Global Equipment As a Service Market Size Likely to Grow at a CAGR of 28.5% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the global Equipment as a Service Market will grow at a CAGR of 28.5%. In 2024, the market size is projected to reach a valuation of USD 3,317.4 Million. By 2033, the valuation is anticipated to reach USD 31,690.1 Million.

Equipment As a Service Market: Growth Factors and Dynamics

• Cost Efficiency: EaaS models dramatically reduce the initial capital costs as they cash out on the equipment under a subscription or pay-as-you-go approach. This encumbrance eases cash flow management for businesses and also helps them avoid large acquisitions and instead fund other pressing needs, which in turn leads to faster market adoption.

• Flexibility and Scalability: EaaS for business equipment is the best because it allows businesses to alter their equipment provision in relation to changes in demand. This feature allows businesses to increase or decrease their use of equipment without having to own it permanently, which makes EEE especially attractive in situations of fast-changing markets.

• Technological Advancements: With the many emerging and dynamic technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics, more functionalities are implemented in engineering as a service equipment fleet maintenance. These enhancements improve reliability and provide useful information, which explains the increasing acceptance of EaaS in more industries that want modern equipment.

• Maintenance and Support Services: EaaS agreements often include a detailed scope of maintenance and support services, which minimizes equipment idleness and unplanned repairs. This type of management is preventative; it enables operations to run smoothly and increases the durability of the equipment, which is a big plus for companies that depend on steady and predictable levels of productivity from their equipment.

• Improved Operational Efficiency: Companies do not buy; rather, they get the opportunity to use advanced tools as services in EaaS models. By adding real-time performance management strategies such as live dashboards, over-the-air updates, and business intelligence, EaaS solutions providers assist organizations in optimizing performance, improving productivity, and minimizing performance waste.

Equipment As a Service Market: Partnership and Acquisitions

• In 2023, Uteco entered into an equity agreement with Gap to develop solutions for the manufacturing sector. The partnership aims to offer a complete portfolio of end-to-end products and services that will enhance customers’ value and capabilities.

• In 2022, Rivigo, together with Mahindra Logistics, is changing the face of logistics in India with MLL Express Services Pvt. With the aim of enhancing efficiencies in the overall supply chain, they seek to create a Bajrang Pandey logistic revolution for every system stakeholder and greatly improve logistics functions.

Report Scope

Equipment As a Service Market: COVID-19 Analysis

The global outbreak of coronavirus adversely affected the equipment as a service (EaaS) market by causing a complete standstill in industrial activities and order fulfillment across supply chains. Most companies, especially those in manufacturing and construction, faced operational slowdowns or closures, and so the prevalence of EaaS models that depended on consistent use-based payments dropped.

Whereas these EaaS clients expanded into more advanced equipment without any capital outlay, due to the economic downturn, many were unable to continue with new contracts or had them suspended. In addition, due to the unavailability of raw materials and restrictions on movements, new equipment, repair, and servicing came to a standstill, causing even more problems to the growth of the EaaS model.

Even during non-pandemic periods, there were uncertainties in business performance, and therefore, it made no sense for such firms to tie themselves to a subscription equipment model. However, while the EaaS approach is mostly considered cost-effective in the long run, for most of the companies in the zone during the emergency period, the priority was on cost containment liquidity management and not on the introduction of the new service and, which led to low uptake and investment in this service model.

List of the prominent players in the Equipment As a Service Market:

• Caterpillar Inc.
• Komatsu Ltd.
• United Rentals Inc.
• Hewlett Packard Enterprise (HPE)
• Deere & Company
• Kubota Corporation
• Ritchie Bros. Auctioneers Incorporated
• Terex Corporation
• Hitachi Construction Machinery Co. Ltd.
• JCB (J.C. Bamford Excavators Ltd.)
• Siemens AG
• SANY Group
• CNH Industrial N.V.
• Manitowoc Company Inc.
• Tractors Supply Company
• Others

The Equipment As a Service Market is segmented as follows:

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 Service Model

• Pay-per-Use
• Subscription-Based
• Leasing
• Managed Services

By End Use

• Construction
• Material Handling
• Mining
• Manufacturing
• Others

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America