IT/OT Convergence Market Size (2024 – 2030)

The Global IT/OT convergence market was valued at USD 51.9 billion in 2023 and is projected to reach a market size of USD 133.7 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 14.5%. 

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The merging of operational technology (OT) and information technology (IT) systems is known as IT/OT convergence. While OT systems monitor events, processes, and devices and make modifications in organizational and industrial operations, IT systems are employed for data-centric computing. It entails fusing the instruments that companies use to regulate operations (OT) with those that they use to gather data (IT). In the past, this market had a limited scope as IT and OT operated differently. Presently, the market is experiencing rapid growth owing to technological advancements and awareness. In the future, with an extensive focus on R&D activities and cybersecurity measures, this market is anticipated to witness a good expansion.

Key Market Insights:

• The Asia-Pacific region, particularly China and India, is poised for rapid development in the wireless segment, fueled by rapid industrialization, urbanization, and government initiatives.

• The Wireless Based IT/OT Convergence market is projected to grow at a CAGR of 21.2% in the forecast period 2024-2030. 

• Approximately 70–80% of industrial organizations have invested in connecting IT and OT systems as part of the IoT deployment in industrial settings.

IT/OT Convergence Market Drivers:

Integration of advanced technologies in industrial automation are fueling the growth.

The incorporation of cutting-edge technologies like machine learning, artificial intelligence, and the Internet of Things into industrial automation is a key market driver in the present industrial landscape. Traditional industrial processes are being replaced by more automated, intelligent, and efficient systems as a result of this convergence.

The adoption of smart technology in industrial settings, such as IoT devices and AI algorithms, is embodied by this driver. Large volumes of data are gathered by IoT devices from industrial activities, and AI and machine learning algorithms use this data to analyse and improve decision-making, as well as to optimize processes and forecast maintenance needs.

Significant gains in cost savings, production quality, and operational efficiency result from the combination of these technologies. It makes it possible for industries to go from labour-intensive, traditional procedures to more advanced, data-driven operations. This change increases organizations' competitiveness and agility in a market that is changing quickly, in addition to increasing productivity.

Expansion and modernization of industrial networking infrastructure has been contributing to the success of IT/OT Convergence market

In the market for IT/OT convergence, modernization and growth of industrial networking infrastructure are key factors. This includes implementing cutting-edge networking technologies, such as 5G, which are necessary to support the higher connection and larger data volumes produced by contemporary industrial processes.

In industrial settings, real-time data transfer, high-speed communication, and the connectivity of numerous IoT devices are made possible by the deployment of 5G and other cutting-edge networking technologies.  This modernization makes operations nimbler and more efficient, which increases the flexibility and scalability of industrial processes.

The partnership between Ericsson and ABB, a well-known robotics and automation business, is an important illustration of this trend. They have teamed up to investigate the possibilities of 5G in industrial automation, showcasing how 5G technology may greatly enhance robots and manufacturing procedures.

IT/OT Convergence Market Restraints and Challenges:

Cybersecurity risks, skills shortages, data privacy, and integration hurdles are the main issues that the market is currently facing.

Cybersecurity breaches and other types of fraud are more likely when IT and OT systems are integrated. Numerous papers have included statistics demonstrating that increased system integration increases vulnerability. This is because there are insufficiently strong defences, antiquated systems, and other vital infrastructure to fend off these assaults. This frequently results in more virus attacks and unauthorized access.

Second, there aren't enough skilled workers in these industries. IT and OT knowledge are needed for this. Finding the proper people to hire is a very difficult task. To overcome this barrier, training and upskilling are therefore essential.

Thirdly, there is a ton of data in these systems. Numerous instances of leakage and misuse have occurred, taking advantage of both the person and the business.

Businesses may become less inclined to use this technology as a result. Moreover, a major challenge may be reaching compatibility between these two systems. Constraints arise from compatibility. Standardizing protocols, data formats, and other operationally-hindering interfaces is a challenge for businesses. 

