Industrial Services Market size was over USD 38.73 billion in 2023 and is poised to exceed USD 110.52 billion by 2036, witnessing over 8.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of industrial services is evaluated at USD 41.33 billion.
The growth of the market can be attributed to the increasing demand for operational excellence across the industrial sectors, coupled with the rising adoption of various technologies, such as industrial internet of things (IIoT). Industries are increasingly prioritizing their business operations to satisfy the demand of their customers and to generate high yields. Moreover, to gain a sustainable competitive edge over its competitors, there is a growing need amongst the industries to improve their process efficiency. Enhancing work quality, generating faster throughput and less waste, are some of the focus areas where development is required across industries, therefore raising the need for industrial services. On the other hand, increasing spending by geographies on internet of things (IoT) is also anticipated to contribute to the market growth. In the year 2019, United States and China were among the two major nations which held the largest share of around 26% and 24% respectively amongst other major geographies for spending on internet of things. On the other hand, the numerous challenges observed by businesses worldwide especially in logistics and other operational processes owing to the COVID-19 pandemic and the need to lower the operational costs is also anticipated to drive the market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
8.4% |
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Base Year Market Size (2023) |
USD 38.73 billion |
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Forecast Year Market Size (2036) |
USD 110.52 billion |
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Regional Scope |
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The global industrial services market is segmented on the basis of service type into engineering & consulting, installation & commissioning, and operational improvement & maintenance. Among these segments, the operational improvement & maintenance segment is anticipated to register the largest market share by the end of 2036 and by registering a value of USD 18016.5 Million in the same year. Operational improvement & maintenance services deal with the minor maintenance and care of business assets, including budgeting, business maintenance, training, and other business improvement factors that work together to run an organization smoothly. This type of service does not require skilled professionals with in-depth technical knowledge. Moreover, the installation & commissioning segment is anticipated to grow with the highest CAGR of 5.38% during the forecast period. The market is further segmented on the basis of application into distributed control system (DCS), programmable logic controller (PLC), supervisory control and data acquisition (SCADA), electric motors & drives, valves & actuators, human machine interface (HMI), monitoring systems, signaling systems, imaging systems, manufacturing executing system (MES), and safety systems. The market is further segmented by end-user into oil & gas industry, chemical industry, energy & power, mining, marine & shipbuilding, pharmaceutical industry, machine building, food & beverage industry, and others, out of which, the pharmaceutical industry segment is anticipated to register the largest market share of 18.85% by the end of 2036.
Our in-depth analysis of the global market includes the following segments
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by Service Type |
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Application |
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Regionally, the global industrial services market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. North America industry is poised to dominate majority revenue share of 33% by 2036. The growth of the market can be attributed to the increasing evolution of different types of service models, along with the digital transformation witnessed across the region. Moreover, presence of several flourished industries such as the food and beverage industry, in countries such as the United States and Canada, along with the growing focus towards functional safety in industries such as mining, chemicals, pharmaceutical, and others, are some of the additional factors anticipated to drive the market growth. According to the statistics by the United States Census Bureau, the sales of retail trade and food services in the nation grew from USD 3282961 Million in 2000 to USD 6205714 Million in 2020. The market in the region is further segmented by country into the United States and Canada, out of which, the market in the U.S. is projected to grow with the highest CAGR of 4.30% during the forecast period. On the other hand, the market in the Asia Pacific is expected to hold the largest revenue share of 11.99% by the end of 2036.
December 3, 2020: General Electric announced that the company has been selected by Azora to provide onshore wind turbines in Spain for the Cuevas de Velasco wind farm.
October 21, 2020: Siemens AG announced that it has come into a partnership with Netze BW to develop better, smarter, and more sustainable distribution grids.
Author Credits: Parul Atri
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