PUBLISHER: The Business Research Company | PRODUCT CODE: 1436399
PUBLISHER: The Business Research Company | PRODUCT CODE: 1436399
Industrial services are provided to customers primarily engaged in processes that convert raw or unfinished resources into another form or product, facilitating industrial processes.
The primary types of industrial services include engineering and consulting installation and commissioning, and operational improvement and maintenance. Operational improvement and maintenance form an interconnected ecosystem of training, management, budgeting, maintenance, and business practices that collaborate to ensure the smooth operation of an organization. These services are applied in various fields such as distributed control systems, programmable logic controllers, supervisory control and data acquisition, electric motors, and drives, valves and actuators, human-machine interfaces, manufacturing execution systems, safety systems, industrial PC, industrial 3D printing, and industrial robotics, used across industries including oil and gas, healthcare and pharmaceuticals, chemicals, automotive, water and wastewater, food and beverages, energy and power, semiconductor and electronics, paper and pulp, metals and mining, aerospace, and others.
The industrial services market size has grown strongly in recent years. It will grow from $33.34 billion in 2023 to $35.24 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. The growth in the historic period can be attributed to economic growth and industrialization, increasing demand for automation and efficiency, government investments in infrastructure development, digital transformation in various industries.
The industrial services market size is expected to see strong growth in the next few years. It will grow to $44.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growing demand for distributed control systems (dcs), expansion of industry 4.0 and internet of things (iot) technologies, integration of artificial intelligence (ai) and data analytics in industrial processes, increased focus on predictive maintenance and remote monitoring. Major trends in the forecast period include technological advancements in industrial processes, iot sensors, development of human-machine interfaces (hmi) and manufacturing execution systems (mes).
The industrial services market size has grown strongly in recent years. It will grow from $33.34 billion in 2023 to $35.24 billion in 2024 at a compound annual growth rate (CAGR) of 5.7%. During the historic period, growth was driven by various factors, including economic expansion and industrialization, which created a greater need for automation and efficiency in industries. Additionally, government investments in infrastructure development played a significant role, as did the digital transformation across various industries. These factors collectively contributed to the growth observed during that period.
The industrial services market size is expected to see strong growth in the next few years. It will grow to $44.05 billion in 2028 at a compound annual growth rate (CAGR) of 5.7%. In the forecast period, the growth can be attributed to the increasing demand for distributed control systems (DCS), driven by the expansion of Industry 4.0 and Internet of Things (IoT) technologies. Additionally, the integration of artificial intelligence (AI) and data analytics into industrial processes is expected to contribute to this growth, along with an increased focus on predictive maintenance and remote monitoring. Major trends in the forecast period include technological advancements in industrial processes, the use of IoT sensors, and the development of human-machine interfaces (HMI) and manufacturing execution systems (MES). These trends are expected to shape the industrial landscape and drive further growth in the market.
The increasing demand for predictive maintenance services is expected to drive the growth of the industrial services market. Predictive maintenance involves the continuous monitoring of industrial equipment to anticipate potential issues. According to a survey by Reichelt Elektronik, 83% of European businesses used predictive maintenance services in 2021, with 24% planning to increase their use in the coming year. This growing demand for predictive maintenance services is fueling the expansion of the industrial services market.
Anticipated growth within the industrial services market is closely tied to the burgeoning demand within the automotive industry. This sector encompasses the complete spectrum of activities involving the conception, creation, production, marketing, and distribution of vehicles. Within the automotive manufacturing realm, industrial services play a pivotal role by implementing predictive maintenance methods, including the deployment of sensors and IoT devices. These technologies monitor equipment health and facilitate maintenance and refurbishment tasks. For instance, based on data from the European Automobile Manufacturers Association in May 2023, global motor vehicle production surged to 85.4 million units in 2022, representing a substantial 5.7% increase from the previous year. Additionally, according to Brand Finance plc in February 2022, the automobile sector witnessed a remarkable uptick, achieving approximately 78 million unit sales, marking a substantial 10% rise. Consequently, the mounting demand within the automotive industry is the primary driver behind the growth trajectory of the industrial services market.
Collaborations and strategic partnerships are emerging as prominent trends within the application testing services market. Major companies in the industrial services sector are increasingly leveraging partnerships to fortify their positions. For instance, in August 2022, Tech Mahindra, an India-based company operating in industrial services, forged a partnership with Soroco, a US-based work graph company, the terms of which remained undisclosed. This collaboration is geared towards empowering customers to cultivate a culture of improvement while integrating industry-leading practices into their operations. Through this alliance, customers gain access to AI-based process discovery and mining technologies, enabling them to achieve enhanced outcomes within their operations. This partnership underscores the industry's commitment to leveraging innovative solutions and fostering improved practices through strategic collaborations.
Major players in the industrial services market are prioritizing the implementation of advanced solutions, particularly digital transformation, to offer dependable services to their clientele. Digital transformations entail integrating digital technology across all aspects of a business, fundamentally reshaping its operations and value delivery to customers. For example, in February 2023, Schneider Electric SE, a French firm specializing in digital automation and energy management, unveiled its Industrial Digital Transformation Consulting and Deployment Service. This service assists industrial enterprises in achieving successful digital transformations by providing specialized end-to-end support. The aim is to expedite strategic planning and seamless implementation of digital transformation initiatives, aiming for tangible outcomes in areas such as operational efficiency, sustainability, energy optimization, asset management, and cybersecurity.
In June 2022, Industrial Service Solutions, a US-based provider of field, shop, and supply services, acquired Servo South Inc. for an undisclosed amount. This strategic acquisition is aimed at enhancing Industrial Service Solutions' capabilities by adding motor repair, electronics repair, and other industrial services to its portfolio. Servo South Inc., also based in the US, is known for its expertise in providing industrial services.
Major companies operating in the industrial services market report are Mitsubishi Electric Corporation, Siemens AG, General Electric Company, Schneider Electric SE, Honeywell International Inc., ABB Ltd., Schlumberger Limited, Baker Hughes Company, Halliburton Company, Bechtel Corporation, Jacobs Engineering Group Inc., Fluor Corporation, Emerson Electric Co., SKF AB, McDermott International Inc., Rockwell Automation Inc., WorleyParsons Ltd., TechnipFMC plc, KBR Inc., SNC-Lavalin Group Inc., Metso Outotec Oyj, Weatherford International plc, Yaskawa Electric Corporation, Fuji Electric Co. Ltd., Yokogawa Electric Corporation, Petrofac Limited, Wood Group Mustang lnc., Samson AG, Wunderlich-Malec Engineering Inc., Dynamysk Automation Ltd., National Oilwell Varco Inc., Cameron International Corporation, Endress+Hauser AG, Eaton Corporation plc, Parker Hannifin Corporation, Danaher Corporation, Johnson Controls International plc, United Technologies Corporation, 3M Company, Illinois Tool Works Inc., Stanley Black & Decker Inc.
Asia-Pacific was the largest region in the industrial services market share in 2023. The regions covered in the industrial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the industrial services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The industrial services market includes revenues earned by entities by improvement and maintenance, system integration, technical support, and other services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Industrial Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on industrial services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for industrial services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The industrial services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.