London, April 13, 2018 – A new PAC/CXP Group study finds that 83% of European manufacturers and transport operators plan to increase their spending on predictive maintenance solutions in the next two years in order to redefine their maintenance processes and improve operational efficiency.
In a push for optimization of the maintenance processes of their assets, European manufacturers and transport operators are turning to digital technologies such as the Internet of Things or predictive analytics to enable the collection of vast amounts of operational data, which can be used to predict sudden failures of their machinery and vehicles. Thus, the concept of predictive maintenance, which has the potential to redefine maintenance and boost the efficiency of shop floor operations and fleets, is becoming a reality.
Market research and strategic consulting company PAC has conducted an in-depth study to find out how large and medium-sized European manufacturing and transport companies see and approach the opportunity of predictive maintenance from a strategic, implementation and operational perspective. The study titled “Digital Industrial Revolution with Predictive Maintenance” is based on a survey of more than 230 senior business and IT executives.
According to the survey, 83% of companies are thus ready to raise their game when it comes to predictive maintenance – a clear sign that there is an appetite for solutions that can improve operational efficiency. This is not surprising, given that 96% of the companies regard their maintenance processes as not very efficient, making room for improvement and further cost- cutting in these asset-intensive industries.
Dr Milos Milojevic, Industry Analyst at PAC, said: “The results of the study clearly show that the companies in Europe are not too confident in terms of efficiency of the maintenance processes for their industrial machines or vehicles. Hence, they see an opportunity in cutting the unnecessary costs occurring due to unplanned and sudden failures of their assets by redefining their maintenance with predictive analytics insights. Furthermore, as analytics becomes a boardroom topic, PAC expects further investments to be channeled towards predictive maintenance.”
55% of companies are already conducting some sort of predictive maintenance initiatives. Almost a quarter of the companies are already harvesting the fruits of such initiatives, while the rest are still testing the water. However, PAC expects companies’ interest and spending to further increase, as they will continue to feel the rising cost pressure and competitive headwinds.
Fig 1. Have you already invested in predictive maintenance solutions and applications? (Source: PAC 2018)
Reducing repair time and unplanned downtime is considered one of the major goals of predictive maintenance projects by 91% of companies. Breathing new life into aging equipment is another major objective of predictive maintenance initiatives, as seen by 86% of companies. For 70% of companies, another important goal is improvement of customer satisfaction. This is especially important for product-oriented manufacturers, as for them predictive maintenance also means the ability to provide better servicing of these products to the customers.
Due to growing threats in the cyber and physical worlds and concerns over data security and privacy, the majority of companies might think twice before putting major investments in predictive maintenance. Additionally, the lack of internal analytics capabilities and inability to use predictive insights to redefine maintenance processes are further major challenges on the road to enabling predictive maintenance.
Franck Nassah, Vice President Digital Business Innovations at PAC, said: “Despite these challenges, the results of the study show that the companies are aware that predictive maintenance can enable them to reach higher levels of operational efficiency, and some of them are already feeling the positive impacts.”
About the study:
The PAC study “Digital Industrial Revolution with Predictive Maintenance” is supported by premium sponsors GE Digital and Siemens, gold sponsors Atos and Equinix, and silver sponsors InterSystems and Wipro Limited. More than 230 senior decision-makers with predictive maintenance responsibility from IT departments and lines of business in companies in the United Kingdom, France, Germany, Spain, Italy, the Nordics and Benelux were surveyed by telephone (CATI). The sample comprises companies with more than 1,000 employees, operating in the manufacturing and transport industries.
The infographics relating to the study is now available for download at https://www.pac- online.com/pacs-european-trend-study-digital-industrial-revolution-predictive-maintenance.
The study will be available by end of May 2018.
About PAC – a CXP Group Company:
Founded in 1976, Pierre Audoin Consultants (PAC) is part of CXP Group, the leading independent European research and consulting firm for the software, IT services and digital transformation industry. CXP Group offers its customers comprehensive support services for the evaluation, selection and optimization of their software solutions and for the evaluation and selection of IT services providers, and accompanies them in optimizing their sourcing and investment strategies. As such, CXP Group supports ICT decision-makers in their digital transformation journey. Further, CXP Group assists software and IT services providers in optimizing their strategies and go-to-market approaches with quantitative and qualitative analyses as well as consulting services. Public organizations and institutions equally base the development of their IT policies on our reports. Capitalizing on 40 years of experience, based in 8 countries (with 17 offices worldwide) and with 155 employees, CXP Group provides its expertise every year to more than 1,500 ICT decision-makers and the operational divisions of large enterprises as well as mid-market companies and their providers. CXP Group consists of three branches: Le CXP, BARC (Business Application Research Center) and Pierre Audoin Consultants (PAC). For more information please visit www.pac-online.com or follow us on Twitter, LinkedIn or our Blog.
Dr Milos Milojevic
Phone: +44 20 7553 3967