The asset performance management system is widely used by small and large scale enterprises to effectively manage their assets, increase their availability, reduce unplanned downtime, reduce the risk of failure of assets, and minimize the maintenance cost. It also provides analytics and contextualizes data to create information that aids in exploring opportunities for the firm's improvement. Additionally, it also offers higher operational excellence, predictive monitoring, reduced risks, and condition management, among others.
The asset performance management market is expected to grow with a CAGR of 14.9% during the forecast period.
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The steps taken by the government of various countries to incorporate digital solutions in their daily activities, such as the Digital India campaign by the government of India, the Digital Economy Promotion Agency by the Government of Thailand, and the Digital Economy for Africa by the Government of Africa, have led to rapid industrialization. It has also led to the utilization of efficient tools for asset management, database management, machine monitoring, and automation. As per the report ‘Digital Economy Report 2019’ published by the United Nations Conference on Trade and Development, the digital economy is mainly concentrated in two countries, the U.S. and China. Thus, rising investments and government initiatives will aid in prospering digitalization in other countries, further driving the market growth.
Emerging technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, machine learning, and Big Data have led to efficient management practices in the industries across the globe. The global internet traffic in 2007 was valued at 2000 GB per second, and it is estimated to reach 150,700 GB per second by 2022, as stated in the report ‘Digital Economy Report 2019’ published by United Nations Conference on Trade and Development. The report also denotes the geographical spending on the IoT, where the U.S. and China account for 50% of the expenditure. Additionally, ‘Manufacturing Trends, 2019’ by Microsoft Corporation states that the IoT connection is projected to reach 21.26 billion by 2021, positively impacting the asset-based management system market.
Figure 1: Geographical Distribution of Spending on the Internet of Things, 2019
The complex and customized system requirements of the small, medium and large firms are increasing the price of asset performance management systems. Asset performance management is valued as per the size of the business due to the need to optimize every aspect of the business. It also helps in planning a strategy that evaluates the risks and leads to proper management of the assets.
The usage of techniques such as predictive analytics and digital twin technology in asset performance management solutions allows the business to anticipate equipment loss. Besides, its compliance with regulatory standards to predict risks makes the system more complex and difficult to customize. Thus, the massive use of emerging technologies and the compliance with industry regulations rightly customized for the businesses has led to the increment in the price of the asset performance management systems, further hampering the market growth.
The pandemic has caused lockdown across the globe, compelling the governments to temporarily shut down the companies in almost all industrial verticals. The asset performance management market is likely to experience significant growth due to its ability to provide a complete assessment of the assets and saving them from failures. The minimal human intervention has proved to be beneficial during this unprecedented time as there is the uncertainty of staffing and resources in the companies due to the practices of social distancing and quarantine.
Based on components, the asset performance management market is divided into solutions and services. The solution segment holds the highest market share due to its differentiability, customizability, and easy operability of the assets. It is further divided into asset strategy management, asset reliability management, predictive asset management, and others. The utilization of technologies such as IoT, AI, digital twin, Industrial IoT has been beneficial for the solution segment. As per an article published by one of the key players, GE Digital, its customers from the oil and gas industry saved around USD 5.3 million by preventing the oil platform equipment failure using the asset performance management solutions. The services segment, on the other hand, caters to a moderate market share and is segmented into professional and managed services.
By the deployment type, the asset performance management market is divided into cloud and on-premise. The cloud segment holds the largest market share on account of the growing popularity of cloud computing among the SMEs. As stated by the ‘Cloud Industry Forum (CIF)’, the adoption rate of cloud services is approximately 88%, thus increasing the utilization of the cloud services in industrial applications.
The asset performance solution provides customized solutions for strategy management, reliability management, and predictive analysis by using advancing technologies, further increasing the need for reliable, secure, and cost-effective deployment platforms. The rising popularity of digitalization and rapid industrialization is subsequently driving the demand for asset performance management solutions among SMEs. On the other hand, the on-premise software is used by professionals as they have been integrated with tremendous features that require more IT resources and support from the engineers to manage, monitor, and respond to the issues and alerts.
North America dominates the asset performance management market as the region is backed by the presence of prominent players, such as GE Digital, IBM, OSIsoft, Bentley Systems, Oracle, Infor, AspenTech, eMaint, Nexus, Accruent, and Rockwell Automation. As per the report ‘Industry 4.0 Connecting with the Future’ published by German American Chambers of Commerce, about 86% of the manufacturers in North America are willing to invest in Industry 4.0 to reduce costs and increase revenue. As per the ‘Digital Economy Report 2019’ published by the United Nations Conference on Trade and Development, the U.S. caters to 26% of the global IoT spending. The high technology adoption and the presence of advanced technological infrastructure foster regional market growth.
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Asia-Pacific’s asset performance management market is largely driven by the presence of countries such as China and India, which are home to many small and medium-sized businesses. Increasing government initiatives and investments have led to the incorporation of digital technology in the region. For instance, the government of India launched the Make in India, and the government of China announced plans to invest about USD 21 billion in 2019. Apart from this, the presence of emerging nations, favorable government regulations, and rapid adoption of advanced technology drive the regional market growth.