SCADA Market

Global SCADA Market:

The global SCADA market size reached US$ 21.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 30.8 Billion by 2032, exhibiting a growth rate (CAGR) of 4.2% during 2024-2032. The advent of Industry 4.0 and the Internet of Things, the implementation of stringent regulatory requirements in industries, and the surging need for remote monitoring and management capabilities represent some of the key factors driving the market.

Global SCADA Market Analysis:

• Major Market Drivers: The evolution of Industry 4.0 and the Industrial Internet of Things (IIoT) is primarily driving the growth of the SCADA market. The integration of sensors, devices, and connectivity capabilities within SCADA systems allows for seamless data exchange and remote monitoring.
• Key Market Trends: The growing demand for SCADA systems in the electric utilities sector, driven by their critical role in data acquisition for operational efficiency and reliability, is acting as a primary SCADA Industry Trend. 
• Geographical Trends: According to the report, Asia Pacific accounted for the largest market share. This region is home to some of the world's fastest-growing economies, such as China, Japan, and India. Rapid economic growth is further fueling industrialization across diverse sectors such as manufacturing, energy, automotive, electronics, and more, which is augmenting the demand for advanced automation and control solutions, including SCADA systems.
• Competitive Landscape: Some of the key players in the market include ABB Ltd., Emerson Electric Co., Rockwell Automation, Inc., Schneider Electric SE, Siemens AG, Alstom, General Electric Co., Honeywell International, Inc., Omron Corporation, Yokogawa Electric Corporation, Iconics Inc., Elynx Technologies, LLC, Enbase LLC, Globalogix, Inductive Automation, etc.
• Challenges and Opportunities: The susceptibility of SCADA solutions to cyberattacks is the prominent challenge faced by the SCADA market. As SCADA systems comprise sensors, mainframe computers, storage systems, and communication systems, they are more prone to cyberattacks. However, various key companies are developing more robust and encrypted SCADA systems, which in turn, is expected to augment the SCADA Market business opportunity over the forecasted period.
   

Global SCADA Market Trends:

The Rising Integration of IoT

The increasing integration of SCADA systems with the Industrial Internet of Things (IIoT) is acting as one of the significant growth-inducing factors for SCADA. According to a study by Microsoft, 87% of the manufacturing industry's decision-makers favored adoption, with industrial automation, quality & compliance, production planning & scheduling, supply chain and logistics, and plant safety & security being the primary use cases. Additionally, various key companies, in collaboration with concerned government entities, are taking initiatives to promote smart manufacturing. For instance, the government authority of India introduced an initiative called the Smart Advanced Manufacturing and Rapid Transformation Hub (SAMARTH) Udyog Bharat 4.0, which aims to enhance awareness about manufacturing 4.0 within the Indian manufacturing industry. It also aims to help the stakeholders address the challenges related to smart manufacturing. Moreover, the growing penetration of industry automation trends in numerous countries like South Korea, India, Singapore, etc., is also propelling the market growth. According to the National Bureau of Asian Research, in 2022, the GDP of South Korea comprised 42% of exports, with semiconductors being the prominent export item. This contributed to almost 18.9% of total exports in 2022. Moreover, the regulatory authorities of Korea are prioritizing smart manufacturing and intend to establish nearly 30,000 fully automated manufacturing firms by 2025, utilizing cutting-edge automation, data exchange, and IoT technologies. Such initiatives in adopting automation technologies are expected to drive the SCADA market demand. 

Implementation of Stringent Regulatory Requirements in Industries

The implementation of stringent regulatory requirements is compelling industries to adhere to specific standards and protocols to ensure safety, operational integrity, and environmental responsibility. This need to align with regulatory standards is prompting industries to adopt SCADA solutions that enable real-time monitoring, data collection, and reporting functionalities to demonstrate compliance. For instance, the survey of Ubisense provides a clear snapshot of the 2023 manufacturing landscape, indicating that 62% of manufacturers have incorporated IoT technologies into their manufacturing or assembly processes. Besides, the complexity of regulatory frameworks often requires tailored solutions that suit specific industry needs. Various key market players are responding to this demand by providing customizable and adaptable SCADA systems that can be integrated into existing processes seamlessly. 

The Growing Emphasis on Cybersecurity

The growing focus on cybersecurity is further influencing the SCADA market's trajectory. The elevating levels of digitization across various industries are leading to increased vulnerability of critical infrastructure to cyber threats. Various key SCADA providers are taking initiatives and investing in research and development activities to overcome this challenge. For instance, in July 2023, Honeywell announced its acquisition of SCADAfence, which specializes in cyber security solutions for monitoring extensive operational technology (OT) Internet of Things (IoT) networks. SCADAfence is known for its expertise in asset discovery, threat detection, and security governance, which are crucial elements for cyber security in industrial and building management. In addition to this, the SCADAfence product lineup is set to become part of the Honeywell Forge Cybersecurity+ suite within Honeywell Connected Enterprise. This strategic move aligns with Honeywell's emphasis on digitalization, sustainability, and OT cyber security SaaS solutions. Moreover, as cybersecurity remains a top priority for numerous organizations, the demand for secure and reliable SCADA solutions is anticipated to drive the market growth in the coming years.

SCADA Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global SCADA market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on component, architecture and end-user.

Breakup by Component:

• Programmable Logic Controller (PLC)
• Remote Terminal Units (RTU)
• Human Machine Interface (HMI)
• Communication Systems
• Others
   

Programmable logic controller (PLC) is the most used component

The report has provided a detailed breakup and analysis of the market based on the components. This includes programmable logic controller (PLC), remote terminal units (RTU), human machine interface (HMI), communication systems and others. According to the report, a programmable logic controller (PLC) represented the largest segment.

