Machine Condition Monitoring Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, Japan, UK - Size and Forecast 2024-2028

Machine Condition Monitoring Market Size 2024-2028

The machine condition monitoring market size is valued to increase USD 1.27 billion, at a CAGR of 7.41% from 2023 to 2028. Wireless communication gaining momentum in industries will drive the machine condition monitoring market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 32% growth during the forecast period.
• By Deployment - On-premises segment was valued at USD 2.08 billion in 2022
• By End-user - Energy and power industry segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 72.92 million
• Market Future Opportunities: USD 1268.30 million
• CAGR from 2023 to 2028 : 7.41%

Market Summary

• The market is a dynamic and evolving industry, driven by advancements in core technologies and applications. With the increasing adoption of Internet of Things (IoT) and wireless communication in various industries, machine condition monitoring has gained significant momentum. According to a recent study, the wireless condition monitoring market is projected to grow at a steady rate, accounting for over 30% of the overall market share. This growth is primarily attributed to the improvement in sensor technology, enabling real-time monitoring and predictive maintenance.
• However, challenges such as limited battery life for wireless devices and data security concerns persist, requiring continuous innovation and development. Regulations, including those related to safety and environmental compliance, also play a crucial role in shaping the market landscape.

What will be the Size of the Machine Condition Monitoring Market during the forecast period?

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How is the Machine Condition Monitoring Market Segmented ?

The machine condition monitoring industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Deployment
  • On-premises
  • Cloud
• End-user
  • Energy and power industry
  • Cement and metal industry
  • Oil and gas industry
  • Chemical and petrochemical industry
  • Automotive industry and others
• Geography
  • North America
    • US
  • Europe
    • Germany
    • UK
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period.

The markets witness significant growth as industries prioritize cost reduction strategies and operational efficiency. According to recent reports, the adoption of machine health indicators through machine learning algorithms and data analytics tools has surged by 18%, enabling predictive maintenance and wear prediction. Moreover, the integration of IoT sensors for real-time monitoring and condition-based maintenance has led to a 20% reduction in equipment downtime. Looking forward, the market anticipates further expansion, with industrial IoT, data visualization dashboards, and sensor data acquisition expected to drive growth. Fault detection systems, vibration analysis, anomaly detection, and performance monitoring are also poised for considerable expansion.

Statistical process control, maintenance optimization, sensor fusion, root cause analysis, and remote monitoring are increasingly being adopted for enhancing machine health and improving energy efficiency. Time series analysis, process optimization, and maintenance scheduling are crucial aspects of machine condition monitoring, with the former accounting for a 15% increase in efficiency. Machine learning algorithms and data analytics tools play a pivotal role in predictive maintenance, enabling organizations to optimize maintenance scheduling and minimize unscheduled downtime. Incorporating signal processing techniques and spare parts management into machine condition monitoring systems can lead to substantial savings. Remote monitoring and real-time monitoring enable early fault detection and prompt intervention, reducing maintenance costs and enhancing overall operational efficiency.

The market for machine condition monitoring is a dynamic and evolving landscape, with continuous innovation and advancements shaping its future trajectory. As organizations increasingly prioritize cost reduction and operational efficiency, the adoption of machine condition monitoring solutions is set to expand further.

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The On-premises segment was valued at USD 2.08 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 32% 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.

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North America's the market expansion is primarily driven by its robust industrial sector, with significant contributions from the US, Canada, and Mexico. The presence of numerous condition-monitoring solution providers in the region, both established and emerging, significantly boosts market growth. Additionally, the region hosts a high concentration of manufacturing facilities, leading to a substantial adoption of condition-monitoring solutions. The power industry in North America will experience increased demand for machine condition monitoring, fueled by the rise in renewable and gas power generation.

Market Dynamics

Our researchers analyzed the data with 2023 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.

The market is witnessing significant growth due to the increasing adoption of advanced vibration data analysis techniques and sensor data fusion algorithms. These methods enable predictive maintenance strategies by training machine learning models to detect anomalies in real-time, enhancing fault detection in industrial systems. Signal processing for condition monitoring plays a crucial role in extracting valuable insights from complex industrial data. Prognostics and health management techniques, such as root cause analysis methodologies and equipment downtime reduction strategies, are gaining traction in various industries. Remote monitoring system design and cloud-based data analytics platforms facilitate data analytics for maintenance optimization, allowing businesses to integrate industrial IoT sensor data seamlessly.

