GVR Report cover Operational Technology Market Size, Share & Trends Report

Operational Technology Market Size, Share & Trends Analysis Report By Component (SCADA, DCS, PAM), By Connectivity (Wired, Wireless), By Deployment, By Enterprise Size, By Industry, By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68040-110-4
  • Number of Pages: 100
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Report Overview

The global operational technology market size was valued at USD 173.54 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2023 to 2030. The operational technology (OT) market is experiencing significant growth due to its vital role in managing critical infrastructure like power grids, water treatment plants, and manufacturing facilities. This expansion is driven by the increasing adoption of Industry 4.0, which relies on advanced technologies such as AI, big data, and IoT, necessitating real-time data collection and analysis capabilities of OT systems. Furthermore, emphasizing industrial automation to enhance efficiency and safety in manufacturing processes contributes to the market's growth.

Asia Pacific operational technology market size and growth rate, 2023 - 2030

As industrial control systems become more complex, the demand for secure and reliable OT systems has also surged, ensuring these intricate networks' protection and proper functioning. For instance, in July 2023, Stellar Cyber introduced XDR for operational technology (OT) environments. This new feature enhances their Open XDR Platform, offering organizations a unified solution to detect, analyze, and respond to threats across IT and OT networks. The platform includes OT-specific threat detection rules, provides visibility into OT networks and devices, and offers response tools like automated playbooks and manual remediation actions. This development is crucial in securing interconnected IT and OT networks, safeguarding against cyberattacks in the evolving landscape.

The rising adoption of digital technologies in the industrial sector is fueling the need for OT security. OT security aims to safeguard industrial control systems from unauthorized access, disruption, and potential damage. As digital technologies interconnect OT systems with IT networks and cyber threats become more sophisticated, the demand for OT security is on the rise. Protecting OT systems has become crucial to prevent cybercriminals from exploiting vulnerabilities, ensuring the continuity and safety of critical industrial processes such as manufacturing, power generation, and water treatment.

The COVID-19 pandemic had a positive impact on the OT market due to several factors. The increased demand for remote monitoring and control solutions led to an increased demand for remote monitoring and control solutions, which allow organizations to monitor and control their OT systems from anywhere in the world. The pandemic also raised awareness about the significance of OT security, leading to a higher demand for OT security solutions. Additionally, the acceleration of digital transformation in various industries created new opportunities for OT vendors to cater to evolving needs and requirements in the market.

The future of OT is characterized by agility, automation, and service-oriented delivery, with a strong emphasis on cybersecurity. Organizations are already implementing agile development methodologies, automated solutions for predictive maintenance, service-oriented architectures, and various cybersecurity measures to shape the future of OT. These advancements will lead to more innovative, secure, and efficient OT solutions in the coming years. As the OT systems become more complex and the threat of cyberattacks grows, the need for agility, automation, and service-oriented delivery will become more important.

Component Insights

The computer numerical control (CNC) segment led the market in 2022, accounting for over 33% share of the global revenue. The high share can be attributed to the surging demand for CNC machines in diverse manufacturing, automotive, and aerospace industries. CNC machines automate complex parts and product production, enhancing efficiency and productivity. The growth of the CNC segment is propelled by several key factors, including the rising need for automation in manufacturing, the increasing adoption of Industry 4.0 technologies, the growing demand for precision components, and the expansion of the automotive and aerospace sectors.

The building management system segment is predicted to foresee significant growth in the forecast years. This growth can be attributed to the increasing demand for energy-efficient and sustainable buildings, the rising popularity of smart buildings with remote-controllable BMSs, and the widespread adoption of IoT and digital technologies in the construction industry. BMSs play a crucial role in monitoring and controlling various building systems, such as HVAC, lighting, and security, leading to improved energy efficiency, reduced operating costs, and enhanced occupant comfort and safety. The surge in energy-efficient construction projects further boosts the demand for BMSs as they contribute to automating and optimizing building systems to conserve energy based on occupancy and weather conditions.

Connectivity Insights

The wired segment led the market in 2022, accounting for over 70% of global revenue. The growth is attributed to its reliability and security compared to wireless alternatives, making it indispensable for critical infrastructure applications. Its resistance to interference and hacking ensures the protection and stability of essential systems. Additionally, the scalability of wired networks allows for easy expansion to accommodate new devices and applications without compromising performance. Furthermore, wired technology's cost-effectiveness, requiring less infrastructure and simpler maintenance, is anticipated to maintain its growth trajectory in the foreseeable future.

