The global Plant Asset Management (PAM) market, valued at USD 4.8 billion in 2021, is expected to witness a remarkable CAGR of 10.3 percent over the forecast period, projecting it to reach a market size of USD 10.8 billion by 2028. The burgeoning demand for digital solutions across diverse industries, including oil & gas, manufacturing, and chemical, is driving this substantial expansion. A recent survey reveals that as of 2021, 55% of startups and 38% of traditional organizations have already embraced a digital business plan.
PAM systems, leveraging sensors, play a pivotal role in data collection from all industrial assets, including machinery and heavy equipment. By integrating data from various sources, these systems create a comprehensive data analytics platform, offering a holistic view of operational assets within industrial plants. This wealth of data empowers customers to enhance asset management procedures and prioritize maintenance tasks efficiently.
Integration with complementary solutions, such as mobile and geographic information system (GIS) solutions, has amplified the effectiveness of PAM use cases, contributing to sustainable industry growth. Furthermore, the integration of the Industrial Internet of Things (IIoT) into modern PAM systems ensures equipment reliability, making these systems increasingly attractive to the industrial sector.
Digital twin technologies are also being leveraged by market participants to enhance the effectiveness of PAM systems. These digital twins represent physical systems or objects in the digital realm, enabling advanced simulations and predictive maintenance strategies.
Plant Asset Management (PAM) is a comprehensive suite of services and solutions encompassing various software tools for asset health monitoring, reliability enhancement, and asset maintenance and divestiture strategies. For instance, in July 2022, CGI and IGM Financial Inc. joined forces to revolutionize mutual fund transfer agency (TA) platforms in Canada, a testament to the ever-evolving landscape of PAM.
COVID-19 has had a significant impact on the PAM market, disrupting various global industries. The pandemic led to reduced demand for PAM systems due to lockdowns affecting electronic equipment production and global supply chain logistics challenges. However, the industry is showing resilience as it adapts to new norms and focuses on optimizing resource utilization and cost-efficiency.
Key Drivers Fueling Market Growth
Efficient Resource Utilization: PAM systems enable organizations to optimize existing resources, reduce costs, and boost revenues by tracking and managing assets in real-time. This results in significant cost reductions, improved resource utilization, and a high return on investment (RoI).
Proliferation of IoT-Capable Devices: The rapid expansion of businesses, especially startups, and government funding for corporate asset management software are driving the demand for PAM. The integration of IoT with PAM software is essential for the development of smart cities, further fueling market growth.
High Initial Costs: One of the major challenges in adopting PAM systems is the substantial initial investment required, especially for real-time locating solutions (RTLS) and radio-frequency identification (RFID) technologies. The cost can be a barrier for smaller businesses.
Cloud Deployment Dominates: Cloud-based PAM systems are gaining prominence due to their flexibility and scalability. Public cloud deployment offers a wide range of solutions and computing resources, driving the growth of this segment.
Energy and Power Sector: The energy and power sector holds a significant market share, with a growing emphasis on asset predictive maintenance techniques to meet the increasing demand for energy services.
North America Leading: North America leads the global market, with over 34% of the share. Investments in IT infrastructure, high-speed internet, and a favorable business environment are propelling the adoption of PAM in the region.
Asia-Pacific Rising: The Asia-Pacific region is expected to exhibit the highest CAGR during the forecast period. Increased IT infrastructure investments and the adoption of new technologies across various industries are driving market growth.
Key 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 Systemes, 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.
The Plant Asset Management market is poised for significant growth as industries increasingly recognize the value of efficient asset management in the digital era.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/plant-asset-management-pam-market
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