Equipment As A Service Market Report
Equipment as a Service Market by Equipment (Air Compressor, Pump, Power Tools, Ground Power Units, Laser Cutting Machines, Printing Machines, CNC Machines, Material Handling System, Packaging Machine, Excavators, Cranes, and Others), End-use (Construction, Material Handling, Mining, Manufacturing, and Packaging), Financing Models (Subscription-based and Outcome-based), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032
Equipment as a Service Overview
Equipment as a Service (EaaS) is a business model where companies offer equipment and machinery to customers on a subscription or pay-per-use basis instead of selling it outright. This model allows businesses to access costly equipment without the initial heavy investment, as they pay regular fees for usage. EaaS provides flexibility and scalability, enabling customers to adjust their equipment needs as required, while the provider takes responsibility for maintenance, upgrades, and support. By staying updated with the latest technology, customers benefit from optimal equipment performance without the burden of ownership. EaaS also reduces risks associated with equipment obsolescence or unexpected breakdowns, ensuring uninterrupted operations. Moreover, the model contributes to environmental sustainability by centralizing equipment management and disposal.
Global Equipment as a Service Market Analysis
The global equipment as a service market size was $XX million in 2022 and is predicted to grow with a CAGR of XX%, by generating a revenue of $XX million by 2032.
COVID-19 Impact on Global Equipment as a Service Market
As the global supply chains were disrupted, there were shortages of equipment and components, causing delays and increased costs for EaaS providers. Reduced demand for new equipment and technology emerged due to economic uncertainty, leading to businesses postponing investment and expenditure plans. Moreover, the shift to remote work and digital solutions decreased the demand for physical equipment while increasing the need for digital equipment. Health and safety concerns also made some companies reconsider shared equipment models. Financial constraints during the pandemic deterred organizations from committing to long-term EaaS contracts.
However, there were growth opportunities in critical industries like healthcare as the demand for medical equipment increased. As economies began to recover, there was a potential rebound in the equipment as a service market as businesses resumed equipment upgrades and investments.
Increasing Adoption of EaaS by Various Industries Owing to its Cost Effectiveness to Drive the Market Growth
The equipment as a service market is being driven by several key factors. Businesses are attracted to EaaS due to its cost-saving potential and predictable expenses, as it allows them to avoid significant upfront capital investments and instead pay a subscription or usage-based fee. Technological advancements played a crucial role, as EaaS provides access to state-of-the-art equipment without frequent upgrades. The flexibility and scalability of EaaS are also appealing to businesses, as they can adjust their service plans based on demand. Moreover, EaaS offers maintenance, repair, and technical support services, relieving businesses of equipment upkeep responsibilities. Sustainability efforts and the circular economy drove the adoption of EaaS, as it promoted more environmentally friendly practices. Different industries, including healthcare, manufacturing, and construction, are significantly adopting EaaS due to its efficiency and cost-effectiveness, which is anticipated to boost the growth of the global market during the forecast period.
Lack of Awareness and Understanding to Restrain the Market Growth
A lack of awareness and understanding among businesses is restricting the growth of the equipment as a service market as decision-makers are more comfortable with traditional equipment purchasing models. Besides, concerns over initial costs and the perception of EaaS being more expensive than outright purchases deterred some companies from embracing the model, despite its long-term cost-effectiveness. Moroever, security concerns regarding data protection and customization limitations in EaaS offerings is further slowing its adoption.
Advancements in Technology to Drive Excellent Opportunities
Rapid technological advances in EaaS are creating growth opportunities for the market. Advancements make EaaS appealing to companies wary of investing in quickly outdated equipment, as providers can continuously offer the latest technologies. The flexibility and scalability of EaaS allow businesses to adapt to changing market demands, adding or removing equipment from subscriptions as needed. Moreover, predictive maintenance capabilities and industry-specific solutions enhance the customer experience. EaaS also contributes to sustainability and the circular economy by prolonging equipment lifespan and reducing the constant need for new production. Additionally, the integration of IoT technologies enabled remote monitoring and proactive maintenance. The shift towards subscription-based business models and the rising adoption of cloud services are further predicted to create enormous market growth opportunities.
