Independent research firm Verdantix predicts a 9.7% growth within the global market for asset performance management (APM) solutions by 2025.
The market is expected to grow from last year’s $2.5 billion to $4.4 billion in 2025.
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.
Victor Voulgaropoulos, Verdantix industry analyst, said: “Unsurprisingly the COVID-19 pandemic has stalled growth in spending on digital industrial asset management in 2020.
“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 onshore oil and gas production segment is expected to account for 15% of the market with spending of $380 million, chemicals and manufacturing both notch up $310 million, while both fossil fuel power generation and infrastructure hit $23 million.
“Given the positive five-year outlook for the asset performance management software market there is a tremendous amount of investment taking place,” adds Voulgaropoulos.
He said: “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.”
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