Plant Asset Management Market size is anticipated to gain significant momentum over 2021-2027. This is a result of the strong focus on enhancing fixed assets to reduce operating costs, generate immediate cash savings, and drive shareholders’ returns. Chemical plant operators use asset management software to efficiently limit unexpected downtime and operational costs and ensure ideal usage of plant resources and profitability, thus boosting industry demand.
Plant assets refer to the long-term fixed or tangible assets vital to business operations, which can improve the financial health of the organizations. These assets are used to sell or make products and services and are expected to be monetarily beneficial to businesses for more than a year. Any asset used to generate sales of companies can be categorized as plant assets.
Robust demand for connectivity solutions in the process industry for advanced asset management of modern plants is one of the key trends propelling the plant asset management market size. For example, Softing’s FG-200 gateway can support device redundancy and significant use in hazardous areas. It also allows the connection of over 4 Foundation Fieldbus H1 links with Modbus support into control as well as plant asset management systems. Moreover, rising investment in real-time data analytics to increase business agility and ensure rapid decision-making will further boost the adoption of plant asset management software in the years ahead.
With regards to platform, the plant asset management market from the on-cloud segment will garner considerable revenue by 2027. This is attributable to the high security, cost-effectiveness, data centralization, accuracy, and real-time data access associated with the cloud-based asset management technique. The segmental growth can further be bolstered by the increased benefits of storing fixed asset data on the cloud, including the reduction or elimination of asset loss.
Regionally, the Asia Pacific is set to emerge as a lucrative revenue pocket for the plant asset management industry over 2021-2027. This can be credited to the robust focus on increasing refinery capacity due to the potential increase in oil demand in emerging nations like India. The country is expected to boost its current refining capacity of 250 million metric tons per year to 450 million metric tons per year. Furthermore, the rapid expansion of the Japanese manufacturing sector will further contribute to the rising popularity of plant asset management solutions in the region over the upcoming years.
Key players operating in the plant asset management market include Maxwell Technologies Inc. (Tesla), Dassault Systemes, Hitachi, Ltd., IBM Corporation, Endress+Hauser Management AG, General Electric, Yokogawa Electric Corporation, Siemens AG, Schneider Electric SE, Emerson Electric Co., Rockwell Automation, Inc., ABB, and Honeywell International Inc., among others. Innovative service launches, partnerships, acquisitions, and business expansions are some of the strategies being employed by these industry participants to boost their presence in the global market.
In January 2021, Rockwell Automation completed the takeover of Fiix Inc., with an objective to advance its software strategy and enhance capabilities in its Lifecycle Services business. This business offers a range of industrial automation services to aid customers in maximizing the value of the production assets, plants, systems, and processes.
The economic impacts of the coronavirus pandemic have been felt across all process industries, leading to the reduction of personnel availability for proper asset management. Moreover, business disruptions due to the lockdowns have negatively impacted the refinery sector, which could create an indirect impact on the plant asset management market dynamics in the near future.
However, a surge in demand for data-driven asset performance management solutions has been witnessed, to avoid unscheduled outages and optimize equipment maintenance across facilities. The implementation of remote working during the pandemic has also prompted enterprises to use cloud-based asset management software. Factors such as these are anticipated to drive the deployment of plant asset management strategy over the forthcoming years.