Machine Condition Monitoring Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2023-2027

Machine Condition Monitoring Market Forecast 2023-2027

The machine condition monitoring market size is estimated to grow by USD 1.14 billion accelerating at a CAGR of 7.17% between 2023 and 2027. The market experiences significant growth driven by the increasing adoption of wireless communication in industries. While wireless technology was initially limited to consumer devices like mobile phones, its significance has expanded to industrial applications, particularly for remote monitoring in increasingly complex processes, necessitating real-time data tracking. Consequently, there's been a surge in the development of wireless devices capable of efficiently extracting and transmitting data from various machinery, particularly in situations where cable installation is impractical or cost-prohibitive. In sectors such as oil, gas, and power, wireless communication empowers operators to instantly collect and transmit data via smartphones, thereby enhancing data transparency and facilitating prompt decision-making.

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Market Growth Factors:

• Wireless communication gaining momentum in industries
• Increased focus and investment in smart factory
• Power sector disruption and generation focus tilting toward renewables

Market Report Scope

Report Coverage	Details
Page number	182
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.17%
Market growth 2023-2027	USD 1.14 billion
Market YoY	Fragmented
YoY growth 2022-2023(%)	6.49

 

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by Deployment (on-premises and cloud), End-user (energy and power industry, cement and metal industry, oil and gas industry, chemical and petrochemical industry, and automotive industry, and others), and Geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics

The market is driven by Vibration Monitoring Equipment, Thermography Equipment, and Lubricating Oil Analysis Equipment. Key trends include the integration of Wireless communication technology for real-time data transmission, the adoption of Machine learning algorithms for predictive maintenance, and emphasis on Predictive maintenance solutions for enhanced equipment reliability. Challenges include addressing Mechanical failure risks, managing Humidity, Temperature, and Pressure variations, and ensuring Technical expertise for effective monitoring and analysis. The market's growth is fueled by the demand from industries like Automotive, Oil & Gas, and Power generation industry, driving innovation and advancements in machine condition monitoring technologies. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Wireless communication gaining momentum in industries is a key factor driving the market growth. Wireless technology, initially confined to consumer devices like mobile phones, now plays a vital role in industries for remote monitoring as processes become more complex, necessitating real-time data tracking. This has led to the development of wireless devices that can extract data from various machinery and transmit it swiftly, especially in cases where cable installation proves impractical or costly. In sectors like oil, gas, and power, wireless communication empowers operators to collect and transmit data instantly via smartphones, enhancing data transparency and enabling swift decision-making.

Moreover, suppliers are driving the adoption of wireless communication by making technology more advanced and cost-effective. For example, SKF's Wireless Machine Condition Sensor-CMWA 8800 and Fluke Corporation's wireless sensors cater to machine condition monitoring needs. companies are also addressing the battery life challenge, as seen with SKF's Static Vibration Sensor CMSS 200, designed for long-term, energy-efficient applications. The proliferation of wireless machine condition monitoring solutions from reputable companies is set to boost the global market.

Significant Market Trends

Improvement in sensor technology is a key trend shaping the market. Sensor technology has transformed due to the IoT's increasing focus. Industries are shifting towards smart sensors, which require less maintenance compared to analytical sensors. Smart sensors enhance system reliability, reduce repair costs, and minimize sensor replacement downtime. Their decreasing cost and ability to provide reliable real-time data have surged demand.

Moreover, key players like Honeywell offer low-power Nanopower Series Magnetoresistive (MR) Sensor Integrated Circuits. Parker Hannifin provides compact, energy-efficient, wireless SensoNODE Blue Sensors. SKF's machine condition monitoring systems are also power-efficient. National Instruments employs advanced sensors, while Analog Devices offers smart sensors. Harvard University researchers have designed a fabric-based capacitive sensor for human body movement detection. Industries' growing interest in sensors and technology has boosted machine condition monitoring adoption, positively impacting the global market.

Major Market Challenge

Limited battery life for wireless devices is a key challenge hindering market growth. Many wireless devices, inherently geared for remote operation, often rely on batteries. Typically, sensor batteries last up to two years, necessitating frequent upgrades, which can be a burden for industries, coupled with replacement costs. In process industries, any downtime can lead to substantial losses, making battery replacement a costly affair. Short battery life also restricts system capabilities, particularly in the case of condition monitoring devices, which require frequent data recording at high intervals. However, this drains the battery quickly.

Additionally, many wireless devices alternate between active and sleep modes, potentially missing critical machine events during sleep, resulting in data loss. These battery limitations may impede the forecasted growth of the global market during the forecast period.

Market by Deployment, End-User, Geography

The market is a dynamic sector driven by various key factors such as Vibration Monitoring Equipment, Thermography Equipment, and Lubricating Oil Analysis Equipment. These technologies play a crucial role in ensuring the smooth operation of industrial equipment across diverse industries like Automotive Transportation, Oil & Gas, and Manufacturing. With the rise of Predictive maintenance solutions and the integration of Wireless communication technology, companies can proactively address issues related to Mechanical failure and Mechanical wear. This proactive approach is supported by Machine learning algorithms and Technical expertise that enable efficient monitoring and analysis of machine performance. In the Automotive industry and Power generation industry, the demand for Predictive maintenance solutions is particularly high due to the complex nature of operations and the need to minimize downtime. Advanced diagnostics and Lean manufacturing principles further enhance the efficiency of machine condition monitoring processes.

