The digitalization and centralization of enterprise processes have driven many companies to adopt financial and distributed information technologies. As the world embarks on the journey of digital transformation, disruptive forces are becoming increasingly prevalent across nearly every industry. As a result, companies are seeking ways to integrate their critical services and processes into a unified stack.
System integration allows enterprises to organize a wide range of software and hardware components into a cohesive ecosystem. This approach is becoming more valuable than ever before. The expansion of the system integration market is evident, and its importance is growing globally.
Growing Adoption of NGOSS: Conventional business support systems and operations face challenges related to security issues, long process cycles, and low data accuracy. Service providers in the system integration market are deploying New-Gen Operations Systems and Software (NGOSS) to address these challenges. Telecom operators are strategically incorporating NGOSS to facilitate integration with innovative Internet Protocol (IP) based frameworks, potential use cases, and enhanced customer service and support. NGOSS enables mobile network operators (MNOs) to streamline their enterprise processes, particularly from service quality and resource performance perspectives. Furthermore, NGOSS helps MNOs handle operations swiftly and allows these processes to grow independently.
Europe remains one of the largest markets for system integration vendors. The European Union (EU) has rolled out innovative strategies for energy system integration, which are key investment cornerstones of the Green Deal and the post-pandemic rebound in Europe. Additionally, the EU is investing in new technology and trial projects to establish 5G ecosystems in Europe. These projects focus on creating a top-notch European supply chain for 5G hardware and serve use cases in trans-border automated and connected mobility.
In Asia Pacific (APAC), the system integration market is experiencing robust growth and is projected to surpass Europe's market in the coming years. Supportive government initiatives such as financial aid and subsidies have benefited SMEs in the region. For instance, the Make in India initiative emphasizes offering subsidies to SMEs, fostering the adoption of system integration services in the industrial automation domain. China’s five-year plan aims to provide internet connectivity to rural and underserved areas. Additionally, the availability of cost-effective labor and raw materials is encouraging international players to outsource activities like business knowledge processing and consulting to APAC-based companies.
In Latin America, the deployment of system integration services is accelerating, driven by increasing energy demands and the prioritization of energy supply and demand assessments. The International Atomic Energy Agency (IAEA) has introduced a regional technical cooperation project to validate the benefits of sub-regional energy integration, such as greater energy security, reduced expenses, and stricter environmental controls. Mexico is a significant player in the Latin American system integration market.
Infrastructure System Integration Services Continue to Lead: Infrastructure system integration services continue to dominate the global system integration market in terms of revenue share and growth rate, driven by the widespread utilization of cloud-based and network management services. Infrastructure system integration is cost-efficient, allowing various end users to leverage single hardware, making it a viable option for organizations with limited capital resources. Building management system integration holds a significant value share, as it is crucial for organizations across various sectors. These services analyze mechanical and electrical equipment such as ventilation, elevators, and lighting. Application integration and configuration services are also expected to see significant adoption due to the increasing number of cloud-based and mobile applications.
Large Enterprises Account for Most Installations: The majority of system integration services are deployed in large enterprises, and this trend is expected to grow. The emergence of cloud-based models as a cost-effective option has triggered the adoption of system integration services among small and medium-sized enterprises (SMEs). Cloud-based models help save costs and eliminate the need for physical hardware investments. Service providers are integrating cloud with system integration to reach a broader customer base. Deployment of system integration services in SMEs is expected to register substantial year-on-year growth, benefiting the system integration market.
IT & Telecom Industry Holds Sway: A significant portion of the system integration market revenue comes from the IT and telecom industry, driven by the penetration of 4G services and the emergence of 5G infrastructure. The increasing number of telecom subscribers using smartphones and other handheld devices will positively influence the adoption of system integration services in the IT and telecom industry. The demand for system integration services will also remain substantial from the energy and utilities and government and defense industries, with significant growth expected in the former.
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System integration allows enterprises to organize a wide range of software and hardware components into a cohesive ecosystem. This approach is becoming more valuable than ever before. The expansion of the system integration market is evident, and its importance is growing globally.
System Integration Market Trends
Cloud Computing as a Cost-effective Solution: Modernizing a company’s IT infrastructure is more than just acquiring new technologies. To enhance modernization, market players must assist customers in shifting specific workflows and use cases to the cloud, such as procurement, enterprise resource planning (ERP), payroll, and supply chain management solutions. Cloud-based models are vital for business transformations and are the preferred deployment model for modernizing existing IT infrastructure. Investments in cloud computing have risen, offering economies of scale while securing companies' confidential data in sync. The global cloud computing market is experiencing steady growth, particularly in public cloud services spending.Growing Adoption of NGOSS: Conventional business support systems and operations face challenges related to security issues, long process cycles, and low data accuracy. Service providers in the system integration market are deploying New-Gen Operations Systems and Software (NGOSS) to address these challenges. Telecom operators are strategically incorporating NGOSS to facilitate integration with innovative Internet Protocol (IP) based frameworks, potential use cases, and enhanced customer service and support. NGOSS enables mobile network operators (MNOs) to streamline their enterprise processes, particularly from service quality and resource performance perspectives. Furthermore, NGOSS helps MNOs handle operations swiftly and allows these processes to grow independently.
