Global Equipment as a Service Market - 2024-2031

Overview

Global Equipment as a Service Market reached US$ 720 million in 2023 and is expected to reach US$ 1,131.97 million by 2031, growing with a CAGR of 5.8% during the forecast period 2024-2031.

The global Equipment as a Service (EaaS) market is presently witnessing considerable expansion as various industries are embracing equipment usage under a subscription model. The transformation is mainly influenced by the desire for cheaper alternatives, lowered capital investments and enhanced operational capabilities.

With equipment as a service, equipment can be used by a company without worrying about the heavy costs that may be associated with the initial ownership; further, the model also ensures that maintenance, upgrades and support are also part of the offering. The model is extensively used in sectors like manufacturing, construction, healthcare, transportation and many others, which have implications for great and readily available equipment.

Furthermore, the global equipment as a service (EaaS) market has significant growth potential in Asia-Pacific due to increasing automation in the region, technology changes and industrialization. In China, the policy of the "Made in China 2025" plan seeks to enhance industries and digitization therefore making it easier to offer innovative infrastructural services in the manufacturing sphere. India, on the other hand, has seen extensive equipment come up due to policies such as "Make in India" and "Industry 4.0" creating a demand for advanced equipment that has made the country one of the region's considerable players in the equipment as a service market.

Dynamics

The Rise of Subscription Models and Technological Advancements

The increase in demand for subscription-based services is a major factor contributing to the expansion of the Equipment as a service market. At present, most businesses are looking for ways to cut down on fixed costs while achieving operational effectiveness, which is causing the upsurge of as-a-service models. As further described in a World Economic Forum report, this model helps companies invest in something other than equity items and decreases the need for validation on the ownership and upkeep of equipment.

In the industrial sector, for example, equipment like 3D printers, CNC cutters and industrial robots have flexible usage contracts such that businesses can use up-to-date equipment without the burden of the full purchase price. Internet of Things (IoT) and predictive maintenance technologies are also considered to be stimulating elements of the equipment as a service market.

Such innovations enable the monitoring of the machines from a distance, use of analytics for maintenance scheduling and evidence-based management. This minimizes the degree of unproductive time and therefore improves output. According to the International Trade Administration (ITA) report, companies are adopting IoT services for industrial business operations which allows them to manage their assets better and at lower operating costs.

Government Support and Regulatory Impact

Government policies and promotion are also vital in the growth of the Equipment as a service sector. There are lots of policies that have been created by different governments around the world that promote the adoption of sustainable practices like energy-efficient appliances and reducing emissions. In Europe, the European Commission seeks to endorse the green agenda by encouraging the use of clean and energy-efficient machines, which promotes the equipment as a service concept.

The European Union has set targets of a 55% reduction of carbon emissions by the year 2030 in comparison to the year 1990 which helps in calling for organizations to procure equipment that achieves these objectives. This is also evident in the country again like US, where government agencies like the Environmental Protection Agency EPA and the Department of Energy DOE developed incentives for energy-efficient solutions adopted by businesses, thus the move towards equipment-as-a-service models.

Renewable energy sources are likely to reach 11,000 GW by 2030 based on IRENA's 1.5°C Scenario in the World Energy Transitions Outlook and the global renewable power generation capacity will need to increase threefold from current levels. If the increase projections for newer energy sources like solar photovoltaic PV and wind are almost 90% of the projected additions of renewable energy capacity. The initiatives encourage more businesses to shift into as-a-service models where equipment management is done more effectively.

Workforce Readiness and the Integration of New Technologies

As the industry gears itself up to incorporating remote operations and IoT-driven assets, the labor market continues to face great disruptions and changes, with most of the enclosed spaces still being the manufacturing industry. The BLS has also noted that overall employment is expected to grow from 164.5 million in 2022, to 169.1 million in 2032, an increase of 2.8 percent.

Such developments can be attributed to the desire and requirements of the industry for more complex and advanced systems hence the need for a skilled and efficient workforce capable of operating such equipment since it is a demand fueled by developments in technology coupled with the incorporation of IoT into operational processes. The Energy as a Service (EaaS) market, which includes these technologies, is prone to regulatory constraints that stifle its development.

Enforcement agencies differ in the way they implement compliance obligations, as there are stark differences in capabilities in the enforcement of regulations in most regions, especially those in the Middle East and Africa that are not yet established about equipment leasing and management. Predictable such situations create an excess of operational costs as well as time for compliance with such regulations which in turn may prevent quick adoption of the services in the market, especially to Equipment as a service companies.

Segment Analysis

The global equipment as a service market is segmented based on equipment, type, financing, end-user and region.

High Demand for Healthcare and Manufacturing

Equipment as a service is seen as a solution in sectors such as healthcare, manufacturing and construction among others, to most women and young people. In medical services, equipment like imaging machines, diagnostic tools and others are leased rather than owned. The change enables healthcare providers to be able to keep up to date with technology at minimal capital investment. According to the National Institute of Health (NIH), the healthcare expenditure of US during the year 2022, recorded 4.1 percent growth to stand at US$ 4.5 trillion, thus making equipment as a service profitable in the of control cost.

