The Industrial Software Market Will be Worth $46.6 Billion by 2029
The automotive segment is expected to grow fastest during the forecast period. Asia Pacific is expected to grow significantly throughout the forecast period.
Source: MarketsandMarkets™ INC
The global industrial software market is expected to be worth $21.5 billion in 2024 and is forecast to reach $46.6 billion by 2029; it is expected to grow at a CAGR of 16.7% from 2024 to 2029, according to a new report by MarketsandMarkets.
Industrial software solutions such as MES, SCADA, and HMI systems optimize manufacturing processes by providing real-time monitoring, resource management, and workflow automation to reduce downtime and improve productivity.
These solutions also ensure compliance with stringent quality and regulatory standards in industries such as pharmaceuticals and automotive, improving product safety and regulatory compliance. Cost efficiency is achieved through better use of resources and proactive maintenance strategies, contributing to overall cost savings.
Industrial software plays a crucial role in the automotive industry and contributes significantly to growth through its ability to improve efficiency, quality and innovation throughout the production lifecycle. Automotive manufacturers rely on advanced software solutions such as Manufacturing Execution Systems (MES), SCADA/HMI or robotics software to streamline design and assembly operations. In addition, the introduction of digital twins and AI-based analytics enables predictive maintenance and quality control, minimising defects and improving overall production reliability.
The pharmaceutical segment of the process industry is also projected to grow significantly over the forecast period. The strong growth in the adoption of industrial software in the pharmaceutical industry is driven by the increasing demand for personalised medicine, strict regulatory control and the industry's continued investment in technology to improve operational efficiency and accelerate the time to market for new forms of medicines.
Asia Pacific's industrial software sector is forecast to grow significantly over the forecast period. Countries such as China, Japan, South Korea and Singapore are leading the efforts with strategic initiatives and investments tailored to promote manufacturing through cutting-edge technologies. China's "Made in China 2025" initiative focuses on integrating AI, IoT and robotics to boost productivity and innovation in manufacturing. Japan's "Society 5.0" vision aims to use digital technologies to revolutionise manufacturing efficiency and sustainability. South Korea's "Manufacturing Industry Innovation 3.0" initiative emphasises IoT and cloud computing to improve smart manufacturing. Singapore supports digital transformation with its "Smart Industry Readiness Index" framework, which guides companies to become smart factories. These initiatives will drive the adoption of MES, SCADA, ERP and analytics solutions to increase operational efficiency, reduce costs and speed time to market. Together, they will support the industrial software market by promoting innovation and competitiveness in industry across the region.
Source: MarketsandMarkets ™ INC
