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The industrial services market size is estimated to grow at a CAGR of 6.06% between 2023 and 2028. The market size is forecast to increase by USD 14.58 billion. The growth of the market depends on several factors, such as the lack of technical expertise, the increasing industrial plant complexities, and the caters to a wide range of industrial services applications. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
Industrial Services Market Forecast 2024-2028
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In today's business landscape, advanced technologies drive innovation and shape the competitive environment. With growing demand for cutting-edge solutions, industries have become highly competitive, prompting companies to prioritize increasing adoption of these technologies. Amidst this competition, ensuring robust cybersecurity measures is paramount to safeguard sensitive data. Additionally, offering specialized services tailored to specific needs further strengthens market positioning. Effective market research and growth strategies facilitate informed decision-making and enable businesses to anticipate shifts in demand. By leveraging market forecasting insights, organizations can stay ahead of trends and capitalize on emerging opportunities.
Industrial services provide a broad range of applications, including programmable logic controllers, distributed control systems, human-machine interfaces, manufacturing execution systems, as well as industrial robotics applications, to end-users. In addition, these applications help in improving every aspect of the manufacturing facility besides enhancing the life of equipment and systems in the manufacturing industry.
For instance, the use of distributed control systems minimizes installation costs and increases reliability for end-users by localizing control functions close to the process plant and facilitating remote supervision and monitoring. Moreover, distributed control systems enable centralized control of the system, as well as monitoring and reporting from a central individual component. Furthermore, this improves the overall efficiency of equipment and systems in the manufacturing facility. Hence, such factors are driving the market growth during the forecast period.
Industrial services including engineering and consulting services provide support to various complex projects across industries. In addition, this helps end-user industries in assigning their enterprise resources to core tasks for better operational efficiency. In addition, this provides opportunities and flexibility to end-users in using resources such as engineering and sourcing only if and when the need arises.
Moreover, this further optimizes the overall investments of end-users. As a result, buyers can focus on their core competencies rather than on other ancillary tasks, which may not result in optimal productivity and returns on investment (ROI). In addition, the inherent flexibility that provides helps end-user industries in sourcing knowledge and technicians from across the globe to improve the quality and efficiency of tasks. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
The lack of end-to-end processes and quality control while delegating critical business processes and tasks to industrial services providers is one of the significant challenges that hinder global market growth. In addition, with the deployment of industrial services, end-users fear losing sight of business processes and control across the value chain.
Moreover, the lack of quality control and assurance and compliance and quality issues related to industrial services is a crucial challenge for the overall market. In addition, industrial services, including engineering services, may comprise the management, implementation, and maintenance of important business functions, applications, and data. However, low-quality products may eventually result in the infringement of the rights of concerned stakeholders, such as customers of the buyers/end-users in the market. Hence, such factors are hindering the market growth during the forecast period.
In the industrial sector, predictive maintenance has emerged as a game-changer, with service providers offering innovative solutions to optimize operations. As businesses transition to digital platforms, the landscape has become highly competitive, driving the increasing adoption of predictive maintenance technologies. Ensuring robust cybersecurity measures is essential to protect sensitive data and maintain trust. Monitoring market trends and conducting thorough market growth analysis enables companies to stay agile and responsive. By leveraging insights from market growth and forecasting, organizations can capitalize on emerging opportunities and stay ahead in the dynamic market.
The engineering and consulting segment is estimated to witness significant growth during the forecast period. This segment is helping end-users including the automotive industry to enhance the efficiency and quality of products and services, as well as developing the necessary infrastructure that facilitates to running of manufacturing processes efficiently. In addition, to enhance the quality and improve the efficiency of the process to increase the value of the product and reduce the overhead costs, industrial services such as engineering services help companies in the industries, including the oil and gas sector, to use technical expertise.
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The engineering and consulting segment was the largest segment and was valued at USD 16.40 billion in 2018. Moreover, due to the fact that infrastructure projects are often big and complex in view of adding value for their customers, there has been an increasing demand for engineering service providers services when designing, planning, or executing urban infrastructure projects. Furthermore, innovation in the engineering services sector has been stimulated as suppliers develop new and more effective methods of designing and building infrastructures due to the growing demand for building infrastructure. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on the end-user, the segment is classified into oil and gas, chemicals, aerospace, automotive, food and beverages, and others. In the oil and gas segment, the increasing need to minimize unanticipated downtime is expected to increase the demand. In addition, the demand for this is expected to increase further as companies operating in the oil and gas segment are facing the significant challenges of frequent fluctuations in global oil prices. Moreover, in the oil and gas industry, there is a tremendous need for optimizing operational efficiency, which, in turn, is expected to fuel the demand for industrial services in this segment. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The market encompasses a wide range of essential offerings tailored to support various industries. From maintenance and repair to equipment installation and industrial cleaning, these services ensure smooth operations and optimal functionality. Facility management and technical support further enhance efficiency, while asset management and industrial automation streamline processes. Providers also offer calibration services and plant optimization to maintain peak performance levels. Additionally, engineering solutions and inspection services ensure quality and compliance, while energy management and supply chain logistics drive sustainability and cost-effectiveness. Industrial training, environmental services, and waste management are vital for safety and environmental compliance. Overall, the market plays a crucial role in maintaining quality, efficiency, and compliance across various industries.
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APAC is estimated to contribute 39% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. There is an increasing preference by several manufacturers in APAC to simplify complex production processes and improve operational efficiency. As a result, these factors are significantly contributing to the growth of the market in APAC. In addition, with the increase in the scale of operations across industries, the supply chain becomes more complex.
Hence, established market players are collaborating with system integrators to provide automation services to increase their market reach and, in turn, consolidate the highly fragmented industrial automation services market in APAC. Furthermore, the automotive industry in APAC is expected to contribute substantially to the growing demand for industrial services including project engineering and consulting. Hence, such factors are fuelling the growth of the market in APAC during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB SKF: The company offers a wide range of products such as bearings and units, seals, lubrication solutions, and maintenance services for industries worldwide.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Bilfinger SE, Eaton Corp. Plc, EMCOR Group Inc., Emerson Electric Co., General Electric Co., Honeywell International Inc., Intech Environmental Ltd., John Wood Group PLC, Leadec Holding BV and Co. KG, Metso Outotec Corp., Mitsubishi Heavy Industries Ltd., Rockwell Automation Inc., SAMSON AG, Schneider Electric SE, Siemens AG, USES Group, Worley, and Yokogawa Electric Corp
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.06% |
Market Growth 2024-2028 |
USD 14.58 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.67 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB SKF, ABB Ltd., Bilfinger SE, Eaton Corp. Plc, EMCOR Group Inc., Emerson Electric Co., General Electric Co., Honeywell International Inc., Intech Environmental Ltd., John Wood Group PLC, Leadec Holding BV and Co. KG, Metso Outotec Corp., Mitsubishi Heavy Industries Ltd., Rockwell Automation Inc., SAMSON AG, Schneider Electric SE, Siemens AG, USES Group, Worley, and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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