APM Market Size

Asset Performance Management (APM) Market Analysis

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.