Global Industrial Services Market By Type (Engineering & Consulting, Operational Improvement & Maintenance and Installation & Commissioning), By Application (Distributed Control System (DCS), Supervisory Control and Data Acquisition (SCADA), Valves & Actuators, Electric Motors & Drives, Manufacturing Execution System (MES) and Others), 6.2.3. By Industry (Chemicals, Aerospace & Défense, Automotive, Pharmaceuticals, Metals & Mining and Others), By Company and By Geography, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 44.84 Billion
CAGR (2026-2031)	7.79%
Fastest Growing Segment	Aerospace & Défense
Largest Market	North America
Market Size (2031)	USD 70.33 Billion

Market Overview

The Global Industrial Services Market will grow from USD 44.84 Billion in 2025 to USD 70.33 Billion by 2031 at a 7.79% CAGR. Industrial services comprise the outsourcing of maintenance, installation, engineering, and operational support to specialized providers, enabling manufacturers to optimize asset lifecycles and concentrate on core production activities. The primary drivers supporting market growth include the increasing technical complexity of automated systems and a strategic shift toward operational expenditure models, which require specialized expertise that many facilities lack internally. This reliance on external support is further intensified by a severe shortage of skilled technical labor. According to the National Association of Manufacturers, in 2024, nearly 56% of surveyed industrial firms identified attracting and retaining a quality workforce as a primary business challenge, necessitating the use of third-party service agreements.

One significant challenge impeding market expansion is the concern regarding data security and intellectual property protection. Manufacturers are often hesitant to grant service providers remote access to critical operational data due to the risk of cyber threats or competitive leaks. This lack of trust can delay the adoption of comprehensive, digitally connected service solutions and hinder the implementation of predictive maintenance strategies that require deep system integration.

Key Market Drivers

The rapid integration of Industry 4.0 and IIoT technologies is a primary force expanding the demand for specialized industrial services. As manufacturers digitize operations, they require external expertise to design, implement, and manage complex interconnected systems that internal teams often lack the proficiency to handle. This digital transformation drives service contracts for system integration, data analytics, and cybersecurity, as facilities modernize legacy infrastructure to remain competitive. The scale of this technological shift is evident; according to Rockwell Automation, April 2024, in the '2024 State of Smart Manufacturing Report', 95% of manufacturers are now using or evaluating smart manufacturing technologies, a figure that highlights the pervasive need for technical support. This widespread adoption compels facilities to rely on third-party service providers to navigate the technical intricacies of smart factories and ensure seamless operational connectivity.

Concurrently, the accelerated transition from reactive to predictive maintenance strategies is redefining service delivery models and driving market growth. Industrial operators are increasingly abandoning run-to-failure approaches in favor of data-driven methodologies that anticipate equipment failures before they occur, thereby safeguarding critical assets. The financial imperative for this shift is substantial; according to Siemens, in 2024, the estimated cost of unplanned downtime for an average large plant has risen to $253 million annually. Consequently, service providers are deploying advanced monitoring solutions to mitigate these losses. This strategic pivot is yielding tangible results, as according to MaintainX, August 2024, in the '2024 State of Industrial Maintenance Report', 65% of surveyed professionals reported that shifting towards proactive maintenance strategies was the most effective method for reducing unplanned downtime incidents.

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Key Market Challenges

The apprehension surrounding data security and intellectual property protection acts as a substantial barrier to the expansion of the Global Industrial Services Market. As industrial service providers increasingly transition toward digitally integrated solutions—such as remote monitoring and predictive maintenance—they require continuous access to a manufacturer’s sensitive operational networks. However, manufacturers are frequently reluctant to authorize this external connectivity, fearing that third-party access points could serve as conduits for cyberattacks or unauthorized data exfiltration. This protectiveness stifles the adoption of advanced service contracts, forcing facilities to rely on less efficient, reactive maintenance models rather than integrated digital partnerships.

The hesitation is well-founded given the escalating threat landscape facing the sector, which validates the cautious approach taken by facility owners. According to the Mechanical Engineering Industry Association (VDMA), in 2024, approximately 25% of surveyed member companies reported falling victim to a significant cybersecurity incident within the preceding two years. Such prevalence of security breaches reinforces the reluctance to share proprietary data with external vendors, directly slowing the market’s trajectory toward interconnected service ecosystems.

Key Market Trends

The expansion of industrial energy efficiency and decarbonization services is continuously reshaping the market as manufacturers increasingly outsource sustainability initiatives to meet stringent net-zero targets. Service providers are now delivering specialized retrofit and optimization programs that reduce energy intensity and carbon footprints across asset lifecycles, moving beyond simple regulatory compliance to strategic resource management. This trend is driven by the need to operationalize complex environmental goals, with major industry players demonstrating significant impact through these external partnerships. According to ABB, February 2025, in its 'Annual Reporting Suite 2024', the company helped its customers avoid 66 megatons of greenhouse gas emissions throughout the lifecycle of products sold in 2024, highlighting the massive scale of third-party intervention in industrial sustainability.