The wireless segment will witness significant growth in the coming years. The increasing demand for remote monitoring and control of industrial assets is a significant driver as businesses seek more flexible and efficient solutions. Additionally, the development of new wireless technologies, particularly 5G, with higher bandwidth and lower latency, will further fuel the expansion of wireless applications in critical areas such as supervisory control and data acquisition (SCADA), distributed control systems (DCS), human-machine interfaces (HMI), industrial sensors, and predictive maintenance. These advancements are expected to propel the wireless segment's prominence as businesses embrace the benefits of reliable and innovative wireless solutions.

Enterprise Size Insights

The large enterprises segment led the market in 2022, accounting for over 69% of global revenue. The high share can be attributed to their complex and critical OT environments and greater resources for investing in OT security and compliance. The segment's growth was fueled by the increasing convergence of OT and IT infrastructure, rising demands for OT security and compliance, and the escalating number of cyber threats targeting OT systems. Businesses opted for OT solutions to achieve real-time visibility into their operations, facilitating quicker problem identification and operational efficiency improvements. These solutions also empowered better decision-making by providing valuable operational data and bolstering safety and security measures, particularly in high-risk industries.

The SMEs segment is poised for significant growth in the operational technology market. OT solutions enable SMEs to enhance efficiency and productivity by automating tasks and processes and reducing costs. Real-time data provided by OT solutions empower better decision-making, optimizing resource utilization, and maintaining a competitive edge. Additionally, SMEs benefit from improved visibility and control over operations, swiftly addressing issues and reducing risks. Enhanced customer service is another advantage, as OT solutions provide real-time data on customer interactions, facilitating quicker issue resolution and improved customer service quality.

Industry Insights

The discrete industry segment held the largest revenue share of over 59% in 2022. This growth can be attributed to the segment's diverse industries, including mining & metals, oil & gas, energy & power, chemicals, pulp & paper, and pharmaceuticals, which rely heavily on operational technology. Adopting operational technology enables these industries to automate processes and gather valuable data for optimizing their operations. Moreover, the increasing adoption of automation and digitization, the pressing need to enhance operational efficiency and productivity, adherence to safety regulations, and the importance of data collection and analysis for informed decision-making is driving the segment's growth in the market.

The process industry segment is estimated to grow significantly over the forecast period. The segment's growth is driven by the wide array of industries encompassed within the process industry, including food and beverages, oil and gas, energy and power, chemicals, and pharmaceuticals. These industries rely heavily on operational technology to control and monitor their operations. Moreover, the adoption of operational technology in the process industry segment is further fueled by its ability to enhance resource utilization, minimize downtime, and enable data-driven decision-making. As these industries continue to expand and innovate, the demand for advanced operational technology solutions is anticipated to witness substantial growth, contributing to the overall progression of the market.

Deployment Insights

The on-premises segment led the market in 2022, accounting for over 58% of global revenue. The high market share can be attributed to organizations prioritizing on-premises solutions due to the need for greater control over their OT security systems, enabling enhanced protection and customization tailored to their specific requirements. Additionally, concerns surrounding security and privacy when storing data in the cloud fueled the demand for on-premises deployments. As many OT systems are not designed for internet connectivity adds an extra layer of difficulty for potential hackers, making on-premises solutions a favored choice for businesses seeking robust and secure operational technology solutions and thus, boosting the segment's prominence.

Global operational technology market share and size, 2022

The cloud segment will witness significant growth in the coming years. Cloud-based solutions offer scalability and flexibility, allowing businesses to easily adjust their systems as needed without being constrained by physical location. Moreover, the rising concern for security in OT systems is addressed by cloud-based solutions, as they offer robust protection in secure data centers. Additionally, the growing adoption of IoT devices in OT systems fuels the demand for cloud-based solutions that efficiently manage and utilize the vast amounts of data generated, ultimately leading to enhanced operational efficiency and safety. This confluence of factors drives adoption of cloud-based solutions in the OT market.

Regional Insights

North America dominated the market in 2022, accounting for over 37% share of the global revenue. The U.S. and Canada will provide promising growth opportunities in the coming years. The region's prominent position in the market for operational technology can be attributed to its thriving industrial sectors, including manufacturing, energy, and transportation. These sectors actively embrace operational technology solutions to enhance their efficiency, safety measures, and productivity levels. Moreover, the rising adoption of cloud-based OT solutions, the flourishing growth of the Industrial Internet of Things (IIoT) market, the development of innovative OT security solutions, and the expansion of the OT market into new verticals are driving the growth of the market in the region.

