Operational Technology Market - Forecast(2024 - 2030)
Operational Technology (OT) Market Overview
Operational
Technology (OT) Market is anticipated to reach $26.59 billion by 2026 at a CAGR
of 6.21% during the forecast period 2021-2026. Operational technology is a
combination of hardware and software, that monitors, controls, and manages
industrial processes as well as industrial equipment. OT keeps things such
as factories, power plants, facility equipment, machines, and others running.
High penetration of IoT and growing requirements for automated services across
industries are the key drivers of this market. Apart from that, the growth of
OT market is majorly attributed to the increasing demand for M2M Communication,
Human-Machine Interface, Safety Automation Systems, Remote diagnostics,
Building Automation Systems, Operator Interface Terminal, Programmable Logic
controller-based tools, object-oriented programming, and others. Moreover, industrialization
in developing countries, governments’ initiatives for digitalization along with
rising investment for the development of 5G has impacted the adoption of OT in
various sectors, thereby driving forward the OT industry. The above-mentioned
factors will drive the growth of OT market size during 2021-2026.
Report Coverage
The
report: “OT Market– Forecast (2021-2026)”,
by IndustryARC covers an in-depth analysis of the following segments of the
OT market
Key Takeaways
- Control systems held the major market share of OT industry, high
penetration of industrial 4.0 and growing demand for automation are the key
factors behind this growth.
- APAC is anticipated to witness the fastest growth during the forecast period
due to the rapid industrialization in most of the developing countries of this
region.
- The market of OT is estimated to
witness significant upsurge during the forecast period, owing to the rising
penetration of automation.
- The OT market is consolidated with top market players including ABB Ltd., Cisco Systems, Inc., SAP SE, Schneider Electric SE, Siemens AG, NEC Corporation and others.
Operational Technology Market Value Share, By Geography, 2020 (%)
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Operational Technology Market Segment Analysis- By Component
By
component, the OT market is segmented into Field Devices,
Control Systems and Services. Control systems held the largest share of 32.4% of OT market in 2020 and is estimated to grow with a significant amount of growth
during the forecast period 2021-2026. Industrial control system is a collective
term used to describe different types of control systems such as Supervisory
Control and Data Acquisition (SCADA) Systems, Distributed Control Systems (DCSs), Programmable Logic
Controllers (PLCs), Product Lifecycle Management (PLM) Systems,
Manufacturing Execution Systems (MES), Safety Automation Systems, Building
Automation Systems and others, which are highly being used to operate and to
automate industrial processes. High penetration of industrial 4.0 has increased
the demand for connected devices as well as for automation, resulting in high
demand for control systems. In October 2020, The ETSI
announced the launch of a new version of DECT which supports massive machine
type communication system and can be used in industrial automation, building
automation, asset tracking, industry 4.0, condition monitoring and others.
Apart from that, rapid digitalization and industrialization plays a major role
in the growing demand of Control Systems. Hence, the above-mentioned factors are set to boost the
market growth during 2021-2026.
Operational Technology Market Segment Analysis- By End-User Industry
The
market is segmented into Process Industries and Non-Process Industry, based on end-user
industry. Process industry held the major OT market share of around 21.3%
in 2020 and among all the process industries, Pharmaceutical industry is
anticipated to witness the fastest growth in 2021-2026. Rising investment in
this sector coupled with the growing health awareness is the major reason
behind this growth. According to a report of Invest-India, the pharmaceutical
sector grew at a CAGR of 22.4% during 2015-2020 and was set to reach US$55 billion by 2020. Furthermore, the rise in
COVID cases and the growing health awareness among public are the key factors
behind the massive amount of investment, resulting in higher demand for OT
solutions. Hence, rising investment in the pharmaceutical industry is being seen as
the opportunity for the players operating in the OT market, which is set to
boost the market growth in 2021-2026.
Operational Technology Market Segment Analysis- By Geography
Geographically, the OT market is segmented into
the North America, Europe, APAC, South America and RoW regions. According to OT
market report of IndustryARC, APAC is anticipated to witness the fastest market
growth in terms of CAGR during the forecast period. The growth is majorly
attributed to the rapid industrialization in Asian countries.
