ASSET PERFORMANCE MANAGEMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Asset Performance Management Market Size and Trends

Global asset performance management market is estimated to be valued at USD 3.56 Bn in 2024 and is expected to reach USD 10.38 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 16.5% from 2024 to 2031.

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The asset performance management market growth is driven by growing need for operational efficiency and optimization of asset performance across industries. Asset performance management solutions help organizations maximize profits by improving asset reliability, optimizing maintenance costs and downtime. With increasing digitization and deployment of IoT devices, asset data is growing exponentially. This has boosted the demand for asset performance management solutions that help organizations harness asset data and leverage analytics for improved decision making. Growing investments in digital twin technology is another key trend in this market, as it allows virtual replication of physical assets for predictive maintenance and performance analysis.

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Insights By Solution - Improving Operational Efficiency Drives Asset Reliability Management Adoption

Based on solution, asset reliability management segment is expected to contribute 34.9% of the market share in 2024, owing to its ability to maximize asset uptime and performance. Asset reliability management solutions utilize predictive analysis of equipment condition and operations data to proactively identify maintenance needs, avoid unplanned downtime, and optimize repairs. This allows organizations to better plan maintenance activities and spare parts inventory which significantly improves production efficiency.

Insights By End User - Leveraging Customer Insights Drives Adoption in BFSI Sector

Based on end user, BFSI segment is expected to contribute 41.9% of the market share in 2024, owing to emphasis on customer experience. Within BFSI, asset performance management is largely driven by its ability to facilitate personalized customer engagement through data-driven insights. By analyzing vast amounts of customer behavior and transaction data, asset performance management supports the fintech companies to better correlate customer needs with their offerings. This helps companies optimize their existing offerings to meet changing demands.

Insights By Component - Need for Optimization Drives Demand for Software Solutions

Based on component, software segment is expected to contribute 54.1% market share in 2024, due to the growing need for cost optimization and easy access to analytical capabilities. Asset performance management software provides a centralized platform to collect, integrate, and analyze asset data across operational systems through intuitive dashboards and reports. This gives organizations enhanced visibility into asset health and performance without requiring additional infrastructure investments. Software solutions also facilitate predictive maintenance planning and decision-making on-the-go through mobile interfaces.

Regional Insights

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Dominating Region: North America

North America is dominant and is expected to account for a highest market share of 51.4% in 2024, which is attributed to the strong presence of oil and gas industries and mature manufacturing sector in the region. Governments in countries like the U.S. and Canada strongly support the adoption of asset management solutions to boost operational efficiency.

Fastest-Growing Region: Asia Pacific

Asia Pacific region exhibits the fastest growth, driven by the rising spending on industrial infrastructure from developing economies like China and India. Their governments offer incentives for factories to adopt Industry 4.0 technologies such as asset performance management tools. Key players are also expanding in Asia Pacific through partnerships with local system integrators to capture the growth opportunities.

Asset Performance Management Market Outlook for Key Countries

High Dominance of Tech Giants in the U.S.

The U.S. asset performance management market continues to be dominated by major asset management software providers such as GE Digital and IBM due to their deep expertise and wide customer base in the oil and gas industry. Rise in digitalization, emphasis on operational efficiency, and the integration of advanced technologies such as AI and IoT is projected to fuel the market growth in the forthcoming years.

Increasing Digitization in China

China’s asset performance management market is set to surge with growing digitization across industries mandated by the 'Made in China 2025' initiative. Players like Yonyou Network Technology are at the forefront locally by offering customized, AI-powered asset solutions. The key players are investing in digital infrastructure, and the adoption of predictive maintenance solutions to enhance asset performance and reliability.

Emphasis on Proactive Practices in Japan

Japanese corporations are focused on practicing proactive maintenance to maximize equipment uptime using solutions from Mitsubishi Electric and Hitachi, backed by the country's manufacturing prowess. Also, the players are emphasizing manufacturing excellence, coupled with integrations of AI and IoT technologies.

Availability of Robust Infrastructure in Germany

Germany’s asset performance management market remains robust with manufacturers relying on asset data analytics from Siemens and Endress+Hauser to improve production efficiency. The rising need for efficient asset management in sectors such as manufacturing and energy are the major factors driving the adoption of digitized solutions.

Market Concentration and Competitive Landscape

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Top Strategies Followed by Asset Performance Management Market Players

• Established Players: Established players heavily invest in research and development to bring innovations. Companies like General Electric focus on R&D to develop high-performance monitoring solutions using cutting-edge technologies like AI and IoT. They spend over 5% of their annual revenues on R&D. Leading companies also pursue strategic partnerships to strengthen their presence. For example, Siemens partners with major OEMs in sectors like energy, manufacturing and transportation to offer integrated asset management solutions. Such alliances help companies leverage their partner's distribution networks and client bases.
• Mid-size Players: Mid-sized players compete by providing cost-effective solutions. Companies like Azima DLI target price-sensitive small and medium enterprises by developing affordable vibration monitoring and lubrication analysis devices. They even customize offerings as per client budgets.
• Small-scale Players: Small-scale companies find niche specializations. Firms focusing on specific industry verticals or asset types build domain expertise. VitalScan specializes in gas turbine monitoring solutions for power plants. They understand unique operation challenges and provide solutions accordingly.

Emerging Startups in Asset Performance Management Market

Innovative Technologies- Several startups are bringing innovative technologies like AI and IoT. Anthropic develops cognitive data analytics platforms using machine learning to enable predictive maintenance of critical assets. Their solutions analyze massive operational data to detect anomalies. Other startups contribute to sustainability. Gravity X develops drones to inspect wind turbines and infrastructure in a cost-effective and environment-friendly manner compared to traditional inspection methods. This helps reduce carbon footprint.

