Equipment Lifecycle Management
Optimize the lifecycle management of industrial equipment to improve performance, reduce cost and maximize equipment lifespan.
Why Equipment Lifecycle Management Matters
In today's industrial landscape, equipment lifecycle management goes far beyond maintenance. It underpins operational productivity and gives companies a competitive upper hand. From design to decommissioning, manufacturers rely on their equipment to perform reliably, efficiently and sustainably throughout its lifecycle. Any unplanned downtime or failure can impact throughput and business revenue.
Equipment lifecycle management is the end-to-end process of managing an asset — from concept and design, through usage and maintenance, to final disposal or repurposing. Each asset, regardless of size or complexity, represents a significant capital investment. This is why maximizing usage while minimizing downtime is the key to profitability and sustainability. Effective asset lifecycle management can help maximize a company's return on investment (ROI) in its most valuable assets.
The Growing Importance of Equipment Lifecycle Management
According to Allied Market Research, the global industrial equipment market is expected to reach $3.8 trillion by 2030. As asset-intensive sectors – like energy, manufacturing, construction and mining – increase their capital expenditures, the need for strategic asset lifecycle management has become more urgent than ever.
Furthermore, statistics from the Aberdeen Group highlight that unplanned downtime costs industrial manufacturers up to $50 billion annually in lost productivity and repair. As such, organizations are shifting from reactive to proactive asset management strategies, investing in technologies such as the virtual twin solution, predictive maintenance and IoT-enabled monitoring.
Key Challenges in Equipment Lifecycle Management
Managing equipment across its full lifecycle involves strategic planning, seamless coordination and proactive decision-making at each stage. The four stages of the equipment lifecycle include planning, procurement, maintenance and disposal. From equipment design to decommissioning, manufacturers must address technical, operational and sustainability demands while reducing costs for long-term value.
Here are the key challenges from four different aspects during the equipment lifecycle:
- Design and engineering
Poor equipment design and engineering choices often lead to costly issues later on. Manufacturers must design and build equipment for long-term durability, maintainability and sustainability while integrating data systems and fostering cross-team collaboration. - Production and deployment
A smooth handoff from manufacturing to operational use is critical. The lack of performance monitoring often leads to inefficiencies and shortened equipment lifespan. Manufacturers should enable real-time performance tracking to maximize equipment utilization for optimal efficiency. - Maintenance and upgrades
Without a proactive approach, manufacturers face disruptions, costly repairs and reduced asset lifespan. The key is to leverage predictive maintenance and real-time monitoring through regular servicing schedules to minimize unplanned downtime. - End-of-life decommissioning
Strategic planning for decommissioning is needed to balance asset life expectancy, operational needs and cost efficiency. Manufacturers face the challenge of enabling equipment remanufacturing and recycling while complying with sustainability and disposal regulations.
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The Virtual Twin Solution as an Industry Game Changer
Dassault Systèmes’ virtual twin technology enables original equipment manufacturers (OEMs) and operators to optimize end-to-end equipment lifecycles effectively. It helps drive measurable improvements in performance, sustainability and profitability across every stage of the lifecycle, including:
Cost optimization
By enabling predictive maintenance, the virtual twin reduces total cost of ownership by managing all replacement or maintenance costs effectively.
Equipment lifespan extension
The virtual twin's simulation capabilities help with planning and tracking maintenance, upgrades and repairs throughout the assets' lifecycles.
Sustainability compliance
With a proactive approach, the virtual twin allows better end-of-life planning for asset replacement or decommissioning while adhering to industry and environmental regulations.
Aftermarket service enhancement
Based on real-time insights, the virtual twin facilitates informed decision-making to further improve aftermarket services.
Effective equipment lifecycle management is essential for sustaining industrial performance and minimizing long-term operational costs. From initial design to final decommissioning, each phase presents unique challenges that require strategic decision-making supported by valuable data. By leveraging virtual twins, manufacturers can adopt a more proactive and integrated approach to managing assets efficiently, extending equipment lifespan and ensuring sustainability compliance. With this, industrial equipment companies can unlock greater value through higher ROI and build more resilient, future-ready operations.