Global Machine Condition Monitoring Market Size, Share, Growth, Trends, and Global Industry Analysis: By Components (Hardware, Portable/Handheld Condition Monitoring Units, and Software Services), By Application (Oil & Gas, Power Generation, Metals & Mining, Chemicals, Automotive, Aerospace & Defence, Food & Beverages, and Others), By Deployment Mode (On-Premises and Cloud), and Region Forecast 2020-2031

Machine Condition Monitoring Market size was valued at US$ 3,500 million in 2024 and is projected to reach US$ 5,600 million by 2031 at a CAGR of 6.8% from 2025–2031. Moreover, the U.S. Machine Condition Monitoring Market is projected to grow significantly, reaching an estimated value of US$ 1,750 million by 2031.

The market is defined as a sector focused on technologies, products, and services that enable the continuous or periodic assessment of machine health by monitoring key parameters, such as vibration, temperature, oil quality, pressure, and electrical signals, to detect changes indicating potential faults or malfunctions. The market is primarily driven by the growing demand for predictive maintenance, as industries seek to reduce costly downtime, enhance equipment reliability, and ensure operational safety. By leveraging technologies such as vibration analysis, thermography, and acoustic sensing, companies are transitioning from reactive to predictive strategies, especially in high-capital sectors like oil & gas, manufacturing, and transportation. A key trend shaping the market is the accelerated adoption of wireless and cloud-based monitoring solutions, which offer real-time data access, easier installation, and compatibility with smart manufacturing initiatives. These advancements are enabling maintenance teams to remotely monitor and respond to equipment anomalies with greater accuracy and speed.

The most significant opportunity lies in the integration of IIoT, AI, and advanced analytics, allowing real-time diagnostics and centralized decision-making across distributed facilities, especially vital post-COVID. Cloud-based platforms and edge computing further enhance this by enabling scalable and cost-effective implementations. However, high initial costs, complex integration with legacy systems, and a shortage of skilled personnel remain significant restraints, particularly for small and mid-sized enterprises. Although cloud and wireless systems are helping lower these barriers, their benefits are still emerging. Overall, the market is set to grow steadily as digital maturity and remote monitoring needs rise globally.

Facts & Figures

• Rising Demand for Predictive Maintenance: Industries are shifting from reactive to predictive maintenance to reduce unplanned downtime, improve asset utilization, and lower long-term costs. For instance, ABB’s partnership with Samotics (2022) integrates predictive analytics into motors to monitor performance proactively.
• Integration of IIoT and Smart Sensors: The Industrial Internet of Things (IIoT) enables real-time machine data collection, making condition monitoring more efficient and remotely accessible. For instance, Siemens upgraded its MindSphere IoT platform (Oct 2023) to enhance data integration and smart monitoring, directly addressing industry needs for connected diagnostics across factory floors.
• Growth in Renewable Energy and Remote Asset Monitoring: Wind and solar farms need remote, automated monitoring tools due to limited onsite presence and difficult-to-access locations. For instance, NKE FERSA’s partnership with Nanoprecise (Dec 2024) to monitor wind turbines exemplifies how condition monitoring is becoming vital in energy transition and asset optimization in remote environments.
• Increased Focus on Safety and Regulatory Compliance: Safety-critical industries like oil & gas and mining rely on early fault detection to comply with safety norms and prevent hazardous failures. For instance, Honeywell’s acquisition of a sensor analytics startup (Sept 2023) was aimed at enhancing safety and operational intelligence in process industries, reinforcing this compliance-driven demand.

Key Developments

• In January 2025, Swedish startup Puresignal launched an app-controlled, AI-based lubrication monitoring system operable up to 2?km away—ideal for remote or hazardous environments.
• In December 2024, Austrian bearing-maker NKE FERSA partnered with Canada’s Nanoprecise to unveil a condition monitoring system for wind turbines, enhancing equipment longevity.
• In September 2023, Honeywell acquired a sensor-tech startup to bolster real-time data analytics and condition monitoring capabilities within its industrial portfolio.
• In September 2023, ABB entered a long-term alliance with Samotics (Netherlands) to integrate plug-and-play IIoT monitoring into ABB’s equipment, boosting AI-driven anomaly detection.

Machine Condition Monitoring Market Segmentation

Based on the components

• Hardware
• Portable/Handheld Condition Monitoring Units
• Software Services

In the market, the Hardware segment holds the largest market share, driven by the widespread deployment of vibration sensors, accelerometers, thermography devices, and acoustic sensors across industrial environments. These components are essential for real-time data collection and early fault detection, particularly in high-risk sectors like oil & gas, manufacturing, and energy. Hardware remains the backbone of most condition monitoring systems, especially in predictive maintenance setups. While software and analytics are gaining importance, the need for robust, reliable hardware continues to dominate spending. In contrast, Portable/Handheld Condition Monitoring Units hold the smallest share due to their limited scalability and manual operation nature.

Based on the application

• Oil & Gas
• Power Generation
• Metals & Mining, Chemicals
• Automotive, Aerospace & Defence
• Food & Beverages
• Others

The Oil & Gas segment is expected to hold the largest market share in the market. This is due to industry’s high reliance on heavy rotating equipment such as compressors, pumps, and turbines, where equipment failure can lead to hazardous situations and massive financial losses. Condition monitoring helps detect faults early, ensuring operational safety, compliance, and uninterrupted production. The sector’s harsh operating environments and strict maintenance regulations further drive demand for advanced monitoring solutions. In contrast, the Food & Beverages segment holds a smaller share, as its equipment is generally less complex and the industry has been slower in adopting predictive maintenance technologies.

Based on the deployment type

• On-Premises
• Cloud

The On-Premises segment holds the largest market share in the market. This is primarily due to the preference of industries like oil & gas, power generation, and manufacturing for greater control over sensitive operational data and system customization. On-premises solutions offer high data security and are ideal for facilities with limited internet connectivity or stringent compliance requirements. However, these systems involve higher upfront costs and complex infrastructure. In comparison, the Cloud segment, while currently smaller in share, is growing rapidly due to its scalability, lower cost of entry, remote accessibility, and ease of integration with IoT platforms and advanced analytics tools.