Global Asset Integrity Management Market Research Report: Forecast (2023-2028)

Market Definition

Asset Integrity Management (AIM) is the term used to describe the practice of managing an asset to ensure its capacity to perform its function efficiently. The term asset in asset integrity management generally refers to industrial assets, which are physical such as oil refineries, electrical power generation plants, or chemical processing plants. The asset integrity management market includes companies providing services to manage systems, processes, resources, structural integrity management, etc., necessary for an industrial asset. AIM services are usually deployed in high-risk areas to ensure compliance with regulations, protocols, and the environmental safety of the organization & individual.

Moreover, the demand for asset integrity management services is boosting owing to surging off-shore midstream & upstream oil & gas projects globally. Further, market growth is also backed by stringent regulations regarding the safety of industrial assets to avoid any leakage & risk assessment associated with such physical industrial assets.

Market Insights

The Global Asset Integrity Management market is projected to grow at a CAGR of around 5.67% during the forecast period, i.e., 2023-2028. The market growth is supported by factors such as aging equipment of industrial assets like offshore oil refineries, chemical processing plants, etc., that would require servicing, regular inspection, and proper maintenance. Additionally, the government & organizations across the globe keep on updating their standards & practices for the operations of industrial physical assets. Therefore, changing safety regulations, quality control requirements, and protocols associated with managing industrial physical assets like chemical plants, oil & gas refineries, etc., would further augment the demand for asset integrity management services in the future.

Moreover, clean energy production observed significant growth due to the rising demand for clean energy across various industry verticals during the historical period owing to commitment to net zero coalition goals. This resulted in the advancing production of energy through hydrogen, nuclear, and solar energy power plants. Hence, the construction & addition of new clean energy power plants contributed to the demand for asset integrity management services in recent years.

However, lack of technical expertise is one of the few key challenges faced by asset integrity management companies such as Aker Solutions ASA, as recruiting experts from various industries raises the cost of their services. Hence, this would refrain the businesses from contacting the companies as taking their services enhances the capital cost of the project.

Nonetheless, recent technological developments such as the integration of IoT & digitization have reinforced the companies & equipped them with more capabilities like more asset-compatible sensors & related data for analysis. Therefore, digitization & integration of IoT in asset integrity management, coupled with growing clean energy production, are expected to accelerate the Global Asset Integrity Management market in the forecast period.

Key Trend in the Market

• Integration of Artificial Intelligence (AI) to Broaden the Capabilities of Asset Integrity Management

In recent years, the integration of technologies such as artificial intelligence (AI) & data analytics in asset management services, including inspection & risk assessment, has been shaping the Asset Integrity Management market globally. The asset integrity management service-providing companies such as Aker Solutions ASA, Metegrity Inc., etc., are equipping themselves with the latest technologies, such as artificial intelligence (AI), machine learning, and data analysis, to make robust and critical decisions. This would further help the organization in the critical assessment of industrial assets with precision. Asset integrity management firms collect large volumes & variations of data, which results in increasing complexity, and difficulty to systematically review & analyze.

Therefore, the combination of machine learning & artificial intelligence in asset integrity management helps in enabling quick & automatic production of models that can analyze larger & more complex data sets & provide more accurate analysis & results. It, in turn, smoothens the process by sharing accurate information among peers after collecting & cleansing the data. Thus, the integration of artificial intelligence for the assessment of industrial assets is going to positively shape the asset integrity management market in the coming years.

Market Segmentation

By Service Location:

• Offshore
• Onshore

Amongst the two, the Offshore location held a notable market share during the past period owing to the presence of offshore oil & gas industries in the Middle East & North America region that are considerably dependent on asset management. The presence of subsea pipelines also contributes to the offshore segment's market share since subsea pipelines require asset integrity management firms for operations such as their maintenance & testing.

Moreover, the rising ocean pollution levels are affecting the physical assets of water-based industries like the oil & gas industry. The presence of highly corrosive agents such as carbon dioxide, hydrogen sulfide, and chlorine compounds, dissolved in the ocean water caused due to ocean pollution, can accelerate the corrosion process on subsea pipelines & other equipment. Thus, regular monitoring & inspection of the machinery located in marine waters become vital for the industries, which, in turn, favors the Asset Integrity Management market.   

Based on End User:

• Oil & Gas
• Power
• Mining
• Chemical
• Others (Marine, Construction, Petrochemical, Transportation, etc.)

Of them all, the oil & gas industry held a noteworthy market share in the past years owing to the soring production capacity of existing refineries & the addition of new oil & gas projects globally. The surging demand for energy for household & industrial consumption is accelerating the production of oil & gas, resulting in an increased requirement for asset integrity management services.