IT/OT Convergence Market Opportunities:

Customization of IT/OT Integration Solutions for Small and Medium Enterprises (SMEs)

Creation and use of asset management solutions that successfully track, monitor, and manage physical assets by integrating IT and OT systems. This can involve maximizing maintenance schedules, cutting downtime, and prolonging asset lifecycles for machinery, equipment, and buildings. Supplying SMEs with specialized solutions that allow for the monitoring and management of equipment and operational processes in real-time.

IoT sensors, data analytics software, and automation tools may be used in this to streamline processes, enhance quality assurance, and cut down on waste. Solutions for cybersecurity specific to the particular difficulties in combining IT and OT systems are offered to SMEs through IT/OT integration. Network segmentation, intrusion detection, and security monitoring may be used in this way to guard vital infrastructure and data against online attacks and breaches.

IT/OT CONVERGENCE MARKET REPORT COVERAGE:

Segmentation Analysis

IT/OT Convergence Market - By Network Technology:

• Wired

• Wireless

Wired networking technology is the largest segment in 2023. This refers to the use of physical cables (like copper wires or optical fibers) to connect devices and facilitate communication within networks. It's characterized by its reliability, high-speed data transfer rates, and enhanced security features.

In industrial environments where reliable and constant network performance is essential, wired network technology is frequently employed. Because wired solutions are resilient to outside interference and cyber threats, major players in these industries still favor them. For example, wired networks are preferred by companies that largely rely on SCADA systems due to their demonstrated dependability and low-latency connectivity, which are critical for real-time monitoring and control.

IT/OT Convergence Market - By Component:

• IT-Specific Components

  • Data Analytics and Business Intelligence Platforms

  • Cybersecurity Solutions (e.g., Firewalls, Antivirus, Intrusion Detection Systems)

  • IoT Platforms and Devices

  • AI and Machine Learning Solutions

  • Others (including Data Storage Solutions, Network Infrastructure, and Enterprise Software Solutions)

• OT-Specific Components

  • Control and Supervisory Systems (DCS & SCADA)

  • Human Machine Interface (HMI)

  • Local and Remote Automation Control (e.g., PLCs, RTUs)

  • Safety Systems (e.g., Emergency Shutdown Systems, Fire & Gas Systems)

  • Field Devices (Industrial Sensors, Valves, Transmitters, and Actuators)

  • Others (including WMS, Plant Asset Management, Functional Safety, Industrial Robotics, Automation Equipment, and others)

• Services

  • Consulting and Advisory

  • Implementation & Integration Services

  • Support and Maintenance Services

Based on Component, OT-Specific Components is the largest segment in 2023. IT specific components is forecasted to be the fastest growing segment during the forecast period. PLCs and RTUs, two increasingly complex automation control technologies that are dominating the OT Specific Segment. Advanced algorithms are being added to these systems to improve accuracy and productivity. Systems with improved IT platform interoperability, for example, are being introduced by Siemens and Rockwell Automation, facilitating more thorough data analysis and decision-making.

IoT is being used more and more in OT for predictive maintenance. To enable predictive maintenance and decreased downtime, this entails affixing sensors and Internet of Things devices to machinery for real-time health monitoring. Leading companies in the industry, such as Emerson, provide cutting-edge IoT solutions specifically designed for industrial use.

IT/OT Convergence Market - By Industry:

• Energy and Utilities

• Healthcare

• Retail

• Consumer Packaged Goods

• Transportation and Logistics

• Infrastructure and Construction

• Telecommunications

• Automotive

• Agriculture

• Mining and Metals

• Chemical Industry

• Pulp and Paper

• Water and Wastewater Management

• Others

Based on industry, Energy and Utilities, and Transportation and Logistics is one of the largest markets in 2023. The transportation and logistics sectors cover a wide range of industries that deal with the movement of people and goods, including freight, shipping, warehousing, and supply chain management. This industry primarily relies on IT and OT technology to track shipments, manage inventories, optimize transportation routes, and ensure efficient logistics operations.

