Chicago, July 30, 2024 (GLOBE NEWSWIRE) – Global Industrial software market It was valued at US$21.5 billion in 2024 and is expected to reach US$46.6 billion by 2029, growing at a CAGR of 16.7% during the forecast period.
The industrial software market is driven by the rapid adoption of digital transformation technologies such as IoT, artificial intelligence, and cloud computing. This shift helps improve operational efficiency and predictive maintenance in manufacturing, energy and other industries. Emerging trends include integrating artificial intelligence for advanced automation and using digital twins for simulation and optimization. The main reasons for the disruption are the growing demand for cybersecurity, the challenges of integrating legacy systems and the rise of new market entrants offering innovative, cost-effective solutions.
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Major industrial software companies include:
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Siemens (Germany),
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Rockwell Automation (USA),
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ABB (Switzerland),
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Emerson Electric Company (USA), and
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General Electric (USA).
Industrial software market segmentation analysis:
Based on type, the MES segment is expected to hold the largest market share in 2023.
Manufacturing execution systems (MES) play a key role in bridging the gap between enterprise-level planning and shop-floor execution and are expected to capture a significant market share in the industrial software market. MES solutions provide instant monitoring, control and optimization of manufacturing processes, significantly improving production efficiency, quality and compliance with industry standards. As industries increasingly adopt smart manufacturing and Industry 4.0 practices, the demand for MES continues to grow. These systems integrate seamlessly with other key enterprise systems, such as ERP and PLM, to create a more agile and responsive manufacturing environment. In addition, MES provides valuable insights through data analysis, helping manufacturers make informed decisions, reduce downtime and improve overall operational performance. This comprehensive functionality and drive for digital transformation are key factors driving MES to capture a large share of the industrial software market.
Based on end users, the discrete manufacturing industry is expected to contribute significantly to the market share during the forecast period.
Discrete industries such as automotive, aerospace, and electronics are expected to contribute a significant market share in the industrial software market due to their complex manufacturing processes and high requirements for accuracy and efficiency. These industries require advanced software solutions to manage complex production workflows, ensure strict quality control and comply with strict regulatory standards. In particular, the automotive and aerospace sectors rely heavily on sophisticated design, simulation and manufacturing execution software to produce high-quality, reliable products. In addition, the electronics industry, characterized by rapid innovation and short product life cycles, can benefit greatly from integrated software systems that increase production flexibility and speed. The push for smart manufacturing and digital transformation in these industries is further driving the adoption of industrial software as companies seek to leverage data analytics, IoT and automation to stay competitive and meet market demands. Therefore, the inherent complexity and high-tech nature of these discrete industries make them major contributors to the growth of the industrial software market.
From a regional perspective, the industrial software market in the Asia-Pacific region is expected to grow fastest.
The industrial software market in the Asia-Pacific region includes China, Japan, South Korea, and other regions in the Asia-Pacific region. The industrial software market in Asia Pacific is expected to exhibit the highest compound annual growth rate (CAGR) between 2024 and 2029 and is expected to expand significantly. Rapid industrialization and urbanization in countries such as China, India and Southeast Asian countries are driving massive investments in manufacturing and infrastructure. These regions adopt Industry 4.0 technologies to improve productivity, efficiency and competitiveness. For example, China's “Made in China 2025” aims to upgrade the manufacturing industry through smart manufacturing and industrial automation, creating a large demand for industrial software such as MES, SCADA and ERP systems.
Additionally, the region's booming electronics and automotive industries are increasingly adopting advanced software solutions to manage complex production processes and ensure high-quality output. Additionally, favorable government policies and incentives supporting digital transformation and smart factory initiatives are accelerating the adoption of industrial software. The region's large and growing small and medium-sized enterprises are gradually digitizing their operations, which is also promoting market expansion. These examples illustrate why Asia Pacific is expected to be the fastest growing region in the industrial software market.
Market dynamics:
Manufacturing and processing industries rapidly adopt Industry 4.0/5.0 technologies
The rapid adoption of Industry 4.0 and 5.0 technologies in manufacturing and process industries is revolutionizing the industrial software market. Industry 4.0 is characterized by the integration of the Internet of Things, artificial intelligence and data analysis to enhance automation, operational efficiency and real-time decision-making capabilities. Industry 5.0 extends this further, emphasizing human-machine collaboration, sustainability and resilience. These advancements are driving the need for sophisticated software solutions to manage complex interconnected systems and provide actionable insights. As a result, companies are increasingly investing in advanced software platforms to stay competitive, optimize production processes and ensure high-quality output. This surge has also had a knock-on effect, encouraging innovation and the development of new, more adaptable software products to meet the changing needs of the industrial sector.
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