Cyber Physical System Market Size, Share, Growth, and Industry Analysis, By Type (EP-CPS, IT-CPS), By Application (Industrial Automatic, Health/Medical Equipment, Aerospace, and Others), Regional Insights and Forecast To 2031

Updated On: 13 November 2023

Cyber Physical System Market Report Overview

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The global cyber physical system market size was USD 7656.5 million in 2021 and is expected to touch USD 20942.88 million by 2031, exhibiting a CAGR of 10.6% during the forecasted period.

A cyber physical system is an intelligent computer system that can integrate sensing, computation, and control into physical environments via the internet. The mechanism for the system is based on computer algorithms. This system shares commonalities with the Internet of Things (IoT) technology and has wide-ranging applications such as automobile systems, medical monitoring, avionics, and robotics. These systems present a complex integration between the physical and computational elements. The market is divided into two types, i.e., EP-CPS and IT-CPS.

The precursor applications of the technology can be found in areas such as aerospace, chemical procedures, civil infrastructure, healthcare, manufacturing, transportation, and others. A cyber physical system is not fully embedded like other traditional mechanisms. This system relies on physical input and output and interacts with the environment. This application is mainly found in robotics and sensor networks. The ongoing advancements in the industry and technology industry will lead the market growth. Industry automation and medical equipment, along with healthcare, are also leading applications of the technology.

COVID-19 Impact: Increase in Digital Innovations Propelled Market Growth

The global COVID-19 pandemic has been unprecedented & staggering, with cyber physical systems experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributed to demand returning to pre-pandemic levels once the pandemic is over.

The pandemic-induced restrictions made digital innovations and solutions an increased affair as the cyber physical system market led an upward path. The industry has grown in tandem with the Internet of Things as an effective solution for various applications mentioned above. The sector saw an increase in the research and development activities during the pandemic and is set to expand further as restrictions have been eased and physical tests and experiments can be carried forward for innovations and advancements. The pandemic proved to be highly fruitful for advances and contemplation by researchers.

LATEST TRENDS

"Rise in Integration of Artificial Intelligence to Propel Growth"

Integrating the cyber physical system market with Artificial Intelligence technology will propel the market growth, as AI also has several applications in many sectors such as education, healthcare, finance, automation, and others. The integration of AI and CPS will lead the market on an upward graph as AI works on remote systems, whereas these systems work in computation and physical environments to deliver solutions to problems. Hence, the merger of the two techniques will lead to the industry's market growth in developed countries.

Cyber Physical System Market Segmentation

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• By Type

Based on the types, the market is subcategorized into EP-CPS, IT-CPS, and physical systems.

• By Application

Based on applications, the market is subcategorized into industrial automatic, health/medical equipment, aerospace, and others.

DRIVING FACTORS

"Modernization of Production Techniques to Drive Market Growth"

The modernization of production techniques in manufacturing cyber physical security systems will lead the market growth as innovations continue to enter the market. Improvements in research and development facilities will increase the market share of key industrial players and companies in the market, as the system shows how to provide real-world solutions for consumers. This will ensure efficiency and drive the market growth and demand to unprecedented levels. System accuracy and insights are the most crucial factor in the growth aspect.

"Technological Advancements and Demand from Developing Economies to Lead Industry"

With rapid advancements and developments in the industry, the demand from emerging countries will lead to the cyber physical system market growth. The system provides real-time solutions such as accurate calculations, increased efficiency, and improvement in the lifestyle of people. As the market advances in developed nations, it will also expand in the developing countries due to its application in the automobile and aerospace dynamics, with China and South Korea leading the growth. These factors collectively will propel the industry to take on other similar technologies.

RESTRAINING FACTORS

"Rise in Costs of Research and Development to Impede Market Growth"

The pandemic-induced disruptions in research and development activities have driven up the costs as the market tries to lead the growth. The increased cost of R&D is due to an increased demand by consumers in developing or emerging nations, which is an essential factor in the market. Innovations in the industry demand extensive research to create effective solutions. Investors must thus keep a watch on regions expanding their production and manufacturing capacity in the new areas, which can also drive up the costs, leading to massive ramifications for consumers.

Cyber Physical System Market Regional Insights

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"Due to Innovations, North America to Lead Market Share"

Increasing innovations in the North American continent will lead the cyber physical system market share. The increasing number of stakeholders and key industrial players are based in the U.S. This will drive market growth and increase profits. The massive applications of physical systems technology will impact the market positively and can have the potential to bring innovative solutions in the future. The market is thus on an upward trajectory in developed nations, with the U.S. and Canada leading the market share.

KEY INDUSTRY PLAYERS

The report analyzes different market players in the industry, and the information is published after proper research, analysis of trends, key developments, new initiatives, and technological developments and innovations. Other aspects of the report include research on companies, regions, technical and environmental outcomes, and newly emerging industries' impact and risks. The facts in the information may be subject to change, given the situation of market players from time to time. North America will lead the industry with the largest share.

List of Market Players Profiled

• Siemens (Germany)
• Intel (U.S.)
• ITIH (U.K.)
• EIT Digital (Hungary)
• TCS (India)
• MathWorks (U.S.)
• Galois (U.S.)
• SEI (Sweden)
• Astri
• NIST (U.S.)

INDUSTRY DEVELOPMENT

July 2022: The U.S.-based National Institute of Standards and Technology (NIST) has developed encryption tools designed to withstand an attack by a quantum computer. These computers could potentially crack the privacy protection security in the digital systems we rely on daily — such as online shopping and social media surfing. The selected encryption algorithms will become part of NIST's quantum cryptographic standard, which is yet to be finalized.

REPORT COVERAGE

The report examines elements that affect the demand and supply and estimates dynamic market forces for the forecast period. The report offers drivers, restraints, the latest trends, and industrial developments. After evaluating financial and technical market factors, the report provides an extensive SWOT analysis. The research is subject to alteration if crucial players and analysis of market dynamics change. The information is an approximate estimation of the factors mentioned, taken into consideration after thorough research. The report also provides information on segmentation and key industrial developments.