Simultaneously, the sector is undergoing a fundamental shift toward servitization and outcome-based business models, where revenue is generated through guaranteed uptime rather than discrete parts sales. This transition alters the traditional vendor-client relationship, as service providers assume the risk of asset performance by charging for measurable results—such as machine availability or production output—rather than labor hours. This evolution enables industrial firms to align service costs directly with productivity gains while incentivizing providers to maintain peak equipment reliability. According to IFS, October 2025, in the 'State of Service 2025: Manufacturing Transformation Report', 39% of surveyed manufacturing leaders now cite servitization as central to their long-term growth strategy, confirming the pivot toward value-driven service partnerships.

Segmental Insights

The Aerospace and Defense sector represents the fastest growing segment within the Global Industrial Services Market. This expansion is primarily driven by heightened geopolitical instability which prompts governments to increase defense budgets for fleet modernization and equipment maintenance. Furthermore, the integration of technological advancements in aircraft systems necessitates specialized engineering and operational support to ensure compliance with rigorous safety standards established by regulatory bodies such as the Federal Aviation Administration. Consequently, the critical need for continuous maintenance, repair, and overhaul services to sustain operational readiness directly fuels the rapid development of this market segment.

Regional Insights

North America maintains a leading position in the global industrial services market driven by the widespread integration of automation and operational technologies within manufacturing facilities. Organizations across the region prioritize predictive maintenance and asset optimization to ensure continuous productivity. Additionally, strict adherence to safety and quality standards set by the Occupational Safety and Health Administration necessitates frequent inspection and testing services. This strong regulatory framework, coupled with an established industrial base, compels companies to invest heavily in engineering and operational support to mitigate risks and maintain compliance.

Recent Developments

• In October 2024, Honeywell partnered with Google to integrate generative artificial intelligence into its industrial automation and data solutions. This collaboration combines Honeywell’s extensive operational data with Google’s advanced AI technology to streamline autonomous operations for industrial customers. The partnership focuses on creating AI-driven agents that assist the industrial workforce by automating tasks such as maintenance troubleshooting, code generation, and process optimization. This breakthrough is designed to address critical labor shortages and enhance asset reliability, representing a significant evolution in the delivery of software-enabled industrial services and autonomous facility management.
• In September 2024, Siemens entered a strategic partnership with Merck to advance smart manufacturing technologies across the life science, healthcare, and electronics sectors. This collaboration utilizes the Siemens Xcelerator platform to transition production processes from rigid mass manufacturing to a flexible, modular approach. By integrating advanced hardware and software solutions, the initiative aims to reduce time-to-market, lower investment costs, and significantly cut carbon dioxide emissions. The agreement establishes Siemens as a preferred global supplier, highlighting the growing importance of digital industrial services in streamlining complex production environments and setting new standards for future industrial operations.
• In April 2024, Rockwell Automation announced a strengthened collaboration with Microsoft to integrate generative artificial intelligence into industrial manufacturing design. Unveiled at the Hannover Messe trade show, this partnership focuses on embedding AI capabilities into the FactoryTalk Design Studio, enabling engineers to generate code and optimize system designs using natural language prompts. This development allows industrial manufacturers to accelerate their digital transformation journeys, improving operational efficiency and reducing engineering time. The initiative underscores the critical role of advanced software-based industrial services in modernizing factory floors and seamlessly connecting physical and digital operational environments.
• In March 2024, Schneider Electric announced a strategic investment of $140 million to expand its manufacturing operations in the United States. The funding was directed toward upgrading and equipping facilities in Tennessee to produce custom electrical switchgear and medium-voltage power distribution products. This move allows the company to better serve the surging demand for critical infrastructure and data center solutions across the region. By enhancing its domestic production capabilities, the company aims to streamline the delivery of essential industrial services and equipment, ensuring greater supply chain resilience and supporting the broader electrification and clean energy transition.

Key Market Players

• Siemens AG
• General Electric Company
• Schneider Electric SE
• Honeywell International Inc.
• ABB Ltd.
• Emerson Electric Co.
• Rockwell Automation, Inc.
• Jacobs Solutions Inc.
• AECOM Technology Corporation
• Fluor Corporation

By Type	By Application	By Industry	By Region
Engineering & Consulting Operational Improvement & Maintenance and Installation & Commissioning	Distributed Control System (DCS) Supervisory Control and Data Acquisition (SCADA) Valves & Actuators Electric Motors & Drives Manufacturing Execution System (MES) and Others	Chemicals Aerospace & Défense Automotive Pharmaceuticals Metals & Mining and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Industrial Services Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Industrial Services Market, By Type:

• Engineering & Consulting
• Operational Improvement & Maintenance and Installation & Commissioning

• Industrial Services Market, By Application:

• Distributed Control System (DCS)
• Supervisory Control and Data Acquisition (SCADA)
• Valves & Actuators
• Electric Motors & Drives
• Manufacturing Execution System (MES) and Others

• Industrial Services Market, By Industry:

• Chemicals
• Aerospace & Défense
• Automotive
• Pharmaceuticals
• Metals & Mining and Others

• Industrial Services Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE