Asset Performance Management (APM) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asset Performance Management Market is Segmented by Type (Predictive Asset Management, Asset Reliability Management, and Asset Strategy Management), Deployment (On-premise and Hosted), End-user Vertical (Oil and Gas, Metal and Mining, Manufacturing, Energy and Utilities, Transportation, Government and Public Sector, and Chemical and Pharmaceutical), and Geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

Market Snapshot

Asset Performance Management (APM) Market - CAGR
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia-Pacific
Largest Market: North America
CAGR: 10.5 %

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Market Overview

The Asset Performance Management (APM) Market is projected to grow, registering a CAGR of about 10.5% during the forecast period. Increasing demand for solutions that can enable asset-centric organizations efficiently utilize the assets, meet reporting standards and regulatory compliance, and optimize the total cost of ownership, along with the growing investment in digital solutions by various industries, are among the significant factors driving the growth of the APM market.

  • Modern Asset Performance Management (APM) solutions go beyond traditional machine monitoring and manual data-gathering methods. By merging innovative machine modeling techniques with modern analytics, these solutions provide users with detailed real-time information about machinery/asset availability and maintenance planning based on the most recent data enabling them to run the facility more efficiently.
  • The recent shift in the technological trend of the industrial sector has been among the key driving factor behind the growing acceptance of these technologies. The concept of Industry 4.0 is all about using advanced technologies to streamline the traditional operations of the industrial sector to make them ready for the next phase of the industrial revolution. Furthermore, these solutions have also been highly effective in helping organizations reduce the total cost of ownership of an asset. They can reduce the idle time of machinery and carry out preventive maintenance based on real-time data, encouraging vendors to adopt APM solutions.
  • With the industrialization rate increasing across various parts of the world, the growing awareness, especially after the pandemic, is expected to drive the demand further for these solutions. According to the United Nations Industrial Development Organization (UNIDO), in the second quarter of 2021, the manufacturing output in developing and emerging industrial economies (excl., China) increased by 31.1%.
  • Furthermore, the development of technologies such as IIoT, machine learning, blockchain, digital twin, and AI is expected to improve the efficiency of asset performance management systems by facilitating the development of innovative solutions and management software, thereby driving the growth prospects of the studied market.
  • However, the factors such as lack of skill set among the workforce and absence of the availability of a typical industrial standard are some of the significant challenges faced by the APM solution providers. Additionally, digital technologies are more prone to cyberattacks. The lack of sufficient infrastructure, especially with SMEs, is also among the major factors restraining the growth of the asset performance management market.
  • The outbreak of the COVID-19 pandemic had a notable impact on the growth of the studied market. The widespread travel restrictions and lockdown measures imposed by most countries significantly reduced industrial activities, especially in the non-essential sectors. This resulted in organizations holding back their investment plans in new technologies. However, the growing awareness of the benefits of digital technologies is expected to have a long-term impact as both large enterprises and SMEs are expected to increase their investment in digital solutions.

Scope of the Report

Asset performance management (APM) solutions enable organizations to monitor assets continuously to identify, diagnose, and prioritize impending equipment problems in real-time, with the primary goal to help them maximize profitability by balancing cost, risk, and performance of the assets, plant, or of the people that are operating all those things. Overall, APM solutions provide unique value to modern industrial operations.

The study considers various segments, including type, deployment, end-user vertical, and geography. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments. Besides, the study encompasses a detailed analysis of the drivers, restraints, and opportunities of the asset performance management market, along with the analysis of COVID-19 impact, regulatory landscape, as well as trends impacting customers’ investment sentiments in these technologies.

By Type
Predictive Asset Management
Asset Reliability Management
Asset Strategy Management
Other Types
By Deployment
On-premise
Hosted
Public Cloud
Private Cloud
By End-user Vertical
Oil and Gas
Metal and Mining
Manufacturing
Energy and Utilities
Transportation
Government and Public Sector
Chemical and Pharmaceutical
Other End-user Verticals
By Geography
North America
United States
Canada
Europe
United Kingdom
Germany
France
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
Saudi Arabia
United Arab Emirates
South Africa
Rest of Middle East & Africa

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Key Market Trends

Oil and Gas Sector to Hold Significant Market Share

  • The oil and gas industry is among the largest sectors. Oil and gas production is a multi-stage process of discovering a resource, extracting it from oil wells located across various topographies with different environmental conditions, transporting it to a refinery, and turning it into a finished product for the consumers. Hence, various industrial setups with a broad range of assets are involved in the industry's entire value chain.
  • Asset management in the oil and gas industry is the key to success, as one of the most significant expenses in the industry is the assets involved in production due to their high cost and potential for increasing revenues. Hence, to maximize the productivity of these assets, oil and gas companies are constantly searching for the most effective ways to use these assets efficiently to ensure efficiency and predictability in production.
  • Asset performance management solutions designed for the oil and gas industry provide a structured methodology for cost-effectively creating, maintaining, and decommissioning assets. With modern oil and gas facilities being set up on a larger scale, these solutions have become a key enabler in helping companies improve long-term profitability and achieve operational efficiency.
  • For instance, Aramco, among the leading oil-producing companies, last year reported that, the average hydrocarbon production of the company was 12.3 million barrels of oil equivalent per day, including 9.2 mmbpd of crude oil. According to the Saudi Government directives, the company is focusing on further increasing its crude oil MSC (Maximum Sustainable Capacity) to 13 mmbpd by 2027.
  • A similar strategy is being adopted by other oil producers who are constantly increasing oil production to fulfill the growing demand across various industries. According to the IEA, global oil consumption is projected to reach 104.1 mb/d by 2026. Such trends are expected to drive investments in new technologies such as APM in the coming years.
Asset Performance Management (APM) Market - Total Oil Demand

Asia-Pacific to Hold Significant Market Share

  • The Asia-Pacific (APAC) region has witnessed remarkable growth in the last few decades, primarily in the industrial sector. Countries such as China, Taiwan, and India, among others, have been leading this chart as global companies continue to set up their base across these countries. Favorable government regulations and the availability of a low-cost skilled workforce are among the primary reasons driving the region's growth.
  • China has emerged as the flagbearer of this turnaround as it has exhibited maximum growth among the APAC countries, establishing itself as the global manufacturing hub. According to the National Bureau of Statistics of China, the country's industrial output increased by 3.6% compared to the same period last year.
  • Countries like India are also reporting a similar growth pattern. For instance, according to the advanced estimates of the National Statistical Office, the country's industrial sector was expected to grow by 11.8% for the financial year 2021-22, while the industry's share was expected to increase to 28.2%.
  • As the industrial sector involves different processes requiring a broad range of assets, including machinery, parts, equipment, and even workforce, the traditional way of managing these assets is proving to be inefficient, especially across the industries wherein technologies such as automation and IIoT are increasingly being used. Hence, these organizations are expected to increase their investment in new technologies to keep themselves updated on the latest market trends and make themselves more capable of asset management.
  • Considering the growing demand for APM solutions, several vendors are increasing their presence in this region. Some of the leading providers of APM solutions in the Asia-Pacific region include IBM, GE Digital, Wipro, Infosys, and TCS.
Performance Management (APM) Market - Growth Rate

Competitive Landscape

The asset performance management market is growing in competition due to several established and new players. The vendors operating in the market focus on establishing long-term partnerships with their clients to drive recurring revenue. Furthermore, the established players are also adopting inorganic growth strategies to further expand their portfolio and technical proficiency and reduce market competition. Some of the major players operating in the market include ABB Ltd, IBM Corporation, SAP SE, and GE Digital.

In September 2022, Hitachi Energy announced that Energinet, Denmark's national transmission system operator (TSO), selected Hitachi's Lumada Asset Performance Management (APM) solution. This latest collaboration between Hitachi Energy and Energinet has been established to help the country's transmission system operators better assess grid reinvestments needed to achieve the 2030 carbon neutrality goals.