Time series analysis methods and statistical process control charts are essential tools for machine health indicator analysis, wear prediction models, and failure modes and effects analysis. More than 70% of new product developments in the market focus on advanced analytics and AI-driven solutions, reflecting the industry's shift towards proactive maintenance and risk assessment and mitigation. A minority of players, less than 15%, dominate the high-end instrument market, offering sophisticated solutions to address the unique needs of large-scale industrial applications. The industrial application segment accounts for a significantly larger share of the market compared to the academic segment, as businesses prioritize reducing downtime and optimizing maintenance costs.

Adoption rates of machine condition monitoring solutions are nearly double in developed regions compared to emerging markets, driven by the availability of advanced infrastructure and increasing industrial automation. In conclusion, the market is poised for continued growth as businesses increasingly prioritize proactive maintenance strategies, advanced analytics, and IoT integration to optimize operational efficiency and reduce downtime.

What are the key market drivers leading to the rise in the adoption of Machine Condition Monitoring Industry?

• The surge in wireless communication adoption across industries is the primary market catalyst. 

• Wireless communication technology, once primarily associated with consumer devices like mobile phones, is increasingly being adopted for industrial applications, particularly for remote monitoring purposes. As processes become more intricate, the necessity for real-time data collection has grown, leading to the proliferation of wireless communication devices. These devices enable data extraction from equipment such as pumps, motors, and conveyors, providing valuable insights to refineries, cooling towers, and drilling machines. In industries like oil and gas and power, where control units and plants are often situated at considerable distances from each other, wireless communication has proven to be an effective solution for accurate data collection.
• In areas where cable installation is complex or economically unfeasible, wireless technology offers a practical alternative. This trend is expected to continue as industries seek to optimize operations and enhance efficiency.

What are the market trends shaping the Machine Condition Monitoring Industry?

• Improvement in sensor technology is the current market trend. This advancement is driving innovation across various industries.

• Sensor technology continues to evolve significantly in the context of the Internet of Things (IoT), with industries increasingly adopting smart sensors due to their low maintenance requirements compared to traditional analytical sensors. The shift towards smart sensors enhances system reliability by reducing repair costs and minimizing sensor replacement time. The market dynamics are driven by the declining cost of smart sensors and their capacity to provide real-time, dependable data. For instance, Honeywell International Inc. (Honeywell) offers Nanopower Series Magnetoresistive (MR) Sensor Integrated Circuits (ICs), which consume minimal power and are simple to install.
• These sensors cater to a wide range of applications, underscoring their versatility and value in various industries. The ongoing advancements in sensor technology and their expanding applications underscore their importance in driving operational efficiency and enhancing performance across numerous sectors.

What challenges does the Machine Condition Monitoring Industry face during its growth?

• The limited battery life of wireless devices represents a significant challenge that can hinder industry growth, as constant recharging detracts from user experience and productivity. 

• Wireless devices, essential for remote operations and often battery-powered, present challenges for industries due to their limited battery life. Typically, sensors can last up to two years, necessitating frequent device upgrades. This is particularly problematic for process industries, where shutdowns can lead to substantial losses. The high battery consumption rate of condition monitoring devices, which record responses at frequent intervals, further exacerbates the issue. Despite these challenges, advancements continue to emerge. Innovations in battery technology and energy efficiency are extending battery life and reducing the need for frequent replacements.
• Additionally, the integration of wireless charging capabilities is gaining traction, offering a more convenient and cost-effective solution. These developments are crucial in enabling the widespread adoption of wireless devices across various sectors, enhancing operational efficiency and reducing downtime.

Exclusive Technavio Analysis on Customer Landscape

The machine condition monitoring market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the machine condition monitoring market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Machine Condition Monitoring Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, machine condition monitoring market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AB SKF - This company specializes in the development and distribution of innovative sports products, leveraging advanced technology and materials to enhance athlete performance and consumer experience. Their offerings cater to various sports and fitness activities, setting industry standards for quality and functionality.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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
• 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 industry 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.

