Global Asset Performance Management Market Size Report, 2019-2025 (Includes Business Impact of COVID-19)

                                          
Industry Insights, Market Size, CAGR, High-Level Analysis: Global Asset Performance Management Market


The global asset performance management market size was valued at USD 13,237.85 million in 2018 and is expected to register a CAGR of 9.15% from 2019 to 2025. The market is anticipated to witness significant growth over the forecast period as incumbents of various industries, such as oil & gas, manufacturing, and chemical, among others, are opting for digital solutions to manage the performance of their assets as part of the efforts to reduce their operating expenses. A typical system for managing the performance of assets leverages sensors to collect relevant data from machinery, and heavy equipment, among other assets, and builds a data analytics platform to provide a comprehensive view of all assets operational across an industrial facility. Companies can utilize this comprehensive view for managing the performance of their assets and prioritize the maintenance activities accordingly.
Performance management of assets envisages an integrated suite of software solutions and services that are used to monitor the health and reliability of various assets. Asset performance management systems can be used to plan strategies for maintenance of assets and make informed decisions on the divestment of assets. Asset performance management systems can also provide various insights on the course of action to be initiated to increase the life of assets, annul the risks of equipment failure, avoid unplanned outages, reduce downtime, lower maintenance costs, and reduce the risk of equipment failure. For instance, the Predix solution by General Electric includes different components, such as APM Health, APM Reliability, APM Strategy, and APM Integrity.

Asset performance management systems can allow companies belonging to asset-intensive industries to address various issues surrounding labor safety risks, environmental risks, increasing maintenance and operational costs, and inefficient decision making, among others. The overall benefits asset performance management systems can offer coupled with the growing popularity of digital asset performance management solutions and the potential integration of industrial internet of things (IIoT) and digital twin technology with asset performance management systems are expected to contribute significantly toward the market growth over the forecast period. The state-of-the-art asset performance management systems available in the market are already leveraging IIoT to provide equipment reliability. The integration of the asset performance management system with complementary solutions, such as mobile solutions and geographic information system (GIS) solutions, is also leading to more efficient use cases for the deployment of asset performance management system, thereby contributing toward the market growth.
At present, digital twin technology is being used to increase the efficiency of asset performance management systems. Modeled on operational technology (OT) data streams, digital twin envisages a digital representation of machinery or a system. Digital twin technology can act as an independent technology complimenting asset performance management systems. The technology can simulate the behavior of assets to anticipate potentially critical and harmful operating conditions as well as to avoid any unforeseeable damages to the assets, thereby significantly improving the performance and utilization of assets.

Deployment Mode Insights

Based on deployment mode, the asset performance management (APM) market has been further segmented into on-premises and hosted. The hosted segment has been further segmented into public cloud and private cloud. The on-premises segment accounted for more than 50% of the total market share in 2018 and is expected to continue dominating the market over the forecast period. On-premises asset performance management systems are preferred because different types of machines and equipment installed in asset-intensive industrial facilities require customized asset performance management systems. Concerns related to the safety and security of cloud-based systems are also prompting companies to opt for on-premises asset performance management systems.

However, the development of various secured protocols is helping in annulling the security concerns associated with cloud-based systems. The approach of end users towards cloud-based systems is also changing as a result and the popularity of cloud-based systems is gradually rising. Incumbents of industries, such as chemical and oil & gas, are particularly adopting cloud-based asset performance management systems encouraged by the expanding product portfolios of the market players. Hosted asset performance management systems also offer various additional benefits, such as easier upgrades, reduction in the required infrastructure resources, and affordable deployment costs. While more than 60% of the customers prefer public cloud hosting at present, the demand for asset performance management systems hosted on private cloud is expected to increase over the forecast period. The hosted segment is expected to register a significant CAGR of 11.49% from 2019 to 2025.

Category Insights

Based on the category, the asset performance management market has been categorized into predictive asset management, asset reliability management, asset strategy management, and others. The asset reliability management held the largest share in 2018 and is expected to maintain its dominance throughout the forecast period. This significant market share can be attributed to the extensive reliability management offerings from numerous market players. Given that managing and ensuring the reliability of equipment happens to be among the fundamental capabilities of asset performance management systems, incumbents of the industrial sector are particularly opting for these systems.

The predictive asset management segment is expected to register the highest CAGR exceeding 11% over the forecast period. Predictive asset management solutions include various state-of-the-art computing tools and processes, such as risk-based inspection tools, neural networks, machine learning, safety integrity level analysis tools, statistical modeling tools, root cause failure analysis, and algorithms, among others, which can be used to derive the helpful insights. Many of these processes can provide preventive measures for asset failures, thereby allowing companies to switch their asset management strategies from predictive to preventive.

Vertical Insights

Based on vertical, the asset performance management market has been further segmented into energy & utilities, oil & gas, manufacturing, mining & metal, government & public sector, transportation, chemicals & pharmaceutical, and others. The energy & utilities segment dominated the market in 2018. The continued growth in consumption of electricity, gas, and other resources around the globe allowed the segment to dominate the market. The segment is expected to maintain its dominance over the forecast period in line with the rapid year-over-year improvement in the scalability and cost performance of wind and solar power generation projects.

The government & public sector segment is expected to exhibit the highest CAGR of 10.7% from 2019 to 2025. The growth can be attributed to the continued rollout of wastewater treatment projects across developing countries, including Brazil, Malaysia, and Mexico, among others. The manufacturing segment is estimated register a CAGR of above 10% from 2019 to 2025 and hold a significant market share over the forecast period. The segment is estimated to witness the fastest growth in Asia Pacific owing to the increasing number of manufacturing plants coming up in the region.

Regional Insights of Global Asset Performance Management Market

Based on the region, the market has been segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa. North America accounted for a market share of more than 30% in 2018. North America is home to several key market players and emerging companies. Also, the region has always been ahead in research and development activities in the field of IIoT and has hence dominated the global market.

Europe also held a significant share in terms of revenue and is expected to register a stable growth rate. This growth can be attributed particularly to the noteworthy adoption of asset performance management systems across various industrial sectors. The growing industrial output in the U.K. and Germany is also expected to contribute toward the steady growth of the market. However, Asia Pacific is expected to witness substantial growth and register the highest CAGR of 10.11% from 2019 to 2025. The growth of the regional market can be attributed to the increasing demand for better solutions to manage industrial plants, particularly from China, India, and South Korea.

Asset Performance Management Market Share Insights

Some of the notable players in the market include ABB; ARMS Reliability; Aspen Technology Inc.; Bentley Systems Incorporated; General Electric; and IBM Corporation. The leading market players are focusing on new product development, mergers and acquisitions, strategic partnerships, and business expansions to defend market share. Market players are expanding capabilities of asset performance management systems by integrating various complementary technologies, such as artificial intelligence (AI), machine learning, mobility, GIS, augmented reality (AR), virtual reality (VR), and mixed reality (MR). Asset performance management systems are also evolving in line with aggressive investments in researching and developing cloud-based predictive analytical solutions. As such, the advances in technology and the evolution of digital industrial solutions are paving the way for the adoption of asset performance management systems across the globe.

Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Global Asset Performance Management Market Research Report

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, this market research report has segmented the global asset performance management market report based on deployment mode, category, vertical, and region.

Deployment Mode Outlook (Revenue, USD Million, 2019 - 2030)

  
On-Premises
  
Hosted
  
Public Cloud
  
Private Cloud

Category Outlook (Revenue, USD Million, 2019 - 2030)

  
Predictive Asset Management
  
Asset Reliability Management
  
Asset Strategy Management
  
Others

Vertical Outlook (Revenue, USD Million, 2019 - 2030)

  
Energy & Utilities
  
Oil & Gas
  
Manufacturing
  
Mining & Metal
  
Government & Public Sector
  
Transportation
  
Chemicals & Pharmaceutical
  
Others