System Integration Market Size, Share, & Trends Analysis Report By Services (Application Integration, Consulting), By End-use (BFSI, Oil & Gas, Retail), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global system integration market was valued at USD 353.92 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. Rising public and private investments in system integration solutions for the enhancement of Information Technology (IT) infrastructure are driving the system integration market growth. The increasing need for eradicating the diversity, and heterogeneity, of vital applications used in infrastructure, is expected to drive the system integration market over the forecast period. The outbreak of COVID-19 had an adverse impact on the system integration industry across the globe. However, from early 2021 onwards, rapid digitization and a rise in public & private investments in infrastructure development boosted the demand for project management and system integration solution.

System integration brings disparate processes together and enables smarter organizational operations. Organizations are realizing the importance of system integration as enterprise complexity affects their profitability and competitive ability. System integration technologies provide enterprises with cost-effective, centralized, and integrated solutions for their IT infrastructure. Increasing users of information technology is one of the key factors driving the growth of the system integration market. According to the U.S. Bureau of Labor Statistics, employment in computer-related occupations is expected to increase by 15% by 2031. Therefore, system integration is gaining popularity across various industries and sectors, such as defense, marine systems, telecommunication and IT, aviation, oil & gas, banking, and healthcare.

Various international government-authorized organizations are taking supportive initiatives to increase cross-border investments and strengthen global business operations. Global organizations such as World Trade Organization (WTO), United Nations Organization (UNO), and World Economic Forum (WEF) are launching their digital infrastructure solutions to attract foreign investment. For instance, in May 2022, World Economic Forum (WEF) collaborated with Digital Cooperation Organization (DCO) to commence the digital FDI program to attract public & private investments in developing countries and emerging markets. The company is planning to establish its first Digital FDI system in Nigeria. These initiatives by international organizations are expected to propel the demand for system integration solutions to improve the payment system and implement a flexible system framework, allowing investors to expand their business in the respective regions.

The companies operating in the system integration market are partnering with technology providers to improve their product portfolio. For instance, in October 2022, Infosys Limited announced the collaboration with CIRCOR International, a leading provider of control products and services for the industrial and aerospace & defense industries, to transform its IT infrastructure, user support applications, and service desk. With strong system integration and automation capabilities, Infosys would transform CIRCOR’s IT services by deploying Service Level Agreements (SLA)-managed IT services, and bring agility into business operations to modernize the cloud landscapes and local data centers.

The challenges faced in the system integration market include difficulty integrating legacy systems with emerging technologies and a lack of technologically skilled personnel to operate sophisticated equipment. Further, system integration requires a standard network infrastructure for efficient operation. The lack of network infrastructure has resulted in the deferred demand for system integration. Moreover, significant growth in the app economy has resulted in a rapid increase of disparate applications deployed across various environments such as cloud and on-premise. These factors are expected to restrict the industry growth over the forecast period.

Services Insights

The infrastructure integration segment accounted for a market share of over 36% in 2022. Infrastructure integration is estimated to witness healthy growth over the next few years, ascribing to the rising need to provide a unified IT infrastructure that is resilient, agile, and secure while keeping a close eye on costs. In addition, the complex business environment has prompted enterprises to continually evolve and adapt to new IT infrastructure. This is expected to drive demand for infrastructure integration over the coming years. Various market players are collaborating with engineering services providers for the development of effective infrastructure integration solutions in smart city projects. These players are outsourcing their infrastructure integration testing services to improve the overall system performance.

The consulting segment is expected to expand at a significant CAGR of 14.6%. This can be attributed to the rising need for enterprises to assist users in designing their Business Continuity & Disaster Recovery Planning (BCP & DRP) as well as conducting rehearsals for effective and efficient workflow. The system integration solution provider offers consulting services to assist clients in the effective digital integration of their services and modernize their IT systems. In December 2021, ICT integration specialist firm, Praruh introduced a system integration portfolio across various spectrums such as data center, application, networking, security, and storage. The company will also offer consulting services for efficient usage of the newly launched system integration solutions as well as post-integration troubleshooting and support.

End-use Insights

The Banking, Financial Services, and Insurance (BFSI) segment held a market share of over 19% in 2022. System integration enables safe, quick, and smooth banking operations by building an IT infrastructure to address critical requirements of the banking sector. Various companies operating in BFSI sectors collaborate with system integrators to expand their banking services & enrich their brand representation, thereby driving the system integration demand in the BFSI sector. Further, the proliferation of neo-banking services, rising fintech startups, significant demand for banking-as-a-service (BaaS), and shifting various governments' focus toward the digital economy are vital factors accelerating the system integration market growth in the BFSI sector. The COVID-19 pandemic has propelled the adoption of digital payment systems due to the adverse impact on offline banking services, contributing towards market expansion.

The IT & telecom segment is anticipated to grow at a significant CAGR of 16.2% over the forecast period. The surge in system integration solutions’ expenditure by key players has enhanced the management of IT infrastructure and has considerably exterminated redundancies. Furthermore, system integration aids the integration of hardware and software solutions sourced from a large pool of IT players. Increasing demand for telecommunications systems to improve network coverage is encouraging various telecom companies to enrich their business operations. For instance, in November 2021, Telenor partnered with Google Cloud to digitally transform the current infrastructure of Telenor and integrate AI & ML to enhance its technical capabilities. With the partnership, Telenor, through system integration solutions, will be able to manage its connected devices, improve 5G services and achieve holistic transparency.