Many Asian countries including India, Australia, Japan and China are investing
heavily and getting
Foreign Direct Investment (FDI) for industrialization. For instance, according
to the United Nations Conference on Trade and Development (UNCTAD), in 2019, India
was one of the top 10 recipients of FDI in South Asia and attracted $49 billion
fund, 16% more than the previous year. Similarly, from April 2000
to March 2020, the Cumulative FDI in India’s manufacturing sector reached $89.40 billion. In addition,
initiative measures taken by Governments’ and other organizations for digitalization
are affecting the demand for automated services, resulting in high growth for OT
services. In July 2020, Google announced $10 billion investment plan,
to accelerate India’s transition to a digital economy. Furthermore, the
investment from the major market players in this region along with the on-going
research work for technical innovations, development, is poised to create
tremendous growth opportunities for Asian OT Market. These types of investments
and strategic initiatives for digitalization will drive the market growth of
this region during 2021-2026.
Operational Technology Market Drivers
Increasing Demand for Smart Industrial Automation across the Globe with smart automation
With technological advancement, the
demand for smart automation is rising in order to boost productivity,
efficiency, security, process speed and others, across the process and
non-process industries, which is estimated to be a major growth driver of this market.
The rising demand for safety automation systems, remote diagnostics, building
automation systems, M2M communication and other advanced technologies, are fueling
the growth of this market. To meet the growing demand for smart automation,
organizations are launching new products or partnering with other enterprises.
For instance, in June 2020, to improve the performance of the buildings with
integrated cloud-based business and operational technology data, Honeywell and
SAP SE teamed up. Apart from that, growing
requirement to reduce the human involvement in various processes to decrease
the process error rate as well as the high labor cost, creates huge demand for the automated solution in the industrial sector, which ultimately drives the OT market.
Industrialization in Emerging Economies boost the industrial growth and will trigger the growth of OT market
Rapid industrialization coupled with
high investments across industries, especially in emerging economies is one of
the main drivers of this market. For instance, according to some recent reports
of Invest India, India is estimated to become world’s third largest
manufacturer of passenger vehicles by 2021. Apart from that, Governments of
developing countries such as India, are offering incentives and setting up
projects to boost industrial growth, which is triggering the growth of OT
market. In February 2020, UP government had announced about its special wing
‘Invest UP’, to attract more private investments and accelerate the
industrialization growth across the state. Such factors are analyzed to
increase the demand for OT technology during the forecast period 2021-2026.
Operational Technology Market Challenges
Security is one of the major hurdles for the growth of the operational technology market :
Even though OT market is growing at a rapid phase, still some security
concerns related to this technology are creating major issues in the growth
path of this market. In February 2020, a global provider of OT security and
digital risk management solutions, OTORIO had discovered a security weakness in
the IO stack of PROFINET which handles the packets that are used in device
management. If a device is overloaded with multiple diagnostic packets, then it
can create a massive security threat, which gives the attackers the ability to send
the devices into a DoS condition that can create disruption in operational
processes. Apart from that, owing to the security concerns, customers are
reluctant to adopt this technology. Hence, the above mentioned factors will
hamper the market growth during the forecast period 2021-2026.
Operational Technology Market Landscape
Technology launches,
acquisitions, Partnerships and R&D activities are key strategies adopted by
players in the OT market. In 2020, the market of OT industry outlook has been
fragmented by several companies. The market's top 10 companies include
- ABB Ltd.
- Cisco Systems, Inc.
- SAP SE
- Schneider Electric SE
- Siemens AG
- NEC Corporation
- Rockwell Automation, Inc.
- General Electric Company
- Advantech Co., Ltd.
- Honeywell International Inc.
Acquisitions/Technology Launches
- In January 2020, Rockwell Automation acquired an Israeli-based cyber security provider, Avnet Data Security, Ltd., in order to expand its cyber security expertise with Avnet’s IT/OT cyber services and solutions including penetration testing, assessments, network and security solutions, and training to converged IT/OT managed services.
