New research from ResearchAndMarkets.com disclosed that the global cyber-physical systems market is expected to be valued at US$124.1 billion in 2024 and is projected to reach $255.3 billion by 2029; it is expected to grow at a CAGR of 15.5 percent from 2024 to 2029. The cyber-physical systems market is predominantly driven by smart infrastructure development that involves technologies to develop an environment that is more intelligent, eco-friendly, and adaptable. The development includes different structures such as smart grids, intelligent transport systems, and smart buildings that use CPS technology.
Additionally, smart infrastructure incorporates sensors, Internet of Things (IoT) devices, and automation systems into physical facilities for real-time monitoring, predicting potential faults before they occur, and data-driven decision-making to minimize energy consumption costs and improve user experiences.
The North American region held the largest share of the cyber physical systems market in 2023, due to advanced technological infrastructure and higher adoption of state-of-the-art technologies along with significant investment in R&D. Furthermore, this region is focusing on Industry 4.0, smart infrastructure, and digital transformation, which is complementing the growth of automation solutions supporting CPS market.
The region has the presence of players such as Honeywell International Inc. (US), Rockwell Automation (US), and General Electric Company (US) among others. Such companies are continuously developing robotics and automation technologies with AI and IoT integration, supporting the growth of the cyber-physical systems market.
The key players operating in the cyber-physical systems market are ABB (Switzerland), Honeywell International Inc. (US), Rockwell Automation (US), Schneider Electric (France), and Siemens (Germany) among others.
IIoT segment holds largest share in cyber-physical systems market
The IIoT in cyber-physical systems has the highest share of the overall market due to its capability to bring about core changes to industries in which it works. This is done through an effective and efficient integration of physical machinery, and equipment with advanced digital systems, and emerging technologies.
IIoT becomes a powerful enabler for seamless data exchange among various devices and systems allowing for real-time monitoring of operations, predictive maintenance that enables one to foresee possible future issues in good time, and better decision-making brought about by higher levels of agility and responsiveness.
Consequently, due to such sophisticated integrations, there are huge gains in operational efficiency for industries, large cost reductions, and finally, this leads to high levels of productivity favorably impacting the bottom line. As part of mainstream implementations, the rising need for better automation and smarter manufacturing solutions with higher order that require the highest levels of IIoT adoption indeed can be observed in all critical industries: manufacturing, energy production, and transportation.
Digital twin segment to account for highest growth rate in cyber-physical systems market
The potential growth rate of the digital twin segment in the cyber-physical systems market is due to its ability to change predictive analysis, simulation, and real-time monitoring. With this, digital twins emulate physical assets, processes, or systems so that businesses can monitor and improve their performance in real-time without disturbing the physical system itself.
The demand for intelligent production coupled with advancements of new artificial intelligence (AI), Internet of Things (IoT), and data analytical platforms have made digital twins the tools of choice. Because various industries want to boost productivity while reducing downtime and use simulation-based models to create innovation, they have become the most important factors contributing to fast growth in the CPS industry.
Based on vertical, manufacturing holds the second largest share of the cyber-physical systems market. The manufacturing vertical in the CPS market holds the second largest share owing to the adaptation of automation, smart technologies, and digital transformation initiatives. For instance, manufacturing relies heavily on CPS technologies such as the Industrial Internet of Things (IIoT), Industrial Control Systems (ICS), and digital twins to optimize production processes, increase quality control efforts, and minimize operational costs.
These technologies realize instant tracking, predicted upkeep, and smooth relationships amidst real and abstract systems, thus enhancing the capacity and competitiveness of the sector internationally. In addition, the implementation of CPS in production is increasingly fastened by the quest for industry 4.0 to create advanced factories that are efficient, adaptable, and responsive to market trends. Therefore, manufacturing has become a dominant sector through the generalized usage of CPS technologies.
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall authentication and brand protection market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report also provides insights on analysis of key drivers (Evolution in operational technology, Smart Infrastructure Development, Growing Use of Digital Twin Technology, Healthcare and Personalized Medicine, Advancements in Automotive and Transportation), restraints (High Implementation Costs, Complexity of integration coupled with the lack of availability of skilled operators), opportunities (Integration of CPS and Internet of Things (IoT), Smart Energy Management with CPS, Emerging Smart Agriculture Technologies), and challenges (Need of Different Protection Tools from IT Systems, Growing Security Risks) influencing the growth of the cyber-physical systems market.
It also details product development/innovation covering insights on upcoming technologies, research and development activities, and new product launches in the cyber-physical systems market. It addresses market development delivering comprehensive information about lucrative markets while analyzing the cyber-physical systems market across varied regions. It also covers market diversification through exhaustive information about new products, untapped geographies, recent developments, and investments in the cyber-physical systems market.