US & Europe Industrial Services Market Overview
US & Europe Industrial Services Market Size was valued at USD 19,203.5 million in 2022. The Industrial Services market industry is projected to grow from USD 19,707.7 Million in 2023 to USD 40,308.8 million by 2032, exhibiting a compound annual growth rate (CAGR) of 8.3% during the forecast period (2023 - 2032). Industrial Services witnessing growth due to the growing complexity with industrial operation, emphasis on cost reduction & operational efficiency and increased demand for maintenance and repair services collectively driving the market growth. However, limited availability of skied labor, lack of end-to-end quality & process control, and high cost associated with specialized services is expected to hamper market growth. Though with the integration of advancing technology the market is expected to witness immense growth opportunities and create positive growth sphere for the market players.
FIGURE 1: US & EUROPE INDUSTRIAL SERVICES MARKET SIZE 2019-2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Industrial Services Market Trends
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USE OF AI APPLICATION FOR MONITORING
The incorporation of cutting edge advancements like IoT, manufactured insights (AI), and gigantic data investigation is reforming the industrial service market. Remote monitoring, real-time data analysis, predictive maintenance, reactive maintenance, and preventive maintenance are all made possible by these technologies, which improve asset performance, reduce downtime, and increase operational efficiency.
Reactive maintenance tends to upkeep needs for a machine or piece of gear when a breakdown or clear glitch happens. While reactive maintenance stays an essential part of a support plan, it is the most wasteful strategy for upkeep because of unnecessary spontaneous free time. During a component or piece of equipment's lifecycle, preventive maintenance entails standard tasks designed to address typical, anticipated upkeep and maintenance requirements. Preventive maintenance is a useful tool for avoiding preventable maintenance issues, but can also yield inefficiencies, such as investing resources in maintenance that is not required at that time. Preventive maintenance integrates information and innovation to give bits of knowledge about gear execution and work with early alarms of potential upkeep issues. Preventive maintenance is driven by modern sensor innovation including vibration sensors, ultrasonic sensors and thermographic sensors. It is a subsequent stage in the development of maintenance because of the prescience, arranging and productivity that it yields. Using similar underlying sensor and data technology, reliability-centered maintenance is the next step in the progression from predictive maintenance to a sharp focus on reducing unplanned downtime and increasing productivity. Dependability focused support consolidates remote checking, day in and day out frameworks and ceaseless information examination to give what is, today, a definitive in dynamic information to keep machines functional while expanding limit and satisfying requests on time.
Remote service capabilities are becoming essential in the industrial service market. Service providers now have the ability to remotely diagnose, troubleshoot, and even repair machinery and equipment thanks to advancements in connectivity and communication technologies. This decreases the requirement for actual visits, improves reaction time, and limits functional disturbances.
The computerized change of enterprises opens up new roads for modern specialist organizations. Organizations are progressively looking for computerized answers for their tasks, for example, cloud-based stages, remote observing, and virtual coordinated effort apparatuses. Specialist organizations that can offer exhaustive computerized administrations and arrangements enjoy a serious benefit on the lookout.
Industrial Services Market Segment Insights
Industrial Services Service Type Insights
Based on service type, the US & Europe industrial services market is bifurcated into engineering and consulting, installation and commissioning, calibration services, GXP-services, operational improvement and maintenance and others. The engineering and consulting is the dominating segment since industrial operations becoming more complex and companies require specialized expertise to manage and maintain their equipment and systems. Complex industrial operations are prone to various risks, including equipment failure, safety hazards, and environmental concerns. Industrial engineering and consulting providers can help mitigate these risks by implementing preventive maintenance programs, conducting risk assessments, and providing maintenance and repair services. By addressing potential risks proactively, companies can minimize the impact of unexpected failures and accidents. The industrial engineering and consulting is an essential service for any business as it can not only help to improve the efficiency and quality of products/services, but also help to develop the required infrastructure needed for any manufacturing processes.
FIGURE 2: US & EUROPE INDUSTRIAL SERVICES MARKET, BY SERVICE TYPE, 2022 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Industrial Services Application Area Insights
Based on application area, the US & Europe industrial services market is bifurcated into distributed control system, programmable logic controller, supervisory control and data acquisition, electric motors and drives, valves and actuators, human machine interface, manufacturing execution system, safety systems, industrial pc, industrial robotics and others. Distributed Control System (DCS) dominates the segment with a share of 14.7%. Distributed control systems are particularly necessary in very large manufacturing operations where thousands of control loops need to be monitored in real-time. The DCS enables applications such as production scheduling, preventative maintenance scheduling, and information exchange.
