Plant Asset Management (PAM) Market: Overview
The market size for plant asset management (PAM) was USD 4.8 billion in 2021 and, over the projection period, is expected to increase at a CAGR of 10.3 percent. With the rising demand for digital solutions across various industries, including oil & gas, manufacturing, and chemical, for lowering operating expenses, the market is predicted to experience considerable expansion over the projected period. As of 2021, a digital business plan has already been embraced by 55% of startups and 38% of traditional organizations. Using sensors, the plant asset management (PAM) system assists in gathering data from all assets, including machinery, heavy equipment, etc. The PAM system creates a data analytics platform with a comprehensive picture of all operational assets throughout the industrial plant by integrating various data sources. Customers can use this data to enhance asset management procedures and prioritize maintenance tasks.
PAM system use cases are becoming more effective thanks to integration with complementary solutions like mobile and geographic information system (GIS) solutions, which are helping to sustainably develop the industry. Modern PAM systems on the market now use the industrial internet of things (IIoT) to guarantee equipment reliability. Since equipment dependability is a fundamental capability of PAM systems, the industrial sector is becoming increasingly interested in the systems. The market participants are currently using digital twin technologies to improve the effectiveness of PAM systems. A digital twin represents a physical system or object in the digital world.
PAM is an integrated set of services and solutions comprising different software for monitoring things like asset health and reliability. They are also used to develop asset maintenance and divestiture strategies. For instance, in July 2022, CGI and IGM Financial Inc. (IGM) agreed to collaborate on the next generation of mutual fund transfer agency (TA) platforms in Canada. The collaboration between IGM and CGI will center on combining two top mutual fund record-keeping solutions into a single, modern platform. CGI will be responsible for fully modernizing the platforms as part of the company's intellectual property solutions portfolio and helping IGM continue operations and delivery of the new platform via a software-as-a-service model (SaaS).
Plant Asset Management (PAM) Market: COVID-19 Impact
As a result of its global proliferation in over 215 nations, COVID-19 has caused disruptions in several global enterprises. Different industries' operating dynamics may soon change significantly. Numerous industries continue to decline as the world fights this issue. The hotel and, transportation & logistics sectors among these have a variety of effects. COVID-19 would have an impact on globalization and the interconnected economy of the majority of nations. Companies have serious cash flow problems due to implementing lockdowns in many nations. Reduced demand for plant asset management systems results from the suspension or halting electronic equipment or retail goods production and worldwide supply chain logistics difficulties brought on by the COVID-19 epidemic.
Plant Asset Management (PAM) Market: Drivers
Efficiently Utilization of Resources to Drive Market’s Growth
Organizations can save costs and boost revenues through streamlined processes and the best use of their current resources. By tracking and managing assets in real time, asset management systems help businesses use their existing equipment more effectively while lowering the costs associated with inventory and stock management. Enterprises can save money using personnel tracking technologies to ensure worker productivity and safety. Asset tracking for persons and equipment in the healthcare industry is essential for enhancing patient care. As a result, using asset management systems produces high returns on investments (RoI), significant cost reductions, and optimal resource utilization.
Proliferation of IoT-Capable Devices are Maintaining Competition In Growth Of Plant Asset Management Market
In line with the booming global economy, more start-ups and businesses are expanding faster than ever. A growing requirement for plant asset management of important organizational assets is being caused by expanding business establishments. Additionally, start-up businesses have recently been given government funding for new endeavors, including creating corporate asset management software. Small and large businesses continue to choose plant asset management software for flexible, fully scalable asset lifecycle optimization that meets organizational objectives. The development of smart cities will rely heavily on the integration of IoT with PAM software. All vital infrastructure is monitored in smart cities. One of the main causes driving plant asset management demand development across geographies is increased data analysis accuracy, better decision-making, and asset management software results.
Plant Asset Management (PAM) Market: Restraints
High Starting Costs of Plant Asset Management to Restrict Market’s Growth
In various applications, the range of real-time locating solution (RTLS) and radio-frequency identification (RFID) technologies ranges from several meters to hundreds. As a result, the price of RTLS and RFID solutions vary depending on their precision and range, the technologies utilized, and the applications for which they are intended. One of the significant obstacles to adopting plant asset management systems, particularly those based on RTLS, is the high initial cost. The initial installation costs of RTLS solutions are considerable, even though their application in the healthcare, manufacturing, retail, defense and logistics sectors lowers labor costs and improves resource utilization efficiency. Additionally, it can be difficult for businesses, particularly small ones, to recruit individuals with the necessary technical abilities. It can also be tough for them to train new hires.
Plant Asset Management (PAM) Market: Segment Overview
With Ease of Remote Access Cloud Deployment Type to Dominate Market
The cloud systems market sector held a sizeable market share in the forecast period. The need for public cloud deployment, which offers a wide range of options in terms of solutions and computing resources to fulfill the expanding needs of enterprises of all sizes and sectors, may be primarily blamed for the segment's growth. Additionally, since cloud providers maintain and update the technology ecosystem in the public cloud deployment model, businesses are encouraged to deploy public cloud solutions to obtain access to new advancements and tools and acquire a competitive edge. The main justifications for choosing cloud PAM systems are the complex requirements relating to the various customized machinery and equipment owned by asset-intensive organizations, significant customizations in the PAM systems, and misunderstandings about data security when using cloud-based systems.
With Increase Demand for Continual Energy Supply, Demand for PAM in Energy and Power Sector to Increase
In the forecast period, the energy & power segment holds the market share. The relevance of revisiting strategy and integrating cutting-edge technology into business operations is expected to increase, fueling the segment's growth. Additionally, the necessity to meet the growing demand for adequate energy services has allowed managers and other officials to use asset performance management solutions to track asset functioning and conditioning to meet expanding needs. The increasing emphasis businesses place on asset predictive maintenance techniques is another factor that is thought to fuel the segment's expansion.
Plant Asset Management (PAM) Market: Regional Landscape
North America to Dominate Market due to Increase Investment in I.T Infrastructure and High-Speed Internet
In the forecast period, North America held a stake of more than 34% of the worldwide market, dominating it. The regional market is booming due to the increased need for high-speed data networks and the significant presence of software manufacturers in the region. By the end of 2019, there were 1.3 million 5G service subscribers in the US, where the 5G network went online in late 2019. By 2024, it's anticipated that there will be close to 168 million subscribers. The expansion of the regional market is also aided by the rising investments made by businesses in IT infrastructure, particularly for the research and development of cloud infrastructure. In contrast to other regions, businesses in North America experience good business conditions and support governmental policies, allowing them to create and launch superior cloud platforms, which in turn spurs a rise in the market's adoption of asset performance management. In Canada, many computer scientists, data analysts, and software engineers use cloud-based products and services. The regional market in North America is expanding as a result of this.
Over the forecast period, the Asia Pacific area is anticipated to have the greatest CAGR. With the major expenditures made by big businesses and the adoption of new technologies by many sectors of industry and businesses, the regional market is expanding. Since they intend to use cloud technology to establish a digital transformation process, several businesses have begun moving their workloads to the cloud. India has 29 internet users for every 100 population, and its connectivity ecosystem includes 122 colocation data centers, 348 cloud service providers, and 8 network fabrics. Thus, with India's growing population, cloud data will increase, thus increasing the utilization of PAM in the region. Additionally, throughout the projection period, it is projected that increased expenditures in IT infrastructure development in the area by tech giants would present a wide range of opportunities for market participants in asset performance management. China is experiencing technical improvements in the IT, manufacturing, industrial, and other sectors, offering attractive opportunities for the country's plant asset management solutions providers. Through 2021, the Chinese IT services sector is projected to generate $201.3 billion in revenue, an annualized 6.5% growth. The Asia-Pacific market is anticipated to be the fastest growing business sector because of the region's quickly growing modern base and increasing competition among the leading components.
Global Plant Asset Management (PAM) Market: Competitive Landscape
In September 2022, Metso Outotec completed the acquisition of Global Physical Asset Management, a North American technology supplier. Metso Outotec's skills in digital field service inspections for grinding will be enhanced due to the acquisition. Global Physical Asset Management's new technology and digital inspection method are patented and complementary to Metso Outotec's grinding service. In December 2021, OpenTextTM said that the previously announced purchase of Zix Corporation, a leader in SaaS-based email encryption, threat protection, and compliance cloud solutions for Small and Medium-sized Businesses (SMBs), has been completed.
Few of the players in the Plant Asset Management (PAM) Market include ABB LTD, Emerson Electric Co, Honeywell International, Inc., Rockwell Automation, Inc., Siemens AG, Yokogawa Electric Corporation, General Electric Co., Endress+Hauser AG, Schneider Electric SE, SKF Group, Dassault Systèmes, Petrofac, Entsika, Opentext, Phoenix AMC, SMAR International Corporation, IBM, Hexagon PPM, Aspen Tech, Bentley Systems, Nexus Global Business Solutions, Inc., Infoplus Technologies UK Limited, Hubhead Corp., DNR Process Solution Pte LTD, and Plantvision AB
Regional Classification of the Global Plant Asset Management (PAM) Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Plant Asset Management (PAM) Market
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