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Market Summary

The predictive maintenance market is projected to grow at a rate of 28.9% in terms of value, from USD 2.94 Billion in 2019 to reach USD 21.20 Billion by 2027. Predictive maintenance is a process by which companies monitor all the working conditions of their equipment and machines while operating them. Predictive maintenance helps organizations to bring down production costs, increase efficiency, and prolong the equipment lifetime.

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Predictive maintenance through the use of machine learning (ML) and artificial intelligence (AI) helps the organization in collecting data regarding the components of a machine, which helps them in understanding the extent of the workability of a machine altogether and schedule maintenance procedures and take corrective/preventive measures accordingly. The benefits offered by predictive maintenance comprise a decline in machine failures, a decrease in the cost of maintenance, reduction repairs downtime for repairs, prolonged parts service life, enhanced operator safety, reduction of spare parts stock, a surge in production, and confirmation of upkeeps.

There is a high demand for predictive maintenance in the manufacturing industries like Oil and Gas, where several different machines work together. Predictive maintenance helps in optimizing the production process by significantly reducing the costs and time required for the maintenance of machines. It also helps in analyzing the efficiency of the whole engine by analyzing the effectiveness of each part. The growth of technologies such as the Internet of Things and Data Analytics has helped the predictive maintenance market to grow as these technologies have inclined the predictive maintenance market towards complete automation, which offers increased efficiency and accuracy. Rising need of analytic tools to derive actionable insights from gathered data, reduce computational time enabling faster course of action, and increased efficiency along with a decrease in operation & maintenance costs and asset downtime are the factors driving the growth of predictive maintenance market

Owing to the extremely competitive nature of the market, the key players often indulge in strategic developments like mergers, acquisitions, and new product launches to boost sales and dominate the market. Recently, two business giants GE and Microsoft, collaborated on a project which involved the standardization of a Maintenance solution (Predix) on Microsoft’s Azure platform. Low awareness regarding the benefits of using Predictive Maintenance Systems is one of the major restraining factor hindering the growth of predictive maintenance market.

However, low awareness regarding the benefits provided by predictive maintenance may create hindrances in the growth of the market in the forecast period

Component Outlook:



In the component segment, the services segment is expected to have the highest CAGR of 29.1% in the forecast period as companies are focusing on providing efficient customer support and maintenance services for the expansion of the customer base.

The solutions held a larger market share in 2019. Expanding the spectrum of solutions offered to end-user industries like Government and Healthcare sectors is expected to help the market grow. These sectors are rapidly incorporating the use of predictive maintenance in new and innovative ways.

Deployment Type Outlook:



By deployment, cloud-based deployment is projected to grow at the fastest rate in the forecast period. Cloud-based provides advantages in terms of scalability, cost-effectiveness, and ease of deployment, among others, to let the organizations realize more maximum profits and streamline the operations. Cloud computing services are slowly beating the stigma against them, and their market is gaining traction. Predictive maintenance heavily incorporates the use of cloud networks for increased efficiency and coordination. This is expected to supplement the growth of the market.

Application Outlook:



In the Applications segment, the manufacturing sector occupied almost 32.0% of the market in 2019. The manufacturing industry involves the use of numerous kinds of machinery. Predictive maintenance helps in optimizing and monitoring the operation of these machines and helps in increasing efficiency substantially.

The Energy and Utilities segment is expected to have the highest CAGR of 29.3% in the forecast period, among the global predictive maintenance as governments are investing heavily in upgradation and expansion of the production and distribution networks energy resources like oil & gas and electricity.

Regional Outlook:



North America is expected to capture almost 34.0% of the market in 2019, due to the presence of well-established end-user industries as well as high awareness among organizations to adopt technologies that help them in increasing efficiency and lower operational costs.

Asia-Pacific regional segment of the predictive maintenance market is expected to remain a growing segment during 2020-2027, at a CAGR of 29.3% owing it to the massive potential in the untapped market like China, Japan, and India where end-user industries are growing rapidly. The Asia Pacific has a substantial potential predictive maintenance market. Due to rapid urbanization and global digitization, end-user industry sectors like Manufacturing, Energy & Utilities, and Healthcare services are proliferating, which is expected to supplement the growth of the predictive maintenance market.

Market-O-Nomics

Extensive research and innovation are also expected to grow the predictive maintenance market as the market is highly fragmented in nature, and Companies are investing heavily in such activities to continually roll out innovative systems and products to capture the majority of the market.

Expanding the spectrum of solutions offered to end-user industries like Government and Healthcare sectors is expected to help the market grow. These sectors are rapidly incorporating the use of predictive maintenance in new and innovative ways.

Small and Medium Scale Organizations are switching towards using Predictive Maintenance systems through the help of cloud computing services. This is expected to supplement the market growth.

The market in the European region is anticipated to grow at a rate of 26.6% in the forecast period.

Competitive Landscape:



Key participants include IBM, Microsoft, SAP, GE, Schneider Electric, Hitachi, PTC, Software AG, SAS, and TIBCO, among others.

The players operating in the market have undertaken a number of strategies related to the market in the period 2017-2020. Some of the key highlights are:

In February 2019, PTC introduced the upgraded version of its ThingWorx Industrial Internet of Things (IIoT) solution platform. PTC upgraded its platform with the introduction of new capabilities that includes Operator Advisor, which is designed to increase the productivity of factory workers using critical operational data.

Start-up Traction



The industry offers numerous growth opportunities. Thus, a number of startups providing innovative products and technologies have been entering the market. Some of them include Predictive-Sigma, Semiotic Labs, Presenso, Seebo, and Industrial Analytics, among others.

Deal Landscape



In August 2019, Cisco acquired predictive analytics based customer experience management company; Cloudcherry, this is Cisco’s step toward complementing its cognitive contact center solutions using predictive maintenance and analytics capabilities.

Mergers and Acquisitions are an integral part of the industry. Along with the companies operating in the market, other key market players have also been entering the industry.

Expert Insights:



Reports and Data forecasts promising developments for increased adoption of the predictive maintenance market. According to industry experts, the use of solutions and services in the energy and utilities and healthcare sectors is garnering significant traction in the market. New companies entering the industry would emphasize designing and developing innovative solutions, thereby catering to the increasing requirement of end-users.

Segments covered in the report:



This report forecasts revenue growth at a global, regional & country level, and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2027. The scope of the report can be defined as:

For the purpose of this study, Reports and Data have segmented the predictive maintenance market on the basis of component type, deployment type, organization size, application, and region:

Component Type Outlook (Revenue, USD Million; 2017-2027)

Solutions

Services

Deployment Type Outlook (Revenue, USD Million; 2017-2027)

On-Premises

Cloud

Organization Size Outlook (Revenue, USD Million; 2017-2027)

Large Enterprises

Small and Medium Enterprises

Application Outlook (Revenue, USD Million; 2017-2027)

Manufacturing

Energy and Utilities.

Healthcare

Government & Defense

Transportation & logistics

Others

Regional Outlook (Revenue, USD Million; 2017-2027)

North America US Canada

Europe Germany UK France Benelux Rest of Europe

Asia Pacific China India Japan South Korea Rest of Asia Pacific

Latin America Brazil Rest of Latin America

MEA Saudi Arabia UAE Rest of the Middle East and Africa

