Industrial Software Market by Type (Manufacturing Execution System, SCADA, Human Machine Interface, Robotic Software, Fault Detection and Classification, Al in manufacturing, Industrial Metrology), End-use (Process, Discrete) - Global Forecast to 2029
[220 Pages Report] The global industrial software market was valued at USD 21.5 billion in 2024 and is estimated to reach USD 46.6 billion by 2029, registering a CAGR of 16.7% during the forecast period. The industrial software market is being propelled by the rapid adoption of digital transformation technologies, including IoT, AI, and cloud computing. This shift facilitates improved operational efficiency and predictive maintenance in manufacturing, energy, and other industries. Emerging trends include the integration of AI for advanced automation and using digital twins for simulation and optimization. Disruptions are primarily due to the increasing need for cybersecurity, the challenge of legacy system integration, and the rise of new market entrants offering innovative, cost-effective solutions.
Industrial Software Market Forecast to 2029
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Market Dynamics:
Driver: Rapid adoption of Industry 4.0/5.0 technologies in manufacturing and process industries
The rapid adoption of Industry 4.0 and 5.0 technologies in manufacturing and process industries is revolutionizing the industrial software market. Industry 4.0, characterized by integrating IoT, AI, and data analytics, enhances automation, operational efficiency, and real-time decision-making capabilities. This is further extended by Industry 5.0, which emphasizes human-machine collaboration, sustainability, and resilience. These advancements drive demand for sophisticated software solutions to manage complex, interconnected systems and provide actionable insights. As a result, companies are increasingly investing in advanced software platforms to stay competitive, optimize production processes, and ensure high-quality outputs. This surge is also creating a ripple effect, encouraging innovation and the development of new, more adaptive software products tailored to the evolving needs of the industrial sector.
Restraint: High installation and maintenance cost of industrial software
The substantial implementation costs of industrial software, including Supervisory Control and Data Acquisition (SCADA), Manufacturing Execution Systems (MES), Human-Machine Interfaces (HMI), and robotic software, pose significant challenges for businesses in various industries. The initial expenses for acquiring licenses, hardware, and infrastructure are particularly burdensome for small and medium-sized enterprises (SMEs) with limited financial resources. Furthermore, integrating and customizing these software solutions often require extensive planning, implementation, and training, further escalating costs. Ongoing expenses for maintenance, upgrades, and support services add to the total cost of ownership over the software's lifecycle. Compliance with standards and regulations in highly regulated industries incurs additional fees, increasing the overall financial burden.
Opportunity: Integration of industrial software such as MES with ERP and PLM solutions
The integration of industrial software like Manufacturing Execution Systems (MES) as well as SCADA or robotic software with Enterprise Resource Planning (ERP) and Product Lifecycle Management (PLM) solutions presents significant opportunities for the industrial software market. This convergence allows for seamless data flow and synchronization across various business processes, enhancing overall operational efficiency and decision-making. By integrating MES with ERP, companies can achieve real-time visibility into production operations, inventory management, and financials, leading to optimized resource utilization and cost savings. Coupling MES with PLM enables better management of product development cycles, ensuring that manufacturing processes are aligned with design specifications and quality standards. This holistic approach improves production accuracy and speed and fosters innovation by providing a comprehensive view of the product lifecycle from inception to delivery. As businesses increasingly seek to leverage integrated systems for greater agility and competitiveness, the demand for sophisticated industrial software solutions that facilitate such integration is expected to rise, driving growth and innovation in the market.
Challenge: Susceptibility of industrial software like MES, SCADA, and HMI to cyberattacks
The susceptibility of industrial software like Manufacturing Execution Systems (MES), Supervisory Control and Data Acquisition (SCADA), and Human-Machine Interfaces (HMI) to cyberattacks presents a critical challenge for industries. These systems are integral to the operations of critical infrastructure and manufacturing processes, making them prime targets for cybercriminals. A successful attack can lead to operational disruptions, data breaches, and even physical damage to equipment, resulting in significant financial losses and safety risks. The increasing connectivity and integration of these systems with IT networks, while beneficial for operational efficiency, also expand the attack surface, making it easier for malicious actors to exploit vulnerabilities. Ensuring robust cybersecurity measures, such as regular software updates, network segmentation, and comprehensive monitoring, is essential to protect these systems. However, implementing these measures can be complex and costly, especially for organizations with legacy systems that may not be designed with modern security features. Consequently, the threat of cyberattacks remains a significant concern, necessitating continuous vigilance and investment in advanced security solutions to safeguard industrial operations.