- In October 2019, Automation Anywhere launched AI-powered RPA-as-a-service Platform to accelerate the adoption of Robotic Process Automation across the world. This product ensures easy and fast installation process, flexible connection, safe transmission of data and energy and others and it also enhances the process standard across industries.
Relevant Report Titles:
LIST OF TABLES
1.Global Operational Technology Market, By Networking Technology Market 2023-2030 ($M)1.1 Wired Technology Market 2023-2030 ($M) - Global Industry Research
1.1.1 Ethernet Market 2023-2030 ($M)
1.1.2 Modbus Market 2023-2030 ($M)
1.1.3 Profinet Market 2023-2030 ($M)
1.1.4 Foundation Fieldbus Market 2023-2030 ($M)
1.1.5 Hart Market 2023-2030 ($M)
1.2 Wireless Technology Market 2023-2030 ($M) - Global Industry Research
1.2.1 Wifi Market 2023-2030 ($M)
1.2.2 Zigbee Market 2023-2030 ($M)
1.2.3 Whart Market 2023-2030 ($M)
1.2.4 Isa100 Market 2023-2030 ($M)
1.2.5 Bluetooth Market 2023-2030 ($M)
1.2.6 Cellular Technology Market 2023-2030 ($M)
1.2.7 Satellite Technology Market 2023-2030 ($M)
2.Global Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
2.1 Process Industry Market 2023-2030 ($M) - Global Industry Research
2.1.1 Food And Beverage Market 2023-2030 ($M)
2.1.2 Chemical Market 2023-2030 ($M)
2.1.3 Energy And Power Market 2023-2030 ($M)
2.1.4 Oil And Gas Market 2023-2030 ($M)
2.1.5 Metal And Mining Market 2023-2030 ($M)
2.1.6 Aerospace And Defense Market 2023-2030 ($M)
2.1.7 Automotive Market 2023-2030 ($M)
2.1.8 Medical Market 2023-2030 ($M)
2.1.9 Agriculture Market 2023-2030 ($M)
2.1.10 Building Market 2023-2030 ($M)
3.Global Operational Technology Market, By Networking Technology Market 2023-2030 (Volume/Units)
3.1 Wired Technology Market 2023-2030 (Volume/Units) - Global Industry Research
3.1.1 Ethernet Market 2023-2030 (Volume/Units)
3.1.2 Modbus Market 2023-2030 (Volume/Units)
3.1.3 Profinet Market 2023-2030 (Volume/Units)
3.1.4 Foundation Fieldbus Market 2023-2030 (Volume/Units)
3.1.5 Hart Market 2023-2030 (Volume/Units)
3.2 Wireless Technology Market 2023-2030 (Volume/Units) - Global Industry Research
3.2.1 Wifi Market 2023-2030 (Volume/Units)
3.2.2 Zigbee Market 2023-2030 (Volume/Units)
3.2.3 Whart Market 2023-2030 (Volume/Units)
3.2.4 Isa100 Market 2023-2030 (Volume/Units)
3.2.5 Bluetooth Market 2023-2030 (Volume/Units)
3.2.6 Cellular Technology Market 2023-2030 (Volume/Units)
3.2.7 Satellite Technology Market 2023-2030 (Volume/Units)
4.Global Operational Technology Market, By End-User Industry Market 2023-2030 (Volume/Units)
4.1 Process Industry Market 2023-2030 (Volume/Units) - Global Industry Research
4.1.1 Food And Beverage Market 2023-2030 (Volume/Units)
4.1.2 Chemical Market 2023-2030 (Volume/Units)
4.1.3 Energy And Power Market 2023-2030 (Volume/Units)
4.1.4 Oil And Gas Market 2023-2030 (Volume/Units)
4.1.5 Metal And Mining Market 2023-2030 (Volume/Units)
4.1.6 Aerospace And Defense Market 2023-2030 (Volume/Units)
4.1.7 Automotive Market 2023-2030 (Volume/Units)
4.1.8 Medical Market 2023-2030 (Volume/Units)
4.1.9 Agriculture Market 2023-2030 (Volume/Units)
4.1.10 Building Market 2023-2030 (Volume/Units)
