Asset optimization (AO) is a methodology that helps to improve business operations by identifying, defining, planning, and implementing initiatives that will help to increase the potential and value of the current asset Capital-intensive assets, such as those usually deployed for power generation and in oil and gas comprise rapid and high return-on-asset investment return from businesses. A single second of unscheduled asset downtime can cost millions to end-customers, along with damaging an OEM’s credentials. In the current IoT era, inadequate remote monitoring, analytics, or machine-to-machine (M2M) connectivity can lead to suboptimal consumption of asset performance data. This means that large OEMs are not recognizing potential service cost decline of up to 20%, revenue improvement of 10-15%, and 10-15% in asset uptime improvement. Asset optimization solutions offer a single point of access to critical data being generated by vital assets such as oil and gas exploration equipment, manufacturing equipment, electricity and wind turbines, healthcare devices and others. Asset optimization solutions support warning as well as cross-functional collaboration and decision making across departments and various functions. The solutions allow users to implement functions and allocate tasks without having to launch third party applications.
Asset optimization solutions optimize production through automated workflows, remote monitoring and control, operations analyses, and forecasts of production issues. This is rapidly increasing the demand for asset management solutions in various industries. Furthermore, integrated asset optimization solutions improve asset uptime and reduce revenue leakage. Adoption of asset optimization solutions is increasing as it helps in maintaining collaborative maintenance strategies and simplified supply chain management. Investors and O&M providers alike are turning their attention to finding best strategies for ongoing management of different equipment and assets. All such factors are anticipated to drive the asset optimization solutions market during the forecast period.
However, unpredictability about certain equipment and higher initial investments related to different asset optimization operations are expected to restrain the market growth during the forecast period. Lack of awareness about specific asset optimization solutions/ applications among various small enterprises is limiting the market growth.
The market for asset optimization solutions can be segmented based on enterprise size, industry, and geography. Based on enterprise size, the asset optimization solutions market can be segmented into small & medium sized enterprises, and large enterprises. In terms of industry, the asset optimization solutions market is segmented into oil & gas, power & utilities, basic and specialty chemicals, pharmaceuticals, polymers, water & wastewater, industrial transportation, pulp & paper, consumer products goods (CPG), metals & mining, and engineering & construction. Demand for asset optimization solution is increasing in different end-use industries as it enhances operational effectiveness and business value formation. For instance, a large petrochemical producer derived US$ 16.3 million per year in energy savings and US$ 2.8 million per year in product recovery benefits through sitewide decrease in energy use. Geographical segmentation of the asset optimization solutions market includes North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America.
Asset optimization solutions leverage operational data and advanced analytics to manage the total lifecycle, from component to asset to fleet to enterprise, and enable improved performance from existing assets through process improvement and reengineering. Key players active in the asset optimization solutions market includes ABB Ltd, ENGIE Global Markets, PCI, Genpact, Uniper SE, IBM Corporation, Deloitte US, Lakeside Software, Aspen Technology, Inc., Weatherford, and EDF Renewables. The companies are focusing on transformation through mergers & acquisitions, product innovation, agreements, partnerships and collaborations, etc. in order to remain competitive in the market. For instance, AspenTech invested US$70 million to acquire Mtell, Fidelis, and ProMV. Furthermore, in January 2018, ABB Ltd. announced the launch of its new ABB Ability Ellipse software solution, offering a cross-enterprise method to connected asset lifecycle management.
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