Service-based Business Models Increase Global Demand for Asset Performance Management, Finds Frost & Sullivan

Asset-intensive industries, such as oil and gas, utilities, and transportation, are striving to maximize asset utilization and achieve operational excellence

SANTA CLARA, Calif., Dec. 2, 2020 /PRNewswire/ — Frost & Sullivan’s recent analysis, Demand for Asset Efficiency Propels the Global Asset Performance Management (APM) Market, finds there is a growing need to monitor, measure, analyze, and manage the failure of assets as a part of digital transformation initiatives. APM represents a key advancement in asset management as it helps prevent unnecessary downtime and reduces operational costs, thereby ensuring asset health and providing real-time alerts about asset performance. The global APM market is estimated to reach $2.13 billion by 2024 from $1.31 billion in 2019, up at a compound annual growth rate (CAGR) of 10.2%. Due to the COVID-19-induced economic slowdown, customers are not investing immediately in APM technologies, as the return on investment (ROI) can only be achieved after a year or two.


For further information on this analysis, please visit: http://frost.ly/4uv

"The emergence of digital transformation, which plays a critical role in integrating business processes, is expected to boost the demand for APM, especially in asset-intensive industries such as oil and gas (O&G), utilities, and transportation. Manufacturers are striving to maximize asset utilization and achieve operational excellence," said Avinash Kumar, Senior Industry Analyst, Industrial Practice at Frost & Sullivan. "The impact of cyberattacks on the operational functionality or performance of an asset will be a deterrent for APM adoption by end users, specifically for critical applications in process industries since APM allows for interoperability and interconnectivity, which could increase the impact of a cyberattack."

Kumar added, "Asset-heavy industries, such as O&G, power and utilities, and chemicals are the largest end markets for APM, contributing approximately 72% of the total revenue. Similarly, North America, Europe, the Middle East, and Africa account for approximately 75% of the total APM market. However, APAC is expected to have the fastest growth in APM revenue during the forecast period of 2020-2024, due to the increase in domestic demand. Increasing unplanned failure of assets and the huge cost associated with it are the key reasons for adoption. Further, from a regional perspective, investment in new projects, quick ROI in technology, and compatible infrastructure have enabled the penetration of APM in North America, Europe, the Middle East, and Africa, followed by Asia-Pacific and Latin America."

Other factors driving APM adoption include the necessity to boost plant productivity, focus on potential new business, and comply with regulations and standards due to increasing environmental, health, and safety incidents.

The increasing need for value-added services, such as cloud, analytics, and mobility, offered with APM presents immense growth prospects for market participants in the following segments:

  • Modular APM: Partner with third-party vendors to seamlessly integrate and operate applications supporting assets to expedite the installation process and reduce project-related risks.
  • APM on the cloud: Focus on expanding cloud platforms with analytical solutions that aid in data consolidation and visualization, supporting improved business decisions.
  • Predictive maintenance: Develop easy-to-install and compatible modules that seamlessly integrate, collect, consolidate, and share data.
  • Connected assets: Target solutions with Industrial Internet of Things (IIoT)-enabled functionalities that will integrate devices and assets at every enterprise architecture level.

Demand for Asset Efficiency Propels the Global Asset Performance Management (APM) Market is the latest addition to Frost & Sullivan’s Industrial (Automation & Process Control) research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

About Frost & Sullivan
For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models, and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

Demand for Asset Efficiency Propels the Global Asset Performance Management (APM) Market
K3B1-10

Media Contact:
Priya George,
Corporate Communications
M: +91 98403 55432; P: +91 44 6681 4414
E: priyag@frost.com 

 

Related Links :

http://www.frost.com

Leave a Reply

Your email address will not be published. Required fields are marked *