In August 2022, GE Digital announced a software solution combining Performance Intelligence with APM Reliability. Designed for strategic and data-driven decision-making, the software forms a performance advisory solution by integrating real-time thermal performance data and analysis software with analytics for strategic and data-driven decision-making.

Major Players

  1. ABB Ltd.

  2. AVEVA Group plc

  3. IBM Corporation

  4. SAP SE

  5. GE Digital

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Recent Developments

  • October 2021 - ABB launched the "ABB Ability Genix Asset Performance Management Suite," an enterprise-grade application to monitor assets, improve equipment utilization, prescribe maintenance actions, and support lifecycle analysis and capital planning. The solution suite brings next-generation AI-based predictive maintenance, asset reliability, and integrity insights and provides actionable insights into all aspects of asset performance.
  • February 2021 - Siemens Energy and Bentley Systems Inc. (Bentley) announced a joint solution known as Asset Performance Management for Oil & Gas, or APM4O&G, which incorporates crucial complementary offerings from both companies to help operators enhance asset performance, reduce maintenance costs, and eliminate downtime. Designed for the oil and gas industry, the solution portfolio supports maintenance activities across several assets, including gas processing plants, onshore compressor stations, and offshore production platforms.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Assessment of the Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drives

      1. 5.1.1 Growing Awareness Toward the Adoption of New Asset Performance Management with Industry 4.0

      2. 5.1.2 Increasing Awareness of Digital Technologies

    2. 5.2 Market Restraints

      1. 5.2.1 Concerns Related to Data Security

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Predictive Asset Management

      2. 6.1.2 Asset Reliability Management

      3. 6.1.3 Asset Strategy Management

      4. 6.1.4 Other Types

    2. 6.2 By Deployment

      1. 6.2.1 On-premise

      2. 6.2.2 Hosted

        1. 6.2.2.1 Public Cloud

        2. 6.2.2.2 Private Cloud

    3. 6.3 By End-user Vertical

      1. 6.3.1 Oil and Gas

      2. 6.3.2 Metal and Mining

      3. 6.3.3 Manufacturing

      4. 6.3.4 Energy and Utilities

      5. 6.3.5 Transportation

      6. 6.3.6 Government and Public Sector

      7. 6.3.7 Chemical and Pharmaceutical

      8. 6.3.8 Other End-user Verticals

    4. 6.4 By Geography

      1. 6.4.1 North America

        1. 6.4.1.1 United States

        2. 6.4.1.2 Canada

      2. 6.4.2 Europe

        1. 6.4.2.1 United Kingdom

        2. 6.4.2.2 Germany

        3. 6.4.2.3 France

        4. 6.4.2.4 Rest of Europe

      3. 6.4.3 Asia-Pacific

        1. 6.4.3.1 China

        2. 6.4.3.2 Japan

        3. 6.4.3.3 India

        4. 6.4.3.4 South Korea

        5. 6.4.3.5 Rest of Asia-Pacific

      4. 6.4.4 Latin America

        1. 6.4.4.1 Brazil

        2. 6.4.4.2 Mexico

        3. 6.4.4.3 Rest of Latin America

      5. 6.4.5 Middle East & Africa

        1. 6.4.5.1 Saudi Arabia

        2. 6.4.5.2 United Arab Emirates

        3. 6.4.5.3 South Africa

        4. 6.4.5.4 Rest of Middle East & Africa

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 ABB Ltd

      2. 7.1.2 AVEVA Group PLC

      3. 7.1.3 IBM Corporation

      4. 7.1.4 SAP SE

      5. 7.1.5 GE Digital

      6. 7.1.6 Aspen Technology Inc.

      7. 7.1.7 DNV AS

      8. 7.1.8 Siemens AG

      9. 7.1.9 ABS Group

      10. 7.1.10 Uptake Technologies Inc.

      11. 7.1.11 SAS Institute Inc.

      12. 7.1.12 Emerson Electric Co.

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The APM Market market is studied from 2017 - 2027.

The APM Market is growing at a CAGR of 10.5% over the next 5 years.

Asia-Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

ABB Ltd., AVEVA Group plc, IBM Corporation, SAP SE, GE Digital are the major companies operating in APM Market.

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