Operational Technology Market

Global Operational Technology Market Size (2024 to 2029)

The global operational technology market size is expected to reach USD 21.09 billion in 2024 and USD 44.11 billion by 2029, registering a CAGR of 15.9 % from 2024 to 2029.

Operational technology is a combination of hardware and software used to monitor, control, and manage industrial machines, equipment, and processes in real time to identify potential issues and take action to prevent errors. Thus, it is essential for ensuring industrial processes' safe and efficient operation. A few examples of operational technology are Building management systems, physical access control mechanisms, industrial control systems, and fire control systems. The technology application is widely seen in industrial operations such as smart factories, healthcare, and mining.

MARKET DRIVERS

Governments across the world are recognizing the importance of modern technological solutions in promoting economic growth and enhancing industrial efficiency.

As a result, governments are inclined to adopt operational technology in a number of industries, including manufacturing, oil & gas, and transportation. These technologies enable remote control, predictive maintenance, and real-time monitoring, which boosts efficiency and profitability. This acts as a prime driver for the expansion of the operational technology market. Further rapid industrialization coupled with high investments across industries especially emerging economies like India, Bangladesh, and others, is driving the operational technology market.

High penetration of IoT and growing requirements for automated services across industries to reduce human involvement and decrease process error rates is ultimately driving the demand for operational technology. Furthermore, Several other factors, like the rise in demand for safety automation, building automation systems, M2M communication, and other advanced technologies, are driving the market.

The surge in adoption of smart automation, such as the Industrial Internet of Things (IIoT) and cloud computing, is to boost productivity, efficiency, and process speed across the process and non-process industries coupled with heavy investments to automate the industries extend a lucrative opportunity for the operational technology market. Also, increased demand for safety compliance automation solutions and the adoption of Industry 4.0 globally will contribute to further expansion of the operational technology market.

MARKET RESTRAINTS

Smart automation has a high cost of installation and maintenance. Also, frequent software updates and regular maintenance on a quarterly basis are quite hefty. These factors primarily obstruct the growth of the operational technology market. Even though the Operational Technology market is expanding quickly, numerous security risks associated with this technology are seriously impeding the sector's expansion. Further, the rise in cyber attacks and customers reluctantly adopting technologies owing to security concerns are restraining the operational technology market.

REPORT COVERAGE

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SEGMENTAL ANALYSIS

Global Operational Technology Market Analysis By Component

Based on Components, the Control system is leading with the highest shares of the market. It is collectively termed an industrial control system that is highly required to automate industrial processes. Factors like increased demand for connected devices and high penetration of industrial 4.0 are driving the growth of the operational technology market.

The industrial valves of field devices are anticipated to dominate the shares as they are critical components in a variety of applications, including oil and gas, manufacturing, and water treatment.

Global Operational Technology Market Analysis By Network

Based on the network, the wireless segment is growing and recording the highest market share during the forecast period. The wireless connectivity provides wider area coverage and faster communication. Various devices can be connected through wireless technologies to form an area network. Technologies like ZigBee and Wi-Fi offer easy network expansion, good coverage area, and network stability. This technology benefits the operational technology market.

Global Operational Technology Market Analysis By End-User

Based on End-users, the oil and gas segment holds the major share of the operational technology market. In the same vein, the Pharmaceutical industry is actively adopting technologies with growing health awareness. These adoptions in the process industry are driving the operational technology market growth.

REGIONAL ANALYSIS

Asia-Pacific region is ruling with the dominant shares of the market during the forecast period. The major driving factor is due to rapid industrialization in countries such as India, Australia, Japan, and China. Further, high investments from major players in this region are driving the operational market growth.

North American operational technology is expected to record the highest market revenue following Asia Pacific. The rapid adoption of several control systems and IoT in production facilities is majorly driving operational technology market growth.

KEY MARKET PLAYERS

Major Key Players in the Global Operational Technology Market are 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., and others

RECENT HAPPENINGS IN THE MARKET

• In 2023, ABB India will automate the India-Bangladesh cross-border oil pipeline. It enables ABB’s SCADAvantage, remote terminal units, and leak detection system to monitor the pipeline’s flow, pressure, temperature, and leaks remotely and generates reports, critical messages, and alarms that will boost the efficiency and safety of the pipeline.

• In 2023, Siemens AG signed a contract with continental tire factories to equip them with automation technology. It provides automation and drives technology, software, industrial communication, and training to optimize production and make it efficient.

DETAILED SEGMENTATION OF THE GLOBAL OPERATIONAL TECHNOLOGY MARKET INCLUDED IN THIS REPORT

This research report on the global operational technology market has been segmented and sub-segmented based on component, network, end-user, and region.

By Component

• Field Devices
• Control Systems
• Services

By Network

• Wired
• Wireless

By End-User

• Oil and Gas
• Power
• Chemical
• Pharmaceutical
• Wastewater Treatment and Water Management
• Food and Beverage
• Automotive
• General Manufacturing
• Construction

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa