Smart Connected Assets and Operations Market

Smart Connected Assets and Operations Market Outlook (2023 to 2033)

The smart connected assets and operations market is estimated to capture a valuation of US$ 230.8 billion in 2023 and is projected to reach US$ 458.28 billion by 2033. The market is estimated to secure a CAGR of 7.1% during the forecast period.

Various Factors Influence the Market such as:

• Adoption of the Internet of Things: The significantly growing adoption of the Internet of Things drives the global market. Internet of Things technologies are connected with several sensors, devices, and systems to allow real-time data analysis, operation, and control of assets. This connectivity improves decision-making, reduces costs, and improves efficiency and productivity.
• Increasing Demand for Asset Optimization: Several end-use industries, including energy, healthcare, manufacturing, and transportation, are focused on optimizing assets' performance. Further, the demand for smart connected assets and operations is increasing to minimize downtime, improve efficiency and utilization, and provide real-time insights.
• Growing Complexity of Operations: It is difficult for various organizations and businesses to manage their assets and operate manually. The adoption of smart connected assets and operations is capable of helping these organizations to run smoothly and reduce human errors. Further, the increasing better control, management, and visibility are fueling the global market.
• Advancements in Artificial Intelligence and Data Analytics: The increasing data analytics and artificial intelligence provide large amounts of data and drive organizations with meaningful insights. Technologies such as machine learning, optimized performance, and AI algorithms fuel the global market.
• Focus on Safety: Various industries such as manufacturing, oil & gas, and mining focus on stringent regulations and safety. Adopting intelligent connected assets and operations provides real-time monitoring, detecting early errors, compliance reporting, and maintaining security.
• Cost Reduction and Efficiency Improvement: Smart connected assets and operations offer organizations opportunities to improve efficiency and reduce costs. Moreover, companies and industries can minimize their time, lower energy, and optimize resources by saving costs and advancing the global market.

Smart Connected Assets and Operations Market, 2018 to 2022 Historical Sales, Compared to 2023 to 2033 Future Outlook

As per Future Market Insights (FMI), the global market grew at a steady CAGR of 10.2% between 2018 and 2022. The market captured a valuation of US$ 132.90 billion in 2018 and US$ 196.0 billion in 2022.

The growing advanced technologies such as the Internet of Things, machine learning, and artificial intelligence have driven the global market. It provides real-time data and cost-saving solutions and enhances decision-making by leveraging real-time insights.

Intelligent connected assets and operations handle vast data through emerging cloud computing systems. Various end-use industries such as transportation, healthcare, energy, mining, and manufacturing are notably growing the market size.

Top Countries in the Global Market

APM Software and Platforms Segment Dominate the Global Market

Based on the module, the APM software and platforms segment dominates the global market by capturing a CAGR of 7% during the forecast period. The increasing demand for assets to improve performance and reduce costs drives the global market.

APM software and platforms provide advanced monitoring capabilities and analytics to detect early issues and schedule maintenance. It is vital in maintaining analyses and collecting real-time monitoring systems to provide relevant and actionable insights.

Integrating big data and the Internet of Things is increasing the adoption of APM software and platforms. These solutions are offered to identify inefficiencies, perform analytics, and make data-driven decisions.

Various industries such as energy, utility, and oil and gas are increasing the adoption of APM software and platforms to enhance the global market size. APM software and platforms secured a CAGR of 10% between 2018 and 2022.

Automotive and Transportation Sector Leads the Global Market

Based on industry, the automotive and transportation sector is dominating the global market by securing a CAGR of 6.9% during the forecast period. These industries are implementing connected technologies to operate and optimize their assets. The automotive sector includes industrial processes and manufacturing that drive the global market significantly.

Automotive solutions improve productivity, reduce labor work, and optimize seamless operations, increasing the adoption of smart connected assets and operations. These operations improve production, resource utilization, and quality control. The transportation sector played a crucial role in driving the global market through activities including fleet management, public transportation, and logistics.

There is growing adoption of connected technologies such as GPS tracking, route optimize, telematics, real-time data analytics, and route optimization. These capabilities improve operational efficiency, enhance customer experiences, and save costs. These also contribute to driving the global market through the Internet of Things, artificial intelligence, and other technologies by 2033. The Automotive and transportation sector secured a CAGR of 9.7% from 2018 to 2022.

Sudip Saha

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

Top Countries Influenced the Global Market

How is China Dominating the Smart Connected Assets and Operations Market?

China is estimated to secure a valuation of US$ 107.0 billion with a CAGR of 8.5% in the global market by 2033. China is a significant player that contributes to dominating the global market through various factors, including:

• Large Manufacturing Base: China has a vast manufacturing base across several industries, such as consumer goods, electronics, and automotive. Manufacturing processes enhance production processes and improve quality and operational efficiency.
• Government Support and Investment: The government of China actively supports and promotes initiatives toward intelligent connected assets and operations. For instance,
• The government of China initiated Made in China 2025 to enhance automation, digitalization, and smart manufacturing. The government collecting funds for innovative manufacturing technologies, including data analytics, the Internet of Things, and artificial intelligence.
• Strong Internet of Things System: China has a robust Internet of Things ecosystem with various technology companies specialized in software solutions and connectivity. These companies are developing intelligent sensors, data analytics tools, and connectivity platforms to fuel the market in China. Additionally, the availability of the Internet of Things ecosystem and well-established infrastructure propel China market further.
• Focus on Industry 4.0: China has a strong presence in Industry 4.0 to promote digital transformation around various industries. The growing upgradation of manufacturing and modernized processes by adopting advanced technologies such as cloud computing, big data analytics, and artificial intelligence drive China's market.
• Strong Market: China has a vast population that notably surges the demand for connected products by various industries. Companies in China invest hugely in these operation solutions to gain colossal market revenue.

These are a few factors significantly driving China's market during the forecast period.

Technological Innovations Drive Japan Market

Japan is one of the significant countries that is securing a CAGR of 7.3% with a valuation of US$ 65.8 billion by 2033. Several factors drive Japan’s smart connected assets and operations market, including:

• Technological Innovation: Japan is vast in advanced technology and innovations. The country is known for its innovations in various industries, including automation, robotics, and manufacturing processes. Companies in Japan are investing in developing cutting-edge technologies to provide real-time monitoring, optimization, and data collection.
• Manufacturing Excellence: The growing advanced technologies in automotive, electronics, and machinery industries fuel Japan's market. These industries are focused on improving efficiency, productivity, and quality control by integrating connected technologies.
• Aging Infrastructure and Maintenance Focus: Japan is significantly growing its aging infrastructure in various sectors, such as utility, energy, transportation, and electronics. The country invests a considerable amount in research and development activities to enable remote controlling and optimize assets performance. These connected assets ensure safety, reliability, and longevity in the country.
• Strong Collaboration and Partnerships: Companies in Japan collaborate with other essential players to maximize revenue. They further adopt strategic innovations and collaborate with stakeholders and research institutes to develop advanced products with the latest technologies.

Performance of the United States in the Global Market

The United States is anticipated to capture a valuation of US$ 64.5 billion with a CAGR of 5.9% in the global market by 2033. The country is influenced by various essential factors as follows:

• Technological Leadership: The United States is enhanced in innovations and technologies such as the Internet of Things, artificial intelligence, and data analytics. The United States companies are developing technologies by increasing the adoption of smart connected assets and operations such as connectivity technologies and advanced analytics tools.
• Strong Manufacturing Sector: The United States is notably expanding the global market by growing innovations in manufacturing sectors. The manufacturing sector improves operational efficiency, reduces cost, and improves productivity in the country. Furthermore, manufacturing companies are integrated with connected technologies for seamless and effective processes in the country.
• Huge Investment in Research and Development: The United States is focused on research and development activities to innovate and develop intelligent connected assets operations solutions. Public and private companies invest significantly in research activities to create cutting-edge products.
• Focus on Sustainability: The United States government initiatives regulation to reduce environmental impact by focusing on sustainability. Adopting intelligent connected assets and operations improves sustainability, reduces waste, and optimizes energy. Further, the United States promotes green initiatives to fuel the market size.

Competitive Landscape

The market is highly consolidated due to regional and global players' presence. Key players worldwide focus on developing advanced products by adopting the latest technologies, such as artificial intelligence and cutting-edge technologies. These players are also developing improved products as per consumers' requirements.

Key players are adopting various marketing methodologies to drive the market to another height. These methodologies include mergers, collaborations, acquisitions, product launches, and agreements. These players are adopting strategic mergers and acquisitions and allying with regional distributors to strengthen their supply chain channels.

Market players also emphasize fast product approvals, product development, and patenting. New market entrants focus on new product launches to establish their market presence.

Other Key Players Operating in the Smart Connected Assets and Operations Market

• IBM Corporation
• General Electric (GE) Digital
• Siemens AG
• Schneider Electric SE
• ABB Ltd.
• Microsoft Corporation
• SAP SE
• Cisco Systems, Inc.
• Honeywell International Inc.
• Rockwell Automation, Inc.
• Oracle Corporation
• Hitachi, Ltd.
• Bosch Rexroth AG
• Huawei Technologies Co., Ltd.
• Emerson Electric Co.
• Johnson Controls International plc
• Accenture plc
• C3.ai, Inc.
• OSIsoft LLC (acquired by Aveva Group)

Recent Developments in the Global Smart Connected Assets and Operations Market

• IBM Corporation: IBM has been focusing on developing AI-powered analytics and cloud-based solutions to optimize asset management, predictive maintenance, and operational efficiency. They have also been actively involved in partnerships and collaborations to enhance their Smart Connected Assets and Operations capabilities.
• General Electric (GE) Digital: GE Digital has been leveraging its Predix platform to provide Industrial IoT solutions for asset performance management, predictive maintenance, and operations optimization. They have focused on integrating advanced analytics, AI, and machine learning technologies into their offerings.

Scope of Report

Smart Connected Assets and Operations Market by Category

By Module:

• Hardware
  • Processors
  • Sensors
  • Network Connectivity
• APM Software & Platform
  • Aspects of APM
  • Application of APM Solution
• Services
  • Professional Services
  • Managed Services

By Industry:

• Automotive & Transportation
  • Roadways
  • Railways
  • Airways
  • Maritime

Energy and Power:

• Healthcare
  • Telemedicine
  • Clinical Operations and Workflow Management
  • Connected Imaging
  • Inpatient Monitoring
  • Medication Management
  • Other
• Smart Agriculture
  • Precious Farming
  • Livestock Monitoring
  • Fish Farming
  • Smart Greenhouse
  • Others

Factory Automation:

• Others - Metal & Mining, Food & Beverages, and Textile

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa