Equipment As A Service Market to be Worth $27,804.4 Million By 2030: Grand View Research, Inc.

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Mar 16, 2023, 05:30 ET

SAN FRANCISCO, March 16, 2023 /PRNewswire/ -- The global equipment as a service market size is anticipated to reach USD 27,804.4 million by 2030, according to a new report by Grand View Research, Inc. expanding at a CAGR of 49.9% from 2023 to 2030. Equipment as a Service is gaining traction among a broad spectrum of machine manufacturers as a result of globalization, digitization, and the Internet of Things, which have been significant drivers and catalysts of this innovation in recent years. For instance, a construction equipment model emphasizing usage rather than ownership will enable Volvo clients to invest more money profitably and expand their main business operations.

Key Industry Insights & Findings from the report:

The laser cutting machine equipment segment led the market and accounted for 14.9% of the global revenue share in 2022. Given the intense rivalry among manufacturers, the major companies in the laser cutting machine industry are concentrating on lowering the price of these machines by implementing EaaS models, driving market growth.
The CNC machines equipment segment is expected to attain a CAGR of 56.4% over the forecast period. EaaS offers manufacturers of CNC machines significant advantages, such as minimizing risk and assuring long-term profitability.
The subscription based financing models segment led the market and accounted for 51.5% of the global revenue share in 2022. EaaS reduces risks through recurrent revenue or expenses, predictable subscription pricing, and adaptable contracts. For instance, the International Energy Agency suggests that services for charging electric vehicles as a service offer efficient monitoring & maintenance, and infrastructure installation, in exchange for a subscription fee.
Outcome based financing models segment is expected to witness a CAGR of 51.4% over the forecast period. These models charge customers for a specific, measurable business result or value obtained from used services, thereby driving market expansion.
In October 2020, the Munich Re Group and TRUMPF Group entered into a strategic agreement, to provide a cutting-edge service for laser cutting machines. Customers can utilize a full-service laser machine without buying owing to the jointly created "pay-per-part concept". This allows customers to increase the flexibility of their production processes and respond to market developments more quickly.

Read 150-page market research report, "Equipment As A Service Market Size, Share & Trends Analysis Report By Equipment (Air Compressor), By End-use (Construction), By Financing Models (Subscription-based), By Region, And Segment Forecasts, 2023 - 2030", published by Grand View Research.

Equipment As A Service Market Growth & Trends

Today's equipment manufacturers are attempting to shift the focus from capital expenditure (CapEx) to operating expenditure (OpEx) in order to increase flexibility, which will further fuel market demand. This effort is being driven by the meteoric rise of well-known B2C offerings like Netflix and Spotify. The benefit of EaaS models is that they make it possible to switch from a high initial CAPEX to a recurrent OPEX model. Equipment as a service (EaaS) models does away with the necessity for substantial investments and the related long-term financial commitment for the consumers of the equipment manufacturers. In the coming years, the demand for equipment as a service will be driven by the aforementioned causes. For instance, the much-touted Rolls-Royce concept, known as "power-by-the-hour" since clients are only charged for each hour of actual usage, has completely changed how the business sells aviation turbines.

Contrary to CAPEX business models, the client relationship is maintained over the long term, much like subscription models. Instead, it is limited to the completion and follow-up of the equipment purchase. As a result, the customer benefits from the manufacturer's continued responsibility for the product and the machine manufacturer's continued awareness of the client's needs. In addition, the manufacturer of the equipment makes ongoing additional revenues through services and gains expertise by having access to user data in addition to one-time earnings. These aforementioned factors will propel the market demand in the coming years.

Machine manufacturers also manage to monitor equipment status as part of EaaS models or Machine as a Service (MaaS), and provide predictive maintenance based on usage data analysis via the IIoT. Furthermore, these models contain more sophisticated services that would often be outsourced. The opportunity for providers to make more money above and beyond their pre-EaaS business model exists here. This business model is being studied by an increasing number of industrial manufacturing enterprises for their machinery, tools, software, and digital services. Examples of companies that have successfully used this business model for industrial devices and equipment include Kaeser (compressors), Heidelberger Druckmaschinen (digital printing machines), and Atlas Copco (mining equipment).

