Industrial Services Market Trends

Growth Drivers

• Adoption of advanced technologies & industry 4.0: The rising integration of IoT, AI, data analytics, smart sensors, and automation is the primary factor boosting demand in the industrial services market to install, manage, and support these technologies. In this context, in March 2025, Systems with Intelligence (SWI) announced that it acquired Enertics Inc., which is a company specializing in AI-powered industrial IoT solutions for real-time asset health monitoring. Besides, this acquisition enhances SWI’s touchless monitoring systems by integrating advanced sensing, connectivity, and predictive analytics, enabling faster deployment and improved operational efficiency for industrial and utility applications. Furthermore, both of the companies aim to strengthen remote monitoring capabilities, optimize asset performance, and reduce operational risks through AI-based diagnostics and automation.
• Outsourcing & operational optimization: Companies are allocating maintenance, repair, and operational tasks to service providers for management of core business functions and accessing technical expertise. This trend is most evident in the manufacturing, energy, and utility sectors, where in-house capabilities may be limited.  In June 2025, SBM Offshore announced an operations and maintenance contract with TotalEnergies EP Suriname B.V. for the FPSO GranMorgu in Suriname’s Block 58. It also mentioned that the agreement covers the operational readiness phase before first oil and at least two years of ongoing O&M services, with extension options. Hence, this marks SBM Offshore as the first FPSO operator in Suriname and highlights TotalEnergies’ strategy of outsourcing specialized operational and maintenance tasks to leverage SBM’s expertise and optimize project performance, benefiting the market.
• Rising industrialization & infrastructure development: Expansion in terms of industrial activities in emerging markets is efficiently boosting the market. Also, the infrastructural modernization of factories, power plants, and processing facilities requires technical services throughout their asset lifecycle. In this context, the Uzbekistan Government in October 2025 reported that it had begun the first stage of construction for its small modular nuclear power plant (SMNPP) in the Jizzakh area, which was a major step in national energy infrastructure development. This project involves extensive technical and industrial services, which include excavation, equipment installation, and assembly, supported by 308 specialists and 177 units of machinery. Further, this initiative not only advances Uzbekistan’s energy independence and economic growth but also drives demand for specialized industrial services during the plant’s lifecycle, from construction to workforce training, hence denoting a positive market outlook.

Challenges

• Skilled labor shortage and workforce aging: The industrial services market faces a major challenge of skilled labor, owing to an aging workforce and insufficiencies in terms of young, technically trained professionals. Most of the experienced technicians and maintenance specialists are near retirement, whereas the replacements possess equivalent hands-on expertise.  The presence of this skill gap negatively affects service quality, response times, and the ability to scale operations. Moreover, industrial services also necessitate digital, automation, and data analytics skills, increasing talent shortages in this sector. Furthermore, the aspect of training and upskilling programs demands both time and investment, making workforce management a major challenge for service providers operating across complex environments.
• Demand volatility and project uncertainty: The market is sensitive to macroeconomic cycles, capital expenditure trends, and geopolitical factors. Therefore, demand can fluctuate owing to the economic slowdowns, commodity price volatility, or changes in terms of government infrastructure spending. At the same time, project delays, cancellations, or scope reductions are common, especially in large-scale industrial and energy projects. This uncertainty complicates capacity planning, workforce deployment, and revenue forecasting for service providers. In addition, increasing customer preference for short-term or flexible contracts reduces revenue visibility, making long-term strategic planning and investment decisions even more challenging for industry participants.