Industrial Services Industry Vertical Insights
Based on industry vertical, the US & Europe industrial services market is bifurcated into oil and gas, healthcare and pharmaceuticals, automotive, water and wastewater, chemicals, food and beverages, energy and power, semiconductor and electronics, paper and pulp, metals and mining, aerospace and others. Automotive dominates the segment with a share of 14.8%. Various types of testing like structural maintenance, component calibration, material composition testing, and engineering & consulting services are growing. Industrial services have generally increased the efficiency and productivity for various automotive players by reducing the cost and delivery times, managing and controlling supply chain at each manufacturing stage, improving the product and parts sales. Predictive technologies continue to be a growing trend in automotive manufacturing since it digitally transforms the way automotive industry operates by overcoming operational challenges.
FIGURE 3: US & EUROPE INDUSTRIAL SERVICES MARKET SIZE, BY INDUSTRY VERTICAL, 2022 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Industrial Services Regional Insights
By Region, the study provides market insights into US & Europe. Europe accounted for ~ 65.3% Industrial Services market in 2022. Europe is likely to be the largest contributor to the Industrial Services market. This includes the Germany, UK, France, Italy, Spain, Denmark, Sweden, Norway, Poland, Austria, Switzerland and Rest of Europe. Europe has been at the forefront of adoption of advanced technologies, such as IoT, automation and Industry 4.0. This has led to increased demand for service related to implementing and maintain these technologies in industrial settings. Increased collaboration across industries has created opportunities for service providers offering solutions that caters to multiple sectors, promoting efficiency and knowledge sharing. The aging infrastructure of some of the European industries has led to a focus on maintenance & optimization services, ensuring the reliability and longevity of existing assets.
Europe’s industrial production increased by 8% in 2021 as compared to 2020 and has continued its upward trend with an increase of 5% in 2022 compared to 2021. Highest growth rate was seen for manufacture of motor vehicles and pharmaceutical products. As per the European Auto Makers Affiliation (ACEA), in 2022, 10.9 million passenger vehicles were produced which was 8.3% more than as compared to 2021. The automotive industry contributed about 10 percent of Europe's exports in 2022. There are 42 car factories in Germany, 31 in France, 23 in Italy, and 17 in Spain. These factories work continuously to achieve the desired production of vehicles hence they require operational improvement and maintenance services. Similarly, the pharmaceutical industry has also grown tremendously in the region. According to European Federation of Pharmaceutical Industries and Associations (EFPIA), value of production for the research-based European pharmaceutical has grown from 127.5 billion euro in year 2000 to 300 billion in 2021. Moreover, the growth of export increased from 90.9 billion Euros to 565 billion Euros over the same period.
The US industrial services market is growing due to various factors such as increasing complexity of industrial operations which mainly emphasis on cost reduction & operational efficiency, and increasing demand for maintenance and repair services which are driving the market growth. The increasing density of industrial operations often increases costs for both equipment maintenance and personnel management. Industrial service providers offer solutions by offering on-demand services, eliminating the need for businesses to invest in expensive equipment or maintain large in-house maintenance teams. Industrial companies are constantly looking for ways to improve operational efficiency and reduce costs by outsourcing non-core business activities such as maintenance and repairs so that companies can focus on their core competencies while leveraging the expertise of service providers.
The industrial engineering and consulting services are also used in the country by various end user such as semiconductor and electronics, automotive, aerospace and metals & mining which helps in product development, updated manufacturing processes and machines, automation integration, and factory layouts. According to a recent report by Alliance for Automotive Innovation, auto production remains the country's largest manufacturing sector, with 20 automakers operating 55 light vehicle assembly plants across 15 states. The demand for industrial service is also due to increasing metals and mining activities in the country. It is estimated that there are nearly 13,000 active mines in the US. These mines use equipment which work in harsh climatic conditions. As equipment ages, production efficiency and reliability can decline. However, proper maintenance and repairs can reduce the signs of aging to ensure that production goals are met without any downtime.
Industrial Services Key Market Players & Competitive Insights
The global market for Industrial Services has witnessed significant growth over the forecast period due to the growing service industry. There are several domestic, regional, and global players operating in the Industrial Services market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the Industrial Services market who have contributed to the market growth includes ABB Ltd., Rockwell Automation Inc., Siemens AG, Honeywell International Inc., Schneider Electric SE, Emerson Electric Company, General Electric (GE) Company, Altrad, Horvath, Micro Precision, Leadec Holding BV & Co. KG and Process Sensing Technologies (PST) among others.
