by The global System Integration Market is estimated to be valued at US$ 491.11 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
System integration refers to the process of combining different hardware components and software applications into an automated solution to simplify complex IT infrastructure. It involves integrating diverse networking components, databases, applications, web services and other technologies to build customized solutions that address business needs across various industries such as aerospace & defense, healthcare, oil & gas and automotive. Growing digitalization, adoption of advanced technologies like Internet of Things, cloud computing and big data analytics are driving demand for system integration services. System integrators help organizations achieve operational efficiency, optimize business processes, reduce IT costs and gain a competitive advantage through customized integrated IT solutions.
Market key trends:
One of the key trends in the system integration market is the growing demand from small and medium enterprises. Previously, system integration was limited to large enterprises with complex IT infrastructure. However, growing digitalization and availability of cost-effective system integration services is now enabling even SMEs to implement integrated solutions. This is expected to significantly drive the demand over the coming years. Another major trend is the shift towards cloud-based system integration. More organizations are adopting public, private or hybrid cloud models for benefits like scalability, lower costs and faster deployment. This has prompted system integrators to offer cloud-based integration platforms and services. growing dominance of software as a service (SaaS) applications is also boosting the need for integration with existing on-premise solutions.
Porter’s Analysis
Threat of new entrants: High capital requirements act as a barrier for new players to enter this market as system integration requires high investments.
Bargaining power of buyers: Buyers have high bargaining power due to presence of many system integrators providing similar services. Buyers can negotiate on price and demand value added services.
Bargaining power of suppliers: Suppliers have lower bargaining power due to availability of alternative component and product suppliers in the market.
Threat of new substitutes: Substitute threats are low as system integrators offer customized, end-to-end solutions as per clients requirements.
Competitive rivalry: Intense competition exists in the global market with top players competing on the basis of service portfolios and capabilities.
Key Takeaways
The global System Integration Market Share is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for customized, end-to-end solutions across industries. The market size for 2023 is estimated to be US$ 491.11 Bn.
North America dominated the system integration market in 2022 and is expected to maintain its position during the forecast period. Large presence of system integrators and growing adoption of advanced technologies across enterprises is driving the market in the region. Asia Pacific is expected to grow at the fastest pace during the forecast period. Rising digital transformation initiatives coupled with growing IT spending in major Asian countries including China and India will support the market growth.
Key players operating in the system integration market are Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, Harris Corporation, and IBM Corporation. Players are engaging in mergers & acquisitions and partnerships with technology providers to strengthen their integration capabilities and service portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