5.North America Operational Technology Market, By Networking Technology Market 2023-2030 ($M)
5.1 Wired Technology Market 2023-2030 ($M) - Regional Industry Research
5.1.1 Ethernet Market 2023-2030 ($M)
5.1.2 Modbus Market 2023-2030 ($M)
5.1.3 Profinet Market 2023-2030 ($M)
5.1.4 Foundation Fieldbus Market 2023-2030 ($M)
5.1.5 Hart Market 2023-2030 ($M)
5.2 Wireless Technology Market 2023-2030 ($M) - Regional Industry Research
5.2.1 Wifi Market 2023-2030 ($M)
5.2.2 Zigbee Market 2023-2030 ($M)
5.2.3 Whart Market 2023-2030 ($M)
5.2.4 Isa100 Market 2023-2030 ($M)
5.2.5 Bluetooth Market 2023-2030 ($M)
5.2.6 Cellular Technology Market 2023-2030 ($M)
5.2.7 Satellite Technology Market 2023-2030 ($M)
6.North America Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
6.1 Process Industry Market 2023-2030 ($M) - Regional Industry Research
6.1.1 Food And Beverage Market 2023-2030 ($M)
6.1.2 Chemical Market 2023-2030 ($M)
6.1.3 Energy And Power Market 2023-2030 ($M)
6.1.4 Oil And Gas Market 2023-2030 ($M)
6.1.5 Metal And Mining Market 2023-2030 ($M)
6.1.6 Aerospace And Defense Market 2023-2030 ($M)
6.1.7 Automotive Market 2023-2030 ($M)
6.1.8 Medical Market 2023-2030 ($M)
6.1.9 Agriculture Market 2023-2030 ($M)
6.1.10 Building Market 2023-2030 ($M)
7.South America Operational Technology Market, By Networking Technology Market 2023-2030 ($M)
7.1 Wired Technology Market 2023-2030 ($M) - Regional Industry Research
7.1.1 Ethernet Market 2023-2030 ($M)
7.1.2 Modbus Market 2023-2030 ($M)
7.1.3 Profinet Market 2023-2030 ($M)
7.1.4 Foundation Fieldbus Market 2023-2030 ($M)
7.1.5 Hart Market 2023-2030 ($M)
7.2 Wireless Technology Market 2023-2030 ($M) - Regional Industry Research
7.2.1 Wifi Market 2023-2030 ($M)
7.2.2 Zigbee Market 2023-2030 ($M)
7.2.3 Whart Market 2023-2030 ($M)
7.2.4 Isa100 Market 2023-2030 ($M)
7.2.5 Bluetooth Market 2023-2030 ($M)
7.2.6 Cellular Technology Market 2023-2030 ($M)
7.2.7 Satellite Technology Market 2023-2030 ($M)
8.South America Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
8.1 Process Industry Market 2023-2030 ($M) - Regional Industry Research
8.1.1 Food And Beverage Market 2023-2030 ($M)
8.1.2 Chemical Market 2023-2030 ($M)
8.1.3 Energy And Power Market 2023-2030 ($M)
8.1.4 Oil And Gas Market 2023-2030 ($M)
8.1.5 Metal And Mining Market 2023-2030 ($M)
8.1.6 Aerospace And Defense Market 2023-2030 ($M)
8.1.7 Automotive Market 2023-2030 ($M)
8.1.8 Medical Market 2023-2030 ($M)
8.1.9 Agriculture Market 2023-2030 ($M)
8.1.10 Building Market 2023-2030 ($M)
9.Europe Operational Technology Market, By Networking Technology Market 2023-2030 ($M)
9.1 Wired Technology Market 2023-2030 ($M) - Regional Industry Research
9.1.1 Ethernet Market 2023-2030 ($M)
9.1.2 Modbus Market 2023-2030 ($M)
9.1.3 Profinet Market 2023-2030 ($M)
9.1.4 Foundation Fieldbus Market 2023-2030 ($M)
9.1.5 Hart Market 2023-2030 ($M)
9.2 Wireless Technology Market 2023-2030 ($M) - Regional Industry Research
9.2.1 Wifi Market 2023-2030 ($M)
9.2.2 Zigbee Market 2023-2030 ($M)
9.2.3 Whart Market 2023-2030 ($M)
9.2.4 Isa100 Market 2023-2030 ($M)
9.2.5 Bluetooth Market 2023-2030 ($M)
