System Integration Market

System Integration Market Outlook (2024 to 2034)

The global system integration market is estimated to have a valuation of US$ 401.8 billion in 2024. Projections put the CAGR of the market for the 2024 to 2034 period at a remarkable 18.7%. The market's growth over the forecast period is set to inflate significantly, reaching a projected value of US$ 2,236.6 billion by 2034.

Enterprises are turning to system integration to tie their hardware and software components together. By ensuring better lines of communication between different machines, software, systems, and others, companies are looking to ensure efficiency in processes. System integration has already left a mark in the IT field, and its integration into company schemes is set to reach new heights during the forecast period.

Key Market Growth Drivers

• System integration is a constantly evolving process, and the introduction of innovations such as 5G system integration and electronic health record systems ensures the market’s outlook remains fresh.
• Cloud computing is becoming a must-have for companies as the size of data increases, and thus, cloud-based system integration is in vogue.
• In addition to private enterprises, public institutions are also seeking system integration to help smooth out processes and handle the various applications in public infrastructure.
• Learning to operate and deal with various processes and applications is often a cumbersome process, and thus, system integration is being looked at positively as the time taken to learn the workings of different software is reduced.
• System integration provides a cost-effective solution to organizations as they look to bring all their processes under one umbrella.

System integration is finding applications in a variety of industries. A few of the industries that are making use of system integration on an increasing basis include healthcare, packaging, defense, and more. As the sizes of various industries increase, there is more reliance on technology, and system integration is one way to handle rapid technological development.

Report Attributes	Details
Estimated Market Value (2024)	US$ 401.8 billion
Forecast Market Value (2034)	US$ 2,236.6 billion
Global Market Growth Rate (2024 to 2034)	18.7% CAGR
Infrastructure System Integration Segment Growth Rate (2024 to 2034)	19.2%
Large Enterprises Segment Growth Rate (2024 to 2034)	19.3%
East Asia Market Share (2024)	30.7%
Key Companies Profiled	IBM Corporation Cisco Systems Inc. Cognizant Fujitsu Limited DXC Technology HCL Technologies Wipro Limited Deloitte Infosys Tech Mahindra Limited

Which Factors Have Driven the Global Surge in System Integration Demand?

“System Integration Providers Establishing Links with Technology Merchants to Expand Demand”

The value of system integration is dependent on the adoption of technology in enterprises. Keeping up with technology is becoming non-negotiable for companies and huge enterprises. System integration is becoming an essential component of handling technology for enterprises. System integration providers are recognizing the complementary demand for their product with technology, and thus, linkages are being established with vendors of the latter. For example, in November 2023, NEC Corporation signed a partnership agreement with Gurobi Optimization, LLC, for system integration relating to the latter's mathematical solving prowess.

“Small and Medium Enterprises Rapidly Adopting System Integration”

System integration is no longer being boxed in as a solution for large enterprises. Even though large enterprises still make up the predominant customer base for system integration, SMEs are also increasingly adopting the solution. Technological prowess is turning out to be a must for all enterprises of all sizes. Small-scale organizations are also leveraging technology to stand out in the marketplace and make a name for themselves. Thus, system integration is becoming a must-have even for SMEs.

Which Factors Present Challenges to the Expansion of the System Integration Market?

“Lack of Skilled Personnel and Awareness Regarding the Product is Set to Hinder Market Growth”

Though the prospects for the market are bright, there are still a few things that need to be improved in the path of system integration growth. There still needs to be more awareness among companies about the function of system integration, which often takes the form of not understanding how the product works. The problem is especially evident in SMEs, where the benefits of system integration are often dismissed. There is a need for skilled personnel to set up system integration in companies properly. However, there is often a shortage of workers who are skilled enough to operate integration systems. Thus, a limit is placed on the growth opportunities in the system integration market.

What is Giving a New Dimension to the Demand in the System Integration Market?

“Development of Artificial Intelligence System Integration Providing Exciting Opportunities to Providers”

As with almost all technology-related fields, the AI revolution is changing the landscape of system integration. While AI is providing companies with several benefits and opening up new revenue streams, companies also demand a tool through which it can be handled. System integration is helping the development of AI and also coming up with systems that help enterprises use AI in a way that is likely to result in an effective use of the technology.

Country-wise Insights

The rapid technological progress in East Asia is helping the system integration market progress at a lightning rate. For 2024, East Asia is expected to account for 30.7% of the global market share, with a valuation of US$ 123.3 billion. The market is set to register a robust CAGR of 19.8% in the region, and by 2034, the value for East Asia is projected to be US$ 753.73 billion.

North America, Europe, and South Asia are some other regions where the market is expected to thrive. Both private and public enterprises are adopting system integration in the regions, thus bolstering market growth.

What Makes Mexico Such a Promising Country for the System Integration Market?

“Expansion of the Oil Industry and Foreign Investment are Leading to the Market Growth Being Spurred in Mexico”

The system integration industry is pegged to have a value of US$ 6.7 billion in 2024. For the forecast period, the CAGR for Mexico is estimated to be an extraordinary 22.2%. By 2034, the market value for Mexico is expected to have soared to US$ 50.18 billion.

The system integration industry in Mexico is growing rapidly as a result of the thriving oil industry. The Gulf of Mexico is a prominent oil source in the region. Thus, foreign investment is also flowing into the country. The combined effects of the rapidly evolving oil industry and the setting up of significant technological and manufacturing operations in the country are ensuring the rapid progress of the market in Mexico.

Why is South Korea Emerging as a Lucrative Country for the System Integration Market?

“Rapidly Developing IT Sector and Increased Spending on Defense Ensure the Growth in Demand for System Integration in South Korea”

The South Korean value for the system integration market in 2024 is marked at US$ 24.5 billion. The market is expected to register an incredible CAGR of 20.7% for the forecast period in South Korea, with the industry value projected to reach US$ 160.5 billion by 2034.

IT companies in South Korea are updating facilities to include system integration in South Korea. Multinationals like Samsung and LG are increasing their capabilities in South Korea by taking the help of system integration. Increased spending on defense is also augmenting the demand for system integration in the country. South Korea is collaborating with other nations, notably the United States of America, for defense projects, and system integration is helping integrate partners' technologies. Thus, South Korea represents a significant opportunity for the market.

Category-wise Insights

Based on service type, infrastructure system integration is expected to account for 63.1% of the market share in 2024. Software system integration is expected to take a lesser piece of the pie in 2024, with a 36.9% market share. Large enterprises are anticipated to dominate the market in 2024, with an expected market share of 74.3%, triumphing over SME application, which is set to contribute 25.7% of the market share.

Why is Infrastructure System Integration Sought After Form of System Integration?

“Rising Need to Better Handle Hardware Across Industries Makes Sure Infrastructure System Integration Demand Continues Unabated”

Infrastructure system integration is projected to contribute to 63.1% of the market share in 2024. From 2024 to 2034, the product is expected to have a CAGR of 19.2%.

The acceleration of various industries like oil & gas and defense necessitates systems that help in the handling of physical components. Thus, infrastructure system integration’s value is increasing in the market.

Why do Large Enterprises Make Up a Significant End-user Base for System Integration?

“Less of a Hesitancy Toward Price and Competency Make Large Enterprises the Prime Application Base for System Integration”

Large enterprise applications are expected to account for 74.3% of the market share in 2024. The CAGR for large enterprise applications of system integration over the forecast period is estimated to be 19.3%.

Small and medium enterprises often balk at the cost associated with system integration. SMEs also often feel a lack of system integration requirements for their technology. Large-scale enterprises, on the other hand, are less hesitant about splurging money on system integration. The technology and the personnel that are employed in large enterprises also necessitate the use of system integration.

Competitive Landscape

Vendors in the system integration market are compelled to move forward with the developments in the technology sector. Thus, partnerships with technological sector companies are brewing. Many IT players are setting up their system integration facilities to improve processes and establish communication between various components. Some of the prominent companies in the market include IBM Corporation, Cisco Systems Inc., Cognizant, Fujitsu Limited, DXC Technology, HCL Technologies, Wipro Limited, Deloitte, Infosys, and Tech Mahindra Limited.

Some recent developments in the market are:

• In July 2023, English company TT Electronics opened a new plant in Mexicali, Mexico. The new plant has system integration as one function.
• In July 2023, Olympus Corporation announced the launch of its EASYSUITE ES-IP system. It is a system integration solution targeted toward healthcare.
• In March 2023, Samsung SDS Co. unveiled a new data center in Dongtan, South Korea. It is a cloud-based computing facility with an eye on developing artificial intelligence.

Segmentation of System Integration Market Research

• By Service Type:

  • Infrastructure System Integration
  • Software System Integration

• By Enterprise Size:

  • SMEs
  • Large Enterprises

• By Industry:

  • BFSI
  • Retail & CPG
  • IT & Telecom
  • Healthcare
  • Manufacturing
  • Government & Defense
  • Energy & Utilities
  • Others

• By Region:

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • The Middle East & Africa