Europe System Integration Market Research Report Information By Service Type (Consulting Services, Application System Integration, Infrastructure Integration), Technology {Supervisory Control and Data Acquisition (SCADA), Distributed Control System (DCS), Human Machine Interface (HMI), Product Lifecycle Management (PLM), Safety Automation System, Programmable Controller Logic (PLC), Manufacturing Execution System (MES), Advanced Process Control (APC) and Operator Training Simulators (OTS)}, Product Type (Barcode & RFID, Point of Shelf, Came

Europe System Integration Market Overview

Europe System Integration Market Size was valued at USD 102.5 Billion in 2022. The System Integration market industry is projected to grow from USD 115.2 Billion in 2023 to USD 293.5 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.40% during the forecast period (2024 - 2032). With the increasing public and private investments in system integration solutions to improve Information Technology (IT) infrastructure and the expansion of e-commerce, retailers are required to synchronize their online platforms with their physical stores, as well as backend systems. These are the main market drivers anticipated to propel the System Integration market in Europe.

Figure 1: Europe System Integration Market Size, 2023-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

System Integration Market Trends

• Rising adoption of cloud-based services among large organizations and the increasing use of IoT in industrial automation are driving the market growth

The ongoing digital transformation across various industries in Europe is fueling the demand for system integrators. Organizations are keen on harnessing technologies like cloud computing, big data analytics, the Internet of Things (IoT), and artificial intelligence (AI), necessitating the expertise of system integrators to effectively integrate and optimize these solutions. Eurostat reports that in 2023, 42.5% of EU enterprises invested in cloud computing services, primarily for e-mail, file storage, and office software. This represents a 4.2 percentage point increase from 2021. Among large enterprises, the adoption of cloud computing services was notably high, with 77.6% making such purchases in 2023, marking a 6-percentage point rise compared to 2021. Similarly, medium-sized enterprises saw a rise from 53% in 2021 to 59% in 2023, while small businesses experienced a 3.8 percentage point increase to reach 41.7% in the same period.

According to IDC's Worldwide Internet of Things Spending Guide, Europe accounted for 23% of global IoT spending in 2019, positioning it as the third-largest market after the Asia-Pacific and North American regions, which respectively represented 35.7% and 27.3% of global IoT spending. The number of active IoT devices worldwide surpassed 10 billion in 2021 and is projected to exceed 25.4 billion by 2030. Europe is expected to host approximately 23% of these devices by 2030. Thus driving the System Integration market revenue.

System Integration Market Segment Insights

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  System Integration Service Type Insights

  
  

The Europe System Integration market segmentation, based on Service Type, includes Consulting Services, Application System Integration, and Infrastructure Integration. The infrastructure integration segment dominated the market due to the increasing necessity for a cohesive, resilient, agile, and secure IT infrastructure, all while maintaining cost efficiency. Furthermore, the intricate nature of the business landscape has compelled enterprises to constantly evolve and adjust to new IT infrastructure, further fueling the demand for infrastructure integration. Market participants are partnering with engineering services firms to create efficient infrastructure integration solutions for smart city initiatives. Additionally, these entities are subcontracting their infrastructure integration testing services to enhance overall system performance.

Figure 2: Europe System Integration Market, by Service Type, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

System Integration Technology Insights

The Europe System Integration market segmentation, based on Technology, includes Supervisory Control and Data Acquisition (SCADA), Distributed Control System (DCS), Human Machine Interface (HMI), Product Lifecycle Management (PLM), Safety Automation System, Programmable Controller Logic (PLC), Manufacturing Execution System (MES), Advanced Process Control (APC) and Operator Training Simulators (OTS). The Supervisory Control and Data Acquisition (SCADA) segment dominated the market. The growth of the supervisory control and data acquisition (SCADA) market is driven by various factors, including the rising adoption of industrial mobility solutions. Many sectors have transitioned to automated operations to monitor production flow efficiently. Additionally, industries are increasingly adopting SCADA systems to safeguard their operations against cyber threats.

