Asset Performance Management Market by Component (Solutions (Asset Strategy, Asset Reliability, and Predictive Asset Management) and Services), Deployment Type, Organization Size, Vertical, and Region - Global Forecast to 2028
[286 Pages Report] The asset performance management market size is expected to grow from USD 2.9 billion in 2023 to USD 4.7 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 9.9% during the forecast period. Growing need to optimize asset performance management strategy with a 360-degree view of asset performance is driving the global asset performance management market during the forecast period. A solid asset performance management strategy is about capturing and analyzing data to improve asset reliability and availability. This can only be realized when organizations are fully informed about their current asset state. Only then are they able to set predictive forecasting and use reliability-centered maintenance (RCM) strategies. 360-degree view of asset performance helps in formulating asset strategies that are targeted, holistic, and optimized activities, which mitigate potential risks of asset failure through predictive and preventative maintenance, inspection, monitoring, engineering, and analytical methodologies. The integration with broader asset management and operational systems, along with embedded optimization methods, ensures enterprises are fully managing failure risks at an optimized cost profile.
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Recession Impact on the Asset performance management market
During a recession, the asset performance management (APM) market can experience a range of impacts that reflect the broader economic downturn. In times of economic uncertainty and reduced business activity, organizations often prioritize cost-cutting measures and operational efficiency to weather financial challenges. As a result, the demand for APM solutions may experience fluctuations. While some companies might delay or scale back their investments in APM technologies to conserve resources, others could place a heightened emphasis on APM to optimize asset utilization, reduce downtime, and minimize maintenance costs. The impact of a recession on the APM market can also be influenced by the industries served – sectors such as manufacturing, energy, and utilities might maintain their focus on APM due to the critical nature of their assets, while other industries might temporarily decrease their APM investments. Companies offering APM solutions and services need to figure out ways to reduce costs without compromising on service quality, especially during an economic slowdown. An effective asset performance management strategy can reduce costs, improve efficiency, and help companies comply with health and safety regulations.
Asset performance management market Dynamics
Driver: Increased digital workforce and reliability culture
Asset performance management enables organizations to accelerate their path to a digital business model. Organizations gain control of asset decisions with broad-reaching data that reflect resource availability, operating impact, and real-time condition reports. When industrial organizations require assets to operate at all times, asset performance management helps focus on assets that need repair 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 need to recognize that they are in the information business, and change extends beyond the assets themselves. Employees are embracing the digital industry they now work in and are adopting asset performance management tools for reliability and safety in today’s highly regulated environments. These factors are driving the asset performance management market.
Restraint: Concerns over data security and confidentiality
With the increasing digitization, cyberattacks have been rising. Hence, data security has become a major concern in organizations. Organizations embracing new advanced digital technologies are making their data vulnerable to risks. There is a significant rise in cybersecurity concerns with the transfer of data from the field to the cloud platform, as malicious parties can attack servers, networks, and communication channels. Several enterprises are developing digital twin solutions for testing and building various types of equipment for a virtual environment, predicting asset conditions, and avoiding unplanned failures. If the functioning of these solutions is compromised, they can reveal Intellectual Property (IP) elements, such as details of automation and control system operations. Hence, service organizations from highly regulated industries hesitate to adopt modern asset performance management solutions.
Opportunity: Rising trend of proactive asset performance management with IIoT, predictive, and prescriptive analytics
Predictive analytics is a process to interpret past behavior and, based on that analysis, predict future outcomes. When performed correctly, predictive analytics can accurately portray asset lifecycle and reliability and focus on the early root causes of degradation rather than later-stage detection of damage. The insights available from intense multi-variate and temporal pattern analysis provide accurate, critical lead times. This allows time for decisions that can eliminate damage and maintenance or, at the very least, provide preparation time to reduce time to repair and mitigate consequences. As a result, predictive/prescriptive capabilities enable asset lifecycle reliability and facilitate decisions on when and how to maximize production while proactively avoiding asset and output risks. Such real-time analytics guide maintenance scheduling and asset optimization, eliminating guesswork on future production and asset issues. For C-level executives, this complete picture of plant or site performance enables more confident risk analysis and performance projections for the board level.
Challenge: Difficulties with integration and implementation of asset performance management with existing applications
There is often an expectation of seamless integration. The reality is that the complexity of sequencing data built within asset performance management requires complex interfaces, and given that each business structures its data quite differently, ‘out of the box’ interfaces do not exist. Hence, in several cases, businesses are left moving data between asset performance management and other tools using load sheets. Similarly, the sheer volumes of online condition data generated by machines will drown most asset performance management solutions. Hence, this data is expected to require pre-processing to simplify ingestion, meaning that it is not just a matter of integrating but rather developing a complete data strategy.
Asset performance management market Ecosystem
Based on solutions, the asset strategy management segment is expected to hold the largest market share in 2023.
Asset Strategy Management (ASM) is a structured process that enables organizations to gain control and effectively manage asset strategies, eliminate inconsistencies, 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 ASM program ensures reliability strategies are optimized to deliver the best balance of risk, cost, and performance. It also ensures strategies are continually evolved based on real data, appropriate analysis and justification are provided, and effective review and approval processes are offered.
Based on vertical, chemicals vertical to grow at the highest CAGR during the forecast period.
The chemical and pharmaceutical industry alone adds a huge value to the global economy every year. This, in turn, makes it essential to not only enhance the reliability of chemical equipment but also maintain it to keep production running at an optimal level. The major challenges faced by the chemical vertical include unplanned downtime of mission-critical equipment, high maintenance and repair costs due to caustic substances, and safety issues around hazardous chemical inventory. The continual expense of maintenance and the rising costs of materials have pushed various chemical manufacturers into the process of finding new technologies to control, maintain, and improve production. Asset performance management solutions prioritize works orders, automate inventory control, improve safety and compliance throughout the production plant, and build cost-saving preventive maintenance.
Based on Region, North America to hold the largest market share during the forecast period.
North America is one of the most technologically advanced regions in the world. It accounts for the largest 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 sustainable and well-established economies, which enable them to invest strongly in R&D activities, thereby contributing to the development of new technologies. Owing to the early adoption of trending technologies, such as IoT, big data, AI, and ML, manufacturers are keen on integrating 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 efficiency, 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 at the forefront in deploying asset performance management solutions, which are efficient in providing early warning notification with predictive analytics and diagnosis of equipment issues days, weeks, or months before failure.
Key Market Players
The asset performance management market is dominated by a few globally established players such as AVEVA, SAP, GE Digital, IBM, ABB, Emerson, Bentley Systems, Rockwell Automation, Fluke, and DNV, among others, are the key vendors that secured asset performance management contracts in last few years. These vendors can bring global processes and execution expertise to the table, the local players only have local expertise. Driven by increased disposable incomes, easy access to knowledge, and fast adoption of technological products, buyers are more willing to experiment/test new things in the asset performance management market.
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Report Metrics |
Details |
Market size available for years |
2019–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
Component, Deployment Type, Organization Size, and Vertical |
Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
AVEVA, SAP, GE Digital, IBM, ABB, Emerson, Bentley Systems, Rockwell Automation, Fluke, DNV, Siemens Energy, Hexagon, Oracle, Honeywell, Yokogawa, SAS AB, Arms Reliability, Tenna, MaintainX, Nexus Global. Synopsys, Detechtion Technologies, UpKeep, MentorAPM, Fracttal, Prometheus Group, MicroAI, IPS Intelligent Process Solutions, Qualer, Plasma, VROC, and Operational Sustainability |
This research report categorizes the asset performance management market to forecast revenue and analyze trends in each of the following submarkets:
Based on Component:
-
Solutions
- Asset Strategy Management
- Asset Reliability Management
- Predictive Asset Management
- Other Solutions
-
Services
-
Professional Services
- Support & Maintenance
- Implementation & Integration
- Consulting
- Managed Services
-
Professional Services
Based on Deployment Type:
- On-premises
- Cloud
Based on Organization Size:
- Large Enterprises
- SMEs
Based on Vertical:
- Energy & Utilities
- Manufacturing
- Government & Defense
- Chemicals
- Telecommunications
- Healthcare & Pharmaceuticals
- Consumer Goods, Food & Beverages
- Other Verticals
Based on Region:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Rest of Europe
-
Asia Pacific
- China
- Japan
- India
- Rest of Asia Pacific
-
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of Middle East & Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In January 2023, Schneider Electric acquired AVEVA. This deal would enable both the entities a holistic approach to digital transformation across industrial operations, while reducing energy, carbon, and resource intensity. While AVEVA will henceforth be wholly owned and part of Schneider Electric, it is intended that AVEVA’s business autonomy and future R&D investment will be preserved going forward, thereby helping to meet increasing demand for a stronger portfolio of solutions.
