Report

The System Integration market is expected to grow at a CAGR of 11.80% during the forecast period, 2022-2027. The system integration market is driven by the ongoing advancement and adoption of cloud technologies and increased demand from end-use industries because of increased productivity and less cost.

Key Highlights
System Integration refers to combining multiple individual subsystems or sub-components into one more extensive system, allowing the subsystems to function together. Furthermore, system integration connects the organization with third parties, including customers, suppliers, and shareholders.
Cloud Integration has grown in popularity as the demand for the Software as a Service (SaaS) solution continues to increase. Cloud integration tools have opened new opportunities for organizations to connect disparate systems. The advantages of cloud integration include utility-style costing, the absence of a single point of failure, scalability, geographical independence, and the lack of hardware support, all contributing to cloud integration solutions and services being accepted and implemented. As a result, various businesses, including financial services and Software companies, use cloud computing.
In April 2022, Google launched a Data Cloud Alliance in partnership with Accenture, Confluent, Databricks, Deloitte, Mongo DB, etc., to make data more portable and accessible across disparate business systems, platforms, and environments. Members of the alliance will provide infrastructure, APIs, and integration support to ensure data portability and accessibility between multiple platforms and products across various domains. To help enterprises migrate their databases, Google Cloud has partnered with system integrators and consulting firms such as TCS, Deloitte, Kyndryl, HCL, Wipro, Infosys, Cognizant, and Capgemini.
In Aug 2021, Avaya Holdings Corp. announced that the company had acquired CTIntegrations, a software development and system integration company in Texas. CTIntegrations will provide Avaya with additional digital capabilities for its extensive contact center customer base and further enhance the Avaya OneCloud AI-powered experience platform.
The high cost associated with system integration makes it difficult for small and medium enterprises to switch to system integration, restraining market growth.


System Integration Market Trends

Software/Application Integration to have a significant growth


Software integration is bringing together various types of software sub-systems to create a single unified system. Software integration can be required for several reasons, including setting up a data warehouse where data needs to be moved through an ETL process and linking various databases and file-based systems. Major organizations use software-as-a-service (SaaS) cloud-based solutions, enabling them to manage particular business processes without a hassle.
In May 2022, Red Hat announced a partnership with General Motors to expand the development of software-defined vehicles at the edge and lay the foundation for broader electric vehicle adoption. This partnership will support various in-vehicle safety and non-safety-related applications, including driver assistance programs, infotainment, connectivity, and body control.
In April 2022, Bruker Corporation announced the acquisition of Optimal Industrial Automation and Technologies, a software and system integration company. The Optimal biopharma tools acquisition strengthens Bruker as a key software and solutions provider for small molecule, biologics, and new drug modalities pharma companies.
In February 2021, Microsoft and Bosch partnered to build a vehicle platform to accelerate and streamline the development and deployment of vehicle software for cars. The partnership will reduce complexity in over-the-air updates and help ensure the vehicle's software is always up to date through cloud integration. This integration may give drivers quicker access to new functions and digital services.


North America to hold major market share


The rising scalability among businesses and the widespread adoption of advanced technologies, such as big data, cloud-based services, and Software-as-a-Service (SaaS), have increased the complexity of operations in different organizations in the North American region.
Consequently, there is a rise in demand for distributed information technology (I.T.) solutions, such as system integration, for streamlining different systems. Additionally, integrating Integration Platform as a Service (iPaaS) solutions expands system integration applications in the transportation and oil and gas industries. It allows sharing of integrated resources across multiple applications.
The region is witnessing various partnerships and collaborations as industries look to switch to system integration to increase productivity. For instance, in April 2021, the U.S. Army awarded Science Applications International Corp. (SAIC) a USD 3.6 billion contract to provide engineering services supporting hardware-in-the-loop (HWIL) and modeling & simulation development for the U.S. Army Combat Capabilities Development Command, Aviation & Missile Center (DEVCOM AvMC), Software, Simulation, Systems Engineering and Integration (S3I) Directorate.
Moreover, in September 2021, RemediElectronic Commerce Group, a provider of business and system integration solutions, and Cleo, a provider of ecosystem integration tools, announced the extension of partnership to bring the capabilities of Cleo Integration Cloud to leverage ecosystem integration technology as a competitive differentiator in rapidly changing industries.
In September 2021, Tekion, a transformative cloud-native platform company focusing on the automotive industry, announced its integration with Toyota Motor North America Inc. With this approval, Toyota and Lexus dealers in the United States can now select Tekion'sAutomotive Retail Cloud (ARC) as their dealer management system (DMS) provider.


System Integration Market Competitor Analysis

The system integration market is significantly competitive, with several local and international players operating. With the market expected to broaden and yield more opportunities, more players are expected to enter the market gradually. The key players in the market studied include Accenture, IBM Corporation, and Wipro Limited, among others. These players have adopted various growth strategies, such as mergers and acquisitions, new product launches, expansions, joint ventures, partnerships, and others, to strengthen their position in this market.


February 2022 - Ansys and AWS announced a strategic partnership. The collaboration will enable the deployment of Ansys products on AWS - making simulation workloads more user-friendly while offering scalability and flexibility with easy access to software and storage solutions from anywhere with a web browser.


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The market estimate (ME) sheet in Excel format
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