Equipment As A Service Market Size Is Anticipated To Reach USD 27,804.4 Million By 2030

 San Francisco, 15 March 2023: The 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

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.

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.

Access Research Report of Equipment As A Service Market @ https://www.grandviewresearch.com/industry-analysis/equipment-as-a-service-market-report

Equipment As A Service Market Report Highlights

• 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

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

Access Press Release of Equipment As A Service Market @ https://www.grandviewresearch.com/press-release/global-equipment-as-a-service-market