Asset Performance Management Market Size, Share & Trends Analysis Report By Type (Predictive Asset Management, Asset Reliability Management, Asset Strategy Management, Others), By Component  (Software, Services), By Deployment Mode (On-premise, Cloud, Solutions), By Enterprise Size (Large Enterprises, Small- & Medium-sized Enterprises), By Industry Vertical (Energy and Utilities, Oil and Gas, Manufacturing, Mining and Metals, Healthcare and Life Sciences, Chemical and Pharmaceuticals, Government and Defense, IT and Telecom, Food and Beverages, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global asset performance management market size was valued at USD 4,152 million, presumed to reach USD 9,230 million, expanding at a CAGR of 10.5% during the forecast period.

Asset Performance Management (APM) is a method for managing assets that prioritize commercial objectives in addition to traditional reliability and availability objectives. APM has evolved into an essential facilitator of digital transformation for asset management in industrial organizations. Asset performance management software combines integration, data gathering, analytics, and visualization into a unified platform to boost the availability and dependability of physical assets. Reliability-centered maintenance (RCM), predictive forecasting, and condition monitoring are included in asset performance management. Software for asset performance management (APM) plays a crucial function in the company. It improves the enterprise's overall asset management. It provides precise information at the exact point of action to prevent equipment failure, eliminates unplanned work, maximizes asset life, and improves asset availability at no additional expense.

Numerous factors drive the global asset performance management market, such as the increasing demand to create a maximum economic return on assets and the rising requirement to maintain assets based on risk. In addition, factors such as the increasing adoption of cloud-based APM software by end users contribute to the expansion of the worldwide asset performance management market. However, a lack of understanding when picking a solution that is a suitable fit for corporate businesses and a lack of cyber security awareness hinder the growth of the worldwide asset performance management solution market. In addition, the advent of technologies like the industrial internet of things (IIoT) and the growing demand for big data analytics in the industrial vertical will generate attractive opportunities in the worldwide asset performance management market.

Market Dynamics

Global Asset Performance Management Market Drivers

The Increasing Need to Maximize the Economic Returns on Assets

Organizations in all asset-intensive industries are continually challenged to offer maximum return on assets (ROA), despite working with data integrity difficulties, minimal resources, and a lack of information linked to asset performance. This presents a difficult situation for organizations. Asset performance management solutions enable organizations to understand the health of their assets better and keep it functioning safely to fulfill production and manufacturing goals. As a result, these solutions are helping organizations save millions of dollars by streamlining their maintenance operations. Consequently, it has grown in prominence for facilitating asset-intensive firms to maximize the return on their costly equipment investments.

For instance, according to a news release issued by Schneider Electric in 2018, the firm has witnessed increased momentum surrounding the adoption of the company's Asset Performance Management (APM) solutions. This increased adoption of APM solutions was primarily driven by the company's investments in the cloud, advanced machine learning, and augmented reality (AR), in addition to its new relationship with MaxGrip. Schneider Electric's solution has enabled its clients to increase their return on capital investment and increase their profitability. Such factors propel the asset performance management market.

Global Asset Performance Management Market Restraints

Lack of Understanding While Selecting Appropriate Solution

Asset performance management is a vast field of technologies concerned with assuring the performance of all the assets a company employs to create its goods or provide its services. The complex nature of asset performance management solutions has made it harder for end users to select the optimal solution for their business requirements. This aspect may inhibit asset performance management market expansion to some degree. In addition, with the rising complexity of all aspects of asset performance management, a well-defined approach for integrating dependability tasks has become essential. Without such a procedure, implementing the various asset management reliability tasks might become a chaotic environment in which reliability technologies may be implemented too late, at random, or not at all.

Global Asset Performance Management Market Opportunities

The Growing Industrial Internet of Things (IIoT)

The developing technology of the Industrial Internet of Things (IIoT) technology assists enterprises in transporting and manufacturing physical items with increased operational efficiencies and new business models. Companies are investing heavily in IIoT to maximize growth and productivity in a hypercompetitive business climate characterized by highly disruptive technology. It can reduce operating costs and increase productivity in numerous industries, including oil & gas, manufacturing, and mining. In addition, Industry 4.0 and IIoT have redefined asset performance management through the increased implementation of technology like predictive analytics, augmented reality, prescriptive guidance, digital twins, the cloud, and mobility solutions, which enable organizations to access, leverage, and optimize their assets. In addition, the increased integration of advanced asset performance management solutions in many industries due to Industry 4.0 and IIoT is conducive to market expansion.

Regional Analysis

The region-wise segmentation of the global asset performance management market includes North America, Europe, Asia-Pacific, and LAMEA.

North America and the Asia Pacific will Dominate the Regional Market

North America will command the market with the largest share while growing at a CAGR of 8.1%. High penetration of the Industrial Internet of Things (IIoT) and development in the use of Artificial Intelligence (AI) and other smart connected devices are among the key drivers driving North America's asset performance management market growth. In addition, the region boosted its IT budget due to increased demand for digital transformation from many end users and developers in the convergence of various technologies, like cloud computing and artificial intelligence (AI).

