Asset Performance Management Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premises), By Enterprise Type (Large Enterprises and Small & Medium Enterprises), By Type (Asset Integrity Management, Predictive Asset Management, Asset Strategy Optimization, Asset Reliability, and Others), By Industry (Manufacturing, Government, Chemical, Oil & Gas, Energy & Utility, Healthcare, and Others), and Regional Forecast, 2023 – 2030

The global asset performance management market size was valued at USD 2.75 billion in 2022. The market is projected to grow from USD 3.07 billion in 2023 to USD 7.99 billion by 2030, exhibiting a CAGR of 14.6% during the forecast period.

Asset performance management software helps in maintaining and monitoring the health of assets in plants. The increase in digital transformation is propelling the adoption of the software. The product deployment helps in complying with environmental regulation, boosts plant productivity, and increases return on investments of inventory’s cost. The growing demand for the software is increasing the competition among key players in the market. For instance,

• In February 2023, Baker Hughes acquired ARMS Reliability to expand its asset performance management capabilities for catering to industries such as mining, manufacturing, and oil and gas, among others. The company is focused on providing reliable solutions for health protection and monitoring.

Some of the key software considered in the study comprise IBM Maximo Application Suite, SAP Asset Performance Management, Honeywell Forge APM, Cognite Data Fusion, Bentley System AssetWise Suit, and Hitachi Lumada APM.

COVID-19 IMPACT

Acceleration in Digital Transformation during COVID-19 Pandemic Boosted the Market Growth

The COVID-19 pandemic significantly propelled the adoption of digital solutions that could help in enhancing operational efficiency and productivity. The pandemic severely affected the industries such as chemical, oil and gas, manufacturing, and others owing to the imposition of restrictions. To deal with uncertainties, the demand for asset performance management rose to ensure equipment health from remote locations. The software supported the management in monitoring the real-time status of operations that could impact the product and product deliveries.

The healthcare industry witnessed a rise in the adoption of this software to manage medical equipment in real-time and from remote locations. The adoption of digital solutions in healthcare is driving the market growth. Furthermore, the software helps in locating assets and increases the efficient utilization and availability of the unit. The post-pandemic reliability on asset performance management solutions is expected to grow significantly, driving the market growth.

LATEST TRENDS

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Artificial Intelligence Powered Asset Performance Management to Boost Market Growth

The integration of artificial intelligence along with asset performance management is gaining traction across industries. The advanced technology exponentially enhances the capabilities of the software that lowers asset downtime, increases equipment lifecycle, and reduces overall operational cost. This is expected to boost the demand for APM software. For instance,

• October 2021: ABB Ltd launched Ability Genix APM software, an artificial intelligence powered next-generation predictive analysis, to boost monitoring efficiency. The company aimed to strengthen its 360-degree asset performance insights capabilities, aiming for utility and transport industries.

Furthermore, the products help in analyzing and monitoring Big Data and large content in real-time to support large enterprises. They eliminate labor intensive repairs and services in advance. As per OpenText, AI-powered APM software extends equipment software by 20-30% and lowers in-house incidents by 14%. These factors are expected to drive the asset performance management market growth.

DRIVING FACTORS

Growing Regulatory Compliances to Drive Market Growth

The industries across the globe have certain regulations and compliances to reduce negative impact on the environment. It is important for industries to regularly have service and maintenance of equipment to check emissions. Besides, several companies are aiming for net zero policy and this is expected to drive the adoption of asset performance management software.

Furthermore, various countries across the globe are implementing specific compliances. For instance, U.S. federal regulations implemented 23,954 restrictions on quality control under the National Association of Manufacturers (NAM). As per the NAM, manufacturers approximately spend more than 2,000 hours per year in complying with federal regulations.

For any global enterprise, the APM software helps in aligning with specific regulations. This is expected to fuel the asset performance management software market growth.

RESTRAINING FACTORS

Potential Risk in Data Security to Hamper Market Growth

The software integrates industrial infrastructural data with advanced technologies to provide more specific use case applications. This increases the risk of data threats of the industries. Industries, such as chemical, oil and gas, energy, and utility, among others, have sensitive data of users that is at optimum risk, if not secured properly.

Besides, the attacks on these industries are growing year on year. Therefore, it becomes essential to integrate protected software. For instance, IBM Security’s 2023 X-Force Threat Intelligence Index, ransom attacks were majorly targeted toward the manufacturing industry. Such threats are likely to hinder the market growth during the forecast period.

SEGMENTATION

By Deployment Analysis

On-premises Segment Holds Key Share due to Growing Data Security Demand

On the basis of deployment, the market is segmented into cloud and on-premises.

The on-premises segment is anticipated to hold the maximum share in the initial years of the forecast period. The rising demand for data security, preference for long-term comfort, and relationship of industries with on-premises deployment are driving the market growth.

However, key market players are shifting toward cloud-based deployment. Therefore, the cloud segment is expected to witness a rapid growth rate over the study period. Following 2024, the segment is expected to lead the market expansion.  

By Enterprise Type Analysis

Large Spending Capacity to Boost Software Adoption in Large Enterprises

Based on enterprise type, the market is segmented into large enterprises and small & medium enterprises.

The large enterprises segment is estimated to dominate the market during the forecast period. The growing adoption of digitalization is set to fuel the demand for asset performance monitoring software. This is due to the increasing product requirement and large spending capacity of large enterprises.

The small & medium enterprise segment is estimated to witness a rapid growth rate over the study period. With the launch of new and advanced cloud-based software, the investment by SMEs is increasing significantly. Further, it helps SMEs in optimizing investment cost for asset maintenance and services.

