The total addressable market (TAM) for machine health monitoring was valued at USD 2.40 billion in 2021. It is estimated to reach USD 5.71 billion by 2030, growing at a CAGR of 10.1% during the forecast period (2022–2030). Machine health monitoring is used to keep an eye on different parts of machines and related equipment, such as pumps, internal combustion engines, electric motors, heat exchangers, steam boilers, piping, etc., to find problems before they happen. This can involve factors like efficiency, as losses in efficiency may point to a deeper problem. It also includes usage statistics, maintenance statistics, and performance indicators like the output of defective parts.
Most manufacturing sectors currently employ archaic maintenance techniques, frequently performing reactive or calendar-based maintenance on their equipment. This is because only some manufacturers have access to machine condition data that would let them know how well their equipment is functioning. The machine health monitoring market is growing because of how quickly technology changes in different end-user industries and how much more people want predictive maintenance.
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Rising Adoption of Smart Asset Management in End-User Industries
The demand for improved asset management is continuously increasing across all industry verticals. Maintaining the highest possible product quality is always the priority of the manufacturers. However, if the equipment is not maintained correctly, it may result in product failures that prevent the product from being recalled. Equipment is routinely inspected to avoid malfunctions and unnatural shutdowns that ignore such errors. In addition, condition-based monitoring helps manufacturers achieve high product quality by detecting equipment with various parameters. These parameters are combined and analyzed using advanced machine learning and algorithms and consequently provide insights for machine health monitoring.
Production processes are constantly changing in the automotive industry, which is one of the most important ones. Deploying a machine health monitoring system is witnessed as a better technique for enhancing production capability by reducing machine downtime. Temperature variation in welding machines is the fundamental cause of those defects. This can be avoided by monitoring the machine with temperature analysis and reducing the final product defect. Hence, endorsement of such management practices can help to boost the market.
Growing Adoption of Smart Manufacturing
Consumer and business acceptance of advanced technology devices has been steadily increasing. Furthermore, implementing monitoring devices across various end-user industries has been fueled by the adoption of Industry 4.0 and a favorable regulatory landscape for innovative manufacturing environments. The German government invested approximately USD 550 billion in 2020 to adopt the "industry 4.0" concept and smart manufacturing methods within the country.
Monitoring machine performance is identified as the primary step for adopting industrial IoT. To gain an advantage in machine-to-machine communication capabilities, monitoring the machine becomes essential in improving the overall performance and generating a high return on investment. So, the growth of the studied market is likely to be driven by the adoption of smart manufacturing methods by different industries during the forecast period.
Lack of Skilled Professionals
The shortage of skilled labor and the challenges associated with upgrading the existing workforce is expected to inhibit market growth. The aging workforce and a decline in the number of workers are two of the most significant factors directly affecting the shortage of skilled labor. Adding fuel to the situation, millennials' perceptions toward starting their career in the manufacturing industry remain low. Major manufacturers are spending money on training programs to improve the skills of their current workers so they can keep up with demand. Additionally, depending on a third party to close the demand gap is frequently expensive and ineffective. The shortage of skilled technicians for analyzing the machines' data and budget constraints among small and medium industries limit the adoption of machine health monitoring techniques within their premises. Using the wrong maintenance techniques wastes time, money, and resources, ultimately restraining market growth.
Growing Adoption of Wireless Communication for Machine Health Monitoring
Machine-to-machine communication is seen as the backbone of industrial automation. As wireless communication modules have improved, more people are using machine health monitoring. Remote configuration and data transfer are limited by the small number of wires and single-channel communication. Most of the time, the constant movement of the machine parts puts a lot of pressure on the attached cables. Wireless communication has gained significant traction across the industry due to the immediate need to address such challenges. One of the main reasons these technologies are gaining popularity is that wireless communication is simple to set up and does not prevent machines from performing their necessary tasks.
The introduction of the 5G network is also expected to boost the machine health monitoring market by supporting advanced machine communication and monitoring methods. Recent findings by straits research state that by the end of 2023, approximately 1.5 billion devices will have 5G capabilities across their network operations. Strong internet use in developing economies and the use of cloud technology for remote monitoring are both things that could help the market grow.
The global machine health monitoring market is segmented by application, monitoring process, sale channel, maintenance technique, and end-user.
By application, the global machine health monitoring market is divided into vibration monitoring, ultrasound emission, thermography, corrosion monitoring, and lubricating oil analysis.