9.2.6 Cellular Technology Market 2023-2030 ($M)
9.2.7 Satellite Technology Market 2023-2030 ($M)
10.Europe Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
10.1 Process Industry Market 2023-2030 ($M) - Regional Industry Research
10.1.1 Food And Beverage Market 2023-2030 ($M)
10.1.2 Chemical Market 2023-2030 ($M)
10.1.3 Energy And Power Market 2023-2030 ($M)
10.1.4 Oil And Gas Market 2023-2030 ($M)
10.1.5 Metal And Mining Market 2023-2030 ($M)
10.1.6 Aerospace And Defense Market 2023-2030 ($M)
10.1.7 Automotive Market 2023-2030 ($M)
10.1.8 Medical Market 2023-2030 ($M)
10.1.9 Agriculture Market 2023-2030 ($M)
10.1.10 Building Market 2023-2030 ($M)
11.APAC Operational Technology Market, By Networking Technology Market 2023-2030 ($M)
11.1 Wired Technology Market 2023-2030 ($M) - Regional Industry Research
11.1.1 Ethernet Market 2023-2030 ($M)
11.1.2 Modbus Market 2023-2030 ($M)
11.1.3 Profinet Market 2023-2030 ($M)
11.1.4 Foundation Fieldbus Market 2023-2030 ($M)
11.1.5 Hart Market 2023-2030 ($M)
11.2 Wireless Technology Market 2023-2030 ($M) - Regional Industry Research
11.2.1 Wifi Market 2023-2030 ($M)
11.2.2 Zigbee Market 2023-2030 ($M)
11.2.3 Whart Market 2023-2030 ($M)
11.2.4 Isa100 Market 2023-2030 ($M)
11.2.5 Bluetooth Market 2023-2030 ($M)
11.2.6 Cellular Technology Market 2023-2030 ($M)
11.2.7 Satellite Technology Market 2023-2030 ($M)
12.APAC Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
12.1 Process Industry Market 2023-2030 ($M) - Regional Industry Research
12.1.1 Food And Beverage Market 2023-2030 ($M)
12.1.2 Chemical Market 2023-2030 ($M)
12.1.3 Energy And Power Market 2023-2030 ($M)
12.1.4 Oil And Gas Market 2023-2030 ($M)
12.1.5 Metal And Mining Market 2023-2030 ($M)
12.1.6 Aerospace And Defense Market 2023-2030 ($M)
12.1.7 Automotive Market 2023-2030 ($M)
12.1.8 Medical Market 2023-2030 ($M)
12.1.9 Agriculture Market 2023-2030 ($M)
12.1.10 Building Market 2023-2030 ($M)
13.MENA Operational Technology Market, By Networking Technology Market 2023-2030 ($M)
13.1 Wired Technology Market 2023-2030 ($M) - Regional Industry Research
13.1.1 Ethernet Market 2023-2030 ($M)
13.1.2 Modbus Market 2023-2030 ($M)
13.1.3 Profinet Market 2023-2030 ($M)
13.1.4 Foundation Fieldbus Market 2023-2030 ($M)
13.1.5 Hart Market 2023-2030 ($M)
13.2 Wireless Technology Market 2023-2030 ($M) - Regional Industry Research
13.2.1 Wifi Market 2023-2030 ($M)
13.2.2 Zigbee Market 2023-2030 ($M)
13.2.3 Whart Market 2023-2030 ($M)
13.2.4 Isa100 Market 2023-2030 ($M)
13.2.5 Bluetooth Market 2023-2030 ($M)
13.2.6 Cellular Technology Market 2023-2030 ($M)
13.2.7 Satellite Technology Market 2023-2030 ($M)
14.MENA Operational Technology Market, By End-User Industry Market 2023-2030 ($M)
14.1 Process Industry Market 2023-2030 ($M) - Regional Industry Research
14.1.1 Food And Beverage Market 2023-2030 ($M)
14.1.2 Chemical Market 2023-2030 ($M)
14.1.3 Energy And Power Market 2023-2030 ($M)
14.1.4 Oil And Gas Market 2023-2030 ($M)
14.1.5 Metal And Mining Market 2023-2030 ($M)
14.1.6 Aerospace And Defense Market 2023-2030 ($M)
14.1.7 Automotive Market 2023-2030 ($M)
14.1.8 Medical Market 2023-2030 ($M)
