Cyber-Physical System Market by Component (Hardware, Services, Software), Deployment (Cloud, On-Premises), Industry - Global Forecast 2024-2030

[181 Pages Report] The Cyber-Physical System Market size was estimated at USD 5.35 billion in 2023 and expected to reach USD 6.22 billion in 2024, at a CAGR 16.86% to reach USD 15.95 billion by 2030.

A cyber-physical system (CPS) is a technology that enables physical objects to interact with the digital world. They combine hardware, sensors, and software to allow for communication between machines and devices. The CPS can allow the end-use industries to access new data, monitor operations more closely, and gain insights into customer needs and preferences. Cyber-physical systems include a combination of sensor networks with amalgamated computing to monitor and control the physical environment, with feedback loops that allow this external stimulus to self-activate either communication, control, or computing. The surge in automation and widespread adoption of breakthrough technologies, including artificial intelligence (AI) and the Internet of Things (IoT), and the need for physical security capabilities across end-use sectors are expanding the deployment of CPS systems. The government initiatives to increase digitalization across the manufacturing industries are also accelerating the deployment of CPS systems. However, high costs and cyber security issue associated with CPS systems may impact their use by the end-use industries. Moreover, the ongoing advancements and inclination towards software-based solutions in cyber-physical systems are expected to encourage their adoption by the end-use sectors.

The cyber-physical system (CPS) market in the Americas is evolving due to established industries such as manufacturing, aerospace, and defense. The United States, in particular, strongly focuses on advanced technologies, research and development, and smart infrastructure, creating favorable conditions for CPS adoption. Growing emphasis on industrial automation, smart manufacturing, and the Industrial Internet of Things (IIoT) fuel the adoption of CPS solutions across various sectors in the EMEA region. APAC countries, including China, Japan, South Korea, India, and Singapore, are witnessing substantial investments in CPS across various sectors, such as manufacturing, transportation, healthcare, and smart cities. The region's favorable government policies, supportive regulatory frameworks, and robust infrastructure development contribute to the market's growth. Emerging startups that offer a wide range of CPS solutions, including hardware components, software platforms, connectivity solutions, and consulting services, and increasing adoption of cutting-edge technologies are expected to provide immense opportunities for the growth of the cyber-physical system market worldwide.

The market dynamics represent an ever-changing landscape of the Cyber-Physical System Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

• Market Drivers
  • Increasing penetration of internet and connectivity through AI and IoT
  • Growing need for physical security and greater data security capabilities in healthcare and manufacturing industries
  • Government initiatives for digitalization across end-use industries
• Market Restraints
  • High cost associated with development of cyber-physical systems
• Market Opportunities
  • Shift from traditional hardware architectures to more advanced software-based solutions
  • Technological advancements in industrial cyber-physical systems
• Market Challenges
  • Data breach and cyber security issues

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Cyber-Physical System Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Cyber-Physical System Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Cyber-Physical System Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

• Dataminr Announces the Launch of Cyber-Physical A2I Partner Coalition

  Dataminr announced the launch of the Cyber-Physical A2I Partner Coalition at the upcoming RSA Conference. This new strategic partnership among cybersecurity organizations addresses the growing challenges corporations face at the intersection of cyber and physical security. Claroty's focus on securing the cyber-physical systems across the Extended Internet of Things (XIoT), including industrial control systems, medical devices, and building management systems, joins this coalition for the partners. [Published On: April 20, 2023]

• Xage Partners with Joint Cyber Defense Collaborative and CISA to Advise on Critical Infrastructure Protection

  The recent partnership between Xage Security, Joint Cyber Defense Collaborative (JCDC), and the Cybersecurity and Infrastructure Security Agency (CISA) is important in reinforcing cybersecurity for critical infrastructure. The agreement provides valuable guidance to help reduce the risk of cyberattacks and increase protection against malicious actors. This agreement has significant implications for the cyber-physical systems market, with Xage’s security solutions being available to critical infrastructure operators across various sectors such as energy, utilities, transportation, and communications. Additionally, since CISA is already heavily involved in developing sector-specific guidance on cybersecurity best practices and standards, this ensures that the operators of these critical infrastructures can better protect themselves from potential threats. [Published On: April 20, 2023]

• DirectDefense and Claroty Partner to Secure Customers’ Cyber-Physical Systems

  DirectDefense partnered with Claroty to secure customers' cyber-physical systems. The joint venture provides a comprehensive portfolio of security products tailored to customers with cyber-physical systems. This ensures that customers have an advanced level of reliable and resilient protection. [Published On: April 12, 2023]

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Cyber-Physical System Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

The report delves into recent significant developments in the Cyber-Physical System Market, highlighting leading vendors and their innovative profiles. These include ABB Ltd, Amazon.com, Inc, Amphenol RF., Cognizant, Dell Inc., Ericsson, Fujitsu Component Limited, Galois, Inc., Hewlett Packard Enterprise Company, Hitachi Vantara LLC, Honeywell International Inc, Huawei Technologies Co., Ltd., Infosys Limited, Intel Corporation, International Business Machines Corporation, KUKA AG, Microsoft Corporation, NEC Corporation, Oracle Corporation, SAP SE, Schneider Electric SE, Siemens AG, Software AG, Tech Mahindra Limited, The MathWorks, Inc., Toshiba Corporation, and Yokogawa Electric Corporation.

This research report categorizes the Cyber-Physical System Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Component
  • Hardware
  • Services
  • Software
• Deployment
  • Cloud
  • On-Premises
• Industry
  • Aerospace & Defense
  • Automotive & Transportation
  • Banking, Financial Services & Insurance
  • Building, Construction & Real Estate
  • Consumer Goods & Retail
  • Education
  • Energy & Utilities
  • Government & Public Sector
  • Healthcare & Life Sciences
  • Information Technology & Telecommunication
  • Manufacturing
  • Travel & Hospitality

• Region
  • Americas
    • Argentina
    • Brazil
    • Canada
    • Mexico
    • United States
      • California
      • Florida
      • Illinois
      • New York
      • Ohio
      • Pennsylvania
      • Texas
  • Asia-Pacific
    • Australia
    • China
    • India
    • Indonesia
    • Japan
    • Malaysia
    • Philippines
    • Singapore
    • South Korea
    • Taiwan
    • Thailand
    • Vietnam
  • Europe, Middle East & Africa
    • Denmark
    • Egypt
    • Finland
    • France
    • Germany
    • Israel
    • Italy
    • Netherlands
    • Nigeria
    • Norway
    • Poland
    • Qatar
    • Russia
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Turkey
    • United Arab Emirates
    • United Kingdom

1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

1. What is the current market size and projected growth?
2. Which products, segments, applications, and regions offer promising investment opportunities?
3. What are the prevailing technology trends and regulatory frameworks?
4. What is the market share and positioning of the leading vendors?
5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?