The asset performance management market is expected to grow from US$ 2.81 billion in 2022 to US$ 8.11 billion by 2030; it is estimated to grow at a CAGR of 14.17% from 2022 to 2030.
Analyst Perspective:
Modern asset performance management solutions go beyond traditional machine monitoring and manual data-gathering methods. By merging innovative machine modeling techniques with modern analytics, these solutions provide users with detailed real-time information about machinery/asset availability and maintenance planning based on the most recent data, enabling them to run the facility more efficiently. The development of technologies such as machine learning, IIoT, blockchain, digital twin, and AI is expected to improve the efficiency of asset performance management systems by facilitating the development of innovative solutions and management software, thereby driving the growth prospects of the asset performance management market.
The recent shift in the technological trend of the industrial sector has been among the key driving factors behind the growing acceptance of these technologies. Industry 4.0 is all about using advanced technologies to streamline the industrial sector's traditional operations to prepare them for the next phase of the industrial revolution. Furthermore, these solutions have also been highly effective in helping organizations reduce the total cost of ownership of an asset. They can reduce the idle time of machinery and carry out preventive maintenance based on real-time data, encouraging vendors to adopt asset performance management solutions and propelling the asset performance management market.
Market Overview:
Asset performance management is an integrated set of solutions and services, including various software used to monitor aspects such as asset health and reliability. They are also used to plan strategies for asset management and divestment. For instance, General Electric provides the Predix solution containing several products such as APM Reliability, APM Strategy, APM Integrity and APM Health. APM system provides various perceptions at the point of action to increase and minimize unplanned repair work asset life, decrease interruption, lower maintenance costs, and reduce equipment failure risk.
The growing demand for digital solutions across various industries, such as manufacturing, oil & gas, and chemical, for reducing operational expenses propels the demand for asset performance management market. Using sensors, the asset performance management solution system helps collect different types of data from all the assets, such as heavy equipment, machinery, and others. Integrating disparate data sources, the Asset performance management system builds a data analytics platform that comprehensively views all operational holdings in the industrial facility. Customers can exploit this information to improve asset management processes and prioritize maintenance activities.
Asset performance management (APM) solutions enable organizations to monitor assets continuously to identify, diagnose, and prioritize impending equipment problems in real-time, with the primary goal of helping them maximize profitability by balancing cost, risk, and performance of the assets, plant, or of the people that are operating all those things. Overall, asset performance management solutions provide unique value to modern industrial operations and contribute to asset performance management market growth.
With asset performance management systems, companies from asset-intensive industries can address various issues, including environmental risks, labor safety risks and operational costs, poor decision-making, and increasing maintenance. The overall benefits of the systems, several technological advancements such as digital twin, and IIoT gaining interest in digital asset management solutions are anticipated to contribute significantly to the development of the asset performance management market in the forecast period.
Strategic Insights
Market Driver:
Increased Digital Workforce and Reliability Culture to Drive Growth of the asset performance management market
Asset performance management enables organizations to accelerate to a digital business model. The growth in computing speed and storage makes virtual and global collaboration possible in more fields daily. As networks and technology become more vigorous, the computing power available in consumer hardware endures an upsurge, and employees become more relaxed with working on their devices, rather than meeting face to face or having to come into an office. Having a more digital ability team has been a boon for employers. Technology supporting digitally integrated employees gets stronger and stronger every year, allowing enterprises to keep a very dispersed team on the same page logistically and move towards a similar objective. The growing digital workforce is anticipated to drive the asset performance management market.
Further, organizations achieve control of asset decisions with broad-reaching data that reflect operating impact, resource availability, and real-time situation reports. When industrial organizations require assets to operate at all times, asset performance management helps focus on assets that need renovation to lower the Total Cost of Ownership (TCO) and reduce the risk of unplanned downtime of mission-critical assets. If they want to survive, industrial companies must recognize that they are in the information business, and change extends beyond the assets themselves. Workforces are embracing the digital industry they now work in and are adopting asset performance management tools for safety and reliability in today's highly regulated environments. These factors are driving the asset performance management market share.
