Market Trends of APM Industry
This section covers the major market trends shaping the Asset Performance Management (APM) Market according to our research experts:
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.
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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.
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