Verdantix Says Spending On Asset Performance Management Software Will Hit $4 Billion In 2024 Reflecting An 11.5% Growth Rate
London – October 15, 2019. The global market for asset performance management (APM) software will grow from $2.3 billion in 2019 to $4.0 billion in 2024 according to a new study from independent research firm Verdantix. The forecasted compound annual growth rate of 11.5% will be driven by the availability of new technologies such as predictive maintenance analytics, digital twin simulations and the industrial IoT. Vendors positioned to benefit from this growth include AspenTech, AVEVA, GE Digital, IBM, Lloyd’s Register and Uptake.
“The APM market has been in existence for over a decade but the vendor community have recently doubled-down on their R&D which is now boosting growth rates” stated Verdantix Industry Analyst, Sebastian Winter. “To get a sense of customer demand we interviewed 284 managers responsible for operational excellence initiatives and they pointed to new technologies as the biggest driver of increased spend. The growing maturity of communications infrastructure at industrial sites supports broader APM adoption as does a wave of new CEOs launching digital transformation strategies.”
The Verdantix report, Market Size & Forecast: Asset Performance Management Software 2019-24, provides vendor executives with all the information they need to assess their market opportunity. The US market accounts for 39% of the total at $850 million of spend in 2019. Europe accounts for 22% at $506 million, the Gulf States account for 8% as do Japan and South Korea. By 2024, spend on APM software in China will only hit $64 million reflecting the sophistication of APM software. Onshore oil and gas production accounts for 15% of total spend in 2019 at $330 million, power generation 12% and chemicals 11%. Industrial software vendors like GE Digital will claim 35% of customer wallet share in 2019. The software divisions of OEMs like ABB will grab 24% which is $530 million. Between 2020 and 2024, total market growth will vary between 10.3% and 12.3%.
“Our analysis indicates that vendors need to apply five tactics to exploit the APM software opportunity” continued Winter. “These initiatives include better workflows to action analytical insights, linking worker safety data with asset safety data for holistic risk management, partnering with systems integrators to increase deal sizes, enhancing ROI calculation methodologies and cracking the code on brownfield deployment of APM software.”
Register to attend the Verdantix webinar: “The Future Of The $4bn APM Software Market: Key Trends And Market Forecast 2019 – 2024”.