Industrial Software Market Ecosystem
The Industrial software market is competitive, with major companies such as Siemens (Germany), Rockwell Automation (US), ABB (Switzerland), Emerson Electric Co.(US), and General Electric (US), among others, are the significant providers of industrial software and numerous small- and medium-sized vital enterprises. Many players offer industrial software solutions, while many players and details offer integration services. These integration services are widely required in various processes and discrete industry applications.
Based on the type, the MES segment is expected to account for the largest market sharein 2023.
Manufacturing Execution Systems (MES) are poised to contribute a significant market share in the industrial software market due to their critical role in bridging the gap between enterprise-level planning and shop floor execution. MES solutions provide real-time monitoring, control, and optimization of manufacturing processes, significantly enhancing production efficiency, quality, and compliance with industry standards. As industries increasingly adopt smart manufacturing and Industry 4.0 practices, the demand for MES is growing. These systems enable seamless integration with other critical enterprise systems, such as ERP and PLM, fostering a more agile and responsive manufacturing environment. Additionally, MES provides valuable insights through data analytics, helping manufacturers make informed decisions, reduce downtime, and improve overall operational performance. This comprehensive functionality and the drive toward digital transformation are key factors propelling MES to capture a substantial share of the industrial software market.
Based on the end-user, the segment for the discrete manufacturing industry is projected to contribute significantly to the market share during the forecast period.
Discrete industries such as automotive, aerospace, and electronics are expected to contribute a significant market share in the industrial software market due to their complex manufacturing processes and high demand for precision and efficiency. These industries require advanced software solutions to manage intricate production workflows, ensure stringent quality control, and comply with rigorous regulatory standards. In particular, the automotive and aerospace sectors rely heavily on sophisticated software for design, simulation, and manufacturing execution to produce high-quality, reliable products. Additionally, the electronics industry, characterized by rapid innovation and short product lifecycles, benefits significantly from integrated software systems that enhance flexibility and speed in production. The push towards smart manufacturing and digital transformation in these sectors further drives the adoption of industrial software as companies seek to leverage data analytics, IoT, and automation to remain competitive and meet market demands. Consequently, the inherent complexity and high-tech nature of these discrete industries make them prime contributors to the growth of the industrial software market.
Based on region, Asia Pacific is projected to grow fastest for the industrial software market.
The industrial software market in Asia Pacific includes China, Japan, South Korea, and the rest of Asia Pacific. Projected to exhibit the highest Compound Annual Growth Rate (CAGR) between 2024 and 2029, the Asia Pacific region's industrial software market is poised for significant expansion. Rapid industrialization and urbanization in countries such as China, India, and Southeast Asian nations are driving substantial investments in manufacturing and infrastructure. These regions embrace Industry 4.0 technologies to enhance productivity, efficiency, and competitiveness. For instance, China's "Made in China 2025" initiative aims to upgrade its manufacturing sector through intelligent manufacturing and industrial automation, creating substantial demand for industrial software like MES, SCADA, and ERP systems.
Additionally, the burgeoning electronics and automotive industries in the region are increasingly adopting advanced software solutions to manage complex production processes and ensure high-quality outputs. Furthermore, favorable government policies and incentives supporting digital transformation and intelligent factory initiatives are accelerating the adoption of industrial software. The region's large and growing base of SMEs, which are progressively digitalizing their operations, also contributes to the market's expansion. These instances illustrate why the Asia Pacific is poised for the highest growth in the industrial software market.
Industrial Software Market by Region
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Key Market Players
The industrial software companies is dominated by a few globally established players such as Siemens (Germany), Rockwell Automation (US), ABB (Switzerland), Emerson Electric Co.(US), and General Electric (US), among others.
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Report Metric |
Details |
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Market Size Availability for Years |
2020–2029 |
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Base Year |
2023 |
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Forecast Period |
2024–2029 |
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Forecast Units |
Value (USD) |
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Segments Covered |
Type, End Use |
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Geographies Covered |
North America, Europe, Asia Pacific, and Rest of the world |
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Companies Covered |
Siemens (Germany), Rockwell Automation (US), ABB (Switzerland), Emerson Electric Co. (US), and General Electric (US), among others, |
Industrial Software Market Highlights
This research report categorizes the industrial software market based on type & end-use and region
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Segment |
Subsegment |
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Based on Type: |
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Based on End-use |
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Based on Region: |
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Recent Developments
- In February 2023, Siemens launched low-code personalization for Opcenter Execution Foundation with Mendix embedded, and two Siemens solutions joined forces. This software allows manufacturers to create user experiences that fit their business processes and specific industry needs.
