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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

Market Overview

System integration in engineering refers to the process of bringing together the component sub-systems into one system and ensuring that the subsystems function together as a system. It allows companies to acquire low cost, pre-configured components of hardware and software. These small components of software and hardware help companies to achieve key business goals. Currently, some system integrators such as SAP provide more specialized and specific applications and software packages such as enterprise resource planning software and SAP Business Suite.

The global System Integration Market was accounted for US$ 331.8 Bn in terms of value in 2019 and is expected to grow at CAGR of 10.3% for the period (2020-2027).

Market Dynamics- Drivers

  1. High investment in IT infrastructure is expected to drive growth of the global system integration market during the forecast period

IT infrastructure is comprised of servers, storage devices, software, and networking equipment. High investment in IT infrastructure has created distributed IT systems across various enterprises, which in turn, has led to increased demand for distributed IT systems across various enterprises. According to the IT Spending Intentions Survey conducted in 2013, the investment in hardware and software accounted for 20% and 17% respectively of the total investment in IT infrastructure for 2013. High spending on hardware, software, and cloud computing services has resulted in increased number of computing systems. Since a massive amount of work today depends on computers, the absence of system integration creates technical complexities such as data security issues, data theft, redundancy in data, and back-up problems. Thus, these factors are expected to drive growth of the global system integration market during the forecast period.

  1. Increasing adoption of automation solutions is expected to propel the global system integration market growth over the forecast period

Automation technologies such as robotics and additive manufacturing (3D printing) can transform work patterns in both developed and emerging economies. There is high demand for automation solutions due to rising industrialization in consumer markets. Furthermore, industries are realizing the importance of modernizing existing production facility, in order to remain competitive in the existing market. According to the International Federation of Robotics, worldwide sales of industrial robots increased by 6% in 2012. Moreover, according to the same source, over 159,000 units were sold in 2011. Therefore, these factors are expected to propel the global system integration market growth in the near future.

Statistics:

North America held dominant position in the global System Integration market in 2019, accounting for 31.6% share in terms of value, followed by Asia Pacific and Europe.

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System Integration Market Report Coverage

Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 331.8 Bn
Historical Data for: 2017 to 2019 Forecast Period: 2020 to 2027
Forecast Period 2020 to 2027 CAGR: 10.3% 2027 Value Projection: USD US$ 750.0 Bn
Geographies covered:
  • North America: U.S., Canada
  • Latin America: Brazil, Argentina, Mexico, Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific
  • Middle East and Africa: South Africa, North Africa, Central Africa
Segments covered:
  • By Type: (Infrastructure Integration Service (Network Management, Data Center Management, Building Management, Security and Surveillance Management, Cloud Based Integration and Enterprise Management), Application Integration Service (Data integration, Unified communication, Integrated social software and Application integration) and Consulting service (Infrastructure Integration Service, Application Integration Service and Consulting service))
  • By End-User: (Banking, financial services and insurance, Defense, Healthcare, Telecommunication and IT, Oil gas and energy, Transportation, Retail and Others)
Companies covered:

Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, Harris Corporation, and IBM Corporation.

Growth Drivers:
  • High investment in IT infrastructure
  • Increasing adoption of automation solutions
Restraints & Challenges:
  • Lack of standardization and high implementation cost

Figure 1: Global System Integration Market Share (%) in terms of Value, By Region, 2019

System Integration  | Coherent Market Insights

Global System Integration Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 Pandemic have adversely affected the economies of several countries around the globe. The global economy is expected to shrink down by 3% percent in the year 2020 compared to year 2019, according to the International Monetary fund Analysis. These economic slowdown expected to affect various sectors such as BFSI and Defence. The growth of the System Integration market is majorly attributed to the BFSI and Defence industry. The COVID:19 pandemic is expected to retrain the System Integration Market growth during the forecast period.

Market Dynamics- Restraints

  1. Lack of standardization and high implementation cost is expected to restrain growth of the global system integration market during the forecast period

Since legacy systems are responsible for core business transactions, adequate maintenance and security of legacy systems are required. The cost of redesigning or replacing legacy systems is significantly high due to complexity of functionality. According to a survey conducted by Unisys Center for Innovation in 2011, the U.S. Government invests around US$ 36 billion a year in maintaining legacy systems. This is typically owing to the lack of standards regarding usage of legacy systems. Moreover, the cost of system integration includes cost of software, installations, material, license, and different types of technical labor. There are varieties of factors such as risk, and time associated with integration that influences these costs. Thus, such factors are expected to restrain growth of the global system integration market during the market.

