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The asset performance management market size is forecast to increase by USD 17.92 billion, at a CAGR of 12.88% between 2023 and 2028. Asset management software has experienced rapid adoption in today's business landscape due to the increasing importance of effective asset tracking and management. Compliance with asset performance management standards is becoming mandatory for many organizations, particularly those in regulated industries. Simultaneously, the expansion of the IT sector and infrastructure necessitates more robust asset management solutions to ensure optimal performance and minimize downtime. IT asset management software offers key features such as real-time monitoring, automated reporting, and predictive maintenance capabilities, making it an essential tool for organizations seeking to streamline operations, reduce costs, and enhance overall asset performance.
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Asset Performance Management (APM) is a critical business function that focuses on optimizing the lifecycle of an organization's assets to ensure their reliable operation and maximum productivity. APM encompasses various strategies such as preventative maintenance, inspection, monitoring, and engineering, leveraging analytical methodologies to improve asset performance. The market is witnessing significant growth due to the increasing importance of asset reliability in various industries. Mining and oil and gas pipeline sector are major contributors to this market, with regulatory compliances and environmental regulations driving the adoption of APM.
Digital transformation is playing a pivotal role in the broader asset management landscape, with the deployment of cloud solutions, digital workforce, and sensors becoming increasingly common. ARMS Reliability, one of the leading APM solution providers, offers advanced capabilities in predictive maintenance and performance optimization. Customers are seeking mobile solutions and customized APM processes to manage their assets more effectively. Net zero policy initiatives are also influencing the market, as organizations look to optimize asset performance to reduce their carbon footprint. Overall, the future of Asset Performance Management lies in leveraging advanced technologies and data analytics to drive operational efficiency and asset reliability.
Rapid adoption of asset management software and growing importance of asset tracking is notably driving the market growth. Infrastructure support is essential for asset-intensive industries to ensure the optimal performance of their asset bases. Traditional methods of managing and tracking assets, such as manual processes and Excel sheets, are no longer sufficient in today's digital age. With the proliferation of industrial sensors, digital twin, and complex operational technology, there is a need for advanced asset performance management systems.
However, these systems leverage neural networks, machine learning, statistical modeling tools, and algorithms to analyze asset behaviors, identify labor safety and environmental risks, and provide real-time insights. The hosted systems segment, particularly public cloud, offers significant advantages, including access to abundant computing resources and the ability to scale up or down as needed. Risk-based inspection and 3D images further enhance the capabilities of these systems, enabling organizations to make data-driven decisions and improve overall efficiency. Thus, such factors are driving the growth of the market during the forecast period.
Growing adoption of cloud-based asset performance management services is the key trend in the market. Infrastructure support through cloud computing solutions is gaining popularity in asset-intensive industries due to their flexibility and cost benefits. Digital twin technology, which involves creating 3D images of assets and simulating their behaviors using industrial sensors and neural networks, is a key application of these solutions. By utilizing machine learning algorithms, statistical modeling tools, and risk-based inspection techniques, organizations can enhance operational technology efficiency and minimize labor safety and environmental risks.
Further, the hosted systems segment, particularly those deployed in public clouds, offers significant computing resources, enabling real-time asset performance monitoring and predictive maintenance. Cloud-based asset performance management systems provide instant access to critical data, ensuring accurate asset and inventory tracking, and facilitating informed decision-making. SMEs, in particular, can benefit from cloud solutions by increasing hardware and resource scalability, reducing capital expenditure, and optimizing overall operations. Thus, such trends will shape the growth of the market during the forecast period.
Integration and implementation issues is the major challenge that affects the growth of the market. Asset Performance Management (APM) solutions play a crucial role in enhancing the productivity and efficiency of infrastructure support in asset-intensive industries. Digital twin technology, which creates 3D images of assets and simulates their behaviors, is a key component of APM systems. These solutions enable organizations to monitor asset performance in real-time, identify potential labor safety risks and environmental risks, and implement risk-based inspections using neural networks, machine learning, and statistical modeling tools. Industrial sensors and operational technology are integral to APM systems, providing valuable data for asset performance analysis.
However, the implementation of APM solutions presents challenges. Organizations must ensure proper infrastructure support and integration with existing business applications. The lack of expertise and knowledge in customizing APM software according to unique business needs can hinder growth. Moreover, the choice between hosted systems segment, such as public cloud deployment, and on-premises solutions depends on the availability of computing resources and data security concerns. Overall, selecting the right APM solution requires a thorough understanding of business requirements and capabilities to achieve optimal efficiency and risk mitigation. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bentley Systems Inc. - The company offers asset performance management software such as AssetWise ALIM, AssetWise Asset Reliability, AssetWise 4D Analytics, AssetWise Linear asset management and iTwin Experience.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The energy and utilities segment is estimated to witness significant growth during the forecast period. Asset Performance Management (APM) is a critical practice for asset-intensive organizations, particularly in the energy and utilities sector, including chemicals, mining, oil and gas, and the telecommunication industry. APM enables organizations to optimize the performance, reliability, and lifespan of their physical assets, such as power plants, renewable energy infrastructure, pipelines, grids, and other essential equipment. By implementing early warning notification systems, asset-intensive organizations can proactively address potential issues, minimizing unplanned repair work and downtime. Digital transformation plays a significant role in APM, with the adoption of digital solutions and services, including cloud deployment, software, sensors, and mobile solutions.