- In October 2023, Siemens Digital Industries Software and CEA-List, a technological research institute focused on intelligent digital systems research, announced the signing of a memorandum of understanding to collaborate on research to further extend and enhance digital twin capabilities with artificial intelligence (AI) and explore greater integration of embedded software on virtual and hybrid platforms.
- In April 2023, in collaboration with Microsoft, Cisco, Ericsson, PTC, and ODVA, Rockwell Automation planned to accelerate digital transformation in manufacturing. The company will join forces with its PartnerNetwork ecosystem and demonstrate solutions that meet the customers' demand for digital transformation.
- In July 2022, Rockwell Automation entered a partnership deal with Dragos, an industrial cybersecurity company. This partnership will help improve Rockwell Automation's operational technology incident response readiness.
Frequently Asked Questions (FAQs)
Which are the major companies in the industrial software market? What are their significant strategies to strengthen their market presence?
The major companies in the industrial software market are – Siemens (Germany), Rockwell Automation (US), ABB (Switzerland), Emerson Electric Co.(US), and General Electric (US), among others, and so on. The significant strategies these players adopt are product launches and developments, contracts, collaborations, acquisitions, and expansions.
What is the region's potential industrial software market?
The Asia Pacific region is expected to grow fastest in the industrial software market.
What are the opportunities for new market entrants?
Opportunities in the industrial software market arise from the growth of the automotive and electronics sectors due to the growing mobility trend and integration of transportation with advanced technologies.
What are the drivers and opportunities for the industrial software market?
Drivers and opportunities in the industrial software market include the increasing adoption of Industry 4.0 technologies like IoT and AI, which enhance operational efficiency and decision-making. Additionally, the demand for integrated software solutions that connect MES, ERP, and PLM systems to optimize manufacturing processes and ensure compliance is growing, especially in sectors like automotive, aerospace, and electronics.
Who are the major end users of the industry expected to drive the market's growth in the next five years?
The significant consumers for industrial software are electronics, automotive, pharmaceuticals, and other industries.
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The study utilized four major activities to estimate the industrial software market size. Exhaustive secondary research was conducted to gather information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Finally, market breakdown and data triangulation methods were utilized to estimate the market size for different segments and subsegments.
Secondary Research
In the secondary research process, various sources were used to identify and collect information on the industrial software market for this study. Secondary sources for this research study include corporate filings (such as annual reports, investor presentations, and financial statements), trade, business, and professional associations, white papers, certified publications, articles by recognized authors, directories, and databases. The secondary data was collected and analyzed to determine the overall market size, further validated through primary research.
List of key secondary sources
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SOURCE |
WEB LINK |
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Automation Industry Association |
www.aia-india.org |
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Manufacturing Enterprise Solutions Association (MESA) |
https://www.mesa.org/en/index.asp |
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International Society of Automation (ISA) |
https://www.isa.org/ |
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Measurement, Control & Automation Association (MCAA) |
https://themcaa.org/ |
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User Association of Automation Technology in Process Industries (NAMUR) |
https://www.namur.net/en/index.html |
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The Industrial Interoperability Standard (The OPC Foundation) |
https://opcfoundation.org/ |
Primary Research
Primary interviews were conducted to gather insights on market statistics, revenue data, market breakdowns, size estimations, and forecasting. Additionally, primary research was used to comprehend the various technology, type, end-use, and regional trends. Interviews with stakeholders from the demand side, including CIOs, CTOs, CSOs, and customer/end-user installation teams using industrial software offerings and processes, were also conducted to understand their perspective on suppliers, products, component providers, and their current and future use of industrial software, which will impact the overall market. Several primary interviews were conducted across major countries in North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America.
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Market Size Estimation
Both top-down and bottom-up approaches were utilized to estimate and validate the size of the industrial software market and its submarkets. Secondary research was conducted to identify the key players in the market, and primary and secondary research was used to determine their market share in specific regions. The process involved studying top players’ annual and financial reports and conducting extensive interviews with industry leaders such as CEOs, VPs, directors, and marketing executives. Secondary sources were used to determine all percentage shares and breakdowns, verified through primary sources. All parameters that could impact the markets covered in this research study were accounted for, analyzed in detail, verified through primary research, and consolidated to obtain the final quantitative and qualitative data.
Global Industrial Software Market Size: Botton Up Approach
- Identifying end users that are either using or will use industrial software.
- Tracking leading companies and system integrators operating across various industries.
- Deriving the size of the industrial software by type market through the data sanity method; analyzing revenues of more than 25 critical providers through their annual reports and press releases and summing them up to estimate the overall market size.
- Analyzing the use cases across different regions and companies
- Tracking the ongoing and upcoming installation contracts, acquisitions, expansions, and product launches by various companies and forecasting the market size based on these developments and other critical parameters.
- Conduct multiple discussions with key opinion leaders to understand industrial software components offered by companies to various applications and analyze the breakdown of the scope of work carried out by each major company providing industrial software components.
- Carrying out the market trend analysis to obtain the CAGR of the industrial software with respect to their types in the said market by understanding the industry penetration rate and analyzing the demand and supply of software in different verticals.
- Assigning a percentage to the overall revenue or, in a few cases, to each company's segmental revenues to derive their revenues from the sale of industrial software. This percentage for each company has been assigned based on their product portfolios.
- Verifying and crosschecking the estimates at every level through discussions with key opinion leaders, including CEOs, directors, operations managers, and domain experts at MarketsandMarkets
- Studying various paid and unpaid information sources, such as annual reports, press releases, and white papers
Global Industrial Software Market Size: Top-Down Approach
The top-down approach has been used to estimate and validate the total size of the industrial software market.
- Information related to the revenue of key manufacturers and providers of Industrial software components was studied and analyzed to estimate the global size of the Industrial software market.
- Multiple discussions were conducted with key opinion leaders to understand the demand for industrial software solutions and analyze the breakdown of the scope of work carried out by each significant company.
- Revenue, geographic presence, critical applications served, and diverse offerings of all identified players in the Industrial software market were studied to estimate and arrive at the percentage split of different market segments.
- All major players in the Industrial software market were identified through secondary research and verified through brief discussions with industry experts.
- Multiple discussions were conducted with key opinion leaders of all key companies developing Industrial software solutions to validate the market split based on type, industry, and region.
- Geographic splits were estimated using secondary sources based on factors such as the number of players offering industrial software solutions in a specific country or region and the industries for which these players provide the solutions.
Data Triangulation
Once the overall size of the industrial software market was determined using the methods described above, it was divided into multiple segments and subsegments. Market engineering was performed for each segment and subsegment using market breakdown and data triangulation methods, as applicable, to obtain accurate statistics. Various factors and trends from the demand and supply sides were studied to triangulate the data. The market was validated using both top-down and bottom-up approaches.
Market Definition
The industrial software market encompasses software solutions specifically designed to optimize and manage various industrial processes and operations across different sectors, such as manufacturing, energy, automotive, pharmaceuticals, and more. These software solutions include but are not limited to Manufacturing Execution Systems (MES), Supervisory Control and Data Acquisition (SCADA), Human Machine Interface (HMI), AI in Manufacturing, Robotic Software, and various analytics and optimization tools. Industrial software facilitates automation, real-time monitoring, data integration, and decision support to enhance efficiency, productivity, quality, and compliance within industrial settings. The market serves industries seeking to leverage digital technologies to achieve operational excellence, meet regulatory requirements, and adapt to evolving market demands in an increasingly competitive global landscape.
Key Stakeholders
- Providers and distributors in industrial software
- End users
- System integrators
- Mobile application developers
- Networking and communication service providers
- Governments, financial institutions, and investment communities
- Research organizations
Report Objectives
- To define, describe, and forecast the industrial software market based on type & end-use, and region
- To forecast the size of the market segments for four major regions—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To study the complete value chain and allied industry segments and perform a market value chain analysis.
- To provide ecosystem analysis, case study analysis, patent analysis, technology analysis, pricing analysis, Porter’s five forces analysis, key stakeholders and buying criteria, key conferences and events, and regulatory bodies, government agencies, and regulations pertaining to the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies2.
- Analyzing the opportunities in the market for stakeholders and describing the market's competitive landscape.
- To analyze competitive developments such as collaborations, agreements, contracts, partnerships, mergers & acquisitions, product launches, and research & development (R&D) in the market
- To analyze the impact of the recession on the industrial software market
Available customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
- Detailed analysis and profiling of additional market players (up to 5)
- Additional country-level analysis of the industrial software market
Product Analysis
- The product matrix provides a detailed comparison of the product portfolio of each company in the industrial software market.
Growth opportunities and latent adjacency in Industrial Software Market