In this research, Frost & Sullivan's expert analysts thoroughly examine the following market segments:

• Asset performance management and asset reliability software
• Asset condition monitoring software

The study also includes the following application segments:

• Oil and gas
• Power generation
• Power transmission and distribution
• Chemical
• Metals and mining
• Food and beverages
• Pharmaceutical and biotech
• Water and wastewater
• Pulp and paper

Market Overview

Predictive Maintenance and Software-as-a-Service-based PAM to Gain Momentum in the Market

The rising tendency among asset-intensive companies to view maintenance as a potential area of profit rather than expenditure has driven investments in PAM software. Its offer of predictive maintenance, which is more cost-effective than routine maintenance, is attracting business from asset-intensive organizations. The maintenance teams in these companies are looking to leverage PAM software’s cost optimization benefits to cope with the increasing global competition, tougher regulations and intense focus on improving profitability. In addition, PAM software’s ability to improve efficiency and extend the life of assets has popularized it in emerging countries, which are often challenged by a large installed base of ageing infrastructure and market congestion due to hyper-growth. This will place the spotlight on the software-as-a-service (SaaS) model due to its subscription-based approach, scalability and flexibility.

Although the opportunities are many, the lack of off-the-shelf solutions and complications associated with the implementation of the PAM software tend to dampen market growth. In addition, complexities in integration, lack of experts within the customer organization and the high costs of full-fledged PAM software tend to limit the uptake of PAM software.

PAM software and related services have gained considerably from the advancements in industrial Internet of Things (IIoT) technologies. Therefore, strategic partnerships with asset management service providers and niche IIoT technology companies are critical for driving the mainstream PAM market. Service providers are looking to break into new application sectors by spreading awareness about their cloud offerings. The biggest end-user market, however, continues to be the energy industry, which accounted for 60 percent of the market share in 2015, prompting greater customization of PAM applications for this sector.