Among these, Siemens AG, Emerson Electric Co., Honeywell International Inc., Schneider Electric SE, ABB Ltd. are among the top 5 players in the US & Europe Industrial Services market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Key Companies in the Industrial Services market include.
- ABB Ltd.
- Rockwell Automation Inc.
- Siemens AG
- Honeywell International Inc.
- Schneider Electric SE
- Emerson Electric Company
- General Electric (GE) Company
- Altrad
- Horvath
- Micro Precision
- Leadec Holding BV & Co. KG
- Process Sensing Technologies (PST)
Industrial Services Industry Developments
- In August 2023, Schneider Electric launched a Managed Security Services (MSS) offering to help customers in operational technology (OT) environments address the increased cyber risk associated with the demand for remote access and connectivity technologies.
- In December 2023, ABB buys Spring Point Solutions to enhance U.S. motor repair services and equipment/quality management system tailored to motor repair facilities, which will provide greater operational efficiency to shops that sell and repair ABB products.
- In March 2021, ABB launched a SCADA system—an automation control solution—which helps in the efficient running of solar plants and enables plant operators to seamlessly monitor and analyze relevant solar project data in one place.
US & Europe Industrial Services Market Segmentation:
US & Europe Industrial Services Service Type Outlook
- Engineering & Consulting Services
- Installation & Commission Services
- Calibration Services
- GxP Services
- Operational Improvement & Maintenance Services
- Others
US & Europe Industrial Services Application Area Outlook
- Distributed Control System (DCS)
- Programmable Logic Controller (PLC)
- Electric Motors & Drives
- Supervisory Control and Data Acquisition (SCADA)
- Valves and Actuators
- Human Machine Interface (HMI)
- Manufacturing Execution System (MES)
- Safety Systems
- Industrial PC
- Industrial Robots
- Others
US & Europe Industrial Services Industry Vertical Outlook
- Oil & Gas
- Healthcare & Pharmaceuticals
- Automotive
- Water & Wastewater
- Chemicals
- Food & Beverages
- Energy & Power
- Semiconductor & Electronics
- Paper & Pulp
- Metals & Mining
- Aerospace
- Others
US & Europe Industrial Services Regional Outlook
- US
- Europe
- Germany
- UK,
- France
- Italy
- Spain
- Denmark
- Sweden
- Norway
- Poland
- Austria
- Switzerland
- Rest of Europe
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 19,203.5 million |
| Market Size 2023 |
USD 19,707.7 million |
| Market Size 2032 |
USD 40,308.8 million |
| Compound Annual Growth Rate (CAGR) |
8.3% (2023-2032) |
| Base Year |
2022 |
| Market Forecast Period |
2023-2032 |
| Historical Data |
2019- 2021 |
| Market Forecast Units |
Value (USD Million) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Service Type, Application Area, Industry Vertical, and Region |
| Geographies Covered |
US & Europe |
| Countries Covered |
US, Germany, UK, France, Italy, Spain, Denmark, Sweden, Norway, Poland, Austria, Switzerland and Rest of Europe. |
| Key Companies Profiled |
· ABB Ltd. · Rockwell Automation Inc. · Siemens AG · Honeywell International Inc. · Schneider Electric SE · Emerson Electric Company · General Electric (GE) Company · Altrad · Horvath · Micro Precision · Leadec Holding BV & Co. KG · Process Sensing Technologies (PST) |
| Key Market Opportunities |
· The advent of maintenance as a service |
| Key Market Dynamics |
· Emphasis on cost reduction and operational efficiency · Growing complexity in industrial operations · Increasing demand for maintenance and repair services |
Frequently Asked Questions (FAQ) :
The US & Europe Industrial Services market size is expected to be valued at USD 6,656.8 Million in 2022.
The market is projected to grow at a CAGR of 8.3% during the forecast period, 2023-2032.
Europe had the largest share of the market.
The key players in the market are ABB Ltd., Rockwell Automation Inc., Siemens AG, Honeywell International Inc., Schneider Electric SE, Emerson Electric Company, General Electric (GE) Company, Altrad, Horvath, Micro Precision, Leadec Holding BV & Co. KG and Process Sensing Technologies (PST)