  1. Lack of network infrastructure in Asia Pacific is expected to hinder the global system integration market growth over the forecast period

Technological infrastructure across various countries in Asia Pacific is very different. According to Coherent Market Insights’ analysis world’s least networked countries are Cambodia (4.9% internet penetration) and Myanmar (1.1% internet penetration), while the most networked countries are Japan (79.1% internet penetration) and South Korea (84.1% internet penetration). The rural-urban internet penetration gap across Asia Pacific countries remains a major obstacle. Therefore, lack of network infrastructure is expected to hinder the market growth over the forecast period.

Market Opportunity

  1. Rising growth opportunities in emerging economies for market players

China, India, Africa, and Middle East are emerging regions that offer lucrative growth opportunities for major market players. The development and industrialization in these regions, which resulted in the high demand for system integration.  In China, local players are dominant in the system integration market, thereby providing less opportunity for foreign system integration companies to enter the market. Government support is a major reason for the growth of system integration market in China. Software as a service (SaaS) market is expected to grow at a high pace.

  1. Growing adoption of medical devices integration can provide major business opportunities

Healthcare industry stores a lot of information about patients such as medical images, records, bills, prescriptions, insurance claims, medical and research data. Healthcare organizations not only store this data but also maintain and process this data. These organizations have to provide data on demand in addition to delivering their core functions such as patient care and medical services. Moreover, there are many different systems installed and set up at different locations across hospitals.

Figure 2: Global System Integration Market Value (US$ Bn), 2017 - 2027

System Integration  | Coherent Market Insights

The global System Integration market was valued at US$ 331.8 Bn in 2019 and is forecast to reach a value of US$ 750.0 Bn by 2027 at a CAGR of 10.3% between 2020 and 2027.

Market Trends

  1. Mergers and acquisitions among market players is a major trend

Key companies in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in October 2013, Accenture plc acquired PRION Group, a leading system integrator and consulting firm specializing in Siemens Product Lifecycle Management (PLM) software. Furthermore, in February 2014, Oracle Corporation acquired BlueKai, a leading cloud-based big data platform that enables companies to personalize mobile, online and offline marketing with additional useful information.

  1. Advent of cloud technology with system integration

Integration of business processes using cloud technologies is the current trend in the market. Every company is willing to integrate their data onto the cloud to get immediate access and an integrated data base at one location. Use of SaaS (Software as a Service) is the popular emerging trend as it offers users access to new services by paying only for the services used, thus improving productivity and efficiency.

Value Chain Analysis

System integrators are the entities who integrate various sub-systems for end users. System integrators buy hardware and software from the equipment providers. Hardware providers buy various sub-components required for hardware manufacturing from sub-component providers. Cisco, Fujitsu, IBM and HP among others are some of the main hardware providers for the system integration market. System integrators require mainly two types of software namely generic software and bespoke software. Generic software is mostly developed by system integrators by their coding teams. Bespoke software, also called customized software coding, can be outsourced by system integrators to various software development firms or can be developed in-house as well. Accenture Plc., Infosys Technologies, and TCS Ltd. among others are some major software developers for the system integration market.

System Integration  | Coherent Market Insights

Competitive Section

Key players operating in the global system integration market are Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, Harris Corporation, and IBM Corporation.

Key Developments

  1. Key companies are focused on mergers and acquisitions, in order gain a competitive edge in the market. For instance, in May 2020, Accenture plc acquired Callisto Integration, a Canada-based provider of consulting services, to help make clients make manufacturing more efficient.
  2. Major market players are involved in contracts and agreements, in order to enhance the market presence. For instance, in May 2020, BAE Systems plc entered into a US$ 26.7 million systems integration contract with the U.S. Navy’s Naval Air Warfare Center Aircraft Division’s (NAWCAD) Aircraft Prototyping Systems Division.

The process of connecting different sub-system into a single system integration. System integration (SI) is concerned with the integration of systems that manage, control, and monitors business operations. This allows companies to acquire low cost, pre-configured components of software and hardware. These small components of software and hardware help companies to achieve key business goals. Currently, some system integrators such as SAP provide more specialized and specific applications and software packages such as enterprise resource planning software and SAP Business Suite.

Market Dynamics

The growth of the System Integration is majorly attributed to the Emerging technologies such as cloud computing and big data analytics Cloud computing operates on a pay-per-use basis, allowing small institutions and organizations to gain access to the expensive technology infrastructure. According to a survey conducted by IBM in 2011, out of 2,000 mid-sized companies, two-thirds were already planning to deploy cloud-based technology and around 70% were actively pursuing cloud-based analytics. Since cloud computing helps to offload hardware maintenance and hosting to a vendor, system integrators are responsible for bridging the gap between enterprise buyers and cloud solution owners. Moreover, the advent of big data analytics has increased the demand for information management. Organizations such as Microsoft, SAP, IBM, and Oracle have invested over US$ 15 billion to develop solutions for big data analytics. Hence these factors are expected to propel the global system integration market growth over the forecast period. The cloud computing and data analytics technologies are expected to propel the System Integration market growth during the forecast period.

Market Taxonomy

This report segments the global System Integration market on the basis of type, End-user and region. On the basis of type, global System Integration market is segmented into Infrastructure Integration Service (Network Management, Data Center Management, Building Management, Security and Surveillance Management, Cloud Based Integration and Enterprise Management), Application Integration Service (Data integration, Unified communication, Integrated social software and Application integration) and Consulting service (Infrastructure Integration Service, Application Integration Service and Consulting service). On the basis of End-user, the global System Integration market is segmented into Banking, financial services and insurance, Defense, Healthcare, Telecommunication and IT, Oil gas and energy, Transportation, Retail and Others. On the basis of region, global System Integration market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.

Key features of the study:

  • This report provides an in-depth analysis of the global System Integration market and provides market size (US$ Million) and compound annual growth rate (CAGR %) for the forecast period (2020-2027), considering 2019 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global System Integration market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered in the global System Integration market include Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, Harris Corporation, and IBM Corporation.
  • These key market players are focusing on collaboration strategy with other market leaders to innovate and launch new products to meet the increasing needs and requirements of consumers.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, End-user up gradation, market expansion, and marketing tactics
  • The global System Integration market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global System Integration market

Detailed Segmentation:

  • Global System Integration Market, By Type:
    • Infrastructure Integration Service
      • Network Management
      • Data Center Management
      • Building Management
      • Security and Surveillance Management
      • Cloud Based Integration
      • Enterprise Management
    • Application Integration Service
      • Data integration
      • Unified communication
      • Integrated social software
      • Application integration
    • Consulting service
      • Infrastructure Integration Service
      • Application Integration Service
      • Consulting service
  • Global System Integration Market, By End-user:
    • Banking, financial services and insurance
    • Defense
    • Healthcare
    • Telecommunication and IT
    • Oil gas and energy
    • Transportation
    • Retail
    • Others
  • Global System Integration Market, By Region:
    • North America
    • Latin America
    • Europe
    • Asia Pacific
    • Middle East and Africa
  • Company Profiles
    • Accenture plc*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • BAE Systems plc
    • Fujitsu Limited
    • Harris Corporation
    • Hewlett-Packard Company
    • IBM Corporation.
    • Infosys Technologies Limited
    • Lockheed Martin Corporation
    • Oracle Corporation
    • Tata Consultancy Services Limited

Browse all the market data tables and figures on “Global System Integration Market - Forecast to 2027”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Type
      • Market Snippet, By End-user
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. Global System Integration Market - Impact of Coronavirus (Covid-19) Pandemic
    • Short Term
    • Long term
  5. Global System Integration Market, By Type, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Infrastructure Integration Service
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
        • Network Management
        • Data Center Management
        • Building Management
        • Security and Surveillance Management
        • Cloud Based Integration
        • Enterprise Management
    • Application Integration Service
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
        • Data integration
        • Unified communication
        • Integrated social software
        • Application integration
    • Consulting service
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
        • Infrastructure Integration Service
        • Application Integration Service
        • Consulting service
  6. Global System Integration Market, By End-user, 2017-2027 (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment trends
    • Banking, financial services and insurance
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Defense
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Healthcare
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Telecommunication and IT
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Oil gas and energy
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Transportation
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Retail
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2020–2027, (US$ Million)
  7. Global System Integration Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-user, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-user, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-user, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-user, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Type, 2020–2027(US$ Million)
      • Market Size and Forecast, By End-user, 2020–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  8. Competitive Landscape
    • Company Profiles
      • Accenture plc
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • BAE Systems plc
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Fujitsu Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Harris Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hewlett-Packard Development Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • IBM Corporation.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Infosys Technologies Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Lockheed Martin Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Oracle Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Tata Consultancy Services Limited
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse market data tables and figures on “Global System Integrations Market -forecast to 2027”.

Frequently Asked Questions

The market is expected to reach USD 459.4 Billion by 2022.
The market is expected to grow at 10.3% CAGR over the period (2020-2027).
High investment in IT infrastructure is expected to drive growth of the market during the forecast period.
Banking, financial services and insurance sub-segment holds the largest market share among Type segment contributing 17.3% market share in terms of value in 2019.
North America region hold the largest share in the market in 2019, accounting for 31.6% share in terms of value.
Key players operating in the market are Vesper Technologies Inc., Knowles LLC, Goertek, InvenSense, Inc., AAC Technologies, Cirrus Logic, Inc., STMicroelectronics, Infineon Technologies AG, and CUI, Inc.
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