Europe remains one of the largest markets for system integration vendors. The European Union (EU) has rolled out innovative strategies for energy system integration, which are key investment cornerstones of the Green Deal and the post-pandemic rebound in Europe. Additionally, the EU is investing in new technology and trial projects to establish 5G ecosystems in Europe. These projects focus on creating a top-notch European supply chain for 5G hardware and serve use cases in trans-border automated and connected mobility.
In Asia Pacific (APAC), the system integration market is experiencing robust growth and is projected to surpass Europe's market in the coming years. Supportive government initiatives such as financial aid and subsidies have benefited SMEs in the region. For instance, the Make in India initiative emphasizes offering subsidies to SMEs, fostering the adoption of system integration services in the industrial automation domain. China’s five-year plan aims to provide internet connectivity to rural and underserved areas. Additionally, the availability of cost-effective labor and raw materials is encouraging international players to outsource activities like business knowledge processing and consulting to APAC-based companies.
In Latin America, the deployment of system integration services is accelerating, driven by increasing energy demands and the prioritization of energy supply and demand assessments. The International Atomic Energy Agency (IAEA) has introduced a regional technical cooperation project to validate the benefits of sub-regional energy integration, such as greater energy security, reduced expenses, and stricter environmental controls. Mexico is a significant player in the Latin American system integration market.
Infrastructure System Integration Services Continue to Lead: Infrastructure system integration services continue to dominate the global system integration market in terms of revenue share and growth rate, driven by the widespread utilization of cloud-based and network management services. Infrastructure system integration is cost-efficient, allowing various end users to leverage single hardware, making it a viable option for organizations with limited capital resources. Building management system integration holds a significant value share, as it is crucial for organizations across various sectors. These services analyze mechanical and electrical equipment such as ventilation, elevators, and lighting. Application integration and configuration services are also expected to see significant adoption due to the increasing number of cloud-based and mobile applications.
Large Enterprises Account for Most Installations: The majority of system integration services are deployed in large enterprises, and this trend is expected to grow. The emergence of cloud-based models as a cost-effective option has triggered the adoption of system integration services among small and medium-sized enterprises (SMEs). Cloud-based models help save costs and eliminate the need for physical hardware investments. Service providers are integrating cloud with system integration to reach a broader customer base. Deployment of system integration services in SMEs is expected to register substantial year-on-year growth, benefiting the system integration market.
IT & Telecom Industry Holds Sway: A significant portion of the system integration market revenue comes from the IT and telecom industry, driven by the penetration of 4G services and the emergence of 5G infrastructure. The increasing number of telecom subscribers using smartphones and other handheld devices will positively influence the adoption of system integration services in the IT and telecom industry. The demand for system integration services will also remain substantial from the energy and utilities and government and defense industries, with significant growth expected in the former.
System Integration Market: Competitive Analysis
The global system integration market is highly consolidated, with leading players accounting for a substantial revenue share. Players in the market are focusing on launching innovative solutions and services and investing in strategic mergers and acquisitions (M&A) to help end users modernize and digitalize their organizations.Market Segmentation
By Service Type
- Infrastructure System Integration
- Building Management System Integration
- Security System Integration
- Network Integration
- Data Center Infrastructure Integration
- Cloud Infrastructure Integration
- Others
- Software System Integration
- Application Integration & Configuration
- Data Integration
- Technology Integration
- Middleware Integration
- Others
By Enterprise Size
- Small & Medium Enterprises
- Large Enterprises
By Industry
- BFSI
- Retail & CPG
- IT & Telecom
- Healthcare
- Manufacturing
- Government & Defense
- Energy & Utilities
- Others
by Region
- North America
- Latin America
- Europe
- East Asia
- Southeast Asia Pacific
- Middle East and Africa (MEA)
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Table of Contents
1. Executive Summary
2. Market Overview
3. Global System Integration Market Outlook, 2019-2031
4. North America System Integration Market Outlook, 2019-2031
5. Europe System Integration Market Outlook, 2019-2031
6. Asia Pacific System Integration Market Outlook, 2019-2031
7. Latin America System Integration Market Outlook, 2019-2031
8. Middle East & Africa System Integration Market Outlook, 2019-2031
9. Competitive Landscape
10. Appendix
Companies Mentioned
- Accenture
- Capgemini
- IBM Corporation
- Cisco Systems, Inc.
- Cognizant
- Fujitsu Limited
- DXC Technology
- HCL Technologies
- Tata Consultancy Services
- Wipro Limited
- Deloitte
- Infosys
- Tech Mahindra Limited
