Global Operational Technology Market Size By Component (Hardware, Software, and Services), Networking Technology (Wired, and Wireless), End-user (Process Industry and Discrete Industry), and Region - Market Share, Trend Analysis, Competitive Intelligence, Historical Data, and Forecast 2023 – 2030

Market Perspective

The global Operational Technology Market is expected to be worth USD 159.87 billion in 2022 and is estimated to reach up to USD 232.30 billion by 2030, at a compound annual growth rate (CAGR) of 4.74% from 2022 to 2030.

Operational technology (OT) refers to the technology and systems used to control and monitor physical processes, devices, and machinery in various industries such as manufacturing, energy, transportation, and healthcare. The global OT market is driven by several factors, including the increasing demand for automation and digitalization in industrial processes to improve efficiency and productivity. Market trends include the convergence of IT (Information Technology) and OT, the adoption of Industrial Internet of Things (IIoT) solutions, and a growing emphasis on cybersecurity to protect critical infrastructure. The future of the OT market looks promising, with continued growth driven by advancements in technologies like edge computing, AI, and machine learning, as well as the ongoing need for industries to optimize their operations.

Key Insights

• Based on components, the software segment captured the largest industry share in 2022
• Based on networking technology, the wired segment acquired the largest market share in 2022
• Based on end-users, the process industry segment is expected to grow with the highest CAGR through the forecast period
• On the basis of region, North America accounted for the largest market share in 2022

Adoption of Industrial Internet of Things (IIoT) to Drive the Market Growth

The adoption of Industrial Internet of Things in operational technology is revolutionizing the industrial landscape. IIoT enables the integration of smart sensors, devices, and data analytics to optimize operational efficiency, improve productivity, and enhance decision-making. It allows for real-time monitoring, predictive maintenance, and remote control of industrial processes. However, the widespread adoption of IIoT also brings challenges such as security risks and the need for robust infrastructure. Overall, the convergence of OT and IIoT holds immense potential for transforming industries by maximizing efficiency and driving innovation.

Concerns Related to Regulatory Compliance and Standards Restrict Market Growth

Regulatory compliance and adherence to industry standards pose a substantial restraint on the OT market. Industries must navigate complex and evolving regulations, which can lead to compliance challenges and increased operational costs. Striking a balance between innovation and compliance remains a persistent challenge.

Recent Developments

July 2023: Honeywell has announced its acquisition of SCADAfence, a prominent company specializing in cybersecurity solutions for monitoring extensive networks in operational technology and the Internet of Things (IoT). This strategic move will enable Honeywell to enhance its industrial and buildings management cybersecurity programs by leveraging SCADAfence's expertise in asset discovery, threat detection, and security governance.

December 2022: Rockwell Automation revealed that Fortinet has officially become a Gold Technology Partner in its PartnerNetwork Program. This collaboration will enable both companies to offer robust cybersecurity solutions to customers worldwide by combining their advanced networking and security capabilities.

Segmentation Analysis

Based on components, the market is segmented into hardware, software, and services. The software segment held the largest share in 2022. This growth was propelled by heightened demand for advanced software solutions that enable real-time monitoring, predictive analytics, and automation of industrial processes. Industries across manufacturing, energy, transportation, and utilities sectors prioritized software investments to enhance operational efficiency, ensure regulatory compliance, and mitigate cybersecurity risks. Moreover, the software segment's expansion was fueled by the increasing adoption of Industry 4.0 principles and the integration of IoT technologies, driving the need for sophisticated software platforms to manage and optimize complex industrial environments.

Based on networking technology, the market is classified into wired and wireless. The wired segment captured the largest industry share in 2022 owing to the scalability of wired networks enables seamless expansion to accommodate new devices and applications without compromising performance. Furthermore, the cost-effectiveness of wired technology, with its streamlined infrastructure requirements and simplified maintenance, is expected to continue driving segment growth in the foreseeable future.

Based on end-user, the market is divided into process industry and discrete industry. The process industry segment registered the largest market revenue in 2022. One significant application of OT in the discrete industry is the implementation of industrial automation. Automation systems, such as programmable logic controllers (PLCs) and computer numerical control (CNC) machines, enable precise and efficient control of manufacturing processes. This technology helps improve productivity, reduce errors, and enhance the overall quality of products.

North America is the Dominating Region Owing to Early Adoption of Advanced Technologies

North America region held the largest market share in 2022. This dominance is attributed to the region's early adoption of advanced technologies, a mature industrial sector, and strong government initiatives promoting digitalization and automation. Additionally, North America benefits from a highly skilled workforce and a thriving ecosystem of OT solution providers. The prospects for North America in the OT market remain bright, with ongoing investments in smart manufacturing, energy efficiency, and infrastructure modernization driving growth.

Asia Pacific to Expected to be the Fastest Growing Region Owing to Rapid Industrialization and Urbanization

Asia Pacific is anticipated to be the fastest-growing over the assessment period owing to its rapid industrialization and urbanization. The region's expanding manufacturing sector, particularly in countries like China and India, is driving the adoption of OT solutions. Furthermore, increasing investments in infrastructure development, energy projects, and transportation networks contribute to the growth of the OT market in Asia Pacific. The region's potential to become a global manufacturing and technology hub makes it a significant driving force in the overall operational technology market's expansion

Competitive Landscape

The global operational technology market is fragmented with key players such as ABB, Siemens, Schneider Electric, Rockwell Automation, Honeywell International Inc., Emerson Electric Co, IBM Corporation, General Electric, Accenture, Advantech Co., Ltd., Cognizant. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

The global operational technology market is segmented as follows:

By Component

• Hardware
• Software
• Services

By Networking Technology

• Wired
• Wireless

By End-user

• Process Industry
• Discrete Industry

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • North America
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America