Industrial Services Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The industrial services market is expected to reach USD 207.8 billion by 2024, and is forecast to reach USD 320.0 billion by 2035. The CAGR for this market is 4.0% from 2025 to 2035, which reflects a constant growth rate. In this market, the key driving force is the increasing demand for automation and digitalization in all industries. Companies are striving to optimize their business processes and reduce costs. Moreover, the growing focus on sustainability and the emergence of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI) and prediction maintenance are changing the industrial services landscape, which is expected to optimize the business processes and service delivery. These are the main reasons why the main players in this market, such as Siemens, General Electric and Honeywell, are investing in developing new solutions and establishing strategic alliances. Among them, recent collaborations to integrate artificial intelligence into the services offered by the main players, such as Siemens, General Electric and Honeywell, are an example of the industry's commitment to enhancing the performance and customer satisfaction.

Regional Market Size

Regional Deep Dive

The industrial services sector consists of a wide range of services that support the production and manufacturing processes in the various industries. The market is characterized by the high degree of technological development, the strong automation trend and the increasing focus on the environment in North America. The industrial structure is strong, the level of investment in both the environment and innovation is high, and the industrial services sector is one of the most developed in the world. The growing need for cost and time savings in the industry further strengthens the market's growth, as well as the trend towards digitalization and smart manufacturing solutions.

Europe

• The European Union's Green Deal is significantly influencing the industrial services market, pushing companies to adopt sustainable practices and invest in renewable energy solutions, with firms like Schneider Electric leading the charge.
• Innovations in predictive maintenance and digital twins are gaining traction, with companies such as Bosch and ABB developing advanced solutions that enhance operational efficiency and reduce downtime in manufacturing processes.

Asia Pacific

• Rapid industrialization in countries like China and India is driving demand for industrial services, with local companies such as Tata Consultancy Services (TCS) and Huawei investing heavily in automation and digital transformation.
• Government initiatives aimed at boosting manufacturing capabilities, such as 'Make in India,' are fostering a conducive environment for industrial service providers, encouraging foreign investments and partnerships.

Latin America

• The industrial services market in Latin America is evolving with a focus on digital transformation, as companies like Embraer and Vale are investing in automation and smart technologies to improve productivity.
• Economic challenges are prompting manufacturers to seek cost-effective industrial services, leading to increased collaboration between local firms and international service providers to enhance operational capabilities.

North America

• The rise of Industry 4.0 has led to increased investments in smart manufacturing technologies, with companies like Siemens and GE Digital spearheading initiatives to integrate IoT and AI into industrial services.
• The industrial services are also obliged to become greener in view of the new regulations on the protection of the environment, and of the enlargement of the sphere of their activities. The EPA, for example, encourages the reduction of energy consumption and the reduction of waste.

Middle East And Africa

• The Middle East is witnessing a surge in industrial service demand due to diversification efforts away from oil dependency, with companies like Saudi Aramco investing in industrial services to enhance operational efficiency.
• Regulatory frameworks promoting local content and sustainability are shaping the market, with initiatives like the UAE's Vision 2021 encouraging the adoption of advanced manufacturing technologies.

Did You Know?

“Did you know that the global industrial services market is expected to see a significant shift towards digital solutions, with estimates suggesting that over 70% of industrial companies will adopt IoT technologies by 2025?” — Industry reports from McKinsey & Company

Segmental Market Size

The industrial services market, in particular in the field of maintenance and repair, is currently experiencing steady growth, driven by increasing demand for operational efficiency and the availability of equipment. This is also due to the growing need for preventive maintenance solutions, which are used to avoid downtime, and the stricter regulatory framework for compliance in various industries. In addition, technological developments in the area of IoT and AI are further enhancing service delivery and operational insights. These services are currently in the phase of scalability, and companies such as Siemens and GE are at the forefront of integrating smart technology into their services. In the area of industry, the most important application is preventive maintenance, while in the energy and logistics industries it is asset management and facility management. The macro-developments of the sustainability and digital transformation of companies are accelerating this growth, since the companies are looking for ways to optimize their resource use and reduce their impact on the environment. The development of cloud computing, machine learning and advanced data analysis is shaping the evolution of industrial services and enabling more efficient and effective service models.

Future Outlook

The market for industrial services is expected to increase from $207.8 billion in 2024 to $320.0 billion in 2035, a compound annual growth rate (CAGR) of 4.0%. In particular, the growing demand for automation and digitalization in various industrial sectors will drive the market. The goal is to improve efficiency and reduce costs. Among the most important developments are the use of IoT, artificial intelligence and condition-based maintenance. The integration of these services is expected to improve asset management and reduce downtime. It is expected that by 2035, more than 60% of industrial operations will use smart technology, resulting in a significant improvement in the quality of services and customer satisfaction. Government policies to encourage industrial innovation and the environment will also play an important role in this expansion. The industry is increasingly concerned about sustainable development, and the demand for specialized services that facilitate compliance with environmental regulations will increase. Lastly, the trend towards outsourcing non-core activities will further strengthen the industrial services sector. Companies will focus on their core business and rely on the expertise of outside experts for specialized services. In short, the industrial services market is evolving dynamically, shaped by technological developments and the changing priorities of the industry. It is therefore a critical part of the broader industrial landscape.