PLCs are designed to execute tasks and control processes in real-time, making them an ideal choice for integrating with SCADA systems. Manufacturing plants of various automotive companies have been integrating PLC into the manufacturing stream to improve productivity and efficiency. For instance, ATS Applied Tech Systems Ltd developed a tracking and tracing system for airbags using InTrack, InTouch, and GE-Fanuc PLCs to gain full error-proofing and traceability. Similarly, in July 2023, Siemens launched a complete virtual programmable logic controller, Simatic S7-1500V. It expands the company's existing Simatic portfolio to special market requirements, including virtual hosting of PLC computing. According to the company, Simatic S7-1500V is part of Industrial Operations X, under which the company is consistently focusing on integrating IT and software capabilities into the automation landscape.

Breakup by Architecture:

• Hardware 
• Software 
• Services 
   

Services hold the largest market share.

A detailed breakup and analysis of the market based on the architecture has also been provided in the report. This includes hardware, software, and services. According to the report, services represented the leading segment.

SCADA systems are complex and require expertise in various domains, including system integration, cybersecurity, and process optimization. SCADA service providers are offering specialized consultations to assist businesses in selecting the right SCADA solution for their unique needs. In addition to this, various service providers are also investing in research and development activities to improve the capabilities of SCADA solutions. For instance, in March 2021, GE Digital, headquartered in the US, launched CIMPLICITY and Tracker software services, which are multi-industry HMI/SCADA and MES routing solutions. Tracker is dedicated to the usage amongst high-volume manufacturers, including automotive companies. CIMPLICITY is aimed at companies with remote operations centers at multiple locations. Moreover, SCADA systems often require customization to suit the unique requirements of different industries and applications. Service providers tailor SCADA solutions to align with specific operational needs, such as data collection, visualization, and control strategies. 

Breakup by End-User:

• Oil and Gas 
• Power 
• Water and Wastewater
• Manufacturing 
• Chemicals and Petrochemicals
• Pharmaceutical 
• Others 
   

The oil and gas industry accounts for the majority of the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes oil and gas, power, water and wastewater, manufacturing, chemicals and petrochemicals, pharmaceuticals, and others. According to the report, the oil and gas industry accounted for the largest market share.

The oil and gas industry operates across vast and geographically dispersed facilities, including drilling sites, refineries, pipelines, and distribution networks. SCADA systems are essential for managing and monitoring these complex and distributed operations in real-time. Moreover, the government authorities of various nations are implementing guidelines for oil and gas companies to establish robust management programs and conduct risk analysis. For instance, in the United States, the "Pipeline Safety Improvement Act" and the subsequently amended final rule, "Implementing Integrity Management" for natural gas transmission pipelines, mandate pipeline operators to establish integrity management programs and set standards for conducting risk analysis. A SCADA system easily supports the data flow required to maintain and improve overall integrity. This, in turn, is augmenting the adoption of SCADA solutions in the oil and gas industry, thus leading to market growth. 

Breakup by Region:

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

Asia Pacific exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include Europe, North America, Asia Pacific, Middle East and Africa, and Latin America. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific is home to some of the world's fastest-growing economies, including China, India, and Southeast Asian countries. Rapid economic growth has fueled the levels of industrialization across diverse sectors such as manufacturing, energy, automotive, and electronics. As industries expand, the demand for advanced automation and control solutions, including SCADA systems, increases substantially. As per a report by IFR in March 2022, Japan is the world's number on industrial robot manufacturer, delivering 45% of the global supply for robots worldwide. Such instances are anticipated to drive the demand for automation, resulting in the adoption of SCADA solutions in the region. Similarly, in April 2023, Rockwell Automation announced its intention to form a partnership with Doosan Robotics, a renowned global robotics manufacturer. The signing ceremony was attended by representatives from both organizations and South Korea's Minister of Trade, Industry, and Energy, Lee Chang-Yang.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis, such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the SCADA Market Leaders in the global SCADA industry include: 

• ABB Ltd.
• Emerson Electric Co.
• Rockwell Automation, Inc.
• Schneider Electric SE
• Siemens AG
• Alstom
• General Electric Co.
• Honeywell International, Inc.
• Omron Corporation
• Yokogawa Electric Corporation
• Iconics Inc.
• Elynx Technologies, LLC
• Enbase LLC
• Globalogix
• Inductive Automation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global SCADA Market News:

• March 2024: The UK's leading cybersecurity agency, the National Cyber Security Centre (NCSC), has published guidance to help organizations make better-informed decisions about whether to migrate their supervisory control and data acquisition (SCADA) systems to the cloud. The NCSC aims to show organizations not only the opportunities but also the challenges of migrating such deployments to the cloud.
• January 2024: Delhi Metro Rail Corporation (DMRC) and Bharat Electronics Limited (BEL) have formalized their collaboration through a teaming agreement for the commercialization of the Super-SCADA project. This initiative is a part of the 'Make in India' campaign, which aims to improve the quality of service provided to commuters through an integrated fault management system.
• June 2023: Minsait, an Indra company, presented the first global deployment of SCADA system that allows controlling the entire electricity grid of a country from the cloud. This system is meant for the operation and monitoring of the critical infrastructures of the national electricity grid of Guatemala.

SCADA Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the SCADA market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global SCADA market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the SCADA industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.