Equipment Monitoring Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Monitoring Type (Vibration Monitoring, Thermal Monitoring, Noise Monitoring), By Monitoring Process (Online Equipment Monitoring, Portable Equipment Monitoring), By End User (Oil & Gas, Power Generation, Metal & Mining, Chemical, Automotive and Aerospace, Defense, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.35 Billion
CAGR (2026-2031)	7.18%
Fastest Growing Segment	Oil & Gas
Largest Market	North America
Market Size (2031)	USD 8.11 Billion

Market Overview

The Global Equipment Monitoring Market will grow from USD 5.35 Billion in 2025 to USD 8.11 Billion by 2031 at a 7.18% CAGR. The Global Equipment Monitoring Market involves the systematic tracking and analysis of machinery health, performance, and operating conditions through interconnected sensors and software to detect anomalies and predict failures. The primary drivers supporting market growth include the critical need to minimize unplanned downtime costs and the increasing industrial demand for operational efficiency, which compels organizations to transition from reactive to proactive maintenance strategies. According to the Association for Packaging and Processing Technologies (PMMI), in 2025, 35% of end-users surveyed indicated plans to increase spending on predictive maintenance, highlighting the robust commercial demand for these advanced monitoring solutions.

Despite this positive trajectory, a significant challenge impeding market expansion is the difficulty of integrating modern monitoring technologies with aging legacy infrastructure. Many industrial facilities operate with older machinery that lacks native connectivity, creating substantial data silos and requiring expensive retrofitting efforts that can deter adoption. Furthermore, the high initial investment required for comprehensive system deployment, coupled with a shortage of skilled personnel capable of interpreting complex diagnostic data, presents a barrier for many enterprises attempting to modernize their asset management frameworks.

Key Market Drivers

The Rapid Integration of Industrial Internet of Things (IIoT) and Smart Sensors is fundamentally reshaping the Global Equipment Monitoring Market by enabling seamless connectivity and granular data acquisition from plant floor assets. This technological convergence allows disparate machinery to communicate real-time status updates, creating a unified digital ecosystem where asset health is continuously visualized and assessed. As manufacturers prioritize the digitization of their facilities to gain competitive advantages, the deployment of intelligent sensors and connected platforms has surged. According to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', 95% of manufacturers have either invested in or plan to invest in artificial intelligence and machine learning technologies over the next five years, underscoring the massive push towards intelligent, connected infrastructure. This widespread adoption facilitates the transition from isolated equipment checks to holistic, network-wide monitoring, thereby driving the demand for advanced software solutions capable of processing vast IIoT data streams.

Concurrently, the Increasing Emphasis on Operational Efficiency and Cost Reduction is compelling industrial organizations to leverage these monitoring capabilities to optimize performance and minimize wasteful expenditures. By utilizing data-driven insights, companies can identify inefficiencies, prevent costly unplanned downtime, and extend the lifecycle of critical assets, directly impacting the bottom line. This focus on maximizing resource utilization is evidenced by the growing reliance on analytics for strategic planning. According to Rockwell Automation, August 2025, in the 'State of Smart Manufacturing Report: Consumer Packaged Goods Edition', the proportion of manufacturers utilizing data to actively guide decision-making processes increased to 44% in 2025, reflecting a tangible shift toward information-driven operational strategies. Furthermore, the broader industrial sentiment supports this transformation; according to Cisco, June 2025, in the 'Industrial IoT Breakthroughs' presentation, 48% of industry respondents expect artificial intelligence to generate the most significant operational shift in their environments, highlighting the market's trajectory toward automated, highly efficient asset management frameworks.

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Key Market Challenges

The integration of modern monitoring technologies with aging legacy infrastructure presents a substantial barrier to the expansion of the Global Equipment Monitoring Market. Many industrial facilities continue to rely on older machinery designed without native connectivity or digital interface capabilities. This technological gap creates significant data silos where critical operational information remains trapped within specific assets, preventing the holistic visibility required for effective predictive maintenance. Consequently, organizations struggle to aggregate the real-time insights necessary to transition away from inefficient reactive maintenance models.

This structural disconnect forces enterprises to undertake complex and costly retrofitting projects to digitize their asset base. The technical complexity involved in bridging these generations of technology often delays deployment and increases the total cost of ownership, making the return on investment harder to justify for cautious management teams. According to Make UK, in 2024, 44% of manufacturers cited systems integration issues as a leading obstacle to adopting advanced digital tools. Such integration difficulties directly hamper market growth by extending implementation timelines and discouraging risk-averse enterprises from committing to large-scale monitoring investments.

Key Market Trends

The Integration of Artificial Intelligence for Prescriptive Analytics is advancing beyond simple failure prediction to offer automated, remedial decision-making capabilities. This trend sees manufacturers deploying causal AI models that identify root causes and recommend specific corrective actions, effectively closing the loop between anomaly detection and resolution. By shifting focus from merely anticipating downtime to prescribing optimal maintenance interventions, organizations can significantly reduce the reliance on human interpretation for complex diagnostic data. According to Rockwell Automation, June 2025, in the '10th Annual State of Smart Manufacturing Report', there was a 12% year-over-year increase in organizations investing in generative and causal AI, signaling a distinct market shift toward technologies that not only predict outcomes but actively generate solutions for operational resilience.

Concurrently, the Utilization of Private 5G Networks for Industrial Connectivity is emerging as the critical backbone required to support high-density sensor deployments and low-latency monitoring applications. Unlike traditional Wi-Fi, private 5G offers the dedicated bandwidth, reliability, and security necessary to transmit massive volumes of asset data from remote or mobile machinery without signal degradation. This superior connectivity supports the reliable functioning of edge computing devices that process data locally, ensuring that time-sensitive alerts are delivered instantly to floor operators. According to Nokia, September 2025, in the '2025 Industrial Digitalization Report', 87% of on-premise edge and private network adopters are seeing a return on investment in just one year, underscoring the rapid commercial validation of these networks as a foundational element for modern equipment monitoring ecosystems.

Segmental Insights

The Oil and Gas segment is the fastest-growing area in the Global Equipment Monitoring Market, driven by the critical need for remote asset management in hazardous environments. Operators are prioritizing predictive maintenance to minimize costly downtime and ensure the reliability of high-value machinery such as turbines and pumps. This adoption is significantly influenced by strict adherence to safety and environmental standards established by regulatory bodies like the Occupational Safety and Health Administration (OSHA). Consequently, energy companies are implementing monitoring solutions to optimize operational efficiency, extend asset lifespans, and mitigate the risks associated with equipment failure.

Regional Insights

North America maintains a dominant position in the Global Equipment Monitoring Market, driven by the extensive integration of remote asset management systems within the oil, gas, and power generation industries. This leadership is supported by the early acceptance of automated reliability strategies that significantly reduce operational costs. Furthermore, strict compliance mandates from the Occupational Safety and Health Administration (OSHA) regarding workplace safety and machine integrity accelerate market growth. These factors collectively prompt regional enterprises to prioritize continuous monitoring solutions that ensure regulatory adherence while optimizing overall fleet performance.

Recent Developments

• In October 2024, Honeywell unveiled an end-to-end digital maintenance solution specifically designed for business jet turbofan engines. This new offering automatically downloads and transmits engine performance data to a cloud-based analytics platform after every flight, allowing for near-real-time condition monitoring. By facilitating the detection and analysis of engine health issues, the system enables operators to improve aircraft availability and streamline mandatory reporting requirements. The solution represents a strategic alignment with automation trends, providing actionable insights that support proactive maintenance and enhanced mission assurance for aviation assets within the broader equipment monitoring landscape.
• In October 2024, NSK Ltd. expanded its condition monitoring offerings by integrating advanced diagnostic artificial intelligence with expert support services. The enhanced solution, which became available for general industrial machinery, leveraged wireless monitoring systems and cloud connectivity to assess equipment health accurately. This initiative addressed the growing need for production efficiency and safety by enabling the detection of potential issues in critical infrastructure and manufacturing lines. The expansion aimed to support digital transformation in the sector, allowing users to visualize machine conditions and implement predictive maintenance strategies effectively to prevent equipment failures.
• In May 2024, Emerson announced significant enhancements to its edge process analytics solution for monitoring industrial machinery. The update included improved native software functionality, expanded reporting dashboards, and the integration of advanced PeakVue Plus technology for superior vibration analysis. These capabilities allowed the system to serve a broader range of applications, including low-speed and unique assets such as rolling mills and wind turbines. The firmware upgrade focused on increasing data collection configurability and strengthening cybersecurity measures, thereby supporting reliability teams in making informed maintenance decisions and optimizing the performance of critical production equipment.
• In March 2024, SKF introduced a new automated equipment monitoring system developed in collaboration with a major cloud computing provider. This solution, designed for scalability and cost-effectiveness, utilizes wireless sensors to collect three-axis vibration and temperature data from a wide range of rotating machinery. The system continuously trends machine data and detects anomalies around the clock, sending instant alerts and actionable insights to users via smart devices. This development aims to serve as a robust first line of defense for industrial assets, enabling predictive maintenance strategies that significantly minimize unplanned downtime and improve operational productivity across various industrial sectors.

Key Market Players

• 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

By Monitoring Type	By Monitoring Process	By End User	By Region
Vibration Monitoring Thermal Monitoring Noise Monitoring	Online Equipment Monitoring Portable Equipment Monitoring	Oil & Gas Power Generation Metal & Mining Chemical Automotive and Aerospace Defense Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Equipment Monitoring Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 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
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE