Smart Connected Assets and Operations Market Trends [2031]

Report Description

Smart Connected Assets and Operations Market Outlook 2031

The global smart connected assets and operations market size was USD 215.52 Bn in 2022 and is likely to reach USD 518.67 Bn by 2031, expanding at a CAGR of 10.25% during 2023–2031.  Increasing adoption of digital solutions and IoT networks by various end-user industries is expected to drive the market.

Rapid digitalization and increasing demand for virtually managing industrial assets are expected to drive the smart connected assets management and operations market. Industries need to carry out multiple day-to-day operations at the same time. This directly affects the market, as the asset management software helps organizations track business operations on their premise, or virtually, to prioritize other important assets. Increasing adoption of workplace automation and the rising popularity of cloud-based software models for virtual asset management are expected to drive the market during the projection period. For instance,

• According to the data published in 2021, about USD 1.59 trillion was spent globally on industrial digitalization.

Get Free Sample Report

Smart connected assets management is a software solution that helps industries optimize their asset management. Operations such as inventory management, manufacturing stocks and raw materials, supply chain management, and repair and maintenance are efficiently handled by the software’s built-in automation. It consists of different tools that are open to customization to meet the organizations’ needs. The increasing popularity of Asset Performance Management (APM) software for virtual business management is expected to boost the market during the projection period. 

The COVID-19 pandemic boosted the market. Initially, many end-user industries were shut down to comply with COVID-19 guidelines issued by governments across the world. However, industries such as food & beverage, e-commerce, and healthcare, operated continuously with medium to full strength. This helped businesses adopt virtual asset management solutions that let workspaces be filled with a limited number of workers, while the operations are controlled virtually.

Asset management software helps industries in operations, such as scheduling maintenance tasks remotely or maintaining and tracking the performance of remotely located assets. This consequently improved the rate of adoption of asset management software, which boosted the market in the post-pandemic period.

Impact of Artificial Intelligence (AI) in Smart Connected Assets and Operations Market

The use of artificial intelligence is likely to provide substantial propulsion to the smart connected assets and operations market. The increasing popularity of the Internet of Things (IoT) devices helps industries, such as transportation, healthcare, automotive, and e-commerce, track product deliveries, stocks, and supplies. Key players in the market are focused on incorporating cloud computing and AI into IoT devices to cater to the increasing demand for safe and transparent business operations, which is anticipated to boost the market. For instance,

• On November 2, 2023, Arm Limited announced the extension of its partnership with Raspberry Pi Ltd. to create cost-effective solutions for businesses that use IoT and AI.

Smart Connected Assets and Operations Market Dynamics

Get Free Sample Report

Major Drivers

Increasing demand from the transportation industry is driving the market. This is attributed to the rapid industrialization and transport activities across the globe. Rise of the e-commerce industry significantly affects the need for transportation of household goods, home appliances, and other products from manufacturing units to inventories or stores, and customers located at a distance. Rising globalization results in a growing global travel and tourism industry. This encourages the players in the market to develop software solutions to manage and track vehicles, driver duties, and potential transportation issues, which is expected to drive the market during the assessment period.

Existing Restraints

High cost of the asset management software hinders the market growth. Asset management software is costly, which makes it difficult to be adopted by newly emerging businesses. Organizations that are using different software need to invest time and money in integrating new software, training their staff, and maintenance. Therefore, complexity after installation and the high cost of the product are likely to hamper the market during the forecast period.

Emerging Opportunities

Improving the range of RFID tags in asset management systems is expected to create lucrative opportunities for market growth. RFID codes are microelectronic chips that let industries track their goods and inventory; however, they are identifiable for a limited range, which is challenging for manufacturers. Improving their range of traceability and the efficiency of warehouse labeling is anticipated to create substantial growth opportunities in the market.

Scope of the Smart Connected Assets and Operations Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Smart Connected Assets and Operations Market Segment Insights

Module Segment Analysis

Based on module, the smart connected assets and operations market is divided into service, APM software & platform, and hardware. The APM software and platform segment is projected to hold a major share of the market during the projection period, as it optimizes the productivity of the manufacturers. The software predicts maintenance requirements of industrial equipment, thereby reducing repair costs and preventing system downtime for manufacturers.

It provides a set of tools that is useful in managing industrial operations, such as managing inventories, stocks, process automation, and on-premise & cloud-based services. Increasing demand for automation in asset management and opportunities for customization are expected to drive the segment in the coming years.

Get Free Sample Report

End-use Segment Analysis

Based on end-use, the global market is segregated into automotive & transportation, food and beverage, healthcare, energy & power, smart agriculture, factory automation, and others. The automotive segment is expected to hold a key revenue share of the market during the forecast period. This is attributed to the increasing demand for commercial as well as private vehicles around the world, due to rapid industrialization and exponentially growing global population. 

Automotive industries gain maximum advantage using asset management software, as it helps them overcome the production limitations to meet demands and targets. The software generates data-driven insights that help manufacturers with quality control and schedule maintenance activities. The rising demand for comprehensive asset management solutions from the automotive industries is projected to propel the segment.

The food and beverage segment is projected to expand at a high CAGR during the projection period, as it automates the production-related operations for manufacturers efficiently. The asset management software predicts possible system downtime. It makes the operational details visible to the whole enterprise to optimize the business process.

Food manufacturers reduce the wastage of raw materials and resources by receiving real-time alerts about the raw materials and facilitating decision-making for authorized personnel. Furthermore, the rapidly growing e-commerce industry is responsible for increasing the demand for the efficient workflow of packaging, inventory, raw material supply, and maintenance activities for ready-to-eat food businesses, which is anticipated to drive the segment in the coming years. For instance,

• According to the data published on September 21, 2022, the retail e-commerce industry attained a revenue share of about USD 5.2 trillion worldwide, in 2021.

Regional Outlook

In terms of region, the global smart connected assets and operations market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East, and Africa. North America is expected to dominate the market, owing to the increasing adoption of asset management solutions by several end-user industries. Countries such as the US and Canada are key providers of healthcare in the world.

Healthcare organizations handle multiple in-hospital and pharmacy operations at the same time. Tasks such as hospital pharmacy management, supply of medical devices and equipment, and other hospital essentials are carried out by the software. It also helps optimize patient care services using built-in automation to boost staff communications. The rapid adoption of advanced technology and the rising trend of centralized hospital automation are anticipated to boost the market.

Asia Pacific is expected to dominate the market during the projection period, owing to rapid digitalization and the presence of various end-user industries in the region. The region consists of developed countries such as Japan and South Korea and developing economies such as China and India, that are constantly advancing in the high-tech and IT sectors.

Furthermore, several initiatives are taken by the governments to strengthen the infrastructure of the smart connected assets and operations by funding and collaborating with players in the market. For instance,

• On September 27, 2023, IBM announced its collaboration with the Ministry of Education of the Government and the Ministry of Skill Development and Entrepreneurship of India, to establish a sturdy foundation of digital skills in India.

  Get Free Sample Report