- In July 2021, GE Digital partnered with Airbus and Delta TechOps to bring support with its best-in-class predictive analytics software. With GE Digital’s added analytics capabilities and systems portfolio, covering Airbus and non-Airbus OEM aircraft, airlines will further benefit from cross-fleet health monitoring and diagnostics, reliability analysis, and PdM analytics.
- In June 2021, Bentley Systems recently acquired SPIDA Software, developers of specialized software for the design, analysis, and management of utility pole systems. The integration of SPIDA within Bentley Systems OpenUtilities engineering software, PowerView, and grid digital twin cloud services will help address the challenges of transitioning to new renewable energy sources, including for electric vehicle charging, of joint usage of utility poles to support broadband networks’ 5G expansion, and of modernizing and hardening the electric grid to maintain reliability and resilience.
- In May 2021, AVEVA partnered with Maire Tecnimont Group. This partnership will extend usage of AVEVA’s Asset Performance Management (APM) solutions across the Maire Tecnimont Group, globally, thereby enhancing plant operability and lowering maintenance costs. This in turn will deliver increased information availability empowering better, more informed decision-making, and subsequently improving overall business performance. As part of the agreement, the two companies will work together over a year on a defined number of customer projects so as to promote the application of predictive maintenance technology for critical plant assets.
Frequently Asked Questions (FAQ):
What is Asset Performance Management?
Asset performance management is a software solution that helps organizations track and manage the health of an organization's physical assets by analyzing key metrics such as uptime, mean time to repair, and asset longevity to aid decision-making that can lead to improved asset strategy management and reliability management. The goal of asset performance management is to help organizations in reducing unplanned downtime, decreasing maintenance costs, and reducing environmental, health, and safety (EHS) risk.
Which country is the early adopter of Asset performance management?
The US is at the initial stage of the adoption of Asset performance management.
Which are the key vendors exploring Asset performance management?
Some of the major vendors offering asset performance management across the globe include AVEVA, SAP, GE Digital, IBM, ABB, Emerson, Bentley Systems, Rockwell Automation, Fluke, DNV, Siemens Energy, Hexagon, Oracle, Honeywell, Yokogawa, SAS AB, Arms Reliability, Tenna, MaintainX, Nexus Global. Synopsys, and Detechtion Technologies.
What is the total CAGR expected to be recorded for the Asset performance management market during 2023-2028?
The Asset performance management market is expected to record a CAGR of 9.9% from 2023-2028
What is the projected market value of the asset performance management market?
The asset performance management market size is expected to grow from USD 2.9 billion in 2023 to USD 4.7 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 9.9% during the forecast period.
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The study involved four major activities in estimating the current market size of the asset performance management market. Extensive secondary research was done to collect information on the market, the competitive market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the various segments in the asset performance management market.
Secondary Research
This research study used extensive secondary sources, directories, and databases, such as D&B Hoovers, DiscoverOrg, Factiva, vendor data sheets, product demos, Cloud Computing Association (CCA), Vendor Surveys, Asia Cloud Computing Association, and The Software Alliance. All these sources were referred to for identifying and collecting information useful for this technical, market-oriented, and commercial study of the asset performance management market.