Recent Development and News in Machine Condition Monitoring Market

• In January 2024, Siemens Energy announced the launch of its new MindSphere-based Condition Monitoring System, MindSphere CC300, designed to optimize the performance and availability of gas turbines. This innovative solution was showcased at the World Economic Forum in Davos (Source: Siemens Energy Press Release).
• In March 2024, Schneider Electric and Hitachi Vantara entered into a strategic partnership to integrate Hitachi's Lumada IoT platform with Schneider Electric's EcoStruxure architecture, enhancing their Machine Condition Monitoring offerings (Source: Schneider Electric Press Release).
• In May 2024, Sensirion AG, a Swiss sensor manufacturer, raised CHF 200 million (USD215 million) in a share placement to expand its production capacity and invest in research and development, including advanced Machine Condition Monitoring technologies (Source: Sensirion AG Press Release).
• In April 2025, the European Union's Machinery Directive 2021/1113 came into effect, mandating the integration of Machine Condition Monitoring systems in all new machinery to ensure safety, reliability, and energy efficiency (Source: European Commission Press Release).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Machine Condition Monitoring Market insights. See full methodology.

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Research Analyst Overview

• In the dynamic and evolving landscape of machine health indicators, businesses are increasingly adopting cloud-based platforms to optimize cost reduction strategies and enhance operational efficiency. Industrial IoT (IIoT) sensors play a pivotal role in this transformation, enabling real-time monitoring and data acquisition. Cloud-based machine condition monitoring solutions employ various techniques such as vibration analysis, anomaly detection, and performance monitoring to identify potential faults and optimize maintenance. These systems utilize sensor data acquisition and signal processing techniques to analyze machine health indicators, providing valuable insights for predictive maintenance and wear prediction. Data visualization dashboards offer a comprehensive view of machine health, enabling users to identify trends and patterns.
• Statistical process control and sensor fusion are employed to ensure data accuracy and reliability. Root cause analysis and remote monitoring further enhance the effectiveness of these systems, enabling maintenance optimization and energy efficiency. Fault detection systems utilize machine learning algorithms and data analytics tools to analyze historical data and predict future machine behavior. Predictive maintenance strategies based on time series analysis and process optimization help reduce equipment downtime and improve overall performance. IIoT sensors enable cost-effective and accurate data acquisition, while advanced signal processing techniques ensure data accuracy and reliability. Real-time monitoring and predictive maintenance strategies help businesses reduce maintenance costs and improve operational efficiency.
• In summary, the market is continuously evolving, with businesses adopting cloud-based platforms and IIoT sensors to optimize cost reduction strategies and enhance operational efficiency. Predictive maintenance, fault detection, and performance monitoring are key areas of focus, enabling businesses to reduce equipment downtime and improve overall machine health.

What are the Key Data Covered in this Machine Condition Monitoring Market Research and Growth Report?

• What is the expected growth of the Machine Condition Monitoring Market between 2024 and 2028?

  • USD 1.27 billion, at a CAGR of 7.41%

• What segmentation does the market report cover?

  • The report is segmented 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)

• Which regions are analyzed in the report?

  • North America, Europe, APAC, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Wireless communication gaining momentum in industries, Limited battery life for wireless devices

• Who are the major players in the Machine Condition Monitoring Market?

  • 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 Research Insights

• The market encompasses various technologies and applications aimed at optimizing the performance and longevity of rotating machinery. Two significant segments within this market are bearing condition monitoring and gearbox diagnostics. In 2025, the bearing condition monitoring market was estimated to be valued at USD5.3 billion, while the gearbox diagnostics segment reached USD3.1 billion. Data storage plays a crucial role in machine condition monitoring, with rule-based systems, signal filtering, and data logging essential for processing and analyzing vast amounts of data. Advanced techniques, such as vibration signatures, acoustic emission, and temperature monitoring, are integrated with SCADA systems for real-time monitoring and alert notifications.
• Machine condition monitoring employs various analytical tools, including regression models, neural networks, classification algorithms, and support vector machines, to identify patterns and predict potential failures. Predictive modeling and process control systems are integral to proactive maintenance planning, ensuring minimal downtime and increased efficiency. Data security and sensor calibration are essential considerations in machine condition monitoring, with expert systems and pattern recognition employed to ensure data accuracy and integrity. Oil analysis is another crucial aspect, providing valuable insights into the health of machinery and lubrication management. Overall, the market continues to evolve, with ongoing advancements in data processing, analytics, and integration with various industrial systems.

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