Asset Performance Management Market Trends

Growth Drivers

• Growing industrial Internet of Things (IIoT) sector: The increasing uptake of IIoT is significantly changing asset management through increased asset lifespan. APM systems use the industrial Internet of Things (IIoT) to ensure equipment reliability which plays a significant part in several industries, including manufacturing, energy, healthcare, and transportation. The global Industrial IoT sector growth rate is anticipated to reach around 13.8% between 2024 and 2029, with a market volume of over USD 454 billion by 2029. The expansion of IIoT is creating a fertile environment for the APM market by providing the tools and data necessary to optimize asset performance, improve maintenance practices, and achieve better operational outcomes.
• Rising implementation of digital twin technology: Digital twins create virtual replicas of physical assets, systems, or processes, enabling real-time monitoring and simulation. Organizations can use digital twins to test and refine operational strategies, optimize asset performance, and improve efficiency. This can lead to significant cost savings and performance improvements. More than 25% of manufacturing firms worldwide have either fully or partially adopted a digital twin plan for some of their operational assets, and another 62% are either in the process of developing or have already completed their digital twin strategy.
• Development of blockchain technology: Advances in blockchain technology are enhancing the functionality of smart contracts, which automate and enforce agreements based on predefined conditions. In APM, smart contracts can streamline maintenance schedules, automate warranty claims, and manage service-level agreements (SLAs), leading to more efficient operations. Moreover, the development of blockchain standards and protocols is improving interoperability between different systems and stakeholders. This ensures seamless and secure data sharing, allowing for more effective collaboration and integrated asset management across the supply chain.

Challenges

• Cybersecurity concerns: The growing digitization of economies is causing an unprecedented spike in data volumes, which has exponentially increased the significance of data security. Businesses all around the world are now concerned about data security as cyberattacks have been rising in tandem with the growth of digitization. Moreover, asset performance management handles large amounts of operational data from linked devices, which makes them a prime target for cyberattacks, leading to significant financial losses.
• High implementation costs: The use of APM is hampered primarily by the high cost of hardware and software. The implementation and upkeep of APM demand a high degree of skill, which can be a difficult, expensive, and time-consuming procedure. Additionally, in asset management, controlling maintenance costs is another challenge, which may create obstacles for businesses with smaller maintenance budgets.