Operational Technology Market To Generate Revenue Worth $255.9 Billion by 2030

The global operational technology market is projected to generate USD 255.9 Billion revenue by 2030, advancing at a CAGR of 6.10% during 2022–2030. This can be ascribed to the increasing emphasis on real-time data analysis for predictive maintenance, government initiatives to promote the adoption of operational technologies, and emergence of connected enterprises.

OT includes the software and hardware that control the process of physical industrial production. Some of its examples are SCADA, programmable logic controllers, CNCs, and DCSs.

Conventionally, this technology has been isolated and specific, making use of closed proprietary protocols. Due to this, OT creates communication and data silos, resulting in inefficiencies and making it difficult to effectively share and leverage the available data. With Industry 4.0, these limitations are being eliminated.

Operational technology is becoming a vital factor for the success of every digital product, including smart medical devices and other kinds of wearables. Various sectors, including automotive & transportation, infrastructure & building, utilities & energy, oil & gas, and food & beverages are adopting this solution.

Due to the unremitting technological advancements, along with the need for lower power consumption, a tremendous increase in the use of OTs is being seen. Additionally, the technology is becoming popular as it offers increased productivity, better reliability and quality, and added maintenance convenience.

Control Systems Held Largest Share

Control systems held the largest share, of 48%, in 2022, as they ensure that industrial processes are carried out consistently, efficiently, and with as less variation as possible. They are installed to help maintain quantity, quality, and energy efficiency and ensure that the manufacturing is carried out profitably and carefully. These systems essentially measure, monitor, and control manufacturing processes, recognize abnormalities or variations from specified values, and correct them either automatically or manually.

Moreover, the demand for field instruments is growing at the highest rate. These instruments combine actuators, sensors, robust communications, and intelligent signal processing and frequently operate in the harshest of environments. At the enterprise level, they record and interpret data sent over to a cloud database.

Geographically, North America holds a significant share in the market owing to the popularity of smart manufacturing. In the last few years, industries in the region have adopted modern equipment and smart technologies for factory operations, to transform manufacturing from traditional to smart technologies, in seeking newer ways for business growth.

Moreover, the U.S. market is driven by the advance of the pharmaceutical industry. The U.S. is the leader in per capita prescription drug spending, representing more than 30% of the worldwide market. Many global pharmaceutical manufacturers have a presence in the country.

OT helps putting in place an integrated system that brings together APIs, biologics, and the systems responsible for fermentation and building management, and continuous environmental monitoring.

Such transformation is being seen in various other sectors in the continent, due to the evolving technological landscape. This continues to have a positive impact on the usage of technologically advanced components in industrial systems to unite them into a single system for operational control. For easy communication across platforms, this progress opens the door for an even more extensive integration of IIoT, which, when used with these new technologies, can generate a heterogeneous landscape. IoT and other such automation functionalities are extensively used across verticals including energy, BFSI, manufacturing, oil & gas, transportation, and healthcare.

The major players operating in the operational technology market include ABB Ltd., Siemens AG, Honeywell International Inc., General Electric Company, Schneider Electric SE, Rockwell Automation Inc., Emerson Electric Co., Oracle Corporation, IBM Corporation, and Yokogawa Electric Corporation.