Niche Specialization-Startups also address niche market needs. Cymetrics has created vibration monitoring devices tailored for rotating equipment in marine vessels. Considering harsh working environments, their products are rugged and easily installable. Some partner with larger companies. Subsea Sensor works with oil and gas majors to commercialize novel sensor technologies for offshore pipeline monitoring. Such collaborations help startups scale up whilst benefiting established players.

Asset Performance Management Industry News

• On November 6, 2024, JPMorgan Asset Management, a leading brand name in asset management business, expanded its active ETF offerings in Europe by launching two U.S. equity income-focused strategies: the JPMorgan US Equity Premium Income Active (JEPI) and JPMorgan Nasdaq Equity Premium Income Active Ucits ETFs (JEPQ). These ETFs aim to provide consistent monthly income and potential appreciation with lower volatility by integrating active equity portfolios with index options.
• On November 11, 2024, following a challenging period marked by lackluster earnings and significant client departures, Schroders' new CEO, Mr. Richard Oldfield, restructured the asset manager’s executive team, reducing the executive committee from 23 members to 9. This move aimed to advance the company with accountability and clearly defined priorities.
• In September 2024, China introduced the CSI A500 index, covering a broader range of sectors than the CSI 300 index. This launch spurred the creation of various exchange-traded funds (ETFs) and index products, attracting both local and global fund managers. These products quickly accumulated assets totaling between Rmb150bn (US$20.7bn) and Rmb200bn, supported by state efforts to direct more passive investments into the stock market.

Key Takeaways from Analyst

The asset performance management market continues to grow as industrial organizations look to optimize performance and maximize uptime of physical assets. Growing digitization and the use of IoT sensors is driving more real-time data capture which is fueling the demand for APM software that can handle large volumes of streaming data from multiple sources. The need for predictive maintenance and reduction of unplanned downtime gives an opportunity for vendors to develop more advanced analytics and AI capabilities within their APM offerings. However, integration challenges with existing factory systems remains a restraint for broader adoption of APM as organizations worry about disruption to operations during implementation.

North America currently dominates the market owing to early adopter behavior of U.S.-based companies but Europe is witnessing increasing penetration as well, especially in industrial heavy countries like Germany. The manufacturing industry presents the largest opportunity while oil & gas and utilities also offer substantial potential. Cloud-based APM solutions are gaining more acceptance giving vendors routes into smaller customers who lack resources for on-premise rollouts. Standardization efforts by Industry 4.0 further supports the growth trajectory of this market. However, achieving return on investment or ROI from APM investments remains challenging which could dampen spending decisions, especially in an uncertain macro environment.

Market Report Scope

Market Dynamics

Market Driver - Increased Adoption of IoT and Predictive Maintenance

With the rise of digital transformation, IoT-based predictive companies across the manufacturing sector are increasingly recognizing the importance of leveraging technologies such as IoT and big data analytics to gain insights from their assets. For instance, General Electric (GE) implemented IoT-driven predictive maintenance solutions through its Predix platform for a leading automotive manufacturing plant in 2023. By equipping production equipment with IoT sensors, GE enabled the collection of real-time operational data, identifying anomalies in machinery performance.

Market Challenge - Lack of Skilled Workforce Defies

One of the key challenges faced in the asset performance management market is the lack of skilled workforce. With the rapid advancement and adoption of new technologies like AI, ML, and IoT in asset and plant management domain, there is dearth of talents well-versed with these technologies. Many companies are struggling to hire professionals with level of experience in domains such as predictive maintenance, condition monitoring, and data analytics which are core to asset performance management solutions.

Market Opportunity - Growing Demand from Process Industries

One key opportunity for asset performance management market is the growing demand from process industries like oil and gas, chemicals, and power generation. Process plants in these industries use large capital assets like turbines, heat exchangers, and pumps which are critical for smooth operations. Even small downtime or failure of such assets can lead to significant production loss and revenue impact. As these plants look to minimize unplanned downtime and optimize asset utilization, demand for advanced asset performance management solutions is increasing.

Key Stakeholders of Market

What does growth in asset performance management industry mean for different stakeholders?

The asset performance management industry includes several players and offers multiple opportunities based on their operational scope and diligence. The table below illustrates and interprets growth aspects for different stakeholders involved.

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Market Segmentation

• By Solution Insights (Revenue, USD Bn, 2019 - 2031)
• • Asset Reliability Management
  • Asset Strategy Management
  • Predictive Asset Management
  • Asset Lifecycle Management
• By End User Insights (Revenue, USD Bn, 2019 - 2031)
• • BFSI
  • Media and Entertainment
  • Retail and E-commerce
  • IT and Telecom
  • Government
  • Healthcare
  • Transportation and Logistics
  • Others
• By Component Insights (Revenue, USD Bn, 2019 - 2031)
• • Software
  • Hardware
  • Implementation
  • Services
  • Consulting and Training
  • Maintenance and Support
• By Technology Insights (Revenue, USD, 2019 - 2031)
• • Security and Surveillance
  • Scanning and Imaging
  • Augmented Reality
  • Image Search
  • Others
• Regional Insights (Revenue, USD, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Player Insights
• • Amazon Web Services (AWS) Inc.
  • V7Labs
  • NEC Corporation
  • NVIDIA Corporation
  • Slyce Acquisition Inc.
  • Clarifai, Inc.
  • Google LLC
  • Blippar Ltd.
  • Toshiba Corporation
  • Huawei Cloud