EaaS or MaaS fundamentally enables users to rent machinery for a set length of time or to reach other pre-determined outputs, in contrast to a traditional model where manufacturers sell machinery, equipment, and production systems for a single, upfront cost. Providers can create specialized, user-friendly solutions that satisfy the commercial objectives of their partners owing to this cutting-edge pay-per-use or pay-per-unit-produced business model. For instance, in May 2020, Equipment Financing Group, Milacron's exclusive finance partner, introduced a new leasing option for machinery upgrades. Milacron is a major industrial technology business serving the plastics processing sector. Moreover, EaaS or MaaS models have benefits over owning, such as cheaper monthly payments that are often made over the course of months or years rather than all at once, thus driving market expansion.

By engaging in a strategic collaboration with the Munich Re Group, for instance, The Heidelberg Group hopes to both grow the amount of revenue it generates through its digital usage-based Subscription Plus model and to further develop it into a shared Equipment as a Service ("EaaS") model. Through this cross-industry alliance, the two businesses are combining their respective advantages.

Equipment As A Service Market Segmentation

Grand View Research has segmented the global equipment as a service market based on equipment, end-use, financing models, and region:

Equipment As A Service Market - Equipment Outlook (Revenue, USD Million; 2018 - 2030)

Air Compressor
Pump
Power Tools
Ground Power Units
Laser Cutting Machines
Printing Machines
CNC Machines
Material Handling System
Packaging Machine
Excavators
Cranes
Others

Equipment As A Service Market - End-use Outlook (Revenue, USD Million; 2018 - 2030)

Construction

Air Compressor
Pump
Power Tools
Ground Power Units
Excavators
Cranes

Material Handling
Mining

Air Compressor
Pump
Ground Power Units
Excavators
Cranes

Manufacturing

Air Compressor
Laser Cutting Machines
CNC Machines
Turning And Milling Machines

Packaging

Packaging Machine
Printing Machines

Equipment As A Service Market - Financing Models Outlook (Revenue, USD Million; 2018 - 2030)

Subscription-based
Outcome-based

Equipment As A Service Market - Regional Outlook (Revenue, USD Million; 2018 - 2030)

North America

U.S.
Canada
Mexico

Europe

Germany
U.K.
France
Spain
Italy

Asia Pacific

China
Japan
India
South Korea

Central & South America

Brazil

Middle East & Africa

Saudi Arabia
UAE

List of Key Players in the Equipment As A Service Market

TRUMPF
Atlas Copco
KAESER KOMPRESSOREN
Heidelberger Druckmaschinen AG
SMS group GmbH
Arnold Machine
Uteco
AB Volvo
Exone
Siemens
Heller Maschinenfabrik GmbH
DMG MORI
Hilti
SK LASER
Tamturbo turbo compressors
Metso Outotec

Check out more related studies published by Grand View Research:

Mining Equipment Market - The global mining equipment market size is anticipated to reach USD 201.55 billion by 2030 registering a CAGR of 5.1% during the forecast period, according to a new report by Grand View Research, Inc. The introduction of automated mining equipment at the major mine sites and the increasing demand for efficient mining equipment is expected to propel the demand during the forecast period.
Water Treatment As A Service Market - The global water treatment as a service market is projected to grow at lucrative pace over the coming years. Growing need to dispose municipal and industrial wastewater along with rising need to provide access to clean water are projected to remain key contributors to the market growth. As per the United Nations, over 40% of shortfall in freshwater is expected by 2030, this coupled with rising population can lead to global water crisis in the future. Also, nearly 2.2 billion of global population currently need access to safely managed drinking water.
Compressed Air Treatment Equipment Market - The global compressed air treatment equipment market size is anticipated to reach USD 13.57 billion by 2030, according to a new report by Grand View Research, Inc. expanding at a CAGR of 6.2% from 2023 to 2030. Compressed air treatment equipment is widely used in a variety of end-use industries such as chemical, paper, food & beverages, pharmaceutical, healthcare, and others.

Browse through Grand View Research's Advanced Interior Materials Industry Research Reports.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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