System Integration Product Type Insights

The Europe System Integration market segmentation, based on Product Type, includes Barcode & RFID, Point of Shelf, Camera, Electronic Shelf Labels, and Others. The Barcode & RFID segment dominated the market. In today's interconnected and globalized supply chains, precise and immediate tracking of goods and assets is essential. Barcode and RFID systems empower businesses to effectively monitor the journey of products from manufacturing sites to distribution centers and ultimately to retail outlets or end users. This heightened visibility within the supply chain streamlines operations, diminishes lead times, and facilitates proactive decision-making. Moreover, Barcodes and RFID tags facilitate seamless cross-docking and sorting processes within logistics hubs and distribution centers. By scanning these barcodes or RFID tags, packages are automatically identified and directed, enhancing the efficiency of goods flow while reducing handling durations.

System Integration End User Insights

The Europe System Integration market segmentation, based on End User, includes Retail and Consumer Goods. The retail segment dominated the market. System integrators play a crucial role in the retail sector by enhancing productivity, operational quality, and service delivery while optimizing data management to accelerate information exchange between consumers and retailers and lower operational expenses.

System Integration Country Insights

The expansion of the system integration market in Germany is closely linked to the increasing investments in the country aimed at establishing a robust technological industrial complex. An illustrative example of this trend is Siemens' announcement in July 2023 to develop a blueprint for an industrial metaverse in the Nuremberg metropolitan area, accompanied by an investment of approximately USD 1.10 billion (EUR 1 billion) in Germany. Siemens aims to position its base in Erlangen as the focal point for global technological endeavors related to the industrial metaverse, serving as a hub for research and development activities. Through these strategic initiatives, Siemens anticipates driving innovation, enhancing resilience, and accelerating overall growth. Additionally, the German IoT market is forecasted to achieve €1.31 billion in revenue in 2022, positioning it as the third-largest IoT revenue market globally, trailing behind the United States of America (€4.31 billion) and China (€4.13 billion).

Figure 3: EUROPE SYSTEM INTEGRATION MARKET SHARE BY COUNTRY 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

System Integration Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the System Integration market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the System Integration industry must offer cost-effective items.

Major players in the System Integration market are attempting to increase market demand by investing in research and development operations including Capgemini (France), Accenture (Ireland), IBM Corporation (U.S.), Infosys Limited (India), Jitterbit, Logic (U.S.), Magic Software Enterprises (Israel), HCL Technologies Limited (India), Sopra Steria (France), Atos SE (France), SAP SE (Germany), Schneider Electric (France), Wipro Limited (India), Cognizant (U.S.), Tata Consultancy Services Limited (India).

Key Companies in the System Integration market include

• Capgemini (France)


• Accenture (Ireland)


• IBM Corporation (U.S.)


• Infosys Limited (India)


• Jitterbit, Logic (U.S.)


• Magic Software Enterprises (Israel)


• HCL Technologies Limited (India)


• Sopra Steria (France)


• Atos SE (France)


• SAP SE (Germany)


• Schneider Electric (France)


• Wipro Limited (India)


• Cognizant (U.S.)


• Tata Consultancy Services Limited (India)

System Integration Industry Developments

May 2020: Accenture announced its acquisition of Callisto Integration, a leading provider of consulting and technology services. This strategic move broadens Accenture's capabilities, particularly in serving clients within the North American market. Through this acquisition, Accenture gains access to Callisto Integration's suite of products, including shop-floor control systems, manufacturing execution systems, and industrial Internet of Things (IoT) systems. This integration is instrumental in bolstering Accenture's product portfolio and fostering growth by reaching a wider customer base.

June 2019: IBM Corporation introduced AI Now, a comprehensive solution tailored for retail and consumer products under the Salesforce umbrella. AI Now for Connected Commerce was strategically crafted to address critical customer needs and revolutionize the retail landscape across service, marketing, and sales channels through seamless integration. This initiative has enabled IBM to enrich its product portfolio and expand its presence in the market.

System Integration Market Segmentation

System Integration Service Type Outlook

• Consulting Services


• Application System Integration


• Infrastructure Integration

System Integration Technology Outlook

Supervisory Control and Data Acquisition (SCADA)

• Distributed Control System (DCS)


• Human Machine Interface (HMI)


• Product Lifecycle Management (PLM)


• Safety Automation System


• Programmable Controller Logic (PLC)


• Manufacturing Execution System (MES)


• Advanced Process Control (APC)


• Operator Training Simulators (OTS)

System Integration Product Type Outlook

• Barcode & RFID


• Point of Shelf


•  Camera


• Electronic Shelf Labels


• Others

System Integration End User Outlook

• Retail


•  Consumer Goods

System Integration Regional Outlook