The vibration monitoring segment is the highest contributor to the market and is anticipated to expand at a CAGR of 8.8% over the forecast period. Vibration monitoring measures the oscillation of components such as gears, drive motors, gears, bearings, etc. Vibration monitoring is a common form of preventive maintenance because it can find problems before they get too bad. Additionally, the technique identifies the exact location of faults in machines. The decreasing prices of wireless systems and vibration sensors have made vibration monitoring the preferred technique for machine health monitoring. The segment is expanding due to the simplicity and one-time setup required for data analysis.
Corrosion monitoring uses a corrator (corrosion meter) or a collection of techniques and tools to provide offline or online information about the rate of corrosion expressed in mpy (mill per year) for better maintenance and to implement or enhance preventive measures to fight and protect against corrosion.
By monitoring process, the global machine health monitoring market is divided into portable/handheld and online segments.
The online segment owns the highest market share and is expected to grow at a CAGR of 9.7% during the forecast period. Online monitoring is an advanced process that provides real-time insights to plant operators, leading to the segment’s high adoption compared to its counterpart portable monitoring process. Online monitoring systems find application in industries where 24-hour production is maintained. A complete system overhaul, a hazardous work environment, and high repair costs are all consequences of specific machines failing in production-intensive industries like oil and gas, mining and metals, and power generation. As a result, these industries need continuous monitoring of their machines.
By sales channel, the global machine health monitoring market is divided into aftermarket and embedded segments.
The aftermarket segment is the highest contributor and is expected to grow at a CAGR of 9.6% over the forecast period. The segment has been further bifurcated into wired and wireless.
By maintenance technique, the global machine health monitoring market is divided into descriptive analytics, diagnostic analytics, predictive analytics, and prescriptive analytics.
The predictive analytics segment owns the highest share and is expected to grow at a CAGR of 10.4% over the forecast period. The growing standards for the safety and longevity of machines are propelling the demand for predictive maintenance techniques. A subset of advanced analytics called predictive analytics aims to forecast future events using the currently available data. These forecasts can then guide important choices, spot problems early, and lower the likelihood of complications.
By end-user, the global machine health monitoring market is divided into automotive, aerospace and defense, chemical, power, oil and gas, mining, and others.
The oil and gas segment is the highest contributor to the market and is expected to grow at a CAGR of 9.8% over the forecast period. Equipment used in the oil industry is constantly put through arduous conditions. Equipment failures and mechanical difficulties that endanger the health and safety of workers, the environment, and the smooth operation of the platform and the entire oil and gas project can lead to costly unscheduled shutdowns and repairs. Therefore, condition monitoring is an effective tool for predictive maintenance at oil and gas exploration/production facilities, increasing the reliability of these facilities. Using methods like vibration analysis and thermography aids in the detection of mechanical problems keeps tabs on the fitness of the machinery, and provides warning of defects and potential damage.
The automotive sector emphasizes upgrading and automating assembly lines, which need motor monitoring. Motor current signature analysis helps to minimize machine failures and extend machine life. The market players in the automotive sector are driven to modernize and automate their production methods. The numerous motors installed on the assembly lines necessitate routine monitoring. The motor current signature analysis method helps increase machine longevity and decrease machine failures. The number of automobile industry units produced each day is dramatically rising. The equipment on the production floor of the vehicle manufacturing facility needs to be appropriately maintained to guarantee an improved production cycle, output, and efficiency.
North America Dominates the Global Market
By region, the global machine health monitoring market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
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North America is the most significant global machine health monitoring market shareholder and is expected to grow at a CAGR of 8.6% during the forecast period. The regional market is primarily driven owing to stringent government regulations for workplace and personnel safety, a rising focus on optimum utilization of assets, and stringent quality control in industries such as chemicals, food and beverage, and oil and gas. In addition, the U.S. brings in a lot of money in this part of the world because it has mature industries and many technically skilled workers. Leading companies in the market, like GE, Emerson, Honeywell, etc., are based in the U.S., which helps to drive up demand for machine health monitoring solutions.
Europe is expected to grow at a CAGR of 10.9% during the forecast period. The aerospace industry in Germany is one of the most innovative and thriving in the country, and it has grown a lot over the past 20 years. It is home to the top players in the defense and civil aviation market segments and is a significant aerospace hub. In order to meet the demand for aviation worldwide, it is predicted that between 30 and 35 thousand new aircraft will enter service over the next 20 years. This market is driven by the rising number of passengers and the need to replace old, inefficient planes, which drives the demand for machine condition monitoring equipment.
The global machine health monitoring market’s major key players are