Further, the embargo on Russian Oil & Gas by European countries & Western Nations in 2022 due to the Russia-Ukraine war has resulted in the development of new midstream & natural gas projects globally, such as Iron Horse Midstream. Hence, the addition of such projects would result in spurring the necessity for asset integrity management services to ensure proper inspection, designing, and managing risks in the coming years.

Regional Landscape

Geographically, the Global Asset Integrity Management Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Of all the regions across the globe, the Middle East & Africa holds a significant market share owing to the presence of numerous oil & gas stations, which require the heavy assistance of consultancy firms to provide asset integrity management. In addition, the growth of oil & gas projects could be attributed, owing to the growing demand for these products for domestic consumption & export to the countries in need. Consequently, this resulted in enhancing production by setting up more refineries & midstream projects to transport from production sites to end-user sites. This ultimately augmented the demand for asset integrity management services to manage risks & other operational aspects of refineries.

Moreover, the government is planning to diversify the economic plans for the region, thus opening up the opportunity for asset management companies to offer services in the construction sector to uphold the management of construction equipment like cranes & excavators. Therefore, the modifications in the oil & gas platforms, along with the development in the construction sectors, contributed to the growth of the Asset Integrity Management market in the forecast year.

Recent Developments by Leading Companies

• 2021: Oceaneering launched its autonomous underwater vehicle named ‘Freedom,’ which would help the firm to carry out inspections of different diameters pipes lying on low elevations. This development would give the company a competitive advantage in terms of increasing efficiency & accurate inspection of subsea pipes.
• 2019: Penspen, a global provider of engineering & project management services has partnered with asset risk & integrity management company, Ankaa Consulting, to expand its asset integrity management offering in the Asia region. The agreement will allow Penspen to enhance accessibility to clients in Malaysia & other Asian countries.

Market Dynamics:

Key Driver: Surging Demand for Clean Energy to Drive the Asset Integrity Management Market

Growing demand for clean energy in a variety of industry verticals, such as steel manufacturing & ammonia production, has resulted in a significant rise in clean energy production in recent years. This could be attributed to industries' growing preference for clean energy, such as nuclear & hydrogen energy, to meet energy demand rather than petroleum-based products.

Additionally, the global commitment to zero coalition goals by 2050 is pushing governments across the world to pressure industries within their nations to adopt sustainable & clean energy. Hence, countries across the globe are increasing clean energy production capacity through nuclear, solar, and hydrogen power plants. As a result, the construction & addition of new clean energy power plants, such as nuclear & hydrogen, boosted the demand for asset integrity management services in the historical years. For instance:

• In 2022, According to the Indian Government, the government planned to add nearly 15,000MW to the nation's current power-generating capacity by commissioning 20 new nuclear power plants by 2031.

Therefore, the growing number of nuclear & hydrogen power plants also affects the demand for asset integrity management services due to the nature of inherent risks involved in such facilities in the coming years. Therefore, the surging count of nuclear & hydrogen power production plants is anticipated to drive the market growth for asset integrity management services.  

Possible Restraint:  Complexity in Risk Assessments of Aging Infrastructure of the Industrial Assets to Adversely Affect the Market

Heavy industries, such as chemical industries in Europe and oil & gas industries in the GCC region, were established a long time ago, thus the associated industrial assets are not equipped with a modern-day sensor for risk assessment, adding to the complexity of asset management. On top of this, upgradation projects & the addition of new industrial assets overlapping the existing old aged ones make the whole management process cumbersome & extremely complicated. The unavailability of the data also sums to the complexity as it broadens the range of unknown variables, which decreases the efficacy of the design.

In addition, the assets of matured rigs are timeworn, due to which accessing & quantifying the conditions of the same adds to the existing intricacy in the asset integrity management services. Thus, the complexity formed by the combinations of old & new assets in the old & upcoming industries possess a challenge for asset integrity management companies.

Growth Opportunity: Upgradation & Modernization of Industrial Assets to Augment the Asset Integrity Management Services

The industries such as iron, steel & chemical, etc., are moving towards environmentally friendly structural changes in their respective industries. Numerous guidelines have been issued by the governments of countries, including the UK & Germany, to meet sustainability goals. Thus, to meet these guidelines, modifications are required in the industry set up for which asset integrity management firms play a major role. There, the upgradation & modification of the assets of the established industries would require a lot of assistance from the technical expertise offered by the asset integrity management firms. Hence, this creates an area of opportunity for asset integrity management corporations, which would support market growth in the coming years.

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