Regional Insights

North America held a market share of over 35% in 2022, owing to the rising use of IoT in industrial automation and the growing adoption of cloud-based services among large organizations. Moreover, the BFSI sector in the region has embraced modern-day technology, which presents significant growth prospects for the system integration market in North America. To this end, banks are taking considerable care to ensure they meet every client’s requirement. For instance, according to Bank of America, 70% of its customers use digital services for their financial needs. It can help the bank to develop its client base and stay competitive in the market. The migration of organizations to these services will increase the demand for system integration services in the region during the forecast period.

The Asia Pacific system integration market is anticipated to rise as the fastest developing regional market at a CAGR of 15.5%, owing to the rapid growth of the Asian economies resulting in increasing investments in system integration. Furthermore, there is a growing demand for network integration services due to the expanding IT & telecom sector in India, Singapore, South Korea, and China. Key market players in the region are establishing a strategic partnership for business development which is expected to propel industry growth. For instance, in March 2022, tech Mahindra Limited announced a partnership with Bharti Airtel, a telecommunication service provider, to build innovative solutions for India’s economy. With this partnership, both companies bring enterprise-grade private networks, which would focus on Ariel’s integrated connectivity portfolio of 5G mobile network, SDWAN, fiber, and IoT, along with Tech Mahindra’s system integration capabilities.     

Key Companies & Market Share Insights

Market players are observed to invest resources in research & development activities to support growth and enhance their internal business operations. Companies can be seen engaging in mergers & acquisitions, and partnerships to further upgrade their products and gain a competitive advantage in the market. They are effectively working on new product development and enhancement of existing products to acquire new customers and capture more market shares.

In March 2022, Cisco Systems, Inc. announced that its new Cisco Intersight platform integrations with public cloud integration would enable multi-cloud observability for Kubernetes clusters and virtual machines. The company also launched Cisco HyperFlex Hyper-Converged Infrastructure to improve edge computing and expand the user’s hybrid cloud capabilities. This would help the company speed up the delivery of infrastructure and applications for cloud integrations. Further, in July 2021, Capgemini announced a collaboration with Qualcomm, a wireless technology company, to develop solutions and services that would help organizations unveil the benefits of 5G private networks and help them in their digital transformation journeys. Under the collaboration, Capgemini would play the role of a system integrator, utilizing Qualcomms’ 5G private network system to enable clients’ business transformations and expand the benefits of 5G. Some of the prominent players in the global system integration market include:

• Accenture

• Capgemini

• Fortinet, Inc.

• Cisco Systems, Inc.

• Cognizant

• Deloitte Touche Tohmatsu Limited

• International Business Machines Corporation

• Infosys Limited

• Tata Consultancy Services Limited

• Tech Mahindra Limited

Recent Developments

• In February 2023 Schneider Electric, Capgemini, and Qualcomm Technologies, Inc. announced a revolutionary 5G-enabled automated hoisting solution. The project involved the replacement of traditional wired connections with a cutting-edge wireless 5G Private Network solution, streamlining digital technology deployment at scale across industrial sites. this collaboration simplifies and optimizes digital technology deployment across industrial sites, showcasing significant advancements in system integration

• In June 2023, Cisco launched a new Security Service Edge (SSE) solution enabling seamless and secure access across any location, device, and application. The service addresses challenges like inconsistent access experiences and enhances productivity by intelligently steering traffic to both private and public destinations, eliminating the need for end-user intervention and streamlining access management for enhanced efficiency

• In April 2022, Fortinet announced FortiOS 7.2 its upgraded flagship operating system and the foundation of the Fortinet Security Fabric. This release focuses on addressing the challenges of securing and managing hybrid networks across on-premises, multiple edges, and the cloud. FortiOS 7.2 introduces advanced AI-powered FortiGuard Security Services, natively integrated within the Fortinet Security Fabric, enhancing overall security measures

• In April 2021, Cisco and NEC announced an expanded strategic partnership aimed at advancing the global deployment of 5G IP transport networks. The collaboration entails joint efforts to explore and develop new business opportunities related to 5G technology. As part of this partnership, NEC group companies will closely collaborate with Cisco to enhance NEC's ecosystem through optimized IP metro/access transport and edge cloud computing solutions

• In June 2021, Deloitte made a significant move by acquiring Aptys Consulting, integrating it into Deloitte's SAP business, and rebranding it as 'Aptys, a Deloitte business.' This strategic acquisition aimed to strengthen Deloitte's dominant position in the SAP market. By adding a new Center of Excellence focused on "SAP Ariba" and leveraging Aptys Consulting's expertise, Deloitte reinforced its capabilities in system integration and set the stage for overall growth in the industry

• In July 2021, Qualcomm Technologies, Inc., and Capgemini announced a collaboration aimed at leveraging 5G private networks to facilitate clients' digital transformation towards Intelligent Industry. Capgemini serves as a systems integrator, providing clients with access to pre-validate and fully tested off-the-shelf private network solutions. This partnership aimed to accelerate businesses' adoption of 5G technology, enhancing operational efficiency and driving innovation in various industries

System Integration Market Report Scope

Global System Integration Market 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 2018 to 2030. For this study, Grand View Research has segmented the system integration market report based on services, end-use, and region:

• Services Outlook (Revenue, USD Billion, 2018 - 2030)

  • Infrastructure Integration

  • Application Integration

  • Consulting

• End-use Outlook (Revenue, USD Billion, 2018 - 2030)

  • IT & Telecom

  • Defense & Security

  • BFSI

  • Oil & Gas

  • Healthcare

  • Transportation

  • Retail

  • Others ( Food & Beverages, Automotive, Government)

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • South Africa

    • Saudi Arabia