# Machine condition monitoring in 2025: MRFR says $1.49 billion, FMI says $3.2 billion By MarketScale Newsroom · Published 2026-11-04 · Industrial IoT on MarketScale Canonical: https://www.marketscale.com/industries/industrial-iot/machine-condition-monitoring-in-2025-mrfr-says-149-billion-fmi-says-32-billion > IndexBox sees machine health monitoring spreading to mid-sized plants, fleets and rail by 2035. ## Key points - Hardware is about half or more of spending (46% to over 55%), and vibration leads where reported (34.2% to 36.1%), while one forecast puts software growth at 11.8% a year. That mix is a better budgeting benchmark than any total. - Analysts are urging vendors toward pricing tied to downtime avoided instead of sensor count, which would make the downtime baseline, and who measures it, the clause that matters most in a monitoring contract. IndexBox's main forecast for global machine health monitoring is about who buys next. Through 2035, the firm expects adoption to spread beyond the power generation and heavy process operators that went first, into mid-sized manufacturing, fleet operations and rail. The reason it gives is an old one: in capital-heavy sectors, unplanned downtime can cost far more than the sensors and software built to catch it coming. Industrial automation firms, specialist condition-monitoring vendors and software-first entrants are all building toward integrated platforms. For a plant reliability manager writing a first business case, the obvious next question is how big this market actually is. ## Three forecasts, three starting points Market Research Future puts the 2025 machine condition monitoring market at $1.49 billion. It sees growth to $3.78 billion by 2035, a compound annual rate of 10.32%. Future Market Insights values the 2025 market at $3.2 billion and projects $3.4 billion in 2026 and $7.2 billion by 2036, a 7.7% annual rate from 2026 to 2036. Block Field Market Research Future forecasts the market will reach $3.78 billion by 2035. The reports' definitions point to a likely cause of the gap. FMI defines the industry as sensor-based diagnostic systems plus the analytics software used for continuous equipment health assessment and predictive maintenance. MRFR breaks out services, including remote monitoring contracts and calibration, at $0.31 billion in 2025. A vendor slide quoting "a $4 billion market" mostly tells the room which report the vendor licensed. It tells a plant very little about the value of its own unmonitored pumps and compressors. ## Where the spending mix lines up Hardware is MRFR's largest component at 47.2% of 2025 revenue, and FMI puts it at a similar 46.0% of the market. FMI gives vibration monitoring a 34.2% share, and MRFR puts vibration acoustic monitoring at 36.1% in 2025. North America is the largest region at 34.7% of 2025 revenue in MRFR's estimate and 36.0% in Grand View's. Block Field Growth is moving toward the analytics layer. MRFR projects software platforms will grow at 11.8% a year through 2035, faster than its 10.32% rate for the whole market, as AI diagnostics shift value from devices to the software that reads them. Ultrasound is its fastest-growing technique at 12.7%, helped by non-contact sensing. For a plant planning its first deployment, this mix suggests the sensor bill will dominate year one, with software becoming a bigger share of the recurring cost over time. That split is a more useful benchmark for a capital request than any market total. It also shows where vendors are likely to compete hardest on price as the market grows. ## Fixed sensors versus the walk-around route The mechanism behind IndexBox's push into mid-sized plants shows up in MRFR's numbers. In the report's words, "the convergence of wireless IIoT sensor nodes with edge-AI inference chips has cut deployment costs by roughly 40% since 2021." That puts real-time diagnostics within reach of mid-tier plants that used to depend on technicians doing manual rounds. Kaitwade goes further: he expects portable monitoring systems to become obsolete faster as wireless sensor economics favor permanent installation. Services, including remote monitoring contracts and calibration, reached $0.31 billion in 2025, according to MRFR, which suggests some buyers already pay outside providers for this kind of work. ## Pricing and lock-in in the fine print FMI's advice to vendors is the part a procurement director should read closely. It recommends pricing contracts on the downtime they reduce instead of on sensor count. It also tells vendors to build AI models for specific industries that can show measurable cuts in false positives, instead of generic anomaly detection. If that advice spreads, the commercial conversation moves from how many sensors to how much downtime the system avoided. That would make the downtime baseline, and who measures it, the clause that decides whether the deal works. Block Field MRFR puts hardware at 47.2% of 2025 revenue and FMI puts it at 46.0%, while Grand View has it at over 55%. ## Sources - [Machine Health Monitoring Market To 2035: Predictive Maintenance Demand Accelerates - News and Statistics](https://www.indexbox.io/blog/machine-health-monitoring-market-forecast-to-2035-driven-by-unplanned-downtime-reduction/) - [Machine Condition Monitoring Market Outlook, Analysis 2035](https://www.marketresearchfuture.com/reports/machine-condition-monitoring-market-2776) - [Machine Condition Monitoring Market - Future Market Insights](https://www.futuremarketinsights.com/reports/machine-condition-monitoring-market) - [Machine Condition Monitoring Market Size Report, 2026-2033](https://www.grandviewresearch.com/industry-analysis/machine-condition-monitoring-market-report) - [Machine Condition Monitoring Market worth $4.7 billion by 2029](https://www.prnewswire.com/news-releases/machine-condition-monitoring-market-worth-4-7-billion-by-2029---exclusive-report-by-marketsandmarkets-302026910.html) (PR Newswire) Tags: IndexBox, machine condition monitoring, predictive maintenance, machine health monitoring, condition-based maintenance, industrial IoT, manufacturing operations, maintenance and reliability, procurement, vibration monitoring, Grand View Research, Future Market Insights --- Source: MarketScale, https://www.marketscale.com/industries/industrial-iot/machine-condition-monitoring-in-2025-mrfr-says-149-billion-fmi-says-32-billion. 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