Machine Condition Monitoring Market

Industry Overview

The global Machine Condition Monitoring Market size was valued at USD 3.95 billion in 2024, with an estimation of USD 4.27 billion in 2025 and is predicted to reach USD 6.33 billion by 2030 with a CAGR of 8.2% from 2025-2030. The sector focuses on the use of advanced technologies and systems to monitor the health and performance of machinery in real-time, enabling early detection of potential failures and maintenance needs. 

The machine condition monitoring market involves a range of tools including vibration analysis, thermography, oil analysis, and ultrasound, and others that helps industries such as manufacturing, energy, and automotive to optimize equipment performance, reduce downtime, and extend the lifespan of machinery. As industries increasingly prioritize operational efficiency and cost savings, the adoption of MCM solutions continues to rise, making it a crucial aspect of modern industrial operations.

Automotive Industry Growth Accelerates the Market

The expansion of the automotive industry is playing a pivotal role in driving the machine condition monitoring market growth. Rising demand for advanced technologies, materials, and components that improve vehicle safety, efficiency, and performance is pushing automakers to adopt innovative solutions. 

To meet evolving consumer expectations and stringent regulatory standards, manufacturers are increasingly turning to lightweight materials, efficient powertrains, and smart electronics, all of which rely heavily on machine condition monitoring systems to ensure reliability and minimize downtime.

According to the European Automobile Manufacturers’ Association (ACEA), global car sales reached 74.6 million units in 2024, reflecting a 2.5% increase compared to 2023. This consistent growth in automotive production is boosting investments in monitoring technologies, enabling companies to develop tailored solutions that address the automotive sector’s needs. As a result, the rising momentum of the automotive industry is expected to significantly accelerate the adoption of MCM solutions, strengthening the overall market growth.

Expanding Biofuel Industry Boosts Demand for Machine Condition Monitoring

The rapid growth of the biofuel industry is creating new opportunities for the machine condition monitoring market. As biofuel production relies on highly complex machinery including reactors, pumps, and turbines, the need for reliable and efficient maintenance becomes critical. Ensuring uninterrupted operations and preventing costly breakdowns drives the demand for advanced monitoring technologies that detect potential faults at an early stage.

According to the International Energy Agency IEA, global biofuel demand averaged 102 million barrels per day in 2023 and is projected to reach 106 million barrels per day by 2030, reflecting a growth of about 3.9%. This expansion places greater emphasis on equipment reliability and operational efficiency in biofuel production facilities. Consequently, manufacturers and operators are increasingly investing in predictive maintenance to enhance performance, reduce downtime, and extend the lifecycle of critical assets ultimately fueling the growth of the market.

Furthermore, the robust expenditure towards the aerospace and defense sector drives the machine condition monitoring market expansion due to the critical need for maintaining the reliability and safety of high-performance machinery and equipment. The substantial investments in aerospace and defense lead to the deployment of advanced monitoring systems to ensure the optimal operation of complex systems such as aircraft engines, propulsion systems, and military hardware.

Aerospace and Defense Investments Propel Machine Condition Monitoring Market

The aerospace and defense sector represents a significant growth driver for the machine condition monitoring market, owing to the critical need for ensuring the safety, reliability, and performance of high-value machinery and equipment. Advanced monitoring systems are increasingly being deployed to optimize the operation of complex assets such as aircraft engines, propulsion systems, and military hardware, where even minor failures result in substantial risks and costs.

According to the latest data, world military expenditure reached USD 2,718 billion in 2024, reflecting a 9.4% increase from 2023, the sharpest year-on-year rise since the end of the Cold War. This surge in global defense spending underscores the growing emphasis on advanced technologies, including predictive maintenance and real-time condition monitoring, to enhance operational readiness and extend the lifecycle of critical defense and aerospace assets. As a result, robust investments in this sector are expected to accelerate the adoption of MCM solutions worldwide.

High Initial Investment Costs Restrain the Market Growth

One of the major challenges restraining the growth of the market is the high upfront investment required for equipment, sensors, and software. Implementing advanced monitoring systems involves significant capital expenditure, which be a barrier for small and medium-sized enterprises. The costs associated with installation, integration, and employee training further add to the burden, discouraging widespread adoption, especially in cost-sensitive industries.

Introduction of AI-Driven Predictive Maintenance Creates Future Opportunity

The integration of artificial intelligence presents ample opportunities for future market expansion. AI enhances predictive maintenance by analyzing vast volumes of real-time sensor data, identifying hidden patterns, and detecting anomalies that traditional methods overlook. This allows organizations to forecast potential failures more accurately, reduce downtime, and optimize operational efficiency.

For instance, in May 2023, Alfa Laval launched Alfa Laval Analytics, a condition monitoring software designed to improve the reliability and performance of pumps in hygienic industries. This innovation demonstrates how AI-driven analytics empower industries with smarter decision-making, cost savings, and increased productivity. As more companies adopt AI-powered monitoring tools, the market is expected to witness significant growth opportunities.

Market Segmentations and Scope of the Study    

The machine condition monitoring market report is divided on the basis of component, product, technique, plant type, connectivity, deployment mode, and end user. On the basis of component, the market is divided into hardware, software, and services. On the basis of product, the market is segmented into valves, compressors, turbines, gearbox, motors, bearings, couplings, and others. On the basis of technique, the market is bifurcated into vibration monitoring, oil analysis, thermography, ultrasound emission monitoring, and others. On the basis of plant type, the market is classified into greenfield plant, brownfield plant, hybrid and others. On the basis of connectivity, the market is divided into standalone, edge to cloud, and enterprise integrated systems. On the basis of deployment mode, the market is segmented into on-premises, cloud-based platforms, edge platforms, and hybrid models. On the basis of end user, the market is divided into oil and gas, power generation, manufacturing and mining, chemicals and petrochemicals, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis

In North America, the machine condition monitoring market share is significantly supported by robust defense spending, which drives the need for advanced equipment monitoring and maintenance systems to ensure the performance and reliability of critical defense infrastructure. 

