System Integration Market Size (2024 - 2029)

The market size of the system integration industry is set to expand, driven by the ongoing advancement and adoption of cloud technologies and increased demand from end-use industries for increased productivity and cost reduction. The growth is further propelled by the rising usage of cloud computing and the rapid expansion of small and medium-sized organizations. The COVID-19 outbreak has also increased the demand for system integration, offering opportunities to digitize and expand businesses across regions using technologies such as cloud, AI, and IoT. However, factors such as a lack of client knowledge and business budgetary restraints are impeding the growth of the market. Despite these challenges, technological advancements like the integration of edge computing, IoT, and artificial intelligence are expected to provide lucrative prospects for market expansion.

Market Size of System Integration Industry

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System Integration Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 485.41 Billion
Market Size (2029) USD 778.92 Billion
CAGR (2024 - 2029) 9.92 %
Fastest Growing Market Asia-Pacific
Largest Market North America

Major Players

System Integration Market Major Players

*Disclaimer: Major Players sorted in no particular order

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System Integration Market Analysis

The System Integration Market size is estimated at USD 485.41 billion in 2024, and is expected to reach USD 778.92 billion by 2029, growing at a CAGR of 9.92% during the forecast period (2024-2029).

The system integration market is driven by the ongoing advancement and adoption of cloud technologies and increased demand from end-use industries because of increased productivity and less cost.

  • System Integration refers to combining multiple individual subsystems or sub-components into one more extensive system, allowing the subsystems to function together. Furthermore, system integration connects the organization with third parties, including customers, suppliers, and shareholders.
  • The growing usage of cloud computing and the rapid growth of small and medium-sized organizations (SMEs) are propelling the global system integration market forward. Furthermore, the desire for low-cost and energy-efficient manufacturing processes is favorably impacting the growth of the system integration market.
  • However, the COVID-19 outbreak has highlighted weaknesses in business models across verticals, which has increased demand for system integration as it has provided several opportunities to digitize and expand the business across regions by utilizing technologies such as cloud, AI, and IoT. With the pandemic under control, numerous retail, manufacturing, and automotive sectors are expected to see increased investment as system integration solutions gain significance across multiple business processes.
  • Furthermore, Cloud Integration has grown in popularity as the demand for the Software as a Service (SaaS) solution continues to increase. Cloud integration tools have opened new opportunities for organizations to connect disparate systems. The advantages of cloud integration include utility-style costing, the absence of a single point of failure, scalability, geographical independence, and the lack of hardware support, all contributing to cloud integration solutions and services being accepted and implemented. As a result, various businesses, including financial services and Software companies, use cloud computing.
  • Several industry participants are partnering with small cloud providers in order to increase cloud usage. For instance, In April 2022, Google launched a Data Cloud Alliance in partnership with Accenture, Confluent, Databricks, Deloitte, Mongo DB, etc., to make data more portable and accessible across disparate business systems, platforms, and environments. Members of the alliance will provide infrastructure, APIs, and integration support to ensure data portability and accessibility between multiple platforms and products across various domains. To help enterprises migrate their databases, Google Cloud has partnered with system integrators and consulting firms such as TCS, Deloitte, Kyndryl, HCL, Wipro, Infosys, Cognizant, and Capgemini.
  • System integration allows more intelligent organizational operations by bringing together different processes. As enterprise complexity has an impact on an organization's capacity to compete and generate profit, businesses are beginning to recognize the significance of system integration. Technologies for system integration offer businesses centralized, integrated, and cost-effective solutions for their IT infrastructure. One of the major factors propelling the expansion of the system integration market is the rise in information technology users. The U.S. Bureau of Labor Statistics predicts that employment in computer-related occupations will rise by 15% by 2031.
  • However, a lack of client knowledge and business budgetary restraints are impeding the growth of the system integration industry. Also, The high cost associated with system integration makes it difficult for small and medium enterprises to switch to system integration, restraining market growth. On the contrary, technological advancements such as the integration of edge computing, the internet of things (IoT), and artificial intelligence are likely to provide lucrative prospects for system integration market expansion throughout the forecast period.

