System Integration Market Size, Share & Trends Analysis Report By Services (Infrastructure Integration, Application Integration, Consulting ), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global system integration market size was valued at USD 327.70 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 13.2% from 2022 to 2030. The rising advancements in cloud technologies, increasing use of the Internet of Things (IoT), and rising investment in distributed information technology systems (telecommunication networks and real-time process control), are a few factors contributing to the growth of this industry. The COVID-19 outbreak has thrown light on weakness in business models across verticals. However, it has offered several opportunities to digitize and expand the business across regions by adopting technologies such as cloud, Artificial Intelligence (AI), and IoT. With the considerable control achieved over the pandemic, various sectors such as retail, manufacturing, and automotive, are expected to witness rising investments as system integration solutions grow in prominence across different business functions.

With the increasing customer base and expansion of new regions and markets, organizations face many challenges dealing with rapidly growing data sources. The advent of big data technology offers benefits to organizations in implementing big data with full potential, which includes data integration. Moreover, organizations require advanced data integration tools to combine the information silos, which help get valuable business insights. These advanced tools are equipped with novel features, such as data capture, data profiling, and metadata management, to process data post-integration, resulting in smooth and reliable data extraction. These tools have resulted in increased demand for reduced complexity of business processes and creating opportunities for the market.

The rising consumer inclination towards virtualization is also anticipated to be one of the key driving factors for the growth in the market. Virtualization ensures the simultaneous execution of multiple applications and enables a user to perform various other tasks at the same time on the same server. It reduces additional IT operating costs and ensures increased computer hardware utilization, flexibility, and efficiency. Furthermore, data virtualization software provides the idea of a database, where the data is to be stored and integrated. Therefore, several companies are considering the integration of their data and adopting virtualization technologies to procure added advantages.

The increasing adoption of cloud computing, rapid growth of sSmall & Medium Enterprises (SMEs), and the demand for low-cost and energy-efficient production processes is driving the product adoption. Moreover, several companies are developing softwares to provide asset management solutions for IT infrastructure management. For instance, in September 2020, Automated Logic announced a partnership with Nlyte Software, a Data Center Infrastructure Management (DCIM) software provider, to introduce an Integrated Data Center Management (IDCM) solution. This integration is expected to help data center customers to enable additional energy savings, improve uptime, and reduce costs. This increase in adoption of cloud data integration platforms among different industry verticals is expected to bolster the system integration market in the times to come.

Increasing need to integrate data and services in private clouds has boosted the demand for system integration. Cloud-based solutions are ideal for organizations as they help them use their resources in an optimum manner and save them the cost of installing physical network systems. They help bring out the maximum productivity of the organization. These solutions are gaining immense popularity among end-users as they help in the smooth streamlining of processes and execution of different strategies in a cost-effective manner.

Services Insights

The infrastructure integration segment accounted for a market share of over 35% in 2021. The segment growth can be attributed to the need for converged Information and Communication Technology (ICT) infrastructure and enhanced business process efficiency. It allows multiple users to use single hardware and is thus a cost-effective option for various organizations with less capital to invest in hardware. Moreover, robust investments in building fifth-generation infrastructure, coupled with the growing need to set up a 5G-enabled ecosystem are expected to propel the segment’s growth over the forecasted period. This process will help enterprises to work as a centralized platform that will assist in reducing overall complexity.

In addition to above, the application integration segment is expected to grow at a significant CAGR of 12.4%. The trend of cloud applications in the IT industry is predicted to drive the segment’s growth. These systems were built separately to work together, resulting in new capabilities and efficiencies that reduce operational costs and enhance workflow and efficiency. It helps bridge the gap between existing on-premises systems and fast-evolving cloud-based enterprise applications. Furthermore, application integration continues to become mainstream, as several enterprises are considering the extraction capabilities for getting valuable insights from big data, which is opportunistic for the segment’s growth.

End-use Insights

The Banking, Financial Services, and Insurance (BFSI) segment held a market share of over 15% in 2021. The digitization in the BFSI sector is likely to drive demand for high-quality system integration services. With the increasing use of digital payment methods, there is a greater need for effective data management systems to store the expanding volumes of data. For instance, in August 2021, BlocPal International Inc., a digital transaction platform, launched a unique physical and digital (phydigital) financial services marketplace with its Indian subsidiary mBnk, a digital platform that offers retailers and consumers a solution for BFSI services. This new marketplace is likely to provide digital financial services with physical on-the-ground retailers. It will also reportedly increase mBnks’ brick and mortar retailer network to help drive financial inclusion in India’s communities.

The healthcare segment is anticipated to grow at a significant CAGR of 12.0% over the forecast period. The segment growth can be attributed to the increased use of connected care technologies during the COVID-19 pandemic and the rapid adoption of Electronic Health Records (EHR). The connected care technologies have proven to be very helpful as they allow healthcare providers to monitor patients using digitally connected noninvasive devices such as home blood pressure monitors and pulse oximeters. Moreover, several hospitals will continue to focus on building their capabilities by integrating various hospital systems with EHR in the upcoming years, thereby creating growth opportunities for the healthcare segment. For instance, Cerner Corporation, a health information technology services provider, has integrated its EHR platform with telehealth capabilities, which helps improve patient access to healthcare from home.

Regional Insights

Geographically speaking, North America held a market share of over 35% in 2021 owing to the rising use of IoT in industrial automation and the growing adoption of cloud-based services among SMEs and large organizations. Moreover, the BFSI sector in the region has embraced modern-day technology, which presents significant growth prospects for the market in North America. To this end, banks are taking considerable care to ensure that 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.

Asia Pacific is anticipated to rise as the fastest developing regional market at a CAGR of 14.9% supported bythe rapid growth of the Asian economies resulting in increased investments in systems 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. The government of these countries is focusing on strengthening the network infrastructure to ensure economic growth. For instance, in September 2018, the Indian government introduced the National Digital Communications Policy to attract USD 100 billion worth of investment in the IT & telecom sector by 2022 and accelerate the transition to Industry 4.0 by 2022.

Key Companies & Market Share Insights

Market players are focusing on investing in 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. For instance, in February 2022, Accenture implemented a cloud-based core IT platform for Astellas Pharma Inc., a multinational pharmaceutical company that provides advanced and data-driven management models for the company’s global operations. This platform enables Astellas to rapidly incorporate new and emerging technologies, accommodate business expansions such as mergers and acquisitions, and quickly deploy business continuity plans. Some of the prominent players operating in the global system integration market include:

• Accenture

• Capgemini

• Oracle Corporation

• Cisco Systems, Inc.

• Cognizant

• Deloitte Touche Tohmatsu Limited

• International Business Machines Corporation

• Infosys Limited

• Tata Consultancy Services Limited

• Tech Mahindra Limited

System Integration Market Report Scope

Segments Covered in the Report

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 system integration market based on services, end use, and region:

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

  • Infrastructure Integration

  • Application Integration

  • Consulting

• End-use Outlook (Revenue, USD Billion, 2017 - 2030)

  • IT & Telecom

  • Defense & Security

  • BFSI

  • Oil & Gas

  • Healthcare

  • Transportation

  • Retail

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa