PAY-PER-USE will become a huge business!

In our prior articles we started to talk about the potential for PPU and Equipment-as-a-service (EaaS) in the various industries. Today we would like to put some numbers behind the coming developments and the potential that the markets offer.

According to a recent study from IoT Analytics the market for EaaS business models was $21.6B in 2019 and is expected to have an average growth rate (CAGR) of 35% p.a. over the next years. This will result in a global market which is 6x the size of what it is today!

New market opportunities & market development:

(Source: Wopata Matthew (2020): Equipment as a Service Market Report 2020-2025. How OEMs are moving to pay per use business models. Hamburg: IoT Analytics.)


The electronics industry is growing fastest due to new IT equipment and medical offers. The market for EaaS in this industry is expected to rise to over $ 57b, showing an impressive average growth rate of 84% until 2025.Machinery: 


The growth of 54% in the industrial machinery sector will come from increased adoption of EaaS business models especially in areas like machine tools and compressors.


High growth of 41% per year can also be expected in the electrical industry. Major driver in this industry will be the already existing LED-lighting as a service business.


There is already a large market in the energy industry, due to the popularity of energy services companies (ESCOs) in China and USA. This market is expected to continue to grow in the coming years, but not as strongly as in other industries due to the maturity of the business.

Automotive & Transport: 

The market in the automotive and transport industries is already the largest and most mature one. There are many companies that provide EaaS offerings already. However, it is expected that further growth will take place due to new offerings in other areas such as trucks or locomotives that are offered as a service.

Who is changing the game in your industry?

Wir bei Findustrial are convinced that the next decade will be the era of the subscription economy in the industrial sector with business models like „Equipment-as-a-service“ and „Pay-per-use“ gaining increased importance. It will be the fast-movers among the OEMs who will benefit most from the advantages outlined above – finally outperforming their competition!

If you want to learn more about how you can leverage EaaS business models in your business please feel free to make use of our online Assessment and you will receive a step-by-step guidance on how you can guide your business into this massive service potential for OEMs.

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