The Cyber-physical Systems Market is Predict to reach USD 367.84 Billion by 2032, at a CAGR of 14.7%

Cyber-physical Systems Market Growth, Trends and Report Highlights

According to a new report, published by KBV research, The Global Cyber-physical Systems Market size is expected to reach $367.84 billion by 2032, rising at a market growth of 14.7% CAGR during the forecast period.

The Closed-Loop segment is leading the Global Cyber-physical Systems Market by Type in 2024, thereby, achieving a market value of $241.32 billion by 2032.  Closed-loop systems use real-time feedback from sensors to continuously monitor and adjust their operations, enabling greater accuracy, responsiveness, and adaptability. These systems are vital in sectors such as healthcare (e.g., robotic surgery), automotive (e.g., autonomous driving), and industrial automation, where system performance must dynamically respond to changing conditions. As industries increasingly demand intelligent, self-correcting systems to improve efficiency and safety, the importance and market presence of closed-loop CPS continue to expand steadily.

The Embedded Security segment is anticipating a CAGR of 14.2% during (2025 - 2032). This dominance is due to the critical need to secure the internal components of CPS, such as processors, firmware, and software, which are often targets of sophisticated cyber threats. As cyber-physical systems become increasingly integrated into essential sectors like healthcare, defense, and industrial automation, embedded security ensures protection from tampering, unauthorized access, and data breaches at the core level. The growing demand for secure boot processes, hardware-based encryption, and trusted execution environments has significantly driven the adoption of embedded security solutions.

The Hardware segment is generating the maximum revenue in the Global Cyber-physical Systems Market by Component in 2024; thereby, achieving a market value of $145.35 billion by 2032. Hardware components such as sensors, actuators, embedded processors, communication devices, and controllers are essential for collecting data from the physical world and executing commands issued by the software layer. The growth in demand for smart devices, edge computing, and real-time sensing has led to increased investment in advanced and high-performance hardware components. Industries such as transportation (e.g., autonomous vehicles), industrial automation, and smart infrastructure heavily rely on reliable and durable hardware to ensure accurate system performance and uninterrupted connectivity.

The Aerospace & Defence segment is registering a CAGR of 13.7% during (2025 - 2032). This is owing to the critical role CPS plays in enhancing national security, operational efficiency, and technological superiority. CPS enables real-time decision-making, autonomous navigation, and secure communication systems in defense equipment such as unmanned aerial vehicles (UAVs), guided missiles, and surveillance systems. In aerospace, CPS contributes to flight automation, fault detection, and performance monitoring of aircraft systems. The growing demand for precision, safety, and autonomy in both civilian and military aviation is fueling ongoing investment in CPS within this segment.

Full Report: https://www.kbvresearch.com/cyber-physical-systems-market/

The North America region dominated the Global Cyber-physical Systems Market by Region in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $120.54 billion by 2032. The Europe region is experiencing a CAGR of 14.4% during (2025 - 2032). Additionally, The Asia Pacific region would exhibit a CAGR of 15.3% during (2025 - 2032).

List of Key Companies Profiled

• Siemens AG
• Honeywell International Inc.
• Rockwell Automation, Inc.
• ABB Ltd.
• Schneider Electric SE
• Continental AG
• General Electric Company
• Hitachi, Ltd.
• Robert Bosch GmbH
• Emerson Electric Co.

Cyber-physical Systems Market Report Segmentation

By Type

• Closed-Loop
• Open-Loop

By Security

• Internet of Things (IoT) Security
• Embedded Security
• Industrial Control Systems (ICS) Security
• Robotic Security
• Other Security

By Component

• Hardware
• Software
• Services

By End Use

• Energy and Utility
• Aerospace & Defence
• Automotive
• Manufacturing
• Consumer Electronics
• Healthcare
• Other End Use

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Related Reports: