Verdantix Says Spending On Asset Performance Management Digital Solutions Will Reach $4.4 Billion In 2025
London – October 19, 2020. The global market for asset performance management (APM) solutions will grow from $2.5 billion in 2019 to $4.4 billion in 2025 according to a new study from independent research firm Verdantix. The forecasted annual growth rate of 9.7% will be driven by asset management digital transformation strategies and the need for capital intensive sectors to improve productivity at existing plants. Vendors positioned to benefit from this growth include APM software vendors such as ARMS Reliability, AVEVA, Bentley Systems, DNV GL and GE Digital as well as services firms like Accenture, AECOM, ERM and Lloyd’s Register.
“Unsurprisingly the COVID-19 pandemic has stalled growth in spending on digital industrial asset management in 2020” commented Victor Voulgaropoulos, Verdantix Industry Analyst. “But it has also accelerated a shift in executive mindsets in favour of digital solutions which align with minimal air travel, workplace safety and remote monitoring. With news about strong sales pipelines filtering through we forecast a strong rebound above 10% for APM software and services in 2021. From 2022 onwards market growth will exceed 12% every year.”
The Verdantix report, Market Size And Forecast: Asset Performance Management Solutions 2019-2025, provides APM solution providers with all the information they need on how they can exploit the market opportunity. The model breaks down market size and forecast trends across 16 asset classes and 8 geographic regions. Onshore oil and gas production accounts for 15% of the market with spend of $380m, chemicals and manufacturing both notch up $310m, while both fossil fuel power generation and infrastructure hit $23m.
“Given the positive five-year outlook for the asset performance management software market there is a tremendous amount of investment taking place” continued Voulgaropoulos. “New ventures like Arcadis Gen, Cognite and Itus Digital are bringing innovative value propositions to the market. Bentley Systems recently launched a successful IPO and AVEVA bought OSIsoft for $5 billion. APM software is fast becoming the brains of the industrial software landscape and it is a springboard for digital twin strategies. That’s why major players like IBM, SAP and Siemens are also targeting this space.”
Get a full overview of the APM solutions market by registering for the Verdantix webinar on October 29.