Asset Performance Management Market Growth, Opportunities Business Scenario, Share, Growth Size, Scope, Key Segments and Forecast to 2026
The report “Asset Performance Management Market by Component (Solutions (Asset Strategy, Asset Reliability, and Predictive Asset Management) and Services), Deployment Type, Organization Size, Vertical, and Region – Global Forecast to 2026″, size is expected to grow at a Compound Annual Growth Rate (CAGR) of 10.1% during the forecast period, to reach USD 4.0 billion by 2026 from USD 2.5 billion in 2021. Key factors that are expected to drive the growth of the market are the rising demand to meet regulatory compliance and reporting standards across asset-centric organizations, growing need to manage assets efficiency, manage assets sustainability, and optimize total cost of ownership (TCO). These factors are driving the demand for asset performance management.
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Need for planned, preventive, and predictive management of assets
Asset failures can lead to production loss, and according to Reliability Web, unplanned downtime in manufacturing can cost a company as much as USD 260,000 an hour. An organization incurs unplanned repair costs due to asset failures. Research from Exxon Mobil shows that more than 50% of safety incidents occur during abnormal operations shutdown and start-up. In September 2021, the crash of a cable car near the picturesque Lake Maggiore in northern Italy occurred after a cable snapped and an emergency brake failed. In the crash, 14 people were killed, and many were injured. Thus, asset management is the critical component that helps and safeguards businesses against major asset failures and helps ensure that major assets are never left in a state where they run-to-failure. Asset Performance Management (APM) solutions improve the reliability and availability of physical assets while minimizing risk and operating costs. Typically, APM includes condition monitoring, predictive maintenance, and Reliability Centered Maintenance (RCM). APM ensures improved business processes and streamlined production and enterprise operations.
APM solutions help comply with health and safety standards and industry and environmental regulations
To better grapple with the rapidly changing landscape, industrial organizations are increasingly looking for asset performance management solutions to ensure industrial assets not only run at peak efficiency but are compliant with all applicable regulations. From Occupational Safety and Health Act (OSHA) to Chemical Safety Board (CSB) to API, several regulations relate directly to asset operation and maintenance, making asset performance management a logical application for ensuring compliance. Keeping up with compliance requirements is not the only objective an organization achieves. In addition to simplifying and streamlining regulatory compliance, asset performance management integrity has helped organizations achieve benefits such as a 14% reduction in corrective maintenance and a 25% increase in preventative maintenance. GE Digital Predix Asset Performance Management (Predix APM) includes the asset performance management integrity solution. The solution suggests process safety rules that correspond to OSHA and ISA/IEC standards. The features offered by the solution include approach-agnostic, mechanical integrity, RBI, and safety lifecycle management.
Rising trend of proactive asset performance management with IIoT, predictive, and prescriptive analytics
According to a recent survey conducted by GE Digital, 87% of manufacturing and oil & gas executives were surveyed and stated that big data and analytics are their top three priorities. That number soars to 94% for power generation. The urgency to connect and act on machine data is widespread, and the opportunities are well recognized. This acts as a major driving force for the asset performance management market. Further, companies from energy & utilities are typically asset-intensive. Their daily operations depend strongly on the performance of their physical assets. As a result, these organizations strive continuously to optimize their asset performance. For instance, in UtilityCo., leveraged advanced analytics in asset management unlock savings of 20% to 25% in operating expenses and 40% to 60% in capital expenditures. UtilityCo. could effectively use advanced analytics in asset management in four ways. First, it optimized capital expenditures by maintaining the current risk and spending less. Second, it lowered preventive-maintenance operating expenses by optimizing preventive-maintenance activities. Third, it lowered corrective-maintenance (CM) operating expenses by lowering the spending on CM after the riskiest assets had been replaced. And fourth, it replaced the riskiest assets to help achieve higher reliability (measured as lower SAIDI and SAIFI2 performance) due to fewer failures.
The rising emphasis on asset performance management will continue for the coming years owing to various benefits. The major benefits include savings of millions of dollars by streamlining their maintenance operations, as approaches have evolved from reactive to preventive to Predictive Maintenance (PdM). It enables organizations to better understand the health of their equipment and keep it running safely to meet manufacturing/production goals. Further, advanced technologies, such as AR, IoT, AI, PdM, digital twin, and telematics, as the next big thing in industrial services, would help to accurately forecast the future of physical assets.
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