GVR Report cover Equipment As A Service Market Size, Share & Trends 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

  • Report ID: GVR-4-68040-041-3
  • Number of Pages: 150
  • Format: Electronic (PDF)

Report Overview

The global equipment as a service was valued at USD 1,091.2 million in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 49.9% from 2023 to 2030. The relatively new concept of "Equipment as a Service" is comparable to the already well-known "Software as a Service" or “Machine as a Service” business model. In this strategy, the vendor rents out equipment while also monitoring, maintaining, or repairing it as needed to keep it in better operating order and increase client uptime. During the projection period, it is predicted that increasing consumer adoption of cutting-edge technologies, together with increased equipment uptime and efficiency provided by equipment as a service (EaaS), will fuel the market expansion.

U.S. equipment as a service market size, by end use, 2020 - 2030 (USD Million)

The main objective of Industry 4.0 is to maximize machine uptime, which is done by adopting EaaS models. EaaS increases equipment uptime and efficiency, lowering costs and labor for planned and unexpected maintenance and providing consumers with cutting-edge technologies and pricing structures while also fostering the market growth. For instance, Advantech's Machine APM/M2I-31A is an end-to-cloud intelligent equipment management solution for industrial infrastructure equipment. Air compressors, injection molding machines, electric motors, pumps, vulcanizing equipment, and steam turbines are modified using this approach. Moreover, it enables edge device connectivity, data collecting, and equipment monitoring.

In several industries in the U.S., it has been a common procedure to switch from one-time sales of capital goods (CapEx) to recurring income streams created on equipment usage or output (OpEx). One outstanding example is the widely recognized Rolls-Royce design that has completely changed the way the business sells aircraft turbines. This model is referred to as "power-by-the-hour" since customers are only charged for the actual hours that the aircraft turbine is actually in use. Due to the numerous advantages offered by OpEx, the aforementioned factors will increase demand for EaaS in the U.S.

For instance, EaaS allows Volvo CE to maintain ownership of the equipment, streamlining the entire fleet acquisition and administration process. One of the major benefits of EaaS is that it is considered as an operating cost (OpEx). Additionally, they will benefit from Volvo CE's vast customer service operation taking full responsibility for equipment maintenance and availability. This enables customers to concentrate on their primary use while leaving other tasks to the manufacturers.

IIoT, 5G, Cloud, Big Data, and AI technological advancements have given rise to a number of digital service solutions that are either implementing EaaS models or enabling them from the start. Various IIoT solutions that allow equipment to automatically exchange asset performance data and provide transparency on asset usage are great examples of EaaS. For instance, Siemens provides the sensors and controllers required to link machines to the edge utilizing digital transformation technology through its equipment-as-a-service approach for the edge's hardware and software.

In addition, product innovation has also contributed to the rise of EaaS models. The focus of new equipment is on the entire production process used by the customer. For instance, laser manufacturers can improve the customer's overall process by giving them the opportunity to draw or categorize produced products. Hence, optimizing the entire flow is more important than concentrating on specific process phases. Owing to this, providers can scale these processes as they accumulate more performance data, which benefits the customer by significantly increasing process stability.

Equipment Insights

The laser cutting machine equipment segment led the market and accounted for 14.9% of the global revenue share in 2022. With its pricing and marketing strategy, which includes equipment as a service (EaaS), also known as Machine as a Service (MaaS), and pricing models for services, the equipment manufacturing sector is undergoing a fundamental paradigm shift. Due to the intense competition among manufacturers, the major companies in the laser cutting industry are concentrating on lowering the cost of this equipment by implementing EaaS models, thereby driving market expansion.

For instance, Munich Re Group and TRUMPF Group formed a strategic alliance in October 2020 to provide a cutting-edge service for laser cutting machines. Customers can utilize a full-service laser machine without acquiring or leasing any equipment owing to the jointly created "pay-per-part concept." Customers instead pay a predetermined fee for each cut sheet metal component; in other words, they only pay for what they require. This enables customers to increase the flexibility of their production processes and respond to market developments more quickly.

Over the forecast period, the market expansion is anticipated to be fueled by rapid industrialization and rising demand for automation in material handling systems, which will raise the demand for equipment as a service. For instance, Arnold Machine provides a Machine-as-a-Service (MaaS) program that enables users to enhance their manufacturing capabilities and technology without having to make a financial investment. Also, this program enables consumers to purchase high-end, high-performing equipment without requiring capital expenditures, which stimulates market growth.

