Demand for Condition Monitoring Service Soars with Growing Need for Predictive Maintenance: FMI Report Explores COVID-19 Impact
According to the latest market intelligence of Future Market Insights (FMI), demand for condition monitoring service accounted for valuation in excess of US$ 2 Bn in 2019. The global condition monitoring service market is primarily driven by the need for predictive machinery maintenance to mitigate risks and improve returns on investments (ROIs). While the number is projected to increase at a significant pace over the next decade, the market will face massive ramifications in 2020 due to the COVID-19 pandemic, says the report.
With basic mobility limitations and extended lockdowns, uncertainties continue to swirl around manufacturing and supply chain operations. Businesses are directing their focus towards monitoring the health of their assets, especially through real-time data points. However, their spending patterns are likely to shift and service providers to face an unprecedented challenge in near term.
Online Monitoring and Protection Emerging Lucrative over Portable
Portable machine diagnostics have long remained highly preferred services, as these machines provide the highest amount of resolution into the health of an asset. Accounting for 35% of the total revenue, service providers have specifically focused on this category. However, expensive price point and travel restrictions uphold online machine monitoring and protection using smart sensors as a better alternative to portable machine diagnostics during the COVID-19 pandemic.
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“Online machine monitoring is likely to become the most preferred service and potentially reshape the business model of service providers during and after the pandemic. With the capability of remote monitoring, these service providers can reduce the time burden, gain real-time access to the status of monitored assets, and expand their client network geographically,” says the FMI analyst.
North America and Europe in the Vanguard
Emergence of the US and EU5 as the worst-hit countries by the COVID-19 is causing end-use industries to increase predictive maintenance, thereby potentially raising the demand for condition monitoring services. Collectively, Europe and North America account for 45% of the global market value, supported by the arrival of Industry 4.0 and rapid adoption of Industrial Internet of Things (IIoT) across various industry verticals.
Condition monitoring services are likely to experience increased adoption in power generation industry, while stakeholders are eyeing opportunities in aerospace & defense and automotive & transportation industries. However, significant reduction in air travels and weakening demand for new vehicles in 2020 will offset these opportunities amid the rampant spread of COVID-19. To gain a distinct competitive edge during the crisis, stakeholders must focus on continued strategic investment to support remote working and online machine monitoring.
FMI projects the growth outlook of condition monitoring service market, with emphasis on the COVID-19 impact.