Asset Performance Management Market Size, Share & Trends Analysis Report By Category, By Deployment (On-premises, Hosted), By Vertical, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global asset performance management market size was valued at USD 19.32 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 12.0% from 2023 to 2030. The market is anticipated to witness significant growth during the forecast period on account of the increasing demand for digital solutions across various industries, such as oil & gas, manufacturing, and chemical, among others, for reducing operational expenses. APM system helps collect different kinds of data from all the assets, such as machinery, heavy equipment, and so on, using sensors. Through the integration of disparate data sources, the APM system builds a data analytics platform that provides a comprehensive view of all operational assets. Customers can utilize this information to improve asset management processes and prioritize maintenance activities.

The integration of the APM system with complementary solutions such as mobile solutions and geographic information system (GIS) solutions is enabling more efficient use cases of the APM system, thereby contributing towards steady market growth. Furthermore, APM systems in the market leverage industrial internet of things (IIoT) to provide equipment reliability. As equipment reliability is fundamental capability of the APM systems, there is an increasing attraction towards the systems from industrial sector. 

APM is an integrated suite of solutions and services, which includes various software that are used to monitor aspects such as asset health and asset reliability. They are also used to plan strategies for asset maintenance and divestment. For instance, the Predix solution by General Electric includes different products such as APM Health, APM Reliability, APM Strategy, and APM Integrity. APM system provides various insights at the point of action to increase asset life, minimize unplanned repair work, decrease downtime; lower maintenance costs, and reduce the risk of equipment failure.

Amidst the outbreak of COVID-19, several organizations have structured work-from-home facilities for their employees. Moreover, IT initiatives and the transfer of cash and resources for infrastructure support and collaborative applications have been put on hold by organizations across the globe to enable new ways of working and better managing short-term implications. Organizations are also focused on using solutions that support advanced planning and mitigate the impact of similar events in the near future.

Currently, key market players are leveraging digital twin technology to increase the efficiency of the APM systems. A digital twin is a digital representation of a physical object or system. It acts as a separate complementary technology to the APM systems, which is modeled on operational technology (OT) data streams. This technology can simulate asset behaviors to anticipate potentially critical and harmful operating conditions to avoid unforeseeable damages to the assets, thereby significantly improving asset performance and utilization.

Companies from asset-intensive industries can address various issues, including labor safety risks, environmental risks, increasing maintenance and operational costs, and poor decision-making, among others. Overall benefits of the systems, numerous technological advancements such as IIoT and digital twin, and the gaining interest in digital asset management solutions are expected to contribute significantly to the growth of the market over the forecast period.

Market Dynamics

Emergence of the fourth industrial revolution (Industry 4.0) has encouraged the adoption of Internet of Things (IoT) technologies, such as industrial sensors, across several industries. Growing adoption of industrial sensors has enabled the rapid deployment of APM solutions. Moreover, the failure of industrial equipment can cause Environmental, Health, and Safety (EH&S) risks. Implementation of APM solutions helps companies lower EH&S risks by improving asset health and complying with federal and environmental regulatory standards.

With the integration of Geographic Information Systems (GIS) and unmanned aerial vehicles/drones, the APM software delivers enhanced customer experience by providing real-time based asset performance monitoring. Unmanned aerial vehicles help capture 3D images of assets deployed at remote sites. Additionally, they help transfer obtained information through integration with company’s internal GIS-enabled APM software.

APM providers are making significant progress in developing new solutions integrated with latest technologies. As a part of their strategy, new product development has helped several companies to acquire a maximum number of customers globally.

Category Insights

Asset reliability management segment accounted for the largest market share of more than 30.0% in 2022, owing to an extensive offering of reliability management solutions from numerous market players. Moreover, the growing need for companies to extend machine or equipment life is creating traction in this segment. Additionally, reducing excessive operational costs on maintenance is observed as a driving factor contributing to the segment growth.

However, the predictive asset management segment is expected to expand at the highest growth rate, exceeding 13.0% during the forecast period. Various computing tools and processes, such as risk-based inspection, neural networks, machine learning, safety integrity level analysis, statistical modeling tools, root cause failure analysis, algorithms, and so on, are used to derive helpful insights. Many of these processes can provide preventive measures for asset failures. As a result, the companies are now able to change their asset management strategies from predictive to preventive.

Deployment Insights

Hosted systems segment accounted for the considerable market share of above over 35.0% in 2022 owing to an increasing demand for public cloud deployment as it provides numerous options in terms of solutions and computing resources to meet the growing needs of organizations of all sizes and from all verticals. Furthermore, new enhancements and tools and gaining a competitive edge is encouraging them to deploy public cloud solutions as cloud providers maintain and update the technical ecosystem in the public cloud deployment model.

The complex requirements related to various customized machinery and equipment belonging to asset-intensive organizations, significant customizations in APM systems, and the misconceptions regarding data security when working with cloud-based systems are primary reasons for adopting on-premises APM systems.

Vertical Insights

Energy & utilities segment accounted for the largest market share of above 18.0% in 2022. Increasing relevance of re-evaluating strategies and implementing sophisticated technology in company processes are anticipated to drive the growth of the segment. Moreover, growing need to cater to increasing demands for satisfactory energy services has enabled managers and other officials to involve asset performance management solutions to monitor asset working and conditioning in order to fulfill increasing demands. Additionally, rising focus of the companies on predictive maintenance strategies for their asset is also considered to be driving the segment growth.

Government and public sector segment is expected to witness rapid growth during the forecast period. Various firms are expanding their company operations to serve wider markets. This is creating demand for the cloud-based solutions and services for the organizations to efficiently provide solutions to their consumers. Furthermore, growing digitization across public sector companies to provide a better customer experience is expected to fuel demand for the asset performance management in this sector.

Regional Insights

North America dominated the global market with a share of above 30.0% in 2022. An increasing demand for high-speed data networks and the considerable presence of software vendors in the region are the factors contributing to the regional market growth. Furthermore, growing investments by organizations in IT infrastructure, specifically for research and development of cloud infrastructure, are further fueling the regional market growth.

Compared to other regions, companies in North America are witnessing favorable business conditions and supportive government policies, which enable them to develop and introduce better cloud platforms, subsequently leading to an increase in the adoption of asset performance management in the market. The number of computer scientists, data analysts, and software engineers using cloud-based solutions and services is high in Canada. This is further contributing to the growth of the North American regional market.

Asia Pacific is expected to register the highest CAGR during the forecast period owing to a significant investments by large firms and the implementation of new technologies across industries and enterprises. Several companies have started migrating their workloads to the cloud as they are highly focused on the development of a digital transformation process through cloud technology.

Moreover, growing investments in IT infrastructure development in the region by tech giants are anticipated to further offer numerous opportunities for the stakeholders of asset performance management market during the forecast period.

Key Companies & Market Share Insights

The asset performance management market is significantly competitive and is characterized by the presence of numerous players operating at the global level.  Growing interest of organizations in improving asset performance, maintaining equipment health, and reducing time to market is encouraging vendors to introduce advanced asset performance management that could cater to an organization’s demands.

Market players are expanding the capabilities of APM systems with the integration of various complementary technologies such as artificial intelligence (AI), machine learning, mobility, GIS, augmented reality (AR), virtual reality (VR), and mixed reality (MR). The increasing investments in research & development towards cloud-based APM and predictive analysis solutions are improving the APM systems significantly. As such, advancements and the evolution of digital industrial solutions are paving the way for the rising adoption of systems.

Increased need for mobility and data portability is driving demand for data-centric solutions, which is subsequently driving the demand for asset performance management. To stay competitive in the market, market players are pursuing a variety of growth strategies, including partnerships, strategic agreements and collaborations, mergers & acquisitions, and new product development. Some prominent players in global asset performance management market include:

• ABB Ltd

• Aspen Technology, Inc.

• AVEVA Group plc

• Bentley Systems, Incorporated

• DNV GLAS

• GE Digital

• International Business Machines Corporation

• Rockwell Automation

• SAP SE

• SAS Institute, Inc.

• Siemens Energy

Asset Performance Management Market Report Scope

Global Asset Performance Management Market Segmentation

This report forecasts revenue growth at global, regional, and country levels in addition to provides an analysis of the industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global asset performance management market report based on the category, deployment, vertical, and region:

• Category Outlook (Revenue, USD Million; 2018 - 2030)

  • Predictive Asset Management

  • Asset Reliability Management

  • Asset Strategy Management

  • Others

• Deployment Outlook (Revenue, USD Million; 2018 - 2030)

  • On-premises

  • Hosted

    • Public Cloud

    • Private Cloud

• Vertical Outlook (Revenue, USD Million; 2018 - 2030)

  • Energy & Utilities

  • Oil & Gas

  • Manufacturing

  • Mining & Metal

  • Government & Public Sector

  • Transportation

  • Chemical & Pharmaceutical

  • Others

• Region Outlook (Revenue, USD Million; 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  •  Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • MEA