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The energy and utilities was the largest and was valued at USD 4.13 billion in 2018. Large enterprises are investing in IT initiatives to enhance their asset management processes, focusing on asset integrity management, predictive asset management, and asset strategy optimization. Regulatory compliances, such as environmental regulations and net zero policy, also drive the need for advanced APM solutions. Key players in the APM market include ARMS Reliability, Siemens, GE Digital, Schneider Electric, and ABB. These companies offer a range of solutions, including Predix solution, APM Health, APM Reliability, APM Strategy, APM Integrity, and Asset Life. By leveraging these solutions, organizations can improve equipment reliability, reduce operational expenses, and ensure compliance with regulatory requirements. Additionally, the divestment of non-core assets is a growing trend, requiring effective APM strategies to maximize asset value and minimize risk.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Asset Performance Management (APM) Market: Overview Asset Strategy Management plays a pivotal role in optimizing the performance of Assets in asset-intensive organizations across various industries, including Chemicals, Mining, Oil and Gas, Telecommunication, and others. Digital transformation is driving the adoption of advanced APM solutions and services, enabling early warning notifications for equipment failures and enhancing asset health. Environmental regulations and Net Zero policy are also fueling the demand for APM solutions to ensure Asset Integrity Management and Equipment Reliability. Large enterprises in asset-intensive sectors are investing in Digital Workforce and Cloud Deployment to streamline Asset Management Processes, reduce Operational Expenses, and improve Asset Strategy Optimization.
The use of Digital Solutions, such as Predix Solution and ARMS Reliability, is increasing, providing real-time data from Sensors and enabling Predictive Asset Management. Regulatory Compliances and IT initiatives are also key factors driving the growth of the APM Market. In the Chemicals Vertical, APM solutions help optimize Asset Life and reduce Unplanned Repair Work, while in the Mining and Oil & Gas industries, they ensure Compliance with Regulatory Standards and improve Asset Health. The Telecommunication industry is leveraging APM solutions to enhance Network Performance and Customer Satisfaction. The APM Market is expected to grow significantly in the coming years, driven by the increasing adoption of Digital Solutions and Services for Asset Strategy Management, Predictive Asset Management, and Asset Strategy Optimization.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Asset Performance Management (APM) is a critical business function that focuses on maximizing the reliability and availability of an organization's physical assets. This approach goes beyond traditional preventative maintenance and inspection methods, incorporating advanced analytical methodologies, monitoring, engineering, and optimization methods to minimize failure risks and downtime. APM investments have gained significant importance in various industries, including energy and utilities, due to the need for operational efficiency and asset utilization in the face of economic slowdowns and cost-cutting measures. Real-time condition reports and predictive analytics enable early identification of potential issues, reducing unplanned downtime and maintenance costs. The broader asset management landscape includes mission-critical assets, which require a high level of operational impact and data security. Confidentiality and cybersecurity concerns are increasingly important as organizations adopt digital twin solutions and integrate APM systems with existing applications.
APM strategies, such as Reliability-Centered Maintenance (RCM), emphasize the importance of understanding the unique requirements of each asset and implementing the most effective maintenance strategies. Optimization methods, including predictive and prescriptive analytics, help organizations make informed asset decisions based on resource availability and operating impact. Despite the benefits, implementing APM systems can be a complex process, requiring careful planning, integration, and implementation. The economic slowdown and recession have led some organizations to reconsider their asset decisions and prioritize cost-cutting measures over APM investments. However, the long-term benefits of APM, including improved operational efficiency and asset utilization, make it a worthwhile investment for organizations looking to stay competitive in today's market.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.88% |
Market growth 2024-2028 |
USD 17.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.54 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, China, UK, Germany, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Baker Hughes Co., Bentley Systems Inc., Detechtion Technologies, DNV Group AS, Emerson Electric Co., General Electric Co., Honeywell International Inc., Infor Inc., International Business Machines Corp., IPS Intelligent Process Solutions GmbH, Nexus Global Business Solutions Inc., Operational Sustainability LLC, Oracle Corp., Plasma Computing Group Inc., Rockwell Automation Inc., SAP SE, SAS Institute Inc., Siemens AG, and Yokogawa Electric Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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