Smart connected asset and operations market expected to double in next decade

The smart connected assets and operations market is estimated double its value to $458 billion by 2033 thanks to growing IoT demand.

By Future Market Insights July 26, 2023
Image courtesy: Hilscher, CFE Media's New Products for Engineers Database

Asset management insights

  • Increased Internet of Things (IoT) adoption is driving the worldwide growth of the smart connected assets and operations market, which is expected to double in value by 2033.
  • China and Japan will dominate most of the revenues, according to Future Market Insights, with the United States being a smaller, but still pivotal, player.

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

Various factors are influencing the market such as:

  • Growing adoption of the Internet of Things (IoT): The significantly growing adoption of the IoT drives the global market. IoT 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 asset optimization demand: 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.

  • Operations are becoming more complex: 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.

  • AI and data analytics advances: 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, 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.

Regional market analysis

  • China is estimated to secure a valuation of $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.

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

  • The United States is anticipated to capture a valuation of $64.5 billion with a CAGR of 5.9% in the global market by 2033.

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.