Moreover, an increase in the need to manage heavy machinery as a result of high production in industry, a rise in the number of data centers used to store the massive amounts of data produced by organizations to run various types of online services, and an increase in the need to monitor multiple assets used for remote businesses such as car and bike rental services, automatic food vending machines, and oil & gas pipelines all contribute to the expansion of the market. In addition, the growing usage of cloud-based architecture in many industries, including manufacturing, automotive transport, marine & mining, defense & aerospace, and government, drives the asset performance management market expansion in North America.

The Asia Pacific will expand at a CAGR of 14.4% and hold USD 3,316 million. Increased demand for asset performance management in Asia-Pacific due to the emergence of high-end, cutting-edge manufacturing machinery, the growing need for mass production, and the significant shift toward digitization by small and medium-sized enterprises positively impact market growth. In addition, the government & public sector, as well as defense sector firms in Asia-Pacific, are investing significantly in asset performance management software and services, which is anticipated to boost the market growth. Moreover, over the past decade, market leaders have expanded their presence in growing nations such as India, China, and Japan, as these are the primary production hubs for their products. They are spending considerably on cutting-edge technologies in these nations.

Segmental Analysis

The global asset performance management market is classified based on component, deployment mode, enterprise size, industry vertical, and region.

By Component Overview

Based on the component, the categories include software and services.

The software section is envisioned to grow at a CAGR of 9.5% and hold the largest market share. The software segment consists of various tools and platforms for storing, managing, and analyzing valuable data collected from the vast and continuous operations of assets like machinery, pipelines, and structures in the manufacturing, healthcare, energy, and real estate industries. Most businesses have begun using asset performance management software to handle various issues relating to the maintenance of assets and to acquire real-time information regarding the impending collapse of assets.

The service section will hold the second-largest share. The provision of services ensures the efficient operation of the asset performance management software with complete transparency and control. Professional and managed services are included in asset performance management services. In the following years, using artificial intelligence solutions to implement asset performance management software is anticipated to raise the need for asset performance management solutions across various industries.

By Deployment Model Overview

Based on the deployment model, the categories include on-premise and cloud.

The on-premise section is envisioned to grow at a CAGR of 9% and hold the largest market share. On-premise deployment allows asset performance monitoring software to be installed and run on a company's systems rather than in a server farm or cloud. On-premise asset performance management system improves enterprises' scalability, speed, reliability, and connectivity. On-premise asset performance management software is frequently used in government, aerospace, and defense, where data confidentiality is crucial.

The cloud section will hold the second-largest share. Cloud-based asset performance management is an application licensing and delivery approach where a service provider hosts the application and distributes access as a service remotely. This deployment methodology gives the IT staff a better chance to bring business value to the organization through lower projected costs and improved innovation and differentiation. Large and mid-sized businesses increasingly employ cloud-based asset performance management solutions, driving their implementation.

By Enterprise Size Overview

Based on enterprise size, the categories include large enterprises and small & medium-sized enterprises.

The large enterprises will expand at a CAGR of 9.7% and hold the largest market share. Heavy machinery's vast data during operation is crucial for important businesses. Asset performance management software helps huge companies evaluate machinery's condition and make wise decisions. Large companies' investments in asset performance management will also boost the market. Governments worldwide enact strict laws and regulations for industrial safety and equipment maintenance, driving industrial enterprises to invest extensively in asset performance management solutions.

The small & medium enterprises will hold the second-largest share. SMEs' increasing attention drives asset performance management software market growth to asset performance and knowledge of the benefits of evaluating real-time asset data. SMEs are adopting this software because it reduces machining downtime and maintenance schedules, making them more productive, intelligent, and efficient.

By Industry Vertical Overview

Based on industry vertical, the categories include energy & utilities, oil & gas, manufacturing, mining & metals, healthcare & life sciences, chemical & pharmaceuticals, government & defense, information technology & telecom, food & beverages, and others.

The energy & utility sector is envisioned to grow at a CAGR of 5.9% and hold the largest market share. Energy and utility firms must handle power plants, turbines, machines, and distribution cables from numerous places. Industry 4.0 revolution digitalizes energy and utility carrying operations, positively affecting the company. High energy output and better labor productivity promote market growth. In the energy and utility industry, asset performance management software transforms manufacturing facilities into smart power plants.

The food & beverages section will hold the second-largest market share. To generate quality and manage a good supply chain, the food & beverage industry must always focus on its production facility. In the beverage industry, such as wine and liquor manufacturing plants, there is a growing need to ensure cleanliness and hygiene. Otherwise, bacteria contamination in the fermentation process is more likely. It is essential to keep all assets in maintained and working condition every time, creating vast opportunities in the global asset performance management software market.

Impact of covid-19

The ongoing COVID-19 pandemic has compelled the market players to radically rethink their strategies and the way they operate their businesses. The impact of COVID-19 can be traced in shortage of supply and decline in production of drug products owing to shifting focus of market players on therapeutics for novel coronavirus. The patients receiving autoimmune drug therapy are prone to SARS-CoV-2 infections; however, the suspension of ongoing therapy is contraindicated to prevent flares of disease, and the consequent increase in the risk of infection. The global market is currently facing shortfall due to the COVID-19; however, the market is projected to gain momentum post-COVID-19.

Recent Developments

• In 2022, ABB Group and SKF signed a Memorandum of Understanding (MoU) to investigate the possibility of collaborating on industrial-process automation.