Operational Technology Market Trends, by Region, 2023 - 2030

Asia Pacific is anticipated to register the fastest CAGR over the forecast period. China is anticipated to be the largest market in the region, followed by India and Japan, owing to the rising adoption of smart manufacturing technologies, the increasing demand for cybersecurity solutions, and the proactive government initiatives promoting the adoption of OT solutions. These countries possess substantial industrial sectors and strong governmental support for adopting operational technology solutions. For instance, in July 2023, Dragos, Inc., an industrial cybersecurity company, partnered with Macnica, Inc., a prominent IT distributor in Japan, to introduce Dragos, Inc's advanced OT cybersecurity solutions to Japanese enterprises. The partnership aims to enhance the protection of critical infrastructure and manufacturing control systems of businesses in Japan against cyber threats. Thus, Asia Pacific is poised to offer lucrative prospects and a dynamic landscape for advancing the market.

Key Companies & Market Share Insights

Incumbent players and startups are poised to have opportunities to gain a competitive edge in the rapidly growing and evolving market. Organic approaches include expanding product offerings, investing in technological advancements, innovating new OT system applications, and exploring new markets through geographical expansion. Moreover, inorganic strategies involve mergers, acquisitions, and strategic partnerships to quickly access innovative technologies and enter new market segments. For instance, in July 2023, Honeywell acquired SCADAfence, a prominent Internet of Things (IoT) cybersecurity solutions and operational technology (OT) provider. This acquisition aims to bolster Honeywell's OT cybersecurity portfolio and enhance its offerings for customers in the industrial and building management sectors. Moreover, Honeywell aims to strengthen its position in the cybersecurity market and deliver advanced solutions to meet the evolving needs of its customers. Some of the prominent players in the operational technology market include:

  • ABB

  • Emerson Electric Co.

  • General Electric

  • Hitachi, Ltd.

  • Honeywell International Inc.

  • IBM Corporation

  • OMRON Corporation

  • Rockwell Automation

  • Siemens

  • Schneider Electric

Operational Technology Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 190.95 billion

Revenue forecast in 2030

USD 364.74 billion

Growth Rate

CAGR of 9.7% from 2023 to 2030

Base year for estimation

2022

Historical data

2017 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Component, connectivity, deployment, enterprise size, industry, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan; Australia; South Korea; Brazil; KSA; UAE; and South Africa.

Key companies profiled

 

ABB; Emerson Electric Co.; Fortinet, Inc.; Forcepoint; General Electric; Honeywell International Inc.; Huawei Technologies Co., Ltd.; IBM Corporation; Rockwell Automation; Schneider Electric.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Operational Technology Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global operational technology market report based on component, connectivity, deployment, enterprise size, industry, and region.

  • Component Outlook (Revenue, USD Billion, 2017 - 2030)

    • Supervisory Control and Data Acquisition (SCADA)

      • Programmable Logic Controller (PLC)

      • Remote Terminal Units (RTU)Human-Machine Interface (HMI)

      • Others

    • Distributed Control System (DCS)

    • Manufacturing Execution System Market

    • Functional Safety

    • Building Management System

    • Plant Asset Management (PAM)

    • Variable Frequency Drives (VFD)

    • Computer Numerical Control (CNC)

    • Others

  • Connectivity Outlook (Revenue, USD Billion, 2017 - 2030)

    • Wired

    • Wireless

  • Deployment Outlook (Revenue, USD Billion, 2017 - 2030)

    • Cloud

    • On-premises

  • Enterprise Size Outlook (Revenue, USD Billion, 2017 - 2030)

    • SMEs

    • Large Enterprises

  • Industry Outlook (Revenue, USD Billion, 2017 - 2030)

    • Process Industry

      • Oil & Gas

      • Chemicals

      • Pulp & Paper

      • Pharmaceuticals

      • Mining & Metals

      • Energy & Power

      • Others

    • Discrete Industry

      • Automotive

      • Semiconductor & Electronics

      • Aerospace & Defense

      • Heavy Manufacturing

      • Others

  • Regional Outlook (Revenue, USD Billion, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Australia

    • Latin America

      • Brazil

      • Mexico

    • MEA

      • Kingdom of Saudi Arabia

      • UAE

      • South Africa

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