IoT in Asset Management Market Size (2024 – 2030)

According to recent research, the global IoT in Asset Management Market reached a valuation of USD 25.6 billion in 2023 and is anticipated to expand to approximately USD 40.20 billion by 2030. Key drivers propelling industry growth include the increased adoption of IoT-enabled remote asset management solutions to enhance asset efficiency, the integration of predictive maintenance strategies to promote remote asset management adoption, and the declining costs of IoT-based sensors, optimizing asset life cycles through remote asset management solutions.

Industry Overview:

Asset management stands as a pivotal element in enabling manufacturing enterprises to gain a competitive edge. Leveraging innovative IoT-based solutions to bolster asset management capabilities significantly impacts business quality. Within the realm of overall equipment efficiency (OEE) for production units, three critical facets—availability, performance, and quality—emerge. IoT-centric solutions aid in pinpointing and addressing specific issues such as component shortages, faulty sections, and areas with potential for improvement.

These enhancements can lead to achieving an 80% OEE. The seamless operation of successful businesses hinges on interconnected processes working in harmony. Failures in asset management and production processes can result in disruptions along the supply chain. IoT solutions serve to bridge human capital and assets through automated systems and processes, thereby enhancing overall work productivity, ensuring regulatory compliance, mitigating risks, and facilitating asset monitoring from any location, at any time, and through any device. Similarly, IoT fosters a centralized, cloud-based environment for the automatic aggregation, updating, and management of all data in a singular repository, as opposed to scattered across various databases.

IoT-enabled tracking systems grant pertinent personnel immediate data access, ensuring consistency across departments. IoT-based solutions empower companies to effectively track all assets, oversee recovery and maintenance efforts, identify problematic areas, manage inventory, establish supplementary systems, and efficiently assess risks while adhering to asset use regulations and conditions. Consequently, business owners gain the capacity and time to assess asset quality, quantity, and locations to refine workflows, minimize waste, and avert sudden equipment failures, thereby sustaining a profitable operational framework.

Impact of COVID-19 on the IoT in Asset Management Market

The onset of the COVID-19 pandemic prompted many companies to transition to remote work setups, although some continue to operate on-site. Others anticipate a return to the workplace, whether full-time or in a hybrid on-site and virtual capacity. The following discussion highlights several IoT asset management tools designed to mitigate COVID-19 transmission risks while offering additional business advantages. Business proprietors are actively seeking ways to create safe work environments, facilitating employees' return to workspaces with reduced risks of coronavirus transmission.

The impetus toward supporting social distancing measures and prioritizing healthcare needs has catalyzed a technological renaissance within various facilities. Naturally, even before the global pandemic, companies prioritized the well-being of their employees and guests. Standard practices regarding workplace navigation, office aesthetics, and visitor protocols were well-established. However, as a leading global architecture firm, Gensler, points out, the landscape has shifted. "When we reconnect with our communities, we'll seek environments that prioritize safety." Thanks to advancements in IoT asset management, creating a post-COVID-19 office environment conducive to employee well-being is becoming increasingly feasible. Expect to witness a new work landscape that integrates the following features, in whole or in part:

• Temperature monitoring at entry points
• Enhanced air filtration systems designed to minimize communal exposure
• Revised office layouts promoting social distancing
• Enhanced cleaning protocols
• Integration of contactless technologies for various facilities (e.g., kitchens, elevators)
• Implementation of contactless entry systems

Market Drivers:

Enhanced Remote Asset Performance Management through IoT Propels Market Growth:

The operational costs associated with assets decrease as uptime, utilization, and availability improve—a framework achievable through IoT integration. IoT solutions prove instrumental in tracking and monitoring assets, collecting data on operational and health parameters across various asset sub-components. With this wealth of data at their disposal, businesses can optimize asset utilization and uptime through predictive maintenance and usage insights. Additionally, external parameters aid in the comprehensive analysis of usage patterns, informing strategic decisions regarding asset acquisition and leasing, thus opening up new avenues for equipment vendors.

Innovative Service Business Models Driven by IoT Adoption Fuel Market Growth:

The amalgamation of IoT in manufacturing and asset management is poised to transform the revenue landscape, shifting from the traditional 80:20 product-service split to a more balanced 60:40 ratio. Swift post-sales support and remote diagnostic capabilities in case of equipment malfunctions significantly expedite decision-making processes and enable the timely deployment of appropriate resources. These transformative shifts result in reduced downtimes and costs across support, warranty, and mobility domains. Leveraging IoT technologies and operational data metrics, manufacturers can pioneer lucrative service models, consequently expanding revenue streams. Manufacturers now have the flexibility to offer equipment on a rental basis, deviating from the traditional outright sales model. Moreover, insights gleaned from Quality Assurance team feedback empower asset management teams to undertake corrective measures in subsequent product iterations, thereby streamlining development and testing phases.

Market Restraints:

Escalating Initial Costs of Asset Management Systems Hinder Market Growth:

The burgeoning initial costs associated with asset management systems emerge as a primary hindrance impeding market expansion. Compromises between accuracy, range, and power consumption in Real-Time Location System (RTLS) tags, coupled with the imposition of lockdowns and social distancing mandates, may further constrict commercial growth in the upcoming months, posing challenges to the IoT asset management market within the forecasted period. The substantial upfront investment required for IoT technology often proves prohibitive for many startups, prompting a reluctance to adopt this cutting-edge technology.

IoT in Asset Management Market – By Solution

• Real-Time Streaming Analytics
• Security Solutions
• Data Management
• Remote Monitoring
• Network Bandwidth Management

In terms of solutions, the segment of data management solutions captured a substantial market share exceeding 20% in the year 2021. This growth is primarily attributable to the heightened utilization of IoT devices for overseeing industrial processes and assets, forecasting potential failures, and mitigating disasters that could impact production. As significant volumes of data were generated by these intensive applications, the demand for data management solutions saw a notable increase, thereby establishing dominance within the market.

The security solutions segment is anticipated to exhibit the swiftest growth rates during the projected period. The escalating necessity to safeguard data, connected devices, and associated assets will propel the overall solution market's growth. These solutions are tailored to address diverse customer needs from an authentication, security, and maintenance standpoint. Furthermore, the persistent rise in awareness regarding security threats, data breaches, and the susceptibility of connected devices to hacking continues to fuel the expansion of this segment.

IoT in Asset Management Market - By Services

• Professional Services
• Managed Services

Regarding services, the Professional Services segment accounted for the majority share of sales in 2021, exceeding 65%. The escalating demand for skilled professionals proficient in software management, installation, and troubleshooting is expected to drive the need for professional services. These services enable businesses to optimize their resources, curtail management expenses, and augment profitability. Additionally, professional services aid organizations in enhancing resource management, boosting efficiency through improved collaboration and integrated knowledge management, better planning, and fostering growth in the professional services segment.

The managed services segment is poised for substantial growth during the projected period. This growth is attributed to the added functionalities of managed services, such as remote monitoring and cost-effective management of IT infrastructure with a subscription-based pricing model. Moreover, as the adoption of IoT-based solutions surges, retailers are increasingly prioritizing data security and privacy concerns, thus opting for managed services to handle expanding databases. The rising demand for cloud-based managed services and the growing corporate reliance on IT resources to enhance business productivity also emerge as pivotal factors contributing to the growth of the managed services segment.

IoT in Asset Management Market - By Industry

• Retail
• Healthcare
• Transportation & Logistics
• Utilities
• Manufacturing
• Others

In terms of industries, the manufacturing sector held the largest market share in 2021, surpassing 35%. The substantial share of this segment primarily stems from the mounting need to bolster digital transformation across the manufacturing landscape. Furthermore, manufacturers are swiftly adapting to meet evolving requirements by intensifying reliance on connected devices to streamline industrial operations, amplify productivity, and shorten time to market. Strategic decision-making that incorporates technology is becoming pivotal for manufacturers in addressing the escalating global competition while implementing intelligent solutions to enhance business productivity and profitability.