Primary Research
Primary sources were several industry experts from the core and related industries, preferred software providers, hardware manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the industry’s value chain. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Primary interviews were conducted to gather insights, such as market statistics, the latest trends disrupting the market, new use cases implemented, data on revenue collected from products and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to technologies, segmentation types, industry trends, and regions. Demand-side stakeholders, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Security Officers (CSOs); the installation teams of governments/end users using asset performance management; and digital initiatives project teams, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current use of services, which would affect the overall asset performance management market.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and forecast the asset performance management market and other dependent submarkets. The bottom-up procedure was deployed to arrive at the overall market size using the revenues and offerings of key companies in the market. With data triangulation methods and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
In the bottom-up approach, the adoption trend of asset performance management among different industry verticals in key countries that contribute the most to the market was identified. For cross-validation, the adoption trend of asset performance management, along with different use cases with respect to their business segments, was identified and extrapolated. Weightage was given to the use cases identified in different solution areas for the calculation. An exhaustive list of all vendors offering asset performance management in the market was prepared. The revenue contribution of all vendors in the market was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Vendors with asset performance management offerings were considered to evaluate the market size. Each vendor was evaluated on the basis of its service offerings across verticals. The aggregate of all companies’ revenue was extrapolated to reach the overall market size. Each subsegment was studied and analyzed for its market size and regional penetration. Based on these numbers, the region split was determined through primary and secondary sources.
In the top-down approach, an exhaustive list of all vendors in the asset performance management market was prepared. The revenue contribution of all vendors in the market was estimated through their annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. The market size was estimated from revenues generated by vendors from different asset performance management offerings. Revenue generated from each service type (Consulting, Integration & Optimization, Implementation & Migration, and Application Development & Modernization) from different vendors were identified with the help of secondary and primary sources and combined to arrive at the market size. Further, the procedure included an analysis of the market’s regional penetration. With the data triangulation procedure and data validation through primaries, the exact values of the overall market size and its segments’ market size were determined and confirmed using the study. The primary procedure included extensive interviews for key insights from industry leaders, such as CEOs, VPs, directors, and marketing executives. These market numbers were further triangulated with the existing MarketsandMarkets’ repository for validation.
Asset Performance Management Market: Top-Down and Bottom-Up approaches
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Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The data was triangulated by studying several factors and trends from both the demand and supply sides in the asset performance management market.
Market Definition
Considering the sources and associations’ views on asset performance management, MarketsandMarkets defines asset performance management as “a software solution that helps organizations track and manage the health of an organization's physical assets by analyzing key metrics such as uptime, mean time to repair, and asset longevity to aid decision-making that can lead to improved asset strategy management and reliability management. The goal of asset performance management is to help organizations in reducing unplanned downtime, decreasing maintenance costs, and reducing environmental, health and safety (EHS) risk.”
Key Stakeholders
- Asset performance management solution providers
- Asset performance management service providers
- Independent software vendors (ISVs)
- Investors and venture capitalists (VCs)
- Managed service providers
- Support and maintenance service providers
- System integrators (SIs)/migration service providers
- Value-added resellers (VARs) and distributors
Report Objectives
- To define, describe, and forecast the global asset performance management market based on component (solutions and services), deployment type (on-premises and cloud), organization size (large enterprises and SMEs), vertical (energy & utilities, manufacturing, government & defense, chemicals, telecommunications, healthcare & pharmaceuticals, consumer goods, food & beverages, and other verticals), and region.
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America
- To provide detailed information related to the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze macro and micromarkets with respect to growth trends, prospects, and their contributions to the overall market
- To analyze industry trends, patents & innovations, and pricing data related to the asset performance management market.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players.
- To profile key players in the market and comprehensively analyze their market share/ranking and core-competencies.
- To track and analyze competitive developments, such as mergers & acquisitions, new product launches, product enhancements, and partnerships & collaborations in the market.
Note 1. Micromarkets are defined as the further segments and subsegments of the market included in the report.
Note 2. Core-competencies of the companies are captured in terms of their key developments and key strategies adopted by them to sustain their position in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern & African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Asset Performance Management Market