Deployment Analysis

The on-premises segment will account for a major share of the market's growth during the forecast period.?On-premises solutions give organizations better control over their data and ensure that it stays within physical boundaries. Several industries, such as defense, finance, and healthcare, have strict data security and privacy regulations that make it difficult to store sensitive data offsite. On-premises solutions can offer greater customization and control of compliance measures.

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The on-premises segment was valued at USD 2.00 billion in 2017 and continued to grow until 2021.?An on-premises solution gives companies complete control over the setup, configuration, and customization of their machine health monitoring system. This is important to meet the specific business needs. Regions with limited internet bandwidth may not be able to transfer large amounts of data to the cloud for analysis. On-premises solutions can process data locally without depending on external connectivity. Due to such factors, the global market is expected to grow during the forecast period. 

End-User Analysis

Based on the end-user, the energy and power industry segment holds the largest market share. The rising penetration of digital devices such as smart meters, smartphones, smart wearables, and digital concepts, including smart homes, particularly in the residential sector, has further propelled the demand for electricity. Therefore, the power industry should increase its capacity to cater to the augmented demand.

Power generation involves several critical components, such as mechanical structures, piping and instrumentation, electrical equipment, steel structures, and process automation systems, which require continuous monitoring. Therefore, companies in the market are offering innovative machine condition monitoring solutions for the power industry. For instance, Spectris Plc (Spectris), through its subsidiary Bruel and Kjaer Vibro, provides condition monitoring for the thermal power industry, particularly for nuclear power stations, coal-fed steam turbines, gas turbine generators, and combined cycle plants.

 Market Regional Insights

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North America is estimated to contribute 31% 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.

North America is a key player in the global market due to its robust industrial sectors in the US, Canada, and Mexico, along with a strong presence of condition-monitoring solution providers. The region's high number of manufacturing facilities, especially in the US and Canada, leads to increased adoption of monitoring solutions. Additionally, the power industry in North America is growing, with a focus on renewable and gas power generation, such as the US's 100+ GW wind energy capacity. The food and beverage industry in the US, regulated by the FDA, is also driving demand for monitoring solutions. Finally, the rising popularity of electric vehicles from companies like Tesla, Ford, and General Motors is boosting the market in North America.

 Major Market Market Players

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.

Alsglobal- The company offers machine condition monitoring such as MOVUS FitMachine condition monitoring solution for automotives.

The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

AB SKF, ALS Ltd., AMETEK Inc., Analog Devices Inc., Baker Hughes Co., Dewesoft d.o.o., Emerson Electric Co., Fortive Corp., Gastops Ltd., General Electric Co., Honeywell International Inc., ifm electronic gmbh, National Instruments Corp., OMRON Corp., Parker Hannifin Corp., Rockwell Automation Inc., Schaeffler AG, Signals and Systems India Pvt. Ltd., SPM Instrument, and Teledyne Technologies Inc.

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.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook 
  • On-premises
  • Cloud
• End-user Outlook 
  • Energy and power industry
  • Cement and metal industry
  • Oil and gas industry
  • Chemical and petrochemical industry
  • Automotive industry and others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing rapid growth due to advancements in advanced diagnostics and manufacturing technologies. Industries such as aerospace, automotive transportation, electric, metal & mining, oil & gas, and power generation are increasingly adopting automation solutions and Internet of Things (IoT) technologies for efficient operations. Predictive maintenance strategies using vibration monitoring and thermography equipment are becoming essential to prevent mechanical failure and equipment downtime. Manufacturers are investing in hardware and software solutions for early warning systems and predictive maintenance solutions to address issues like bearing wear, mechanical looseness, and temperature fluctuations.

Moreover, the market is also influenced by factors such as raw material shortages, semiconductor shortages, and shipping delays, which impact product launches and value chain optimization efforts. However, the technological innovations and technical expertise in machine learning and wireless communication technology are driving the market toward strategic possibilities and geographic expansions. As industries focus on lean manufacturing and industrial equipment optimization, the demand for Calisto cable condition monitoring, lubricating oil analysis equipment, and vibration monitoring equipment is expected to increase. Moreover, small and medium-sized enterprises (SMEs) are adopting predictive maintenance solutions to enhance efficiency and cost-effectiveness in their operations amidst evolving trade regulations.

Furthermore, the market is experiencing significant growth driven by the adoption of advanced manufacturing technologies across various industries such as the aerospace, electric, manufacturing, marine, metal & mining, oil & gas, and power generation sectors. These industries rely heavily on industrial machinery, turbines, and generators for their operations. One key factor fueling the demand for machine condition monitoring is the need for early warning systems to detect issues like mechanical wear and bearing faults in critical equipment. This is especially crucial in environments with varying humidity and pressure levels, where HVAC systems play a vital role in maintaining optimal conditions. The market also witnesses a focus on application niches and dominance as companies seek product approvals for their machine condition monitoring solutions. However, challenges such as raw material shortages can hinder the production of monitoring devices and related services.

Market Report
Report Attributes	Details
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 31%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AB SKF, ALS Ltd., AMETEK Inc., Analog Devices Inc., Baker Hughes Co., Dewesoft d.o.o., Emerson Electric Co., Fortive Corp., Gastops Ltd., General Electric Co., Honeywell International Inc., ifm electronic gmbh, National Instruments Corp., OMRON Corp., Parker Hannifin Corp., Rockwell Automation Inc., Schaeffler AG, Signals and Systems India Pvt. Ltd., SPM Instrument, and Teledyne Technologies Inc.
Market dynamics	Parent market analysis, Market forecasting, 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 the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

 

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough market growth and forecasting analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market research and growth analysis of factors that will challenge the growth of market companies

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