The cyber-physical system (CPS) market is expected to record a market value of US$ 101.13 billion in 2024. It is a 21st-century innovation found anywhere, from everyday products to high-tech manufacturing tools. This system is a product of the Industry 4.0 revolution, which introduced the concept of smart factories in its wake. CPS’ use is also beneficial in real-time applications and optimizes performance in safety-critical applications.
The industry is forecast to expand at a CAGR of 7.8% in the ten-year time frame and reach a US$ 214.32 billion valuation by 2034.
| Attributes | Key Insights |
|---|---|
| Cyber-Physical System Market Size (2024E) | US$ 101.13 billion |
| Industry Valuation (2034F) | US$ 214.32 billion |
| Value-based CAGR (2024 to 2034) | 7.8% |
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Surging adoption of basic components of cyber-physical systems like memory units, sensors, storage devices, and monitoring devices computing units in many new sectors.
Energy and utility industries, in particular, are expected to spur substantial demand for cyber-physical systems due to their application in smart grid technology.
Cyber-physical systems have a crucial role in the development and optimization of autonomous cars and intelligent transportation systems. Increasing emphasis on raising the sales of electric vehicles is projected to fuel the demand for CPS for the creation of automated EVs.
Embedded cyber-physical systems are slated to acquire a 38.4% share in 2024. Factors governing the rapid sales of this security type include reducing prices of networking devices and IoT sensors are boosting the adoption of in-built or embedded security systems.
| Leading Security Segment | Embedded Security |
|---|---|
| Value Share (2024) | 38.4% |
Surging demand for cyber-physical embedded systems in EVs is further spurring the sales of cyber-physical systems in the automotive sector.
The automotive sector is projected to register a 37.7% share of the total revenue generated in 2024. Additionally, the segment is anticipated to observe lucrative growth over the forecast period.
| Leading End Use Vertical | Automotive |
|---|---|
| Value Share (2024) | 37.7% |
Rising demand for cyber-physical systems in Electronic Control Units (ECUs) in automotive is pushing the sales of cyber-physical systems. ECUs are increasingly deployed to control different mechanical subsystems like engines, brakes, steering, and suspension. This ensures maximum utilization of fuel or energy in automotives by discarding the use of surplus energy.
Principal Consultant
Quantitative insights related to growth projections of cyber-physical systems in the top five countries point to an interesting future for industry vendors. Companies are expected to experience robust growth in the United States, China, Australia and New Zealand. The last one is on the radar of several firms due to higher growth prospects emerging in Australia and New Zealand.
Based on the proceeding table, it can be concluded that Asia Pacific, except Japan and North America, are going to be destination areas for leading providers of cyber-physical systems.
| Countries | Forecast CAGR (2024 to 2034) |
|---|---|
| The United States | 15.1% |
| Germany | 3.3% |
| Japan | 3.6% |
| China | 14.5% |
| Australia and New Zealand | 17% |
The cyber-physical system market in the United States is flourishing at a 15.1% CAGR over the forecast period. Advanced infrastructure for the adoption of progressive technologies like artificial intelligence and IoT in several industries is building a conducive environment for the use of cyber-physical systems.
Significant presence of several world-renowned technology and IT companies, such as Microsoft, IBM, and others, in the United States is increasing the competitiveness of the industry.
Recently, success patterns have emerged for creating cyber-physical systems with Agile that are advancing the industry's growth. The market is expected to benefit from the launch of multidisciplinary projects to simulate, model, and analyze cyber-physical systems (CPS), to make these systems more robust and their analysis more effective and scalable. In April 2024, for instance, the Defense Award introduced the Purdue project to make cyber-physical systems stronger.
The demand for cyber-physical systems in Germany is increasing at a sluggish 3.3% CAGR during the forecast period. Despite the present maturity levels in Germany, the regional market is widely recognized as a prominent player in the whole of Europe.
The presence of developed infrastructure for automotive, manufacturing, energy, and utility sectors is increasing the adoption of cyber-physical systems in Germany.
Latest developments, such as the initiation of the Industry 4.0 project by the German government, are expected to improve the scope of cyber-physical systems in the country. IoT and cyber-physical systems form the technological base for this project.
In China, the cyber-physical system industry is projected to expand at a CAGR of 14.5% over the next ten years. The surging adoption of cyber-physical systems is fast replacing traditional industrial systems for streamlined integration of autonomous operations.
China’s leading position as a supplier and manufacturer of cyber-physical system hardware in the Asia Pacific is driven by the strong electronics manufacturing sector and low-cost labor availability.
Rising risks to national safety are further pushing cybersecurity experts and researchers to engage in an endless race to deal with digital vulnerabilities emerging in the private and public sectors.
Demand for cyber-physical system solutions and services in Japan is expected to register a steady 3.6% CAGR during the studied period. Growing demand for cyber-physical system services in various sectors, such as smart grids, smart factories, smart healthcare, and a few other industries.
Robust presence of favorable policies, MNCs, and reputable supplier network supporting the CPS industry.
The cyber-physical system market in Australia and New Zealand is poised to offer a lucrative environment for players. The industry is expected to expand at a robust 17% CAGR over the stipulated period.
The continuous entry of international cyber-physical system vendors and manufacturers in these two countries is enhancing the industry’s growth prospects. Additionally, strong investment by the government to promote IR 4.0 and boost the application of other future-oriented technologies across different sectors is accelerating the use of CPS.
Cyber-physical system sector is highly consolidated as few leading technology firms continue to wield their power over the global market. Several top manufacturers are heavily investing in research and development practices and product innovation to broaden the use cases of cyber-physical systems.
Research activities are also aimed at advancing core technologies like artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML). New players are attempting to accelerate their business transformation, facilitated by the latest technology, while increasing their customer base.
CPS vendors are collaborating with research institutions and solution providers to increase their industry share. This is resulting in faster development cycles, knowledge sharing, and integration of different platforms to provide comprehensive CPS solutions.
Latest Developments Uplifting the Cyber-Physical System Industry
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Based on security, the industry is divided into embedded security, industrial control systems (ICS) security, robotic security, Internet of Things (IoT) security, and others
By component, the industry is categorized into hardware, software, and services
Various end-use verticals that deploy cyber-physical systems are aerospace and defense, automotive, energy and utility, healthcare, manufacturing, consumer electronics, and others
Industry analysis has been carried out in key countries of North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
The industry is going to be worth US$ 101.13 billion in 2024.
The current forecast projects a CAGR of 7.8% for the industry.
The industry to expected to reach US$ 214.32 billion by 2034.
Automotive is a prominent end-use vertical in the market.
Australia and New Zealand are predicted to offer opportunities for investors.
Dell EMC and Broadcom Inc. control significant market share.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Security 6.2. Component 6.3. End Use Verticals 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Security 7.1. Embedded Security 7.2. Industrial Control Systems (ICS) Security 7.3. Robotic Security 7.4. Internet of Things (IoT) Security 7.5. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component 8.1. Hardware 8.2. Software 8.3. Services 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use Verticals 9.1. Aerospace and Defence 9.2. Automotive 9.3. Energy and Utility 9.4. Healthcare 9.5. Manufacturing 9.6. Consumer Electronics 9.7. Other End Users 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Security, Component, and End Use Verticals for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. IBM Corporation 20.2. Microsoft Corporation 20.3. Dell EMC 20.4. VMware Inc. 20.5. Hewlett Packard Enterprise 20.6. Schneider Electric 20.7. SAP SE 20.8. Honeywell International Inc. 20.9. Hitachi Vantara 20.10. Oracle
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Cyber-Physical System Market
