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The industrial services market size is estimated to grow by USD 14.58 billion at a CAGR of 6.06% between 2023 and 2028. Market growth is influenced by several factors, including the scarcity of technical expertise, the mounting complexities in industrial plant operations, and the broad spectrum of industrial service applications it serves. These variables collectively shape the trajectory of market expansion, reflecting a blend of skill gaps, operational challenges, and market versatility. The shortage of technical expertise underscores the importance of knowledge acquisition and skill development in meeting industry demands effectively. Simultaneously, the growing intricacies within industrial plant environments highlight the need for innovative solutions and specialized services. Additionally, the market's ability to cater to diverse industrial service applications underscores its adaptability and relevance across various sectors. Thus, the interplay of these factors delineates the landscape for the anticipated growth of the market in addressing industrial needs.
Market Forecast 2024-2028
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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.
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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.
The market is witnessing a transformative shift with the advent of the Internet of Things (IoT), machine learning, and Artificial Intelligence (AI). Predictive maintenance services are revolutionizing the way industrial businesses manage their assets, ensuring optimal performance of finished goods. The convergence of cloud computing and the Industrial Internet of Things is enhancing efficiency across industrial processes, while human-machine interfaces (HMI) facilitate seamless interaction. In sectors like the automotive sector and offshore services, specialized providers leverage digital technologies for drilling and completion services, well maintenance and intervention, and pipeline inspection, Financial barrier and maintenance. With data analytics driving insights, the market is poised for continuous innovation and growth in the era of Industry 4.0.
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.
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 research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2023 for the following segments.
In the market, companies specializing in asset management, engineering & consulting, and installation & commissioning play a pivotal role in enhancing operational efficiency. Leveraging technological expertise in automation systems and asset integrity management, they offer operational improvement & maintenance services, mitigating risks associated with economic fluctuations and financial barriers. Through innovative solutions like digital twins and IoT (Internet of Things) integration, they optimize asset lifecycle services and enable predictive maintenance. Industries ranging from mining to pharmaceuticals benefit from distributed control systems (DCS) and programmable logic controllers (PLCs) applications, while advancements in AI (Artificial Intelligence) drive efficiencies in industrial robots and AI-enabled asset management. Addressing challenges such as water scarcity, specialized service providers offer compelling value propositions to meet evolving market demands. Pipeline inspection and maintenance procedures are increasingly integrating DCS applications to streamline monitoring and control processes, ensuring efficient and reliable operations.
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 Forecasting, 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 market 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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