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Equipment-as-a-Service (EaaS) market is expected to grow with a CAGR of 11.5% during the forecast period 2021-2027.
The global equipment-as-a-service market holds only a tiny fraction of the global equipment industry. However, in recent years, the Equipment-as-a-Service (EaaS) market is witnessing significant positive growth owing to the development of digitalization, mounting disruption of Internet of Things (IoT) industry and others technology driven influences. On contrary, complexities related to configuration and high prices for servicing the installed equipment base may hinder the overall market growth for the forecast period 2021-2027.
Increasing penetration of IoT boosts the growth of the Global Equipment-as-a-Service Market
The Internet of Things (IoT) deliver a significant boost to growth of several industries in past few years and is anticipated to grow substantially over the forecast term. By 2025, it is expected that there will be more than 75 billion connected devices available globally. IoT technologies are anticipated to add $10-$15 trillion to the world GDP by the end of the year 2030. Hence, offering a strong impetus to the overall growth in various industries.
With opportunities to reduce high-cost repairs and to improve uptime for customers, manufacturing industries will also gain a significant amount of share in the global Equipment-as-a-Service (EaaS) marketplace. IoT has predominantly enabled the cost-effective solutions for collecting and measuring the usage data of the equipment which has made it economically viable to offer through equipment as a service model.
EaaS offers options for both equipment businesses and manufacturers; and by integrating IoT technology with equipment contracts, companies are leveraging better uptime without extra heavy investment. Companies dealing in equipment are also benefitting on the basis of lower failure rate as equipment are being serviced before high worn out conditions.
EaaS Business Model and Role of Participants in the Market
EaaS business model involves renting out of equipment to different end users and collecting payments for use of the equipment under different payment models. It is a type of service-driven business model that offers a variety of benefits to both parties involved including customer (manufacturers) and EaaS provider (OEMs and Machine Builders). Equipment service providers also include equipment manufacturers, who turned to this business model benefits in a form of new methods of revenue generation with rapid growth of smart factories worldwide. Some of the key benefits are improved equipment design, developing predictive maintenance strategies, reduced capital expenditure, increased data reliability and lower operating costs among others.
Equipment-as-a-Service (EaaS) businesses are gaining high traction from a number of financiers that are keenly focusing on the business models that are emerging in the current scenario. In some cases, a positive support from the governments to assist with financing for EaaS projects and reduce energy consumption (e.g., ESCOs) highly support the market growth in the future period. For instance, Siemens Financial Services offer support to the customers of Siemens on financing equipment as a service projects such as energy performance contracts.
Regional Overview of the Equipment-as-a-Service Industry
This market research study report studies the global Equipment-as-a-Servicemarket size in key regions like North America, Europe, Asia Pacific, Middle East & Africa and South America. As per the regional studies, the North America is anticipated to hold a major position in the industry, owing to rising adoption of advanced technologies along with strong presence of key companies in the region.
The Asia-Pacific EaaS market is poised to grow exponentially owing to increased usage of IoT and IIoT technologies in various landscapes in China, Japan, Australia, India, and other key countries of the APAC region.
Segmentation Overview of the GlobalEquipment-as-a-Service Market
The Global Equipment as a Service Market is categorized on the basis of following key market segments:
Competitive Landscape of the Global Equipment-as-a-Service Market
Aluvation, Heidelberger Druckmaschinen, Gothaer, Heller, Kaeser Compressors, Marlin Capital, Microsoft, PTC, Relayr, Rolls Royce, SAP, Siemens, TCS, and T Systems among others are profiled in the research study under various heads such as company business overview, Company Details (Key Executive, Employee count, Trading stock, Year of Establishment), Financial Overview, Business Strategies Adopted and SWOT analysis. Companies in the market have adopted various competitive strategies such as product launch, business expansion, mergers & acquisitions, agreement, partnership and others to offer better and competitive products and services to customers in the global Equipment-as-a-Service market.