Machine Condition Monitoring Market Size, Share & Trends Analysis Report By End-use Industry (Oil & Gas, Marine), By Monitoring Technique, By Component, By Deployment, By Monitoring Process, And Segment Forecasts, 2022 - 2030

Report Overview

The global machine condition monitoring market size was valued at USD 2.56 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.3% from 2022 to 2030. The need to provide advanced diagnostics and help determine the machine’s health has underpinned the market growth. Manufacturers have sought condition monitoring systems to optimize and monitor the performance and maintenance of their equipment. Besides, the trend for lean manufacturing has prompted manufacturers to seek condition monitoring to bolster production efficiency, minimize downtime and enhance spare parts supplies and cost prediction.

Stakeholders have exhibited traction for condition monitoring for enhanced productivity, equipment longevity, elimination & reduction of downtime, minimizing scrap parts, and leveraging automation based on real-time machine condition data. For instance, in November 2022, Doble Engineering Company, which offers asset health checks through their diagnostic test, services, and software for the electric industry, released a new product, Calisto cable condition monitoring, for medium and high voltage cable systems. The new Calisto cable offers secure and dependable cable operation, lowering the risk of failures, reducing the total cost of ownership & solutions, and giving near crucial real-time data regarding cable health.

Machine condition monitoring measures equipment parameters to prevent a breakdown and identify changes that could hint at a developing fault. The technique has gained ground across the oil & gas, automotive, power generation, metal & mining, marine, and aerospace sectors, among others. It is an invaluable part of predictive maintenance that has become trendier to boost asset life and cost savings, ensure operator safety, and streamline operations. Besides, the prevalence of IoT has brought a paradigm shift to foster communication between devices. The adoption of smart machines has led stakeholders to make informed decisions and boost diagnostic efficiency.

The global landscape grappled with headwinds, including semiconductor shortages and the COVID-19 pandemic. Semiconductor shortages compelled factory closures and manufacturers to halt operations. Moreover, the onset of the COVID-19 outbreak led to a reduction in hardware production and supply chain disruptions. With the reopening of plants post-pandemic, soaring demand for electronic goods triggered a backlog for the chips. However, the surging need for remote supervision has provided promising growth opportunities for manufacturers and suppliers in the industry. The post-pandemic period has witnessed the Industrial Internet of Things (IIoT) trends and the adoption of Industry 4.0, mainly due to the demand for real-time monitoring of assets.

The rising penetration of IIoT has leveraged manufacturers to connect assets to actuators and smart sensors to propel industrial and manufacturing processes. Real-time data collated from various IoT devices catalyzes seamless supervision and control of plant operations. As stakeholders prioritize business agility, demand for IIoT will further gain ground across industry verticals. For instance, in September 2022, ABB, a technology leader in automation and electrification, partnered with Samotics, an asset health monitoring system provider, to enhance its condition monitoring services. They will use the resources of each organization to provide information about the health and energy efficiency of the machines. ABB will incorporate the plug-and-play monitoring IIoT solution from Samotics into its digital offering as a first step.

Monitoring Technique Insights

The vibration monitoring segment led the industry in 2021 and accounted for the maximum share of 28% of the overall revenue. The high share can be attributed to the rising demand to detect wear, imbalances, and misalignments. The rising penetration of monitoring vibration has played a pivotal role in offering insights into detecting faults at an early stage. Vibration monitoring solution has witnessed an uptick in minimizing maintenance, integration, and operational complexities. Industry players have upped investments in continuously monitoring equipment, including cooling tower gearboxes, boiler feed pumps, steam turbines, and gas. End-users will likely embed vibration monitoring into their system to foster reliability and protect data.

The technology will remain highly sought-after for diagnosing emerging issues and robust troubleshooting. The corrosion monitoring technique segment is predicted to foresee significant growth in the forecast years. The corrosion monitoring technique has garnered immense popularity on the back of the rising need to monitor and assess equipment structures, components, facilities, and process units to detect corrosion. The need to boost the serviceability and life of assets and minimize costs has encouraged industry players to invest in corrosion monitoring. End-users are likely to focus on facets to detect early warning signs of corrosion.

With corrosion posing problems across oil & gas, metal & mining, and power generation sectors, industry players are expected to invest in technologies monitoring corrosion. With business strategies for monitoring equipment and erosion gaining ground, the industry share could witness an upward trajectory. For instance, in October 2022, Southwest Research Institute, a research & development organization, developed transducers for the next generation that leverages ultrasonic-guided wave technology to find irregularities in pipes and allows consumers to halt leaks before they start. The device acts as a corrosion monitoring, where it efficiently identifies where pipe corrosion occurs.

Component Insights

The hardware segment led the industry in 2021 and accounted for the maximum share of 70% of the global revenue. The higher share can be attributed to the increasing use of infrared sensors, ultrasonic detectors, vibration analyzers, and accelerometers, among others. The technologies used in condition monitoring have specialized knowledge of the areas where various types of failure can occur. Hardware or sensor manufacturers offer their products in two varieties, static & dynamic, depending on the different frequencies the hardware or sensors have. In addition, this allows manufacturers to minimize machine downtime and implement successful predictive maintenance. The software segment is expected to showcase significant growth over the forecast period.

End-users have sought machine conditioning software to track the status of gearboxes, electric motors, pumps, and other machinery during operation. Industry players must prioritize IoT sensors to detect modifications that can allude to a developing malfunction and fault. Moreover, advancements have prompted end-users, including the oil and gas industry, to emphasize the software to monitor vibration strain, types, the number of monitored machines, rotational speed, and temperature, among others. The application of state-of-the-art technologies has expedited the demand for software for real-time tracking of machine condition data and automated detection of inconsistencies between the preset threshold of condition parameters and the sensor data.

Moreover, advanced economies have witnessed traction for AI-based condition monitoring systems for machine enhancements and forecast of a possible machinery breakdown in the wake of overheating, corrosion, and other aspects. For instance, in April 2022, Emerson Electric Co., a provider of engineering services for commercial, industrial, and consumer markets, upgraded its machinery health platform. The upgraded version would help critical workers outside and inside the control room more rapidly identify and address typical equipment failures before they impact plant availability by bringing data from edge analytics devices directly to them.

Deployment Insights

The on-premises segment led the industry in 2021 and accounted for 85% of global revenue. On-premises is often managed or self-hosted and ensures organizations meet specific market requirements enabling the teams to optimize their workload and create a highly customizable environment. To ensure the machines are operating efficiently, engineers need the ability to keep track and monitor the status and enable teams to pinpoint long-running or inefficient machines easily. The cloud segment will witness significant growth in the coming years. This can be attributed to various factors, including scalability, flexibility, security, privacy, collaboration efficiency, and cost savings.

High demand for the Software as a Service (SaaS) model as potential cost savings is one of the key drivers of the market for cloud-based machine condition monitoring systems.  Users may easily see and analyze data to ensure the system functions at its best due to a user-friendly, cloud-based interface. A cloud-based solution allows users to monitor their machines around the clock through a web-based dashboard, giving them a rapid overview and a thorough, in-depth analysis. For instance, in November 2022, Bentley Systems, Inc. announced the launch of cloud-based iTwin-asset-specific solutions that support iTwin IoT, iTwin capture, and iTwin, experience to deliver real-time asset health monitoring. The asset health-specific solution would help reduce risk and address the growing regulatory requirements of the machine.

End-use Industry Insights

The power generation segment accounted for the maximum revenue share of above 18% in 2021. The growth is attributed to the high failure rate for some components, such as increased repair costs, entire system overhauls, and unsafe work environments in the power generation industry. As this industry is product-intensive, it requires continuous machinery maintenance. Furthermore, the oil & gas segment will acquire a significant share due to a bullish demand for oil analysis, thermography, and vibration monitoring. The industry has witnessed unprecedented demand for condition monitoring to keep up with the demand for sensor applications to boost efficiency and productivity.

The need for protecting and monitoring assets, along with detecting leaks in pipelines, piping, and pressure vessels, has prompted forward-looking companies to foster the efficiency and health of machines. The trend for remote monitoring and predictive asset management could propel the growth potential, encouraging stakeholders to strengthen their footprint. The rising security and asset performance footfall has spurred the need for condition monitoring for upstream & downstream operations. Amidst rising energy costs, leading companies are poised to invest in condition-monitoring software and tools.

The metal and mining segment is estimated to exhibit a significant growth rate during the assessment period, partly due to the high demand to minimize costs, streamline maintenance, and optimize capacity. Technological advancements and the strong demand for software solutions will augur well for segment growth. In addition, the rising footprint of online monitoring systems has expedited the footfall of intelligent algorithms. Furthermore, the innate ability to schedule maintenance and the applications of predictive maintenance will encourage leading companies to invest more in condition-monitoring software and tools.

Industry participants are poised to reinforce mining assets, including ball mills, dragline excavators, rock crushers, and shovels. For instance, in October 2022, Ferrit, a provider of efficient transport solutions in mines, stated that to ensure the customer has access to the data acquired by the machine, service 4.0 has been designed. It would help in creating long-term maintenance plans for their machinery based on analysis of the data collected remotely by the data logger.

Monitoring Process Insights

The portable condition monitoring segment held the largest revenue share of above 50% in 2021. Portable condition monitoring assists in gathering and analyzing data concerning critical machinery. They are easy to operate, light, quick, and incredibly capable. The portable machine diagnostics operation type’s features and attributes will propel the segment's growth. In addition, condition monitoring sensors have gained ground for better decision-making across the end-use sectors. Industry players are also inclined to use portable wireless sensors to troubleshoot complex system failures and condition monitoring. Industry players have also implemented Bluetooth and SaaS platforms to foster flexibility and streamline operations.

The online condition monitoring process has emerged as a promising segment due to the rising demand for data monitoring and management to reduce downtime and defects and bolster machine life. Leading manufacturers are poised to prioritize advanced monitoring systems to expand penetration across untapped regions. The need for real-time metrics and alert notifications has triggered the demand for the online monitoring system to boost the machine’s health information. For instance, in July 2022, Valmet, a supplier, and developer of automation systems stated that online condition monitoring systems are typically used in industries like oil & gas, power generation, and metals & mining.

The demand for online condition monitoring is high as portable monitoring procedures are challenging to use in production plants located in remote areas. The penetration of sensors in monitoring technology has fueled the trend for online monitoring systems for data accuracy. Furthermore, the emergence of industrial IoT has furthered the footfall of SaaS for economies of scale and leveraged companies to emphasize core competencies. Prevailing trends suggest bullish demand for remote monitoring will underpin the machine condition monitoring industry share. Avenues of growth and innovation are likely to emanate from preventive measures to minimize latencies and costs.

Regional Insights

North America dominated the industry in 2021 and accounted for the largest share of over 35% of global revenue. The U.S. and Canada are slated to provide promising growth opportunities against bullish demand from power generation, aerospace, oil & gas, marine, and food & beverages industries. The trend for vibration monitoring has become pronounced for oil condition monitoring in the oil and gas platform machinery lubricants. With a surge in offshore oil exploration across North America, forward-looking companies could strengthen their position in the regional market. Oil condition monitoring is poised to receive an uptick in predictive maintenance and reliability.

The expanding footfall of the aerospace sector has impeded North America’s market growth. Prominently, uptake in the number of airline traffic across the U.S. and Canada has augured well for key players striving to underpin their portfolios. According to the Bureau of Transportation Statistics, in May 2022, the U.S. airlines carried approximately 71.2 million systemwide (domestic and international) scheduled service passengers. Moreover, machine condition monitoring equipment has gained ground from the growing prominence of sensors, including vibration-, pressure- and temperature monitors. The aviation industry is likely to cash in on the innate ability of condition monitoring systems to address and detect pending failure, minimize the collateral damage to the aircraft, and enhance dispatch reliability.

Europe will gain ground with the rising prominence of the automotive sector across countries, such as the U.K., France, Germany, Italy, and Spain. Well-established players are poised to inject funds into condition monitoring systems to tap into the global industry. The advent of Industry 4.0 and the adoption of IoT have fostered the trend for machine monitoring products and services across the region. For instance, IoT-powered solutions have become instrumental in viewing real-time data and offering alerts. Moreover, cloud deployment and the demand for SaaS for scalability, efficiency, and cost-saving have prompted automakers to bank on condition monitoring software and tools.

Furthermore, Europe could emerge as a lucrative region for automakers due to the rising penetration of machine learning and artificial intelligence. The industry dynamics could propel the demand for online condition monitoring, boosting the market growth. For instance, in July 2021, Continental, a German company, announced the acquisition of a minority stake in Feelit, an Industry 4.0 startup. The strategic deal will help the former to bolster its Industry 4.0 footprint in remote condition monitoring and predictive maintenance across manufacturing, automotive and industrial applications.

Key Companies & Market Share Insights

Incumbent players and startups are poised to emphasize organic and inorganic strategies, including mergers & acquisitions, product offerings, technological advancements, innovations, and geographical expansion. The trend for predictive maintenance and the growing footfall of IoT will serve as catalysts to expand their footprint across untapped areas. For instance, in February 2021, ABB announced the deployment of asset condition software at a coal mine in China. It could enable the mining company to minimize costs, streamline maintenance, and boost capacity. The expanding footprint of AI-powered technologies has encouraged leading companies to enhance their footprint.

For instance, in January 2022, Ford and ADT Inc. announced an infusion of funds to augment vehicle security with advanced technology. Moreover, companies have also prioritized advanced interfaces to prevent downtime. In April 2022, Emerson reportedly contemplated updating the machinery health platform to leverage end-users to adopt a modern interface to address and identify a host of standard equipment failures before the influence on plant availability. In April 2022, SKF teamed up with Amazon Web Services to provide an easy-to-scale and -use condition monitoring and analysis solution. The company expects it will redefine industrial machine reliability & predictive maintenance. Some of the prominent players in the global machine condition monitoring market include:

• ALS

• Emerson Electric Co.

• General Electric

• Honeywell International Inc.

• Megget PLC

• National Instruments Corp.

• Parker Hannifin

• Rockwell Automation, Inc.

• SKF

• Schaeffler AG

Machine Condition Monitoring Market Report Scope

Global Machine Condition Monitoring Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global machine condition monitoring market report based on monitoring technique, component, deployment, monitoring process, end-use industry, and region:

• Monitoring Technique Outlook (Revenue, USD Million, 2017 - 2030)

  • Vibration Monitoring

  • Oil Analysis

  • Thermography

  • Corrosion Monitoring

  • Others

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premises

• Monitoring Process Outlook (Revenue, USD Million, 2017 - 2030)

  • Online

  • Portable

• End-use Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • Power Generation

  • Automotive

  • Oil & Gas

  • Metal & Mining

  • Aerospace

  • Food & Beverages

  • ChemicalsMarine

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Central & South America

    • Brazil

  • MEA