In the coming years, demand for EaaS models will be driven by factors such as the expanding use of variable-speed systems, low maintenance costs, efficient operation, and retrofitting for existing systems. Demand for air compressors is being driven by these and other factors in several important end-use industries. For instance, BASF Coatings uses KAESER KOMPRESSOREN's EaaS model named sigma air utility, whereby the firm will supply compressed air for paint and coating manufacturing based on usage. Furthermore, to give end users an assured and dependable compressed air supply under a flexible arrangement, Atlas Copco's AIRPlan contract based air scheme incorporates energy-efficient air compressors and planned maintenance, owing to full after-sales service support.

The CNC machines equipment segment is expected to grow at a CAGR of 56.4% over the forecast period. In the coming years, there will be a significant demand for CNC machines due to the growth in demand for telecom connectivity, medical devices, and equipment used in semiconductor fabrication. The provision of EaaS to manufacturers of CNC machines has significant advantages, including assuring risk minimization and long-term profitability. For instance, Heller provides the cutting-edge HELLER4Use Pay-per-Use model, which enables customers to modify the capabilities of the HELLER machining centers to meet the needs of the moment. Without any initial investment or financial commitment, this implies the user's production plant will have unexpected flexibility.

End-use Insights

The manufacturing end-use segment led the market and accounted for 38.0% of the global revenue share in 2022. Industrial businesses are up against more competition on a worldwide scale in the current business environment. Increased sales of new machinery are challenging to achieve because unpredictable market conditions provide little opportunity for ineffective operations or ignoring untapped revenue sources. EaaS models are required in the manufacturing sector due to the new pay-per-unit-produced business models or pay-per-use that enable providers to create specialized, user-friendly solutions that satisfy the business objectives of their partners.

Equipment as a Service is a delivery model for the material handling end-use that combines hardware, software, and services. As a result, current dynamics in the material-handling market necessitate various actions from manufacturers such as the need for automation and the concurrent push to collect & store the amount of data required to support advanced analytics by incorporating EaaS models, driving market expansion.

As software vendors switched to a subscription model for their goods, they first gained scale in the IT industry. Among the most prominent applications of the paradigm are content consumption (such as Spotify and Netflix) and mobility (such as TIER Mobility and Care by Volvo). As-a-service models have already started to show up in industrial settings at the level of specific production parts. For instance, in 2020, Trumpf and Munich Re have collaborated to offer the use of laser cutting equipment as a service.

The construction end-use segment is expected to exhibit a CAGR of 44.6% over the forecast period. The construction industry is inherently a large user of natural resources. The construction is contributing largely to a better sustainable industry by promoting a sustainable supply chain and upholding the principles of the circular economy (such as recyclability, reparability, and responsible sourcing), and also by renting out equipment as a service. For instance, Volvo Construction Equipment (Volvo CE) suggests that an Equipment as a Service arrangement could significantly benefit users of construction-related equipment by offering the financial freedom, cost-effective use, and flexibility that are trademarks of Pay As You Go pricing models.

Financing Models Insights

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 regular revenue or expenses, predictable subscription pricing, and flexible contracts. Under traditional ownership, a new machine, for instance, can take longer than ten years to buy because it is bought outright as an investment. If the equipment is instead made available on a pay-per-use basis, the customer will know exactly how much money they can anticipate making over the course of the contract, which will spur market growth in the coming years. For instance, the International Energy Agency suggests that services for charging electric vehicles as a service include infrastructure installation to efficiency monitoring and maintenance in exchange for a subscription fee.

The EaaS concept has several advantages for manufacturers. It opens up new markets, provides a new, predictable revenue stream, facilitates forecasting and controlling service schedules, and eventually enables larger profits. This technique enables manufacturers to stand out from the competition and draw in risk-averse customers who aren't comfortable with big capital investments. For instance, subscription services like Netflix and Amazon Prime are very popular in the consumer products industry. Moreover, Heidelberger Druckmaschinen AG offers subscription models Smart and Plus, where the customer pays a set subscription fee for a predetermined base print volume under the "pay-per-outcome" concept. A further imprint price per page is charged if the user prints more than the base volume that was agreed upon.

Global equipment as a service market share, by financing models, 2022 (%)

Pricing under a subscription model is connected to discrete units of output supplied and is dependent on either the value offered or the units consumed. Pricing in an outcome-based model is determined by performance or results. Therefore, it is crucial to make investments in systems that allow for the accurate outcome and cost estimations, which will increase demand for EaaS models based on both funding methods.