One of the industries with the quickest growth is healthcare. Clinics, hospitals, pharmaceutical companies, manufacturers of medical equipment, and providers of healthcare services all use them. This industry relies on both IT and OT technology to deliver high-quality patient care, manage medical facilities and equipment, and ensure regulatory compliance.

Healthcare businesses are investing in technology, such as electronic health records (EHR) systems, telemedicine platforms, medical imaging devices, and Internet of Things (IoT) sensors, in order to enhance patient outcomes, increase operational efficiency, and reduce healthcare costs. Furthermore, by accelerating the rollout of telehealth and remote monitoring systems, the COVID-19 pandemic has spurred investment in IT/OT convergence technology.

IT/OT Convergence Market - Regional Analysis:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

Based on region, North America has the largest market for IT/OT Convergence. The United States and Canada are at the forefront. This is mainly because of their economy. This makes it easier for the companies to invest in infrastructure and other resources. Besides, a lot of major companies are present in North America. These players have a global presence that increases revenue significantly. Prominent ones include Siemens AG, Schneider Electric SE, Rockwell Automation, Inc., and Honeywell International Inc. Many industries in this region have embraced and are rapidly adopting this technology. This area boasts a well-established automotive and healthcare industry. Moreover, many initiatives are being taken to improve cybersecurity by incorporating and implementing various guidelines.

Asia-Pacific is the fastest-growing region. Countries like India, China, Japan, and South Korea are the notable ones. Urbanization is the primary factor in this. This has led to better lifestyles and changes in the standard of living. The economy is helping with better funds. Governmental initiatives are adding to the growth through various schemes and training programs. Besides, many startups are emerging with innovative solutions. Furthermore, technical expertise is being emphasized. Upskilling and reskilling of the workforce have been major factors contributing to its success.

COVID-19 Impact Analysis on the Global IT/OT Convergence Market:

The market was positively impacted by the viral outbreak. The majority of businesses were shuttered in order to stop the virus from spreading. This caused a change in favor of remote work. The demand for cloud-based solutions and cybersecurity measures surged as a result of this digital transition. Businesses that use this infrastructure more frequently include information technology, healthcare, online shopping, and BFSI. The majority of the sessions were held virtually. Other clinical records and significant data were added.

Systems for IT/OT convergence was essential for exchanging data, reducing risks, identifying patterns, automating, and performing predictive maintenance. Cloud-computing solutions were being embraced by many sectors. With increased communication between OT and IT, this change made it possible to monitor crucial operations more effectively and efficiently. Additionally, this merger gave organizations the capacity to virtually utilize data from software-defined manufacturing processes and enabled sensors, medical devices, and industrial applications such as robots.

As per a report by Claroty, since the start of the epidemic, according to 65% of American respondents, their IT and OT networks have grown more linked. Post-pandemic, the market has continued to grow owing to the elevated demand. Furthermore, the upliftment of rules and relaxation of regulations have smoothed the process.

Latest Trends/ Developments:

• On 4^th May 2023, Accenture through its Accenture Ventures Project Spotlight initiative, entered into a collaboration agreement with Cervest, an AI-powered climate intelligence (CI) platform, that will expand Accenture’s capabilities to deliver on-demand access to historical, current and predictive views of combined climate risks to assess and address asset and portfolio vulnerabilities for clients across industries.
• On 15^th May 2023, Cognizant introduced Cognizant Neuro AI, an enterprise platform leveraging years of AI expertise. It aims to expedite the adoption of generative AI across industries like life sciences, retail, and healthcare. The platform offers a comprehensive, secure, and scalable approach to deploying generative AI technology, ensuring flexibility and responsible usage for businesses.

Key Players:

1. Cisco

2. Accenture

3. Cognizant

4. Wipro

5. Rockwell Automation

6. IBM

7. Honeywell International, Inc.

8. KPMG N.V.

9. Schneider Electric

10. ABB