By Type Analysis

Real-time Analysis Feature to Drive Predictive Asset Management Segment Share

Based on type, the market is categorized into asset integrity management, predictive asset management, asset strategy optimization, asset reliability, and others (field service management, asset health management).

The predictive asset management segment is estimated to gain maximum share during the forecast period. The software type supports real-time equipment analysis that continuously monitors the health of physical assets.

The asset reliability segment is poised to exhibit substantial growth rate over the study period. This is owing to the increasing asset lifecycle through proper inspection, maintenance, and data management. This helps industries with digital transformation through higher reliable operations.

The adoption of software provides asset integrity management that helps in fueling its precisions and reliability. The increasing confidence in production capabilities is expected to boost the asset performance management market share over the projected period.  

By Industry Analysis

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Manufacturing Segment to Hold the Largest Market Share Owing to Digital Transformation

By industry, the market is categorized into manufacturing, government, chemical, oil & gas, energy & utility, healthcare, and others (mining, telecommunication).

The manufacturing segment is expected to hold the largest market share during the forecast period. The software enhances the asset health that helps manufacturers in boosting production capabilities. Rapid digitalization in manufacturing industries is expected to boost market growth.

The chemical segment is estimated to register a rapid growth rate during the study period. The higher risk of operations in chemical industries is driving the software demand. Further, the oil and gas segment is expected to register a significant growth rate over the projected period owing to higher reliability and cost saving capabilities.

The healthcare segment is anticipated to exhibit prominent growth during the forecast period. The software helps healthcare providers in ensuring patient safety with real-time equipment monitoring. The energy and utility segment is set to hold a considerable share as the products help enhance asset productivity, enabling the achievement of digital net-zero.

REGIONAL INSIGHTS

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The North America market is slated to gain maximum revenue during the forecast period. The rapid shift to digital platforms is likely to fuel the software adoption in the region. The growing awareness regarding the health of assets to reduce the environmental damage is driving the North American market growth. The U.S. is estimated to gain rapid growth over the study period. This is owing to the increasing focus on monitoring asset health for long term investments with minimal costing.

Asia Pacific is anticipated to showcase rapid CAGR during the forecast period owing to the increasing policies on environmental standard and compliance of the industrial equipment. China is set to gain a dominant share owing to the increasing investment in asset maintenance. According to the 2022 Ernest and Young report on China Asset Management, investors in the country are demanding for efficient digital engagement across industries, thus expected to fuel the adoption of the solution.

Europe is estimated to showcase a prominent growth rate during the forecast period. The rise in industrialization in European countries is set to propel software demand. The Middle East and Africa is anticipated to gain significant growth over the estimated period owing to the increase in investment in digital transformation. The global companies are introducing new software solutions to manage energy and industrial infrastructure maintenance. For instance,

• In December 2022, Robert Bosch GmbH launched Integrated Asset Performance Management with digital twin in the Middle East. The company aimed to support clients with lower machine downtime with higher productivity.

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South America is estimated to showcase steady growth in the market over the forecast period. This is owing to the higher production capabilities and lesser maintenance cost offered by the products.

KEY INDUSTRY PLAYERS

Collaboration with Prominent Industry Players to Boost the Market Share of Key Players

Key market players are entering into strategic partnerships and collaborations. These deals with advanced technology providers help in offering industry specific solutions. The partnership with various industry players is growing to meet the increasing need for clean and environment-friendly operations. The key players are expanding across various countries to achieve global presence and boost sales revenue.  

April 2023: Cognite AS introduced 2.0 version of APM software Cognite Maintain, Cognite InField, and Cognite InRobot to increase its use case applications across industries. The new solutions are powered with artificial intelligence and digitally capture asset quality observations.    

October 2022: Huston-based ABSG Consulting Inc. announced a partnership with Itus Digital to offer its clients the advantage of minimum maintenance cost with extended performance using Itus APM software. Together, the companies offer deep domain expertise and reliability experience to the clients to operationalize asset strategies.

List of Key Companies Profiled:

• AVEVA Group Limited (U.S.)


• IBM Corporation (U.S.)


• SAP SE (U.S.)


• Honeywell International Inc. (U.S.)


• Bentley Systems, Inc. (U.S.)


• Aspen Technology, Inc. (U.S.)


• Cognite AS (Norway)


• General Electric Company (U.S.)


• Siemens AG (Munich)


• Hitachi, Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Cognite AS announced an agreement with Austria-based oil, gas, and chemical company OMV Group to support its digital transformation with DigitUP APM solution. In the long-term agreement, the companies would focus on implementing computerized maintenance management systems for various operational sectors.


• February 2023: Honeywell International Inc. introduced Software as a Service-based solution Honeywell Forge Performance+ for Industrials and Asset Performance for the mining industry for mobile and fixed equipment. The solution would offer huge support for the mining industry’s digital transformation with its industry-specific offerings.


• June 2022: Envision Digital acquired asset performance management category company QOS Energy to support its energy transition solutions with increasing global demand. Together, the companies aimed to achieve net-zero initiatives and also expand in the Asian and American markets.   


• June 2022: Yokogawa Electric Corporation announced the launch of its new cloud-based platform, OpreX, an asset health insights provider. It provides real-time connectivity anywhere globally, thus enhancing business efficiency and operations.


• December 2021: General Electric Company announced a collaboration with Fujitsu Ltd. to distribute EnergyAPM solutions in Japan. The company aimed to offer software services with minimal cost of investment.

REPORT COVERAGE

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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading types of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation