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Metrics for a Successful Pay Per Use Business

Updated: Jul 14, 2021

Equipment as a service (EaaS) is the term used to describe a new way of paying for and consuming the utility of equipment. Sometimes referred to as “pay per use” or “product service systems”, equipment as a service business models let manufacturers transfer a CAPEX into an OPEX and transfers responsibility for maintaining the asset from the end user to the equipment supplier.

Other benefits are: lower Total Cost of Ownership, improve margins, acquire new customers, retain existing customers, reduce environmental impact, etc.

✅ The EaaS market is projected to grow from $21.6B in 2019 to $131.2B by 2025, yielding a Compound annual growth rate (CAGR) of 35%*.

✅ Both OEMs and end users predict EaaS market will grow. 67%* of equipment suppliers are evaluating, planning on or currently offering EaaS.

✅ Designing flexible payment options, 67%* of end users in all discrete manufacturing industries say they would prefer to lease or purchase EaaS.

For pumps, motors and rotary machines manufacturers looking to propose this service it is necessary to have the right technology to charge the customers at the right price depending on the machines' utilization.

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Asset perfomance management tool

Machine health on top of being a powerful asset performance management tool, can provide detail analysis of the pumps and motors main issues as cavitation, bearing failure, seal failure and unbalance, to improve preventive maintenance.

To know more about Octonion’s Machine Health Metrics in partnership with OnSemi please check the video created for the Embbeded World exhibition below.


* Source: Equipment as a Service Market Report 2020-2025 from IoT Analytics GmbH

More information in my article "Why OEMs are moving to Pay Per Use business model"

Find the Full LinkedIn Article here

#payperuse #ai #industrialmanufacturers #pumps #motors #assetperformancemanagement #machine #technology #lilimellinger

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