United Kingdom Cyber Physical Systems Market Size, Share, and COVID-19 Impact Analysis, By Component (Hardware, Software, and Services), By Deployment (On-Premise and Cloud), and United Kingdom Cyber Physical Systems Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Cyber Physical Systems Market Insights Forecasts to 2035

• The United Kingdom Cyber Physical Systems Market Size Was Estimated at USD 5176.94 Million in 2024
• The Market Size is Expected to Grow at a CAGR of around 10.40% from 2025 to 2035
• The United Kingdom Cyber Physical Systems Market Size is Expected to Reach USD 15378.89 Million by 2035

According to a research report published by Spherical Insights & Consulting, the United Kingdom Cyber Physical Systems Market Size is anticipated to reach USD 15378.89 Million by 2035, growing at a CAGR of 10.40% from 2025 to 2035. The increased use of Industry 4.0 technologies, expanding demand for smart infrastructure, government investments in digital innovation, and the integration of IoT with AI for improved automation and control.

Market Overview

The United Kingdom cyber physical systems market refers to the industry focused on the incorporation of physical elements and computer methods into networks. To monitor and manage physical processes, these systems use sensors, embedded software, and real-time data collaborating.  Cyber physical systems, which are used extensively in sectors including manufacturing, healthcare, transportation, and energy, improve automation, efficiency, and safety by facilitating intelligent decision-making and smooth communication between digital and physical surroundings.  CPS is being used by industries like healthcare, transportation, and energy to increase efficiency and safety as a result of rising expenditures in digital infrastructure and automation.  The growing demand for real-time data analytics and government programs supporting digital transformation further foster an environment that is conducive to innovation and market growth. The integration of innovative sensors, machine learning, and artificial intelligence to facilitate decision-making in real time. Advances in edge computing, autonomous systems, and digital twins are transforming businesses by improving automation capabilities, predictive maintenance, operational efficiency, and system interconnectivity.

Report Coverage

This research report categorizes the market for the United Kingdom cyber physical systems market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the United Kingdom cyber physical systems market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the United Kingdom cyber physical systems market.

Driving Factors

The increasing use of Industry 4.0 technologies in industries including transportation, energy, healthcare, and manufacturing. The integration of CPS has been motivated by the need for automation, real-time monitoring, and smart infrastructure in order to improve operational efficiency and cut expenses. Government initiatives supporting smart cities and digital transformation also aid in the sector's growth.  Furthermore, developments in edge computing, IoT, and AI are opening up new possibilities and spurring innovation by facilitating smooth communication between computer systems and physical devices.  The adoption of CPS across sectors is further aided by improved security features and predictive maintenance.

Restraining Factors

The difficulty and high implementation costs of incorporating CPS into current infrastructures.  Widespread adoption is further hampered by issues with data security, system compatibility, and the lack of implementation of established protocols, particularly for small and medium-sized businesses with no technical support.

Market Segmentation

The United Kingdom cyber physical systems market share is classified into component and deployment.

• The hardware segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period.   

The United Kingdom cyber physical systems market is segmented by component into hardware, software, and services. Among these, the hardware segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segment growth can be attributed to increasing focus on critical infrastructure resilience and cybersecurity.  Ensuring reliable and secure system performance becomes an essential priority as CPS continues to integrate into industries including energy, healthcare, and transportation. This encourages investment and innovation.

• The on-premise segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period.

The United Kingdom cyber physical systems market is segmented by deployment into on-premise and cloud. Among these, the on-premise segment accounted for the largest revenue in 2024 and is expected to grow at a significant CAGR during the forecast period. This is because of its ability to satisfy strict criteria for data security, compliance, and low latency, which makes it perfect for vital sectors where control and confidentiality are crucial, including manufacturing, defense, and energy.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the United Kingdom cyber physical systems market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ABB Ltd.
• Schneider Electric SE
• Bosch Rexroth AG
• Thales Group
• Dassault Systemes
• SAP SE
• Rolls-Royce Holdings plc
• Airbus SE
• Philips N.V.
• Others.

Recent Developments:

• In May 2025, UK government announced the unification of cyber and electronic warfare operations under a new National Cyber and Electromagnetic Command. This reorganization aims to enhance the country's defense capabilities by integrating cyber personnel from various agencies and investing over £1 billion in AI-driven systems to analyze battlefield data and improve intelligence.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at UK, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom cyber physical systems market based on the below-mentioned segments:

United Kingdom Cyber Physical Systems Market, By Component

• Hardware
• Software
• Services

United Kingdom Cyber Physical Systems Market, By Deployment

• On-Premise
• Cloud