as Siemens Healthineers), and Financial Services are the company's main divisions. The company is a well-known producer of diagnostic medical equipment, and its medical healthcare segment—which accounts for around 12% of the overall sales—is its second-most profitable business unit, behind the industrial automation sector. It is considered a pioneer in this field and the organization with the biggest revenue. In January 2020, Siemens and C&S Electric, an Indian switchgear maker, entered into a contract for €267 million (about Rs. 2,100 crores) to be paid in cash. In August 2020, the Indian Competition Commission authorized the acquisition.
Also, the corporate headquarters of the American multinational conglomerate Honeywell International Inc. are in Charlotte, North Carolina. Aerospace, building technologies, performance materials and technology (PMT), and safety and productivity solutions comprise its four main business sectors (SPS). In April 2021, Will.i.am and Honeywell created the Xupermask, a smart mask with LED lights, 3-speed fans, and noise-canceling headphones constructed of silicon and athletic mesh fabric.
Siemens AG (Germany)
Emerson Electric (US)
General Electric (US)
Schneider Electric (France)
Wood Group Mustang (US)
Honeywell International Inc. (US), among others
October 2020: Together, Schneider Electric and Semiotic Labs developed EcoStruxure Asset Advisor's enhanced support for condition-based observation and proactive maintenance of pivoting hardware.
July 2019: Emerson has fulfilled a continuous five-year administration agreed to support reliable, safe projects and has completed its USD 48 million agreement for robotization frameworks and cloud designing programming for Azerbaijan's Shah Deniz 2 project.
December 2019: ABB committed to a fresh frame contract. Delivering safety and automation technologies across Equinor's existing base and new construction projects is the deal's goal.
Installation and Commissioning
Engineering and Consulting
Human Machine Interface
Distributed Control System
Valves and Actuators
Metal and Mining
Food & Beverages
Oil & Gas
Rest of the World
|Market Size 2021||USD 30.8 billion|
|Market Size 2022||USD 32.68 billion|
|Market Size 2030||USD 49.46 billion|
|Compound Annual Growth Rate (CAGR)||6.10% (2022-2030)|
|Market Forecast Period||2022-2030|
|Historical Data||2018 & 2020|
|Market Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application, End Users, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and the Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||Siemens AG (Germany), Emerson Electric (US), ABB (Switzerland), General Electric (US), Schneider Electric (France), Wood Group Mustang (US), and Honeywell International Inc. (US)|
|Key Market Opportunities||Increased demand for predictive maintenance services Collaboration of industrial services providers with OEMs|
|Key Market Dynamics||The increase in the number of infrastructure-related developments The rise in demand for healthy industrial hoses in various applications|
The industrial services market size was valued at USD 30.8 Billion in 2021.
The market is projected to grow at a CAGR of 6.10% during the forecast period 2022-2030.
North America had the largest share of the market.
The key players in the market of industrial services are Siemens AG (Germany), Emerson Electric (US), ABB (Switzerland), General Electric (US), Schneider Electric (France), Wood Group Mustang (US), and Honeywell International Inc. (US).
The engineering & consulting category dominated the market in 2021.
The automotive sector had the largest share in the industrial services industry.
The market is projected to grow USD 49.46 billion by 2030.
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