In the industry, equipment rental under Equipment as a service is popular for such industrial devices as robotics, CNC machines and 3D printers since it allows companies to remain on edge in the fast-moving evolving market. The International Federation of Robotics (IFR) mentions in its report that in the year 2023 alone, over 500,000 industrial robots were supplied to the market, supporting the argument of the demand for technology-based solutions that are more flexible.

Geographical Penetration

Rapid Digitalization Across Diverse Industries in North America

The Equipment as a service market is led by North America owing to the increasing digital technology adoption, robust industries and government patronage. US accounts for the largest share of the Equipment as a service market, with more companies in the manufacturing, healthcare and construction sectors turning to rented equipment as a service. Manufacturing output in US increased by 3.5% in 2023, according to the National Association of Manufacturers (NAM) - a report that affirmed the growth of this sector as well as the rise of equipment as a service to enhance operational efficiencies.

The equipment as a service market benefits from the increased energy efficiency and sustainability imposition by the regulatory authority within the region. The region is also expected to rank among the most rapidly developing markets for equipment as a service owing to the improvement in the manufacturing infrastructure and faster growth of technology uptake, further increasing the need for more flexible and cheaper means of using equipment.

Competitive Landscape

The major global players in the market include TRUMPF, Atlas Copco, H&E Rentals, SMS group GmbH, Arnold Machine, AB Volvo, Heller Maschinenfabrik GmbH, DMG MORI, Metso Outotec and KAESER KOMPRESSOREN.

Sustainability Analysis

The market has been evolving towards more sustainable operational strategies due to energy efficiency and eco-friendliness becoming paramount. Such a change in business approach towards Equipment as a service models creates less appetite for large-scale manufacture and in turn, lessens the emissions associated with manufacture and disposal of equipment. When purchasing equipment is replaced by a leasing policy, firms are encouraged to use the most efficient model since service providers ensure the provision of maintenance and replacement of old models with new ones.

Enterprises are increasingly exploring ways to integrate energy-efficient and environmentally friendly apparatus in the course of carrying out their activities. The transition to as-a-service models lessens the various operations that are done on a mass scale such as manufacturing and hence limits the carbon emissions from factors such as manufacturing the equipment and even waste disposal. On the other hand, since the equipment is availed to the companies on a rental basis, the firms are forced to go for the latest and most efficient models since the equipment is always maintained and replaced by the service provider.

Russia-Ukraine War Impact

The ongoing Russia-Ukraine conflict has significantly impacted the global Equipment-as-a-Service (EaaS) market, primarily through disruptions in the supply chain and fluctuating resource availability. This conflict has led to economic instability in Europe, affecting various industries that rely on key components, particularly electronics and raw materials, for equipment manufacturing and leasing.

Equipment as a service providers are adopting strategic adjustments in response to the instability, such as diversifying their supply chains, investing in local manufacturing and shifting toward more sustainable, locally sourced materials. Many are also exploring partnerships with renewable energy suppliers to stabilize operational costs amid fluctuating energy prices.

By Equipment

• Air Compressor
• Pump
• Power Tools
• Ground Power Units
• Laser Cutting Machines
• Printing Machines
• CNC machines
• Material handling system
• Packaging Machine
• Excavators
• Cranes
• Others

By Type

• Construction & Mining
  • Air Compressor
  • Pump
  • Power Tools
  • Ground Power Units
  • Excavators
  • Cranes
  • Others
• Manufacturing
  • Air Compressor
  • laser cutting machines
  • CNC machines
  • Turning and milling machines
  • Others
• Packaging
  • Packaging Machine
  • Printing Machines
• Material Handling
• Others

By Financing

• Subscription-Based
• Outcome-Based

By End-User

• Healthcare
• Logistics and Transportation
• Financial Services
• Government & Institution
• Energy and Utilities
• Others

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In October 2024, H&E Rentals opened doors to its Kansas City South branch which focuses on rental services of aerial lifts, earthmoving equipment, forklifts, telehandlers, compaction equipment, generators, light towers and compressors.
• In May 2024, TAQA unveiled Threlix Drilling Technology's drilling tool to enhance these operations by eliminating some of the drilling dysfunctions, such as vibrations and torsional oscillation that hinder Rotary Steerable Systems, for oil and gas operators.
• In September 2022, Metso Outotec indicated that it further strengthened its North American distributor network for aggregates by engaging Crushing Equipment Solutions operating a vast mobile crusher rental business with a well-stocked fleet of OEM parts in Texas and Oklahoma. In addition to that, CES also provides a full range of services including equipment leasing, project design, construction, commissioning and equipment maintenance for various types of quarries and contractors.

Why Purchase the Report?

• To visualize the global Equipment as a Service market segmentation based on Equipment, Type, Financing, End-User and Region.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points at the equipment as a service market level for all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global equipment as a service market report would provide approximately 70 tables, 75 figures and 202 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies