Verdantix Says Spending On Operational Excellence Digital Services Will Reach $29.9 Billion In 2025
London – January 21, 2021. The global operational excellence digital services market will grow from $22.1 billion in 2020 to $29.9 billion in 2025 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate (CAGR) of 6.3% will be driven by the COVID-19-induced digital acceleration and prohibitive costs of unplanned downtime in process-intensive and asset-heavy industries. Vendors positioned to benefit from this growth include digital service providers such as Accenture, Infosys, Tata Consultancy Services (TCS) and Wipro, as well as software product suppliers such as AVEVA, Bentley Systems, GE Digital and IBM.
“Digital transformation is high on the agenda of every determined and forward-looking industrial firm” commented Victor Voulgaropoulos, Verdantix Industry Analyst. “Third-party digital services firms are becoming an essential element of an organization’s operational excellence strategy, as enterprise-wide efforts are required to meaningfully drive operational change and reap the gains from digitization.”
The Verdantix report, Market Size And Forecast: Operational Excellence Digital Services 2020-2025 (Global), provides IT services, engineering and consulting firms, current and prospective investors, and enterprise software product suppliers with the information they need to take advantage of the market opportunity. The model breaks down the market size and forecast trends across 16 industry segments specified by asset class and 10 economic regions. Oil and gas, chemicals and manufacturing will maintain their positions as leading sectors for operational excellence digital services, accounting for an expected 57% of revenues in 2025. The digital services market for power generation from renewables will grow the fastest, at a CAGR of 9.2% from 2020 to 2025, followed by nuclear power generation as well as power transmission and distribution sectors, each with a forecasted 7.8% CAGR for the same period.
“The market is currently witnessing a string of partnerships and strategic frameworks forged between blue-chip technology providers and engineering consultancies, as they seek to capitalize on the market prospects and respond to the customer demand for combined technology and subject matter expertise” continued Voulgaropoulos. “COVID-19-driven risk management and cost-cutting strategies will shape the market over the next couple of years, while implementation and integration efforts to consolidate firms’ digital ecosystems towards autonomous and remote operations will sustain the market growth in the long-term.”