Segmental Analysis:
Based on Offering, the asset performance management market is segmented into services and solutions. The solution segment held the largest share of the asset performance management market in 2022, whereas the service segment is estimated to register the highest CAGR in the asset performance management market during the forecast period. Asset Strategy Management (ASM) is a structured process that allows organizations to gain control, effectively manage and eliminate inconsistencies in asset strategies, and ensure assets are up and running at their full potential in the enterprise widely for closing the gap between current asset performance and optimal asset performance. Implementing an asset management program ensures reliability strategies are optimized to deliver the best balance of risk, cost, and performance. It also ensures strategies evolve based on real data, appropriate analysis and justification are provided, and effective review and approval processes are offered. Thus, due to its major significance, the Offering segment is anticipated to propel the asset performance management market.
Regional Analysis:
The North America asset performance management market was valued at US$ XXX billion in 2022 and is projected to reach US$ XXX billion by 2030. The asset performance management market is expected to grow at a CAGR of XXX% during the forecast period. Europe has established itself as a dominant asset performance management market, leading market share and driving growth. Several factors have contributed to North America’s strong asset performance management market position. North America is one of the most technologically advanced regions in the world. It accounts for the principal share of the global asset performance management market due to the early adoption of cloud and digital technologies with Industry 4.0 capabilities in the US North American countries have well-established and sustainable economies, which enable them to invest strongly in R&D activities, thereby contributing to the development of new technologies. Due to the timely adoption of trending technologies, such as IOT, big data AI and ML, manufacturers are keen to integrate industrial IOT technologies with their manufacturing processes to simplify asset management and enable predictive and prescriptive maintenance across asset-intensive organizations. The growing need to manage assets sustainably and optimize total cost of ownership (TCO) has led to the adoption of asset performance management solutions across the region. North America is in the lead in deploying asset performance management solutions, which efficiently provide early warning notification with predictive analytics and diagnosis of equipment issues weeks, days, or months before failure.
The growing demand for high-speed data networks and the considerable presence of asset performance management solution vendors in the region contribute to the growth of regional asset performance management. Also, the growing preference for cloud-based asset performance management solutions drives the demand for advanced asset performance management solutions in the region. For instance, in 2019, GE Digital launched the asset service management software named Predix Service Max. The software enabled to reduce the time for industrial equipment operators. Such launched in the region propelling the growth of the asset performance management market. Furthermore, growing investments specifically for research and development of cloud infrastructure organizations in IT infrastructure are further driving regional market growth.
Related to other regions, companies in North America are beholding supportive government policies and favorable business conditions, which empower them to develop and introduce better cloud platforms, afterward foremost to an increase in the acceptance of asset performance management in the market. The number of data analysts, computer scientists, and software engineers who are emphasizing using cloud-based solutions and services is high in Canada. This is further adding to the growth of the North American asset performance management market.
Key Player Analysis:
The asset performance management market analysis consists of players such as ABB Ltd., Aspen Technology Inca., AVEVA Group plc., Bentley Systems Incorporated, General Electric Company, Intel Corporation, International Business Machines Corporation, OSIsoft LLC, Schneider and Siemens AG.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the asset performance management market. A few recent asset performance management market developments are listed below:
- In June 2022, Daniel Arsham and Kohler, a prominent American plumbing and bathroom furniture manufacturer, combined to produce a 3D-printed washbasin. Kohler presented brand-new digital bathroom options and an immersive Daniel Arsham sculpture at Milan Design Week 2022.
- In August 2022, GE Digital announced a software solution combining Performance Intelligence with APM Reliability. Designed for strategic and data-driven decision-making, the software forms a performance advisory solution by integrating real-time thermal performance data and analysis software with analytics for strategic and data-driven decision-making.
- In January 2021, the world's largest Japanese toilet manufacturer, Toto Ltd., introduced an "AI-based Wellness Toilet." The wellness toilet uses cutting-edge sensing technology to monitor and analyze its users' emotional and physical health. Using this information, the user's smartphone app can offer ways to improve their wellness.
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Offerings, End-user Industry, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The List of Companies
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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