According to the 2025 Future Years Defense Program, the U.S. Department of Defense budget is projected to reach USD 866 billion by 2029, marking a 1.9% increase from 2025. This growing expenditure underlines the rising adoption of MCM solutions across aerospace and defense applications to enhance operational safety, minimize downtime, and extend asset lifecycles. 

The Asia-Pacific region is experiencing rapid expansion of the automotive industry, creating strong demand for advanced maintenance solutions to ensure the reliability and optimal performance of manufacturing equipment. Alongside, the food and beverage sector is also fuelling the industry growth, as manufacturers prioritize equipment reliability, process efficiency, and quality control to meet stringent safety and hygiene standards. 

According to the India Brand Equity Foundation, India’s food and grocery market was valued at USD 866 billion in 2022 and is projected to reach USD 1.27 trillion by 2027. This growth highlights the increasing need for early fault detection, reduced downtime, and enhanced operational efficiency through condition monitoring technologies, thereby boosting the adoption of MCM systems in the region.

In Europe, the market’s growth is being propelled by the region’s strong focus on sustainability, energy efficiency, and regulatory compliance. Key industries such as automotive, aerospace, and manufacturing are investing in advanced monitoring systems to reduce unplanned downtime and comply with strict EU regulations related to safety and environmental performance. Furthermore, the region’s leadership in Industry 4.0 adoption and integration of IoT-enabled predictive maintenance solutions is accelerating the implementation of MCM technologies across European countries.

The Rest of the World (RoW) region encompassing Latin America, the Middle East, and Africa is witnessing rising demand for MCM solutions, driven by industrialization and large-scale infrastructure projects. In the Middle East, the oil & gas industry remains a dominant contributor, with companies adopting predictive maintenance tools to enhance asset utilization and mitigate operational risks. 

Meanwhile, in Latin America and Africa, the growth of mining, energy, and manufacturing sectors is driving investments in advanced monitoring technologies to ensure equipment reliability and extend machinery lifecycles, ultimately supporting the overall expansion of the machine condition monitoring market in these regions.

Strategic Innovations Adopted by Key Players

Key players in the machine condition monitoring industry are accelerating global expansion through upscale brand launches, service diversification, and strategic partnerships. For instance, In May 2025, Emerson has launched AMS Machine Works version 1.8, an upgraded asset management software that streamlines machine condition monitoring across industries such as mining, oil and gas, and utilities. 

The update integrates data from AMS condition monitoring hardware like the AMS 2140 and AMS 6500 ATG agent into a unified platform, enhancing data accessibility, cybersecurity, and operational efficiency. Features include an intuitive dashboard, improved navigation, and advanced user and license management, supporting predictive maintenance and smarter decision-making.

Key Benefits

• The report provides quantitative analysis and estimations of sector from 2025 to 2030, which assists in identifying the prevailing machine condition monitoring market opportunities.

• The study comprises a deep dive analysis of the current and future machine condition monitoring market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Machine Condition Monitoring Market Key Segments

By Component

• Hardware

  • Sensors & Probes 

  • Data Acquisition & Monitoring Units 

  • Embedded Devices

• Software

  • Analytics & Diagnostics Platforms

  • Reporting Tools

  • Integration & Connectivity Software

• Services

  • Installation 

  • Consulting & Training

  • Remote Monitoring & Diagnostics

By Product

• Valves

• Compressors

• Turbines

• Gearbox

• Motors

• Bearings

• Couplings

• Others

By Technique

• Vibration Monitoring 

• Oil Analysis

• Thermography 

• Ultrasound Emission Monitoring

• Motor Current Analysis

• Corrosion Monitoring

• Torque Monitoring

• Others

By Plant Type

• Greenfield Plant

• Brownfield Plant

• Hybrid Plant

• Modular Plant

• Others

By Connectivity

• Standalone 

• Edge-to-Cloud 

• Enterprise-Integrated Systems

By Deployment Mode

• On-Premises 

• Cloud-Based Platforms

• Edge Platforms 

• Hybrid Models

By End User

• Oil & Gas

• Power Generation

• Manufacturing & Mining

• Chemicals & Petrochemicals

• Automotive

• Aerospace & Defense

• Food & Beverages

• Marine & Propulsion

• Pharmaceuticals

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France        

  • Italy        

  • Spain        

  • Denmark        

  • Netherlands        

  • Finland        

  • Sweden        

  • Norway        

  • Russia        

  • Rest of Europe    

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Emerson Electric Co

• GE Vernova

• Honeywell International Inc

• SKF Group

• Rockwell Automation, Inc

• Meggitt PLC

• National Instruments Corp

• Parker Hannifin Corp

• Schaeffler AG

• Fluke Corporation

• Bruel & Kjaer Vibro A/S

• Teledyne FLIR LLC

• IFM Electronic GmbH

• Baker Hughes Company

• Siemens AG

Report Scope and Segmentation

Parameters	Details
Market Size in 2025	USD 4.27 Billion
Revenue Forecast in 2030	USD 6.33 Billion
Growth Rate	CAGR of 8.2% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	Automotive industry growth the market. Expanding biofuel industry boosts demand for machine condition monitoring. Aerospace and defense investments propel machine condition monitoring market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.