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Equipment-as-a-Service market Segmented By application type which is Production Monitoring, Condition Monitoring, Predictive Maintenance, Process Optimization and Others
Equipment as a service (EaaS) is a newer concept in comparison with the commonly used software as a service (SaaS). SaaS helps customers to use cloud-based software on a subscription basis. For instance, the growing usage of OTT platforms such as Netflix can be used without having to own it.
Such developments have bought in the realms of productivity and efficiency in various industries. In current times, some factories that print their own product using 3D printing and machines notify their operators about their failure. Such industry 4.0 solutions have given rise to the latest business model of EaaS in factories.
Initially, EaaS was not widely adopted as the systems could not predict accurate system failures. However, EaaS gained momentum over the recent past due to the introduction of the industrial Internet of things (IIoT) such as artificial intelligence, predictive maintenance, and Internet of things (IoT) solutions. In scenarios where pay-per-use wasn’t reliable, adoption rates of IIoT surged making pay-per-use a vital solution for manufacturers. Thus, pay-per-use for equipment and machines is a successful business model in several industries such as medical equipment.
Along with increased revenue with greater adoption of EaaS, the model helps in maintaining strong relationships with customers. Over the forecast period, the equipment-as-a-service market is expected to soar in several industries and attract market players.
Equipment-as-a-Service model is widely adopted in healthcare sector, due to the high cost of the medical devices or equipment. Some sectors have witnessed a disruption due to the gap in supply and demand which has impacted the growth of the EaaS market and the growth of EaaS market is anticipated to decline by almost 5-6% for industrial manufacturing sector, owing to the pandemic outbreak impact.
However there is an increase in demand from healthcare sector, due to increasing number of patients amidst the spread of the coronavirus. Thus the EaaS market is expected to recover and maintain a steady growth by fulfilling the requirements of healthcare sector. Many countries have started opening up their markets, and thus the EaaS market is anticipated to recover back to its steady growth stage by Q1-Q2 of 2021.
Internet of Things Continues Create to Lucrative Opportunities for Market Players
Mounting disruption and digitalization are offering lucrative opportunities for enterprises with revolutionary business models making their way to the market. One of the major factors showing tremendous promises is the integration of IoT technology and equipment with aspects of the SaaS model.
With the emergence of cloud computing, SaaS became popular amongst users as it offered software access for a subscription fee along with upgrades and maintenance by software companies.
Equipment-as-a-service offers greater options for both businesses and manufacturers. With the integration of IoT technology with equipment contracts, numerous enterprises are gaining better uptime without incurring heavy costs. Equipment and machinery companies frequently profit from the lower failure rate as the equipment is serviced before the problem becomes bigger.
Maintaining Configuration Complexity Hindering Market Growth
Configuration complexity has been an ever-increasing problem for years. In the past, many elements of system configuration such as the operating system, hardware, storage & database, and applications were easily and simply tied together in a single system. In addition to this, spur in system complexity is high, as customers demand more customization and precise specifications. Therefore, such a growing demand for complex system configuration is one of the major factors limiting the growth of the equipment-as-a-service market.
Huge Cost in Servicing the Installed Equipment Base Obstruct EaaS Market
Ideally, servicing the installed equipment base rotates around the most difficult task of identifying configurations and servicing them cost-effectively, reactively and proactively.
This is considered to have huge a potential source of high revenue as companies prefer to balance their current equipment than buying new equipment. As the service costs of complex equipment are high, it is difficult to find solutions to decrease these costs. Resultantly, heavy cost is hampering the growth of the equipment-as-a-service market size.
Examples of some of the market participants in the global Equipment-as-a-Service market identified across the value chain include Heidelberger Druckmaschinen, Aluvation, Kaeser Compressors, Gothaer, Marlin Capital, Heller, Microsoft, PTC, Relayr, Siemens, Rolls Royce, SAP, TCS, T Systems and others.
North America is anticipated to hold a major position in the equipment as a service market due to the mounting adoption of advanced technology in this region. Additionally, majority of key players have a strong presence in this region, which is fuelling EaaS market growth.
Moreover, South Asia & Pacific is expected to grow significantly over the forecast period. The EaaS market is poised to grow owing to the use of IIoT and IoT technologies in various landscapes in this region.
The equipment-as-a-service market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, and inputs from industry experts and industry participants across the value chain.
The report provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The market report also maps the qualitative impact of various market factors on market segments and geographies.