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Industrial service organizations are undergoing significant change. The Path to Industrial Servitization, a new report from PTC and Field Service Insights, examines how companies across North America are shifting from reactive, break-fix models to predictive, outcome-based service strategies. This evolution is redefining customer relationships, revenue streams, and operational practices in equipment-intensive industries.
Key insights from the report
- Widespread adoption: 90% of best-in-class surveyed organizations have implemented servitization strategies; the remainder are actively pursuing adoption.
- Service model trends: Service contracts and extended warranties (35%) are the most common offerings, followed by remote condition monitoring and predictive maintenance.
- Leading delivery approaches: Condition-based maintenance (48%) and end-to-end lifecycle services (24%) are the most prevalent service delivery models.
- Strategic drivers: Improving product and service margins (49%) and competitive differentiation (44%) are the top motivators for servitization.
- Digital transformation challenges: Legacy system integration, data silos, and workforce gaps are major hurdles. Organizations that overcome these barriers unlock new levels of revenue and customer satisfaction.
Customer spotlight: Schneider Electric
Schneider Electric, a global leader in energy management and automation, provides a compelling example of servitization in practice. With the challenge of integrating more than 27 acquired brands and servicing millions of assets worldwide, Schneider Electric set out to unify its customer experience and transform its service business.
How Schneider Electric achieved success
- Deployed ServiceMax, a digital platform for end-to-end service delivery integrated with ERP systems.
- Increased tracked serviceable assets to over 8 million—five times more than before.
- Eliminated 70% of paper-based processes, improved scheduling efficiency, and raised first-time fix rates by 3 points.
- Boosted customer satisfaction, with Net Promoter Scores rising by 3 points overall and 7 points for VIP customers.
- Achieved an 8% increase in won opportunities year-to-date, equating to €500,000 in additional monthly revenue.
- Leveraged service data to inform R&D, operations, sales, finance, and marketing—creating “service data gravity” that drives growth and innovation.
Discover Schneider Electric’s Servitization journey
See how Schneider Electric improved service delivery and grew revenue with digital transformation.
Read the Case StudySchneider Electric’s transformation demonstrates how servitization, supported by digital tools, delivers measurable improvements in efficiency, customer satisfaction, and revenue. Want to see more success stories? Explore our E-book featuring real-world examples of servitization in action.
Why Servitization is a must for industrial service
Customers expect outcomes, not just products. Servitization shifts risk to providers and builds deeper partnerships—driving margins, revenue, and trust. Companies that embrace this transformation achieve higher margins, sustained revenue, and a reputation for reliability and innovation.
How to succeed: actionable strategies
The report provides a practical roadmap for organizations pursuing servitization:
- Predictive maintenance: Use analytics to forecast equipment issues before they impact operations.
- Cross-functional collaboration: Break down silos between product, service, and customer success teams.
- Transparent, outcome-based contracts: Align pricing with customer results and set clear, measurable expectations.
- Change management: Prepare your workforce for customer-centric, outcome-focused service delivery with ongoing training and leadership support.
Who should read this report?
Field service leaders, executives, and anyone involved in industrial service transformation will find valuable insights and recommendations in this report. The research draws on input from 100 senior executives across sectors including construction, machinery, transportation, and more. Whether you're leading transformation or evaluating service models, this report offers the insights to guide your next move.
Discover the path to industrial Servitization success
Learn how servitization drives customer outcomes, revenue, and competitive advantage.
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