The healthcare segment is forecasted to register the highest growth rates during the projected period. With the heightened adoption of connected devices for monitoring and tracking patient health during the COVID-19 pandemic, healthcare institutions are making significant investments in IoT technologies offering real-time insights. Additionally, the burgeoning demand for personalized healthcare and the mounting necessity for digital transformation across the healthcare sector are poised to unveil numerous opportunities in the market during the forecasted period.

IoT in Asset Management Market - By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World
• Latin America
• The Middle East
• Africa

Geographically, North America spearheaded the market in 2021, commanding a revenue share exceeding 30%. This dominance can be ascribed to the evolution of infrastructure, widespread adoption of cutting-edge networking technologies, and the burgeoning penetration of cloud technologies. The United States emerges as the primary contributor to the North American market. Furthermore, the presence of renowned industry leaders and their extensive customer base play pivotal roles in the sustained growth of the North American market.

The Asia-Pacific region is poised for significant growth during the projected period. The region is characterized by high population density, proliferation of smartphones, and continued deployment of high-speed data networks. Additionally, a substantial number of smartphone users in the region access social media through their mobile devices, thereby presenting immense opportunities for IoT implementations. Moreover, the increasing focus of governments on educating Small and Medium Enterprises (SMEs) about the widespread adoption of smart devices is anticipated to unveil numerous opportunities in the market during the projection phase. This trend is equally reflected in Europe, where despite the challenges posed by the pandemic, the IoT market demonstrated modest growth in 2020. However, by 2021, spending on IoT technologies, solutions, and services in Europe is projected to reach $202 billion (exceeding $200 billion for the first time). Moving forward, Europe's IoT expenditure is anticipated to sustain double-digit growth.

IoT in Asset Management Market Share by Company:

Companies such as:

1. Verizon
2. AT&T
3. Perficient
4. Oracle
5. Crayon Group
6. IBM
7. Calsoft Inc.
8. NFC Group
9. SAP
10. Rapid Value
11. Siemens
12. Accenture
13. Alcatel-Lucent
14. Cisco Systems
15. KloudData

AT&T and Nokia have collaborated to establish a Munich-based innovation studio aimed at propelling the global adoption of current and next-generation Internet of Things (IoT) solutions. This partnership enables AT&T to address business challenges related to IoT solutions such as asset tracking, thereby facilitating AT&T's penetration into the European ecosystem.

Siemens has acquired Pixeom's edge technology with the intention of bolstering Siemens' forthcoming industrial edge ecosystem platform. This acquisition is poised to streamline the analysis, development, and management of edge applications within production environments utilized by multiple manufacturers.

Hitachi unveiled Hitachi Digital Solutions, a logistics and delivery optimization service, in February 2019. This solution focuses on crafting optimal delivery plans for logistics operations in Japan, China, and Thailand by leveraging advanced digital technologies including AI and IoT.

NOTABLE OCCURRENCES IN THE IOT IN ASSET MANAGEMENT MARKET IN THE RECENT PAST:

• Product Launch - In April 2021, Hitachi introduced the Hitachi Digital Solution, a logistics and delivery optimization service initially launched in February 2019. This solution is tailored to generate optimal delivery plans for logistics operations in Japan, China, and Thailand, harnessing advanced digital technologies such as AI and IoT.
• Innovation - In 2020, AT&T enabled public safety agencies nationwide to utilize the FirstNet App Catalog in their response to the COVID-19 pandemic. FirstNet serves as America's public safety communications platform, aiding in addressing public safety needs. First responders are leveraging this app ecosystem to tackle everyday emergencies across diverse communities, both large and small.
• Company Acquisition - Siemens acquired Pixeom's edge computing platform in early 2020. This platform stands as a crucial component of Siemens' forthcoming industrial edge ecosystem. Through this open ecosystem, companies can seamlessly analyze, create, and manage edge applications within data and factory environments, catering to applications and devices from various manufacturers.