14.1.9 Agriculture Market 2023-2030 ($M)
14.1.10 Building Market 2023-2030 ($M)
LIST OF FIGURES
1.US Operational Technology Market Revenue, 2023-2030 ($M)2.Canada Operational Technology Market Revenue, 2023-2030 ($M)
3.Mexico Operational Technology Market Revenue, 2023-2030 ($M)
4.Brazil Operational Technology Market Revenue, 2023-2030 ($M)
5.Argentina Operational Technology Market Revenue, 2023-2030 ($M)
6.Peru Operational Technology Market Revenue, 2023-2030 ($M)
7.Colombia Operational Technology Market Revenue, 2023-2030 ($M)
8.Chile Operational Technology Market Revenue, 2023-2030 ($M)
9.Rest of South America Operational Technology Market Revenue, 2023-2030 ($M)
10.UK Operational Technology Market Revenue, 2023-2030 ($M)
11.Germany Operational Technology Market Revenue, 2023-2030 ($M)
12.France Operational Technology Market Revenue, 2023-2030 ($M)
13.Italy Operational Technology Market Revenue, 2023-2030 ($M)
14.Spain Operational Technology Market Revenue, 2023-2030 ($M)
15.Rest of Europe Operational Technology Market Revenue, 2023-2030 ($M)
16.China Operational Technology Market Revenue, 2023-2030 ($M)
17.India Operational Technology Market Revenue, 2023-2030 ($M)
18.Japan Operational Technology Market Revenue, 2023-2030 ($M)
19.South Korea Operational Technology Market Revenue, 2023-2030 ($M)
20.South Africa Operational Technology Market Revenue, 2023-2030 ($M)
21.North America Operational Technology By Application
22.South America Operational Technology By Application
23.Europe Operational Technology By Application
24.APAC Operational Technology By Application
25.MENA Operational Technology By Application
26.Abb, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Siemens Ag, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Honeywell International, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.General Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Schneider Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Rockwell Automation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Yokogawa Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Emerson Electric, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Advantech, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Fanuc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Nextnine, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Scadafence, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Wood Group Mustang, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Wunderlich-Malec Engineering, Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Tesco Control, Sales /Revenue, 2015-2018 ($Mn/$Bn)
41.Sap Se, Sales /Revenue, 2015-2018 ($Mn/$Bn)
42.Ibm Limited, Sales /Revenue, 2015-2018 ($Mn/$Bn)
43.Cisco System, Sales /Revenue, 2015-2018 ($Mn/$Bn)
44.Oracle, Sales /Revenue, 2015-2018 ($Mn/$Bn)
45.Huawei Technology, Sales /Revenue, 2015-2018 ($Mn/$Bn)
46.Hewlett-Packard Enterprise, Sales /Revenue, 2015-2018 ($Mn/$Bn)
47.Nec Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
48.Cognizant, Sales /Revenue, 2015-2018 ($Mn/$Bn)
49.Accenture, Sales /Revenue, 2015-2018 ($Mn/$Bn)
50.Wipro, Sales /Revenue, 2015-2018 ($Mn/$Bn)