Outcome based financing models segment is expected to witness a CAGR of 51.4% over the forecast period. Business outcomes are the main focus of outcome-based financing models, where a consumer pays for a specific, measurable business result or value obtained from used services. For instance, Hitachi Rail, which is developing brand-new trains in the U.K., will be compensated when its customers finish their trips and achieve a number of key performance measures, including fleet availability, onboard temperature, and maintenance. As a result, Hitachi owns and operates the trains in this instance, and the U.K.'s Network Rail System pays Hitachi for "on-time service."

Regional Insights

North America led the market and accounted for over 36.9% of the global revenue in 2022. According to the Associated General Contractors (AGC) of America, Inc., construction spending was 8.2% higher in January 2022 than it was in January 2021, demonstrating the rapid growth of the industry in this region. The EaaS model applied in manufacturing offers potential for the construction industry as well. This enables businesses to lease equipment and pay for extra services like preventative maintenance and other services based on the equipment's production. This would make it possible for consumers in the construction industry to rent the most cutting-edge equipment without having to make a significant investment in it.

Equipment As A Service Market Trends, by Region, 2023 - 2030

According to the European Commission, the production of manufactured products increased by 8% in 2021 compared to 2020. In addition, the equipment investment expanded from 6% to 7% of GDP to 9% of GDP by 2020 in order to implement new technologies and boost productivity, which will significantly boost the region's GDP. The manufacturing sector in this region will experience increased demand for EaaS models due to the aforementioned considerations. For instance, manufacturers can supply EaaS by using Syncron Contract Pricing, an automated pricing solution. Predictive technology is used to improve pricing for complicated contracts in order to reduce risk and increase profitability for both new and existing service offerings.

Asian Pacific is estimated to witness a CAGR of 52.6% over the forecast period. Given the presence of strong economies such as China, India, and Japan, the region is predicted to grow at the quickest rate. The growth is being boosted by the growing manufacturing industry. For instance, China holds 36% of the global manufacturing output in 2022. Demand is also anticipated to be boosted by the fast expansion of the semiconductor, consumer electronics, and automotive components industries, all of which employ laser cutting. TRUMPF, for instance, provides "power by the Hour," which enables customers to independently decide when to employ greater laser power and provides higher laser power at a cheaper expenditure.

The subscription-financing model has gained traction ground in Central and South America as the digital movement has expanded and intensified. More people than ever before have access to the Internet, consumer spending is rising consistently, and interest in subscription-based products is rising, all of which are expected to fuel market growth in this region over the projected period.

Key Companies & Market Share Insights

Major companies are focusing on strategic initiatives like mergers & acquisitions, joint ventures, collaborations, and facility expansion, in order to gain a competitive edge in the market. For instance, SMS Group offers models that allow customers to use SMS Group's parts, machinery, and associated equipment instead of purchasing them outright as part of a service package. In addition, SMS group and Outokumpu have a contract for Equipment-as-a-Service for a powder atomization plant. While SMS group will continue to own the plant, Outokumpu will operate it and pay SMS group based on the amount of stainless steel powder produced. Some prominent players in the global equipment as a service market include:


  • Atlas Copco


  • Heidelberger Druckmaschinen AG

  • SMS group GmbH

  • Arnold Machine

  • Uteco

  • AB Volvo

  • Exone

  • Siemens

  • Heller Maschinenfabrik GmbH


  • Hilti


  • Tamturbo turbo compressors

  • Metso Outotec

Equipment As A Service Market Report Scope

Report Attribute


Market size value in 2023

USD 1,509.1 million

Revenue forecast in 2030

USD 27,804.4 million

Growth rate

CAGR of 49.9% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD million and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company market position analysis, competitive landscape, growth factors, and trends

Segments covered

Equipment, financing models, end-use, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; France; Italy; Spain; U.K.; China; Japan; India; South Korea; Brazil; Saudi Arabia; UAE

Key companies profiled

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

Customization scope

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Global Equipment As A Service Market Segmentation

This report forecasts revenue growth at global, regional & country levels, and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the equipment as a service market report based on equipment, financing models, end-use, and region:

Global Equipment As A Service Market Report Segmentation

  • 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

  • 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

  • Financing Models Outlook (Revenue, USD Million; 2018 - 2030)

    • Subscription-based

    • Outcome-based

  • 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

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