Enjoy complimentary customisation on priority with our Enterprise License!
The Plant Asset Management (PAM) market size is estimated to increase by USD 2.01 billion and grow at a CAGR of 7.09% between 2022 and 2027. The growth of the market depends on several factors, such as the incorporation of 3D modeling in real-time asset management, the increase in the adoption of smart sensors, and the adoption of new technologies by oil companies. Substantial market growth is evident, primarily fueled by the expanding acceptance of wireless monitoring systems, notably accelerated by the growing utilization of smart sensors. The advancement and integration of the industrial Internet of Things (IIoT) further bolsters this trajectory. Smart sensors present notable benefits, such as simplified maintenance in contrast to analytical sensors, and furnish comprehensive system data and status updates. This serves to elevate system dependability while mitigating expenses associated with repairs and sensor replacement durations.
Market Forecast 2023-2027
To learn more about this report, Request Free Sample
This report extensively covers market segmentation by deployment (cloud and on-premises), end-user (power industry, pulp and paper industry, oil and gas industry, refining industry, and petrochemical and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
The cloud segment is estimated to witness significant growth during the forecast period. There has been an increase in demand for cloud segment across different industries including PAM. One of the main reasons fuelling the high demand for this segment is its numerous advantages including scalability and accessibility.
Get a Customised Report as per your requirements for FREE!
The cloud segment was the largest segment and was valued at USD 2.26 billion in 2017. Scalability is one of the main advantages of this segment as it allows several enterprises to accommodate the needs of growing businesses. This is essential for industries where assets and operations may expand over time. Additionally, this segment offers real-time data and analytics, enabling better decision-making and proactive maintenance which is essential in PAM, where timely insights can prevent costly downtime. Furthermore, it is easy to integrate with other cloud-based services and emerging technologies, including the Internet of Things (IoT) devices, allowing more comprehensive and connected asset management strategies. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on end-user, the segment is classified into the power industry, pulp and paper industry, oil and gas industry, refining industry, petrochemical, and others. There is an increasing shift towards renewable sources of energy, such as solar and wind power, for electricity production due to factors such as increasing demand for green fuel and increasing environmental concerns across the world. There is an increasing adoption of PAM systems across power industries as it enable to maintain a record of the equipment and machinery in power generation plants. Such insights and records help to increase efficiency by preventing system failure. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions View PDF Sample now!
North America is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. One of the main countries that is significantly contributing to the growth of the market in North America is the US as it is the largest producer and consumer of crude oil. Additionally, there are significant fluctuations in crude oil prices across the world which has fuelled the adoption of PAM across these industries. Several mid-sized oil firms are adopting PAM systems in their processes for effective operations.
Furthermore, there has a significant growth in the power industry across the US over the last few years which has resulted in a rise in demand for renewable sources of energy. Some of the key assets in power industry plants comprise piping, mechanical structures, instrumentation, steel structures, electrical equipment, and process automation systems. Therefore there is an increase in the adoption of PAM systems across these power industries as the operators need to access to details of the lifecycle of the assets. Hence, such factors are expected to drive market growth in North America during the forecast period.
The Market is witnessing significant growth driven by manufacturing firms' increasing focus on equipment inspections and efficient plant asset management systems. Leveraging field technicians and real-time location tracking technologies like Revo Asset Management, companies are optimizing operations and ensuring the reliability of critical assets such as construction equipment and generators. Location-based technology enhances visibility and control over assets in manufacturing and utility plants, minimizing resource wastage and maximizing productivity. Digitalization plays a key role, enabling stakeholders to adopt lean manufacturing practices and capitalize on the advantages of digitalization in manufacturing processes. Cloud-based PAM solutions, real-time data analytics, and automation assets streamline asset lifecycle management, catering to industries like aerospace, defense, and energy & power. General Electric and other leaders in industrial automation offer software solutions to drive efficiency and innovation in PAM. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The market is witnessing substantial growth, driven by the increasing adoption of wireless monitoring systems, particularly propelled by the rising usage of smart sensors. The development and implementation of the industrial Internet of Things (IIoT) further contribute to this trend. Smart sensors offer significant advantages, including easier maintenance compared to analytical sensors, and provide system data and status information, enhancing system reliability while minimizing repair costs and sensor replacement time. Manufacturing firms and utility plants are increasingly turning to PAM systems for equipment inspections and plant asset management, leveraging technologies like real-time location tracking and cloud-based solutions. Companies like General Electric are leading the way in offering comprehensive PAM solutions, catering to industries such as aerospace, defense, and energy & power, driving digitalization and efficiency in manufacturing processes.
