The global plant asset management market is estimated to capture a valuation of USD 7.0 billion in 2023 and is projected to surpass a valuation of USD 21.4 billion by 2033. The market is anticipated to rise at a CAGR of 11.4% during the forecast period.
The increasing desire of several stakeholders to enhance numerous processes across industries and utility facilities to achieve more productivity along with less waste is driving the industry's growth.
With increased digitalization and the implementation of Industry 4.0, more and more stakeholders are embracing lean manufacturing techniques. Plants that use poor procedures have witnessed a 10% to 12% increase in production. The perks of these techniques encourage the adoption of digitalization in industrial processes, resulting in increased market demand.
Increasing Adoption of Cloud-based Technologies to Boost the Market
The plant asset management strategy calls for several measuring methods to safeguard and forecast the health of plant assets. It gives valuable information regarding the condition of support throughout their life cycle. This data is utilized to optimize plant operations and maintenance, boost production capacity, and adopt predictive maintenance and operational plans.
Furthermore, the increasing adoption of lean manufacturing practices by several organizations, increased emphasis on providing cloud-based PAM solutions to meet customer demands, rising demand for asset management software that can identify potential failures to avoid future losses, and growing need for real-time data analytics are the major factors driving the market growth.
Automotive Industry to Create an Abundance of Investment Opportunities
The automobile sector is increasingly reliant on digital technology. Massive capital investments by market participants in undeveloped areas in emerging nations are also driving the rise of the automobile sector.
Technological advancements such as electric and gas-powered vehicles cause infrastructure changes in the automotive industry; additionally, new machines and equipment have replaced the need for human operators for most of the critical processes in the automotive industry for precise accuracy, which accelerates the demand for PAM solutions for automation assets used in automobile manufacturing plants.
The absence of Trained Professionals may impede the Market's Growth.
A shortage of trained workers is hampering the market's expansion. The World Economic Forum (WEF) stated in its study titled 'The Future of Jobs 2018' that around 54% of the global workforce must be re-skilled or up-skilled to work in disruptive and digital technologies producing the virtual world. Because of a lack of technical understanding, operators are less accepting.
| Attributes | Details |
|---|---|
| Market CAGR (2023 to 2033) | 11.7% |
| Market Valuation (2023) | USD 7.0 billion |
| Market Valuation (2033) | USD 21.4 billion |
During the historical period from 2018-2022, the market grew at a CAGR of 9.6%. The market secured a valuation of USD 4.4 billion in 2018 and USD 6.4 billion in 2022.
The implementation of lean manufacturing processes is driving the market. Companies that apply lean manufacturing concepts should consider an asset management system to increase dependability while lowering maintenance and operational costs across various asset classes.
Furthermore, process facilities in the oil and gas sector are complicated, with expensive and crucial production equipment. As the plant's health and performance deteriorate over time owing to wear from various sources, production, and related expenses suffer.
Asset management solutions seek to mitigate this impact by systematic equipment condition monitoring, the avoidance of unscheduled production downtime, and the reduction of operating expenditures through better maintenance planning. All these factors grow at a CAGR of 11.7% over the assessment period from 2023 to 2033.
Oil & Gas Industry helps the Market to Gain Huge Traction
By end-user, the global Plant Asset Management market can be segmented into energy & power, oil & gas, petrochemical, mining & metal, aerospace & defense, and automotive.
Process facilities in the oil and gas sector are very complicated, with expensive and crucial production equipment. As the plant's health and performance deteriorate over time owing to wear from various sources, production, and related expenses suffer.
Asset management solutions seek to mitigate this impact by systematic equipment condition monitoring, the avoidance of unscheduled production downtime, and the reduction of operating expenditures through better maintenance planning.
Automation Assets Exhibit Rapid Growth in the PAM Market during the Forecast Period
The global market can be segmented by asset type into production and automation assets. During the forecast period, the market for automation assets is predicted to grow fastest—the increased use of automation technology to boost production capacity in the process industries.
However, other types of automation systems, such as programmable logic controllers (PLCs) and distributed control systems (DCSs), find applications in discrete sectors, fueling the need for PAM solutions for effective automation asset management.
| Countries | Forecast Share Between 2023 to 2033 |
|---|---|
| United States | 15.8% |
| Germany | 11.8% |
| Japan | 5.4% |
| Australia | 3.5% |
| Countries | Forecast CAGR Between 2023 to 2033 |
|---|---|
| China | 10.5% |
| India | 14.5% |
| United Kingdom | 9.2% |
Availability of Sophisticated IT infrastructure and supporting government actions to promote market growth.
The analysis shows the United States is likely to be a profitable Plant Asset Management market during the forecast period. The United States plant asset management industry is estimated to skyrocket at a CAGR of 10.6%, driven by the region's advanced factory solutions. The United States is estimated to capture 15.8% of the global market by 2033.
The fast adoption of IoT/IIoT across various industries, including manufacturing, automotive, and healthcare, can be attributed to increased internet penetration, the availability of low-cost IoT sensors, and the proliferation of smart-linked devices. The availability of sophisticated IT infrastructure and supporting government actions to promote the region's transition to Industry 4.0 is estimated to fuel the market's growth.
Low Labor Costs and Availability of Trained Workers
China is predicted to be the fastest-growing market during the forecast period. As per the estimations, China's aerospace and military sector is expected to grow by roughly 15% due to rising investments in sophisticated technology in the aerospace and defense sector. China is securing a CAGR of 10.5% in the global market by 2033.
Manufacturing cost control is becoming a top focus for aerospace companies, prompting them to invest in asset management technology. With sophisticated technologies like predictive maintenance and AI, the aircraft industry is deploying PAM solutions to minimize operating expenses.
Analysis reveals that PAM solutions are widely used throughout China due to the increasing industrial industry. Because of the low labor costs and availability of trained workers, major firms from various sectors have relocated their manufacturing units to China. These industrial facilities are utilizing asset management solutions to enhance overall manufacturing processes, which is projected to boost the growth of the PAM market in the area.
FMI highlights top Asset Management startups in the market. These startups are pioneering in several ways inside the Plant Asset Management business and worldwide. They are all outstanding startups worth following. A few of these startups are mentioned below:
Neer: NEER was founded by Elango Thevar in 2020. It is a cloud-based Machine Learning Platform that assists communities in optimizing current water infrastructure and developing an efficient system. It's a tool for everyone, from engineers managing highly complex systems to communities beginning to create new infrastructure.
Fincovi: Fincovi was founded by Ray O Neill, Damian Malone, and Jayesh Shah in 2019. It is located in Athlone, Westmeath, Ireland. It is a renewable energy-focused technology-enabled back and middle office solution provider.
The market is highly fragmented by the number of key players globally. The key players play a vital role in developing innovative and advanced products by investing a considerable amount in research and development activities. These key players drive the market by adopting marketing tactics such as mergers, collaborations, product launches, and agreements.
Other Essential Players in the Global Market are:
Recent key developments among players are:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD billion for Value |
| Key Countries Covered | United States, United Kingdom, Japan, India, China, Australia, Germany |
| Key Segments Covered | Type, Application, Region |
| Key Companies Profiled | ABB Ltd.; AB SKF; Bentley Systems; CGI Group, Inc.; Dassault Systèmes; Emerson; Endress+Hauser Management AG; General Electrical; Hitachi; Honeywell; IBM Corporation; IFS AB; Ing. Punzenberger COPA-DATA GmbH; Maxwell Technologies Inc; Oracle Corporation; Ramco Systems Ltd.; Rockwell Automation; SAP SE; Siemens; Schneider Electric SA; Yokogawa Electric Corporation |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is anticipated to be valued USD 7 billion in 2023.
Up until 2033, the market is anticipated to thrive at a CAGR of 11.4%.
The United States market grabs a market share of 15.8%.
The German market to acquire a market share of 11.8%.
By 2033, the market is anticipated to be worth USD 21.4 billion.
The oil and gas category to hold a significant market share in 2023.
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Plant Asset Management Market
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