Equipment Monitoring Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Equipment Monitoring Market is projected to expand from USD 5.35 Billion in 2025 to USD 8.11 Billion by 2031, registering a CAGR of 7.18%. This sector encompasses the systematic tracking and analysis of machinery health and performance through interconnected sensors and software designed to identify anomalies and forecast potential failures. The primary catalysts fueling this growth are the imperative to reduce costs associated with unplanned downtime and the escalating industrial demand for operational efficiency, driving a shift from reactive to proactive maintenance strategies. As evidence of this commercial demand, the Association for Packaging and Processing Technologies (PMMI) reported in 2025 that 35% of surveyed end-users plan to boost spending on predictive maintenance solutions.

Despite this optimistic outlook, market expansion faces significant hurdles regarding the integration of modern monitoring technologies with aging legacy infrastructure. Many industrial plants utilize older machinery lacking native connectivity, which results in data silos and necessitates costly retrofitting initiatives that discourage adoption. Additionally, the substantial initial capital required for full system deployment, along with a scarcity of skilled personnel capable of analyzing complex diagnostic data, remains a formidable barrier for numerous enterprises seeking to modernize their asset management frameworks.

Market Drivers

The rapid integration of the Industrial Internet of Things (IIoT) and smart sensors is fundamentally transforming the Global Equipment Monitoring Market by facilitating seamless connectivity and precise data collection from plant floor assets. This technological convergence enables disparate machinery to transmit real-time status updates, establishing a unified digital ecosystem where asset health is continuously visualized. As manufacturers prioritize facility digitization for competitive gain, the adoption of intelligent platforms has accelerated. According to Rockwell Automation's '10th Annual State of Smart Manufacturing Report' from June 2025, 95% of manufacturers have invested in or intend to invest in artificial intelligence and machine learning over the next five years, highlighting a massive drive toward intelligent infrastructure that supports holistic, network-wide monitoring.

Simultaneously, the heightened focus on operational efficiency and cost reduction drives industrial organizations to utilize these monitoring capabilities to optimize performance and curtail wasteful spending. By leveraging data-driven insights, companies can pinpoint inefficiencies, avert expensive unplanned downtime, and prolong the lifespan of critical assets. This reliance on analytics for strategic planning is increasing; Rockwell Automation's 'State of Smart Manufacturing Report: Consumer Packaged Goods Edition' in August 2025 noted that the percentage of manufacturers using data to guide decisions rose to 44%. Furthermore, Cisco's 'Industrial IoT Breakthroughs' presentation in June 2025 indicated that 48% of industry respondents anticipate artificial intelligence will drive the most significant operational shifts, reinforcing the trend toward automated, efficient asset management.

Market Challenges

Integrating modern monitoring technologies with aging legacy infrastructure remains a major obstacle to the growth of the Global Equipment Monitoring Market. A significant number of industrial facilities still operate with older machinery that lacks native connectivity or digital interfaces, creating data silos where vital operational information is trapped within specific assets. This gap prevents the comprehensive visibility needed for effective predictive maintenance, causing organizations to struggle with aggregating the real-time insights required to move away from inefficient reactive maintenance models.

This structural disconnect necessitates complex and expensive retrofitting projects to digitize asset bases. The technical difficulties associated with bridging different technology generations often lead to implementation delays and increased total cost of ownership, making return on investment difficult to justify for cautious management teams. According to Make UK data from 2024, 44% of manufacturers identified systems integration issues as a primary barrier to adopting advanced digital tools. Consequently, these integration challenges directly impede market growth by extending project timelines and discouraging risk-averse enterprises from committing to large-scale monitoring investments.

Market Trends

The integration of artificial intelligence for prescriptive analytics is evolving beyond simple failure prediction to provide automated, remedial decision-making capabilities. This trend involves manufacturers utilizing causal AI models to identify root causes and suggest specific corrective actions, effectively bridging the gap between anomaly detection and resolution. By transitioning focus from merely anticipating downtime to prescribing optimal maintenance interventions, organizations can substantially decrease their reliance on human interpretation of complex diagnostic data. Highlighting this shift, Rockwell Automation’s June 2025 '10th Annual State of Smart Manufacturing Report' reported a 12% year-over-year increase in organizations investing in generative and causal AI, indicating a strong move toward technologies that actively generate solutions for operational resilience.

Concurrently, the adoption of Private 5G Networks for industrial connectivity is becoming the essential backbone for supporting high-density sensor deployments and low-latency monitoring applications. Unlike traditional Wi-Fi, private 5G provides the dedicated bandwidth, reliability, and security needed to transmit massive amounts of asset data from remote or mobile machinery without signal loss. This robust connectivity underpins the reliable operation of edge computing devices that process data locally, ensuring time-sensitive alerts reach floor operators instantly. According to Nokia’s '2025 Industrial Digitalization Report' from September 2025, 87% of adopters of on-premise edge and private networks achieved a return on investment within just one year, validating these networks as foundational elements for modern equipment monitoring ecosystems.

Key Players Profiled in the Equipment Monitoring Market

• Siemens AG
• Schneider Electric SE
• Emerson Electric Co.
• General Electric Company
• Rockwell Automation, Inc.
• Yokogawa Electric Corporation
• Honeywell International Inc.
• ABB Ltd.
• Baker Hughes Company
• Eaton Corporation PLC

Report Scope

In this report, the Global Equipment Monitoring Market has been segmented into the following categories:

Equipment Monitoring Market, by Monitoring Type:

• Vibration Monitoring
• Thermal Monitoring
• Noise Monitoring

Equipment Monitoring Market, by Monitoring Process:

• Online Equipment Monitoring
• Portable Equipment Monitoring

Equipment Monitoring Market, by End User:

• Oil & Gas
• Power Generation
• Metal & Mining
• Chemical
• Automotive and Aerospace
• Defense
• Others

Equipment Monitoring Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Equipment Monitoring Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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