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System Integration Market is Estimated To Witness High Growth Owing To Rising Demand For Converged Infrastructure

 System Integration Market is Estimated To Witness High Growth Owing To Rising Demand For Converged Infrastructure

The system integration market is estimated to be valued at US$ 491.11 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

The system integration market is estimated to witness high growth owing to rising demand for converged infrastructure. Converged infrastructure provides an IT solution that combines computing, networking, and storage resources into a single unified system. It essentially delivers a complete, pre-integrated IT infrastructure optimized for a particular application or workload. Converged infrastructure solutions help reduce complexity associated with discrete technologies and simplify the procurement, deployment, and management of IT infrastructure. The growing need to optimize infrastructure, reduce costs, and improve operational efficiency among enterprises is driving the demand for converged infrastructure, thereby fueling growth of the system integration market.

Market Overview:

System integration involves integrating diverse applications and systems into a unified overall system. It ensures that diverse applications across the enterprise function well together. System integration provides flexibility, scalability and interoperability across the organization. It helps organizations align IT with business objectives and operations.

Market key trends:

One of the key trends fueling growth of the system integration market is the rising adoption of hybrid cloud services. Hybrid cloud combines on-premises private clouds with off-premises public clouds to reap optimum benefits of both models. System integrators help migrate workloads between private and public clouds to optimize resources. They ensure seamless integration of applications, data, and processes across hybrid cloud environments. This is driving increasing demand for system integration services from companies adopting hybrid cloud. The need to extract value from hybrid IT environments is propelling the system integration market.

Porter's Analysis

Threat of new entrants: Moderate, as system integration require highly skilled workforce and large capital investments. However, digital transformation is enabling new players to enter the market.

Bargaining power of buyers: Moderate to high. Buyers have bargaining power due to availability of various alternatives and flexibility to change suppliers.

Bargaining power of suppliers: Moderate. Suppliers dependence on buyers due to availability of substitute products. However, need for specialized expertise keeps bargaining power in check.

Threat of new substitutes: Moderate. Emerging technologies like cloud, IoT, etc. poses threat of substitution.

Competitive rivalry: High. Intense competition due to presence of numerous global and regional players.

SWOT Analysis

Strength: Global presence, technical expertise, ability to handle complex turnkey projects.

Weakness: Higher cost of operations, dependence on skilled workforce.

Opportunity: Growth in IoT, analytics, increasing digitalization across industries.

Threats: Economic slowdowns, changing compliance regulations.

Key Takeaways

The global System Integration Market Share is expected to witness high growth of 10% over the forecast period, due to increasing digital transformation initiatives across industries. North America dominated the market in 2023 with over 30% share owing to strong technological adoption.

Europe is the second largest market and is expected to grow at a CAGR of around 11% during 2023-2030. This is attributed to increasing investments by governments and enterprises in advanced technologies.

Asia Pacific is projected to be the fastest growing region on account of industrialization and growing IT infrastructure in countries like China and India.

Key players operating in the system integration market are Accenture plc, Hewlett-Packard Company, BAE Systems plc, Tata Consultancy Services Limited, Fujitsu Limited, Lockheed Martin Corporation, Infosys Technologies Limited, Oracle Corporation, Harris Corporation, and IBM Corporation.

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