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The Global System Integration Market, 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) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East and Africa) - Global Forecast to 2027”, is expected to be valued at US$ 750.0 Billion by 2027, exhibiting a CAGR of 10.3%% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.

Overview

System integration is the process of connecting different sub-systems into a single system. 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.

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 Driver

Emerging technologies such as cloud computing and big data analytics are expected to drive growth of the global system integration market during the forecast period

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.

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

Many companies are laying off people due to the reduced sales volume owing to the COVID-19 pandemic. For instance, In U.S. according to the Coherent Market Analysis, the unemployment rate increased from 5.5% to 14.5% in the period December 2019 to April 2020. Owing to the financial losses faced by companies, it is expected that companies will reduce the expenditure on the system integration solutions and technological advancement during the year 2020. COVID-19 is expected to restrain the market growth during the year 2020. 

Market Opportunity 

Smart building solution can present lucrative growth opportunities

Smart buildings refer to buildings equipped with energy-saving equipment, bells, and alarms. Smart buildings comprise building automation systems and smart networking technologies. In the U.S., for instance, the market for smart buildings is driven by owners and managers looking to reduce their energy spending. In Japan, on the other hand, the major driver for the smart building is the pressure to meet energy supply challenges. Smart buildings can have any number of modern equipment and instruments installed in it such as HVAC (heating, ventilation, and air conditioning) systems, lighting controls, sub-meters, cameras, and other devices.

Market Restraint

High cost of implementation is expected to hinder the global system integration market growth over the forecast period

There are varieties of factors such as risk, and time associated with integration that influences these costs. Today, products are becoming more complex and difficult to manufacture and design. One such example is automobiles, which are becoming more complex with computer-controlled maintenance, braking, and ignition systems. Additionally, in the past, once a product was designed, it had a long lifecycle over which to recover the development cost. Today, many technologically advanced products come with a short lifecycle. Thus, these factors are expected to hinder the global system integration market growth in the near future.

Market Trends

  1. Partnerships and collaborations among market players

Major companies in the market are focused on partnership and collaboration activities, in order to gain a competitive advantage in the market. For instance, in February 2014, Infosys partnered with the University of Southern California. The objective of this partnership is to work with the Center of Global Supply Chain Management (CGSCM) focusing on the advancements in global supply chain management. Moreover, in August 2013, IBM Corporation partnered with Bank of the Philippine Islands (BPI). Under the agreement, IBM undertook all the IT network and data center activities of BPI.

  1. Introduction of mobile application in system integration

Mobile applications are the other spectrum that system integrators are focusing on. Mobile application is no more a small industry; this industry is also witnessing the need for system integration solutions. Thus, in the near future, players in the system integration market would focus on integration of mobile applications.

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 market players are involved in collaboration and partnerships, in order to gain a significant advantage in the market. For instance, in June 2020, Tata Consultancy Services Limited collaborated with IBM Corporation to help clients accelerate their digital and cognitive enterprise transformations with IBM Cloud.
  2. Major market players are involved in business expansion, in order enhance the market presence. For instance, in March 2020, Fujitsu Limited launched a new company combining its divisions in charge of business with medical, local government, and educational institutions in Japan with Fujitsu Marketing Ltd.

Segmentation:

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

By End-User

  • Banking, financial services and insurance
  • Defense
  • Healthcare
  • Telecommunication and IT
  • Oil gas and energy
  • Transportation
  • Retail
  • Others

By Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa
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