System integrator revenues to reach $100B by 2030 as automation interest increases

As more and more warehouses automate material handling operations, system integrators are there to lead the charge, according to the latest report from ABI Research.

Despite market uncertainty caused by tariffs and global conflicts, the fundamental need for automation continues to push the market forward, said the market intelligence firm. In response, Systems integrators (SIs) have seen strong growth in recent years. ABI predicted that global revenues will surpass $100 billion by 2030.

“SIs are playing an increasingly important role in the industry as full-package providers,” said Ryan Wiggin, Senior Analyst at ABI Research. “In previous years, when automation deployments were limited to the largest companies, many had the capital and capacity to partner directly with individual system providers to deliver proof-of-concept (POC) projects and scale up accordingly.”

“As automation expands into the middle market, companies now need to work with SIs to develop custom, holistic packages and leverage their implementation expertise and support,” he added.

Oyster Bay, N.Y.-based ABI Research said it serves as a bridge between end-market companies and technology providers. The company‘s global team of analysts aims to help its clients stay ahead of their markets and their competitors.

Integrators see traction in a range of industries

Market-leading systems integrators such as KNAPP, Dematic, and SSI Schaefer are combining OEM systems with partner solutions to deliver end-to-end automation, said ABI Research. Meanwhile, more pure-play SIs, including Fortna and Bastian Solutions, offer system flexibility by integrating best-in-breed technologies from companies such as Geek+, AutoStore, and Hai Robotics.

E-commerce, pharmaceutical, and post and parcel organizations were among the earliest adopters of material handling automation, noted ABI. More recently, automation has grown in retail, with food and beverage companies following closely behind.

While third-party logistics (3PL) providers have faced challenges scaling automation, ABI Research said it expects significant investment in the short to medium term. 

It also projected global integrator revenues to experience a compound annual growth rate (CAGR) of 23% in retail, 25% in food and beverage, and 22% in 3PL through 2032.

“Software is becoming an increasingly crucial differentiator among leading SIs,” Wiggin said. “With integration and return-on-investment (ROI) concerns, seamless orchestration between autonomous systems and the ability to continuously optimize workflows is becoming the primary unique selling proposition (USP).”