System Integration Industry Segmentation

System integration connects different subsystems into a single, more extensive system that functions as one. Regarding software solutions, system integration is typically defined as linking several IT systems, services, and Software to enable them to work functionally. Organizations use system integration to improve the productivity and quality of their operations.

The system integration market is segmented by Service Type (Infrastructure Integration, Software/Application Integration, Consulting), End-User Industry (Automotive, Aerospace, and Defense, IT and Telecom, BFSI, Healthcare, Oil, and Gas), and Geography. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Service Type
Infrastructure Integration
Software/Application Integration
Consulting
By End-user Industry
Automotive
Aerospace and Defense
IT and Telecom
BFSI
Healthcare
Oil and Gas
Others (Energy, Chemical, Mining etc.)
By Geography
North America
United States
Canada
Europe
Germany
France
United Kingdom
Rest of Europe
Asia Pacific
India
China
Japan
Rest of Asia Pacific
Rest of the World

System Integration Market Size Summary

The System Integration Market is projected to experience significant growth in the coming years. This growth is fueled by the increasing adoption of cloud technologies, rising demand from various end-use industries due to enhanced productivity and cost-effectiveness, and the growing usage of cloud computing by small and medium-sized organizations. Furthermore, the need for low-cost and energy-efficient manufacturing processes is positively impacting the growth of the market. The COVID-19 pandemic has also increased the demand for system integration as it presents opportunities for businesses to digitize and expand their operations across regions using technologies like cloud, AI, and IoT. The market is also witnessing the growing popularity of Cloud Integration as the demand for Software as a Service (SaaS) solution continues to rise. This trend is opening new opportunities for organizations to connect disparate systems. The benefits of cloud integration, such as utility-style costing, absence of a single point of failure, scalability, geographical independence, and lack of hardware support, are contributing to the acceptance and implementation of cloud integration solutions and services. As a result, various businesses, including financial services and Software companies, are adopting cloud computing. However, factors such as lack of client knowledge, budgetary constraints, and high costs associated with system integration are posing challenges to the market's growth.

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System Integration Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment of the impact of COVID-19 on the Market

    5. 1.5 Market Drivers

      1. 1.5.1 Advancements and adoption of cloud-technologies

      2. 1.5.2 Benefits of increasing productivity while reducing IT Management cost

    6. 1.6 Market Challenges

      1. 1.6.1 High cost associated with system integration

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service Type

      1. 2.1.1 Infrastructure Integration

      2. 2.1.2 Software/Application Integration

      3. 2.1.3 Consulting

    2. 2.2 By End-user Industry

      1. 2.2.1 Automotive

      2. 2.2.2 Aerospace and Defense

      3. 2.2.3 IT and Telecom

      4. 2.2.4 BFSI

      5. 2.2.5 Healthcare

      6. 2.2.6 Oil and Gas

      7. 2.2.7 Others (Energy, Chemical, Mining etc.)

    3. 2.3 By Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

      2. 2.3.2 Europe

        1. 2.3.2.1 Germany

        2. 2.3.2.2 France

        3. 2.3.2.3 United Kingdom

        4. 2.3.2.4 Rest of Europe

      3. 2.3.3 Asia Pacific

        1. 2.3.3.1 India

        2. 2.3.3.2 China

        3. 2.3.3.3 Japan

        4. 2.3.3.4 Rest of Asia Pacific

      4. 2.3.4 Rest of the World

System Integration Market Size FAQs

The System Integration Market size is expected to reach USD 485.41 billion in 2024 and grow at a CAGR of 9.92% to reach USD 778.92 billion by 2029.

In 2024, the System Integration Market size is expected to reach USD 485.41 billion.

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