PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1882995
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1882995
The global industrial services market is entering a transformative phase driven by rapid digitalization, predictive maintenance requirements, and next-generation automation. According to the report, the global industrial services market size was valued at USD 43.83 billion in 2024, is expected to increase to USD 46.54 billion in 2025, and is projected to reach USD 78.19 billion by 2032, registering a strong CAGR of 7.7% during the forecast period. The Asia Pacific region led the global market in 2024 with a share of 32.81%, propelled by a strong manufacturing ecosystem, rapid industrial expansion, and heavy technology investments.
Industrial services have evolved significantly as modern manufacturing demands higher productivity, sustainability, and operational efficiency. Predictive maintenance, digital twin technology, AI-driven analytics, and intelligent automation are becoming core strategic tools for manufacturers worldwide. Industrial service providers, including global leaders such as ABB, Siemens, Honeywell, and Schneider Electric, are integrating AI, IoT, VR, and ML technologies to strengthen factory operations, increase equipment uptime, and optimize large-scale industrial processes.
Impact of Tariffs
Tariff fluctuations continue to influence the global industrial services landscape, particularly affecting raw material prices and supply chain planning. Higher tariffs increase import costs for industrial components, electronics, and machinery. In April 2025, the U.S. raised tariffs to 104%, prompting China to impose retaliatory tariffs on industrial components and systems. This shift resulted in 25%-30% additional cost increases for manufacturers relying on imported metals. Companies are now revising pricing strategies, reevaluating sourcing networks, and adopting cost-optimization tools to remain competitive under fluctuating tariff regimes.
Market Trends
A defining market trend is the rapid adoption of virtual reality (VR), augmented reality (AR), and Industry 4.0 technologies. These tools enhance inspection, training, and maintenance operations while reducing material waste and improving design accuracy. Manufacturers are using digital twin technology to simulate operations, predict failures, and optimize production flows in real time. In March 2025, Siemens and Audi accelerated transformation in automotive manufacturing through AI-powered automation and virtual hardware integration, setting a new benchmark for digital industrial innovation.
Market Drivers
A major driver of market growth is the widespread shift toward automation and digital transformation. OEMs and industrial facilities are integrating AI-based predictive analytics to elevate Overall Equipment Efficiency (OEE) and reduce unplanned downtime. Technologies such as Microsoft HoloLens are enhancing field operations; for example, ThyssenKrupp technicians use HoloLens for remote diagnostics and visualization of elevator systems. As industries prioritize cost savings, safety, and productivity, demand for modern industrial services continues to accelerate.
Market Challenges
The industrial services sector faces several challenges, including a persistent shortage of skilled workers, limited cash flow among small enterprises, and the complexity of international safety and environmental standards such as ISO, IEC, and OSHA. Integrating advanced automation systems requires technical expertise, and many regions lack the workforce needed to support rapid modernization. Compliance barriers also add complexity, especially for multinational service providers operating across diverse regulatory landscapes.
Market Opportunities
Predictive maintenance and digital twin technologies present major growth opportunities. Companies are modernizing factories with advanced monitoring solutions that reduce downtime and ensure continuous performance. In June 2024, Regal Rexnord introduced a unified predictive maintenance system built on next-generation technologies, enabling industries to upgrade legacy systems into intelligent monitoring platforms. As digital twins gain traction, industries in energy, mining, automotive, and manufacturing are expected to increase investments in real-time data solutions.
Segmentation Overview
By Services
By Provider Type
By Industry
Asia Pacific
Valued at USD 14.38 billion in 2024, Asia Pacific remains the largest regional market. China, India, Japan, and South Korea continue to attract major FDI and lead in EPC and industrial automation projects.
North America
Growth is driven by strong digital transformation initiatives and a robust manufacturing base, especially in the U.S.
Europe
The second-largest region, supported by strong industrial activity and rapid adoption of AI and Industry 4.0.
South America
Growth is primarily driven by mining expansion and renewable energy infrastructure investments.
Middle East & Africa
EPC projects, oilfield automation, and government-backed industrial diversification fuel demand.
Conclusion
With the global industrial services market rising from USD 43.83 billion in 2024 to USD 46.54 billion in 2025, and projected to reach USD 78.19 billion by 2032, the industry is poised for strong long-term growth. Predictive maintenance, AI-driven automation, digital twins, and VR-enabled operations will remain the core technologies shaping the future of industrial services.
Segmentation By Services
By Provider Type
By Industry
By Region
Companies Profiled in the Report ABB Ltd. (Switzerland), Siemens AG (Germany), GE Digital (General Electric) (U.S.), Schneider Electric SE (France), Rockwell Automation Inc. (U.S.), Mitsubishi Electric Corporation (Japan), Hitachi, Ltd. (Japan), Emerson Electric Co. (U.S.), Honeywell International Inc. (U.S.), Bosch Rexroth AG (Germany)