Industrial Software Market 2030: AI's Impact on Manufacturing
The global industrial software market was valued at USD 20.35 billion in 2023 and is projected to reach USD 60.91 billion by 2030, expanding at a CAGR of 16.8% from 2024 to 2030. This significant growth is driven by the widespread adoption of automation and digital transformation initiatives across various industries, as companies aim to enhance operational efficiency, reduce costs, and improve product quality.
The rapid advancement of Industry 4.0 technologies, such as the Industrial Internet of Things (IIoT), artificial intelligence (AI), and machine learning (ML), is further accelerating demand for sophisticated software tools. These technologies enable organizations to analyze large datasets, optimize production workflows, and anticipate maintenance needs, resulting in smarter and more efficient industrial operations.
The rise of cloud computing and the transition to Software-as-a-Service (SaaS) models are also broadening access to industrial software, especially for small and medium-sized enterprises (SMEs). These models reduce upfront infrastructure costs and provide scalable, flexible solutions that meet evolving business needs.
The integration of core industrial software systems—such as Supervisory Control and Data Acquisition (SCADA), robotic software, and Manufacturing Execution Systems (MES)—with enterprise platforms like Product Lifecycle Management (PLM) and Enterprise Resource Planning (ERP) is opening up new growth opportunities. These integrations enable seamless communication and data flow across business functions, enhancing real-time decision-making and resource optimization.
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Key Market Trends & Insights
North America held the largest market share in 2023, accounting for 33.96% of global revenue. The region’s leadership in advanced manufacturing sectors—such as aerospace, automotive, and electronics—has driven high adoption rates of industrial software aimed at boosting operational performance. Additionally, strong investments in digital transformation and Industry 4.0 technologies continue to reinforce the region’s dominance.
By End-Use: The process industries segment led the market in 2023, contributing the highest revenue share. Sectors such as oil & gas, pharmaceuticals, chemicals, and food & beverages rely on precise monitoring and control of complex operations, making industrial software essential for maintaining safety, efficiency, and compliance.
By Type: The Manufacturing Execution System (MES) segment was the largest in 2023, accounting for 28.22% of global revenue. MES platforms enable real-time monitoring, control, and optimization of production processes, leading to enhanced product quality and regulatory compliance. As smart manufacturing and digitalization continue to evolve, the demand for MES is expected to increase steadily.
Market Size & Forecast
2023 Market Size: USD 20.35 Billion
2030 Projected Market Size: USD 60.91 Billion
CAGR (2024-2030): 16.8%
North America: Largest market in 2023
Key Companies & Market Share Insights
Leading players in the industrial software market include ABB, Rockwell Automation, and Emerson Electric Co. These companies are actively pursuing strategies such as partnerships, mergers & acquisitions, and product innovations to strengthen their market position and expand their customer base.
In May 2024, Forterro, a specialized software provider, launched Fortee in the UK—an entry-level, cloud-based ERP solution designed for industrial startups and SME discrete manufacturers. Built on 15 years of experience in cloud ERP, Fortee incorporates extensive insights to deliver a tailored, scalable solution that supports operational agility and digital growth.
Key Players
ABB
Rockwell Automation
Emerson Electric Co.
General Electric Company
Honeywell International, Inc.
SAP SE
OMRON Corporation
Hexagon AB
Siemens
Oracle
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Conclusion
The industrial software market is experiencing rapid transformation, fueled by accelerating automation, the rise of Industry 4.0, and increasing demand for integrated digital solutions. With a projected CAGR of 16.8% through 2030, the market is set to triple in size. As manufacturers across sectors aim to boost efficiency, agility, and innovation, industrial software will play a central role in shaping the future of smart, connected enterprises. The continued expansion of cloud-based platforms and the integration of MES, ERP, and PLM systems are key to enabling this evolution, particularly for SMEs seeking scalable digital solutions.
