Product as a service is the selling of the services or the outcomes of a product that can be offered in the form of various business models across end-use industries such as banking, manufacturing, and oil and gas. The adoption of product as a service has been driven by developments in sensor technology, data analytics, Internet of Things (IoT), cloud computing, and smartphone devices. These technologies have created the need for product as a service in order to form long- term relations with customer. The wide availability of the Internet and wireless connectivity at low costs make it feasible for manufacturers to outfit their products with sensors that indicate how a product is being used. It also allows manufacturers to determine environmental factors, such as temperature and humidity or the failure of a specific part, that affect the product’s reliability.
Product manufacturers are continuously re-engineering, developing the process of innovation, optimizing processes, and minimizing costs involved in meeting the demands of consumers. These factors are expected to drive the global product as a service market during the forecast period. Further, development in the Industrial Internet of Things (IIoT) is anticipated to drive the market in the coming years. Industrial Internet of things (IIoT) helps in boosting operational efficiency, enhance productivity, and reduce the complexity of procedures involved in product engineering services. IIoT also helps in improving the safety and quality of products in an industry, thus boosting the quality of engineering product services. Moreover, growth of the consumer electronic industry is likely to propel the product as a service market. Increase in the complexity of today’s technology has led to investments and significant research and technological developments in product engineering services, which provide end-to-end system design and innovative manufacturing and integration services. Over the past few years, technological innovations and advancements in the Internet of Things and Big Data have supported the automated workflow industry. These factors are projected to boost the market. However, data regulations and standards are likely to hinder the product as a service market. The oil & gas industry is introducing advanced applications by investing in the Internet of Things (IoT) and analytics technology. This is likely to provide opportunities to the product as a service market in the near future.
The global product as a service market can be segmented based on model, service, enterprise size, end-use industry, and region. In terms of model, the global product as a service market can be classified into product-centered business models, hybrid business models, and service-based business models. The service-based business models segment can be further categorized into standalone services and bundled services. Based on enterprise size, the product as a service market can be categorized into large and small & medium enterprises. In terms of end-use industry, the product as a service market can be classified into banking, financial services, and insurance (BFSI); health care; retail & consumer goods; travel & hospitality; media & entertainment; IT & telecommunication; and transport & logistics.
In terms of region, the product as a service market can be segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. These geographic regions have been further analyzed at the country level, wherein top countries across North America are the U.S. and Canada. Europe includes market analysis across the U.K., Germany, France, and the Rest of Europe. Similarly, the product as a service market in Asia Pacific is studied and analyzed across India, China, Japan, Australia, and the Rest of Asia Pacific. The top countries in the Middle East & Africa and South America include GCC countries, South Africa, and Brazil.
The key participants in the global product as a service market are ClearBlade, Inc., Sycor GmbH, Vocatus AG, Oracle Corporation, Accenture, Genpact, DLL Group, and Microsoft Corporation among others. Leading players in the market are focusing on the introduction of advanced services and solutions in order to strengthen their position and expand their customer base. Companies are investing extensively in R&D operations and are focusing on providing customized services to their customers.