Equipment-as-a-Service (EaaS): A Groundbreaking Business Model

Equipment-as-a-Service (EaaS) represents an innovative approach that replaces the traditional purchasing of machinery and production systems. Instead of acquiring machines, companies rent them for a fee and receive comprehensive service packages. EaaS enables businesses to reduce costs, minimize risks, and improve efficiency. This article examines the benefits, challenges, and future prospects of EaaS.

Definition and Operating Principles

Under the EaaS model, the manufacturer retains ownership of the machine and makes it available to the customer. Maintenance, spare parts, and consumables are provided by the manufacturer, who also guarantees availability. Payment is based on a pay-per-use model or a fixed monthly fee. This approach ensures consistent revenue for the provider while strengthening customer loyalty. Customers benefit from flexible usage without the need for significant upfront investments.

Benefits of EaaS

Disadvantages of EaaS

Key Success Factors for EaaS

A study conducted by Munich University with 322 participants identified six critical success factors for the adoption and promotion of EaaS:

Requirements for Manufacturers

Digitization and automation are critical for ensuring process efficiency and financial viability.

  1. Digitization – 74.5 % of respondents agree that adopting EaaS depends on a company’s level of digitization. End-to-end processes must seamlessly connect ERP systems with customers’ production machinery.
  2. Predictive Maintenance – Analyzing machine data to anticipate wear and maintenance needs enhances service planning, reduces costs, and addresses labor shortages.
  3. Smart Customer and Service Portals – These portals integrate IoT with ERP systems, offering features like self-service options, documentation, and ticketing, while improving customer satisfaction through automation.

Examples of Companies offering EaaS

TRUMPF

With its “Pay per Part” model, TRUMPF allows customers to use automated production systems without purchasing them, charging only for each produced part. This model supports production planning and remote maintenance, enhancing financial flexibility and addressing labor shortages.

Heidelberger Druckmaschinen AG

In collaboration with Munich Re, Heidelberg offers a “Subscription Plus Model” where customers pay per printed sheet. This package includes machines, software, consumables, and services, enabling flexible and efficient production goals.

Kaeser Kompressoren

Charges customers based on actual compressed air usage, covering installation, maintenance, and energy optimization.

Rolls-Royce

Offers a “Power-by-the-Hour” model for aircraft engines, charging airlines per operational hour while ensuring maintenance and operational security.

Conclusion

Equipment-as-a-Service (EaaS) is emerging as a transformative business model in the industrial equipment sector, offering significant benefits for both providers and customers. Its adoption is fueled by digitization and sustainability efforts. However, challenges such as data security and knowledge gaps must be addressed to achieve widespread acceptance and successful implementation. Despite these hurdles, the strong endorsement from companies highlights EaaS as a cornerstone of Industry 4.0.

Silke Hänisch, Market Intelligence Senior Expert

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