Global Equipment as a Service Market Share, by Equipment, 2022
The laser cutting machines sub-segment accounted for the highest market share in 2022. Laser cutting machines offer precision and versatility in cutting various materials, making them ideal for industries requiring intricate designs and tight tolerances. The cost-effectiveness of the EaaS model appeals to businesses, as it reduces upfront expenses and allows access to cutting-edge technology without significant capital investment. Laser cutting machines also boost efficiency and productivity, with their speed in processing materials leading to faster production times. By integrating these machines into the EaaS model, companies benefit from enhanced productivity without worrying about equipment maintenance, upgrades, or obsolescence, further adding to their appeal. Thus, the dominance of laser-cutting machines sub-segment is driven by their technical capabilities, cost-effectiveness, and ability to meet evolving customer demands.
Global Equipment as a Service Market Share, by End-use, 2022
The manufacturing sub-segment accounted for the highest market share in 2022. Manufacturing companies have asserted dominance by embracing a paradigm shift from ownership to service-based models. They recognized customers' changing preferences who sought access to equipment without the burden of ownership. By offering machinery on a subscription or pay-per-use basis, these manufacturers enabled customers to leverage cutting-edge technology without the high upfront costs and maintenance concerns. Besides, manufacturing companies incorporated IoT technology into their equipment to enhance the customer experience, allowing them for remote monitoring, predictive maintenance, and improved uptime. Moreover, manufacturing companies optimized operations and offered continuous improvements by leveraging data-driven insights. EaaS represented a new revenue stream from after-sales services is contributing to the industry’s overall growth and innovation.
Global Equipment as a Service Market Share, by Financing Models, 2022
The subscription-based sub-segment accounted for the highest market share in 2022. The dominance of the subscription-based sub-segment is mainly because it offers cost-effectiveness by eliminating the need for a substantial upfront investment, making it accessible to a broader range of businesses. Additionally, predictable monthly or annual payments enable better budgeting and financial planning. The flexibility and scalability of the subscription model allow companies to adjust their equipment needs as per demand fluctuations and changing requirements. EaaS providers often include maintenance, repairs, and customer support, relieving customers of equipment upkeep. Moreover, the subscription-based model aligns with sustainability principles, as providers can refurbish or recycle equipment at the end of its lifecycle. Subscribers benefit from access to the latest technology without needing continuous hardware upgrades.
Global Equipment as a Service Market Share, by Region, 2022
The North America equipment as a service market generated the highest revenue in 2022. The region's technological advancements in information technology, manufacturing, and engineering have allowed companies to develop sophisticated equipment and machinery, making EaaS a viable option. Besides, the robust industrial and commercial sectors in the North America region have driven the demand for advanced equipment without significant capital investments, making the subscription based EaaS model attractive. The entrepreneurial culture in the region encourages innovation and risk-taking, fostering the growth of startups and innovative EaaS providers. Additionally, access to ample venture capital and other investments has supported the scaling of EaaS operations. Moreover, growing awareness of sustainability and environmental responsibility aligns with EaaS's role in promoting a circular economy by extending equipment lifespans and reducing waste.
Competitive Scenario in the Global Equipment as a Service Market
Joint ventures and collaborations are common strategies followed by major market players. For instance, SMS Group and Outokumpu signed an equipment-as-a-service contract for a powder spraying plant. SMS Group will continue to own the plant. However, Outokumpu will operate the plant and pay SMS Group for the amount of stainless-steel powder produced.
Some of the leading equipment as a service market players are TRUMPF, Atlas Copco, KAESER KOMPRESSOREN, Heidelberger Druckmaschinen AG, SMS group GmbH, Arnold Machine, Uteco, AB Volvo, Exone, Siemens, Heller Maschinenfabrik GmbH, DMG MORI, Hilti, and SK LASER.
Historical Market Estimations
Base Year for Market Estimation
Forecast Timeline for Market Projection
North America, Europe, Asia-Pacific, and LAMEA
Segmentation by Equipment
Segmentation by End-use
Segmentation by Financing Models
Key Companies Profiled
Q1. What is the size of the global equipment as a service market?
A. The size of the global equipment as a service market was over $XX million in 2022 and is projected to reach $XX million by 2032.
Q2. Which are the major companies in the equipment as a service market?
A. Hilti and SK LASER are some of the key players in the global equipment as a service market.
Q3. Which region, among others, possesses greater investment opportunities in the near future?
A. The North America region possesses great investment opportunities for investors to witness the most promising growth in the future.
Q4. What will be the growth rate of the North America equipment as a service market?
A. North America equipment as a service market is anticipated to grow at XX% CAGR during the forecast period.
Q5. What are the strategies opted by the leading players in this market?
A. Joint ventures and collaborations are the two key strategies opted by the operating companies in this market.