Equipment As A Service Market Company Revenue Shares And Analysis Report 2030

Equipment As A Service Market Growth & Trends

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.

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:

Based on the Equipment Insights, the market is segmented into Air Compressor, Pump, Power Tools, Ground Power Units, Laser Cutting Machines, Printing Machines, CNC Machines, Material Handling System, Packaging Machine, Excavators, Cranes, Others.

• 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.
• 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.
• 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.
• 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.

Based on the End-use Insights, the market is segmented into Construction, Material Handling, Mining, Manufacturing, Packaging.

• 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.
• 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.

Based on the Financing Models Insights, the market is segmented into Subscription-based and Outcome-based.

• 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.
• 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.

Equipment As A Service Regional Outlook

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

Key Companies Profile & 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.

Some of the prominent players operating in the global equipment as a service market include,

• 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

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