One of the main tools which are extensively used in PAM is the prescriptive analytics tool. The main function of prescriptive analytics is that it leverages historical data trends to forecast changes to showcase what impact each task on the system can have on the process. There is an increasing adoption of prescriptive analytics across several organizations.
\Moreover, prescriptive analytics enables the organization to schedule its maintenance based on distinct scenarios created through these tools. Additionally, several prominent market players including Rockwell Automation, ABB, and IBM offer services that use prescriptive analytics for asset management and offer data on factors that can positively or negatively affect plant operations. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
One of the main challenges faced by the market is the increase in the chances of cyber attacks. As there is an increase in the integration of online connected devices in plants, several industries have become more prone to cyber-attacks. Additionally, there is a rising number of ransomware attacks across industries.
Moreover, such cyber attacks limit several enterprises from adopting internet-based plant management systems in the manufacturing processes. Furthermore, there is an increase in the number of ransomware attacks on IIoT-connected devices resulting in a halt in in the production and operation of electrical grids, and other IIoT-connected networks. Hence, such factors are negatively impacting the market growth. Therefore it is expected to hinder the market growth during the forecast period.
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.
AB SKF: The company offers plant asset management services that help plants reduce inventory costs and machinery problems.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
ABB Ltd., Aspen Technology Inc., AVEVA Group Plc, Emerson Electric Co., Endress Hauser Group Services AG, Hitachi Ltd., Honeywell International Inc., IFS World Operations AB, International Business Machines Corp., Novo Solutions Inc., Oracle Corp., Petrofac Ltd., Ramco Systems Ltd., Rockwell Automation Inc., S and T Deutschland GmbH, SAP SE, Schneider Electric SE, Siemens AG, and Yokogawa Electric Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is experiencing significant growth driven by advancements in industrial automation and the adoption of smart technologies. With industries such as aerospace & defense, automotive, energy & power, and healthcare investing in advanced technologies like IoT, machine learning, and robotics, the demand for efficient asset management solutions is rising. PAM solutions enable companies to automate workflow, manage and map production assets, and optimize maintenance requirements through predictive and preventive maintenance strategies. Supported by supportive government initiatives and developed IT infrastructure, the market offers software solutions for real-time data analytics, location-based technology, and real-time monitoring. From small- & medium-sized businesses to large manufacturing firms, PAM solutions play a crucial role in enhancing productivity, minimizing resource wastage, and ensuring sustainability in production environments.
Additionally, the Market is experiencing significant growth, driven by the increasing digitalization in manufacturing processes and investments in advanced technologies across the energy and industrial sectors. PAM solutions enable efficient management and mapping of production assets, including equipment and infrastructure, in industries such as aerospace & defense, construction, and manufacturing & utility plants. With the deployment of cloud-based facilities and IoT sensors, PAM systems offer real-time location tracking and predictive maintenance capabilities, optimizing asset performance and reducing downtime. Key players like General Electric provide industrial asset management (IAM) solutions incorporating machine learning and computer vision for enhanced efficiency. As stakeholders in the sustainability solution, PAM solutions play a vital role in monitoring carbon emissions and mitigating environmental risks, ensuring a proactive approach towards asset management in today's smart factory environments.
Plant Asset Management (PAM) Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.09% |
Market growth 2023-2027 |
USD 2,016.89 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.64 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 49% |
Key countries |
US, China, Japan, Germany, and Italy |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB SKF, ABB Ltd., Aspen Technology Inc., AVEVA Group Plc, Emerson Electric Co., Endress Hauser Group Services AG, Hitachi Ltd., Honeywell International Inc., IFS World Operations AB, International Business Machines Corp., Novo Solutions Inc., Oracle Corp., Petrofac Ltd., Ramco Systems Ltd., Rockwell Automation Inc., S and T Deutschland GmbH, SAP SE, Schneider Electric SE, Siemens AG, and Yokogawa Electric Corp. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.