Metrics for a Successful Pay Per Use Business
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.
Generate future revenue streams by optimizing asset performance management using Octonion Machine Health Product a simple and scalable solution with the latest technology.
Octonion’s Machine Health Ready on Day 1
You can start monitoring equipment in minutes. Octonion’s Edge AI Engine operates in unsupervised mode and continuously analyzes equipment behavior. Machine states and issues are discovered even if it has never been seen nor reproduced before.
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"
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