Servitization as a growth driver: opportunities for OEMs

January 14, 2025
More and more OEMs are focusing on service-oriented business models. This paradigm shift is opening up new growth opportunities for both customers and manufacturers.

The industry is undergoing a fundamental change: instead of focusing solely on selling products, more and more original equipment manufacturers (OEMs) are turning to service-oriented business models - an approach known as servitization. This paradigm shift not only offers advantages for customers, but also opens up completely new growth opportunities for the manufacturers themselves.

From product orientation to the service concept

For OEMs, servitization means integrating their products into comprehensive service offerings. Instead of selling machines and systems on a one-off basis, the focus is on continuous services - such as maintenance, upgrades, monitoring and even full operational responsibility. Business models such as "pay-per-use" (PPU) or "asset-as-a-service" (AaaS) are at the heart of this. These concepts offer customers financial flexibility and a stronger focus on their actual needs.

For OEMs, this offers a number of advantages:

  • Increasing customer loyalty: Regular interaction as part of service contracts creates a closer relationship with the customer.
  • Predictable revenue: Instead of a one-off sale, OEMs generate recurring revenue through long-term service contracts.
  • Competitive differentiation: Service offerings set companies apart from the competition and enable them to reposition themselves in saturated markets.

Servitization in response to market requirements

The demand for servitization is driven by various external factors. Customers increasingly expect flexibility and transparency in the use of industrial equipment. At the same time, there is growing pressure on companies to optimize operating costs and implement sustainable solutions. This is where IoT technologies come into play, forming the core of modern servitization strategies.

IoT solutions enable OEMs to network machines, collect real-time data and use it for a wide range of applications - from remote maintenance to increasing productivity. This turns a simple machine into an intelligent solution that creates continuous added value for the customer.

cap-on: Servitization made easy

cap-on supports OEMs in starting their journey into the world of servitization. With customized IoT solutions, manufacturers can seamlessly integrate their machines and systems into service-oriented business models.

A central component of the cap-on solution is the IoT hub, which serves as a digital platform for real-time monitoring, predictive maintenance and data analysis. By integrating sensors and IoT gateways, OEMs gain valuable insights into the operating status of their machines, which they can use to develop personalized service offerings.

About cap-on

cap-onis a leading provider of digital solutions that enable companies to transform their business models and tap into new revenue potential. With innovative technologies such as IoT gateways, customized platforms and AI-supported data analysis, cap-on helps its customers to master the step into the future of industry. Whether it's servitization, IoT-based financial models or the digitalization of production processes - cap-on delivers the right solutions to ensure the long-term success of companies.

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