Turn Assets in the Field into Recurring Service Revenue

Industrial organizations can no longer rely on equipment sales alone. Service delivers 30–50% gross margins, nearly double that of equipment sales. A connected product lifecycle makes it possible.
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Every machine in the field is a revenue opportunity, or a missed one

Industrial manufacturing is a cyclical business. When equipment sales slow, your aftermarket services are the only revenue stream that stays consistent. Yet most OEMs still treat service as a cost center, not a growth engine. Meanwhile, companies that have built robust service businesses are generating over one-third of their total income from aftermarket activities at gross margins that are two to three times higher than their equipment business.

The gap between where your service business is and where it needs to be is not a strategy problem. It is a data and technology problem. And it is solvable.

The benefits of servitization

Servitization transforms product-focused OEMs into service-centric partners, shifting the business model from one-time transactions to long-term, high-value relationships. By bundling equipment with maintenance, performance monitoring, and support, companies can diversify revenue and deliver continuous value throughout the asset’s lifecycle.

Servitization transforms product-focused OEMs into service-centric partners, shifting the business model from one-time transactions to long-term, high-value relationships. By bundling equipment with maintenance, performance monitoring, and support, companies can diversify revenue and deliver continuous value throughout the asset’s lifecycle.

30-50% Profit Margins

30–50% gross margin on aftermarket services vs. 15–25% on equipment sales.

30–50% gross margin on aftermarket services vs. 15–25% on equipment sales. Learn More

29% of Income from Service

On average, 29% of industrial companies' revenue now comes from service-related activities.

On average, 29% of industrial companies' revenue now comes from service-related activities. Learn More

70% Fewer Unplanned Failures

Up to 70% fewer unplanned failures when condition monitoring is connected to automated service execution and dynamic parts planning.

Up to 70% fewer unplanned failures when condition monitoring is connected to automated service execution and dynamic parts planning. Learn More

The cost of falling behind

Industrial manufacturers that delay building a servitization strategy don't just miss an opportunity; they actively cede ground. Product-centric models leave recurring revenue uncaptured. For OEMs with mature service operations, service margins have begun to surpass product margins, a shift that compounds over time. When a competitor can guarantee uptime and you can't, the next machine order goes with them, and so does the relationship.

Navigating the path to servitization

Industrial manufacturers know they need to evolve, but the shift from selling products to delivering outcomes demands a fundamental transformation of business models, operations, and technology.

Legacy systems, fragmented data, and limited asset visibility make it hard to build a coherent service model. A widening skills gap makes consistent execution even harder.

The right technology foundation changes this. By connecting engineering and service data, automating workflows, optimizing parts management, and equipping technicians with live asset data in the field, manufacturers can overcome these barriers and turn servitization from ambition into execution.

Building a foundation for success

Most service platforms give you a layer over your existing chaos. PTC connects the layers.

Most service platforms give you a layer over your existing chaos. PTC connects the layers.

A Connected Product Lifecycle, From Engineering to the Field

Your service content should know your product configuration, but it won't if your field service platform and PLM are siloed. PTC connects both natively: Windchill maintains a single source of product truth, and ServiceMax delivers the right product data to the field, so technicians always work from the most accurate information. Field feedback routes back to engineering, closing the loop to improve both product quality and serviceability.

Your service content should know your product configuration, but it won't if your field service platform and PLM are siloed. PTC connects both natively: Windchill maintains a single source of product truth, and ServiceMax delivers the right product data to the field, so technicians always work from the most accurate information. Field feedback routes back to engineering, closing the loop to improve both product quality and serviceability. Discover The Benefits

Smarter Parts. Stronger Service Operations.

Scaling service profitably requires more than great technicians; it requires the operational backbone to match. ServiceMax manages preventive maintenance, contracts, entitlements, and renewals in a unified platform, while Servigistics ensures the right parts are at the right location or depot at the right time using AI-driven multi-echelon inventory modeling calibrated to real demand history, not generic stocking rules.

Scaling service profitably requires more than great technicians; it requires the operational backbone to match. ServiceMax manages preventive maintenance, contracts, entitlements, and renewals in a unified platform, while Servigistics ensures the right parts are at the right location or depot at the right time using AI-driven multi-echelon inventory modeling calibrated to real demand history, not generic stocking rules. Explore Servigistics

Technicians Who Work from Engineering Truth, Not Yesterday's Manual

When your technician stands in front of a machine, they should see instructions built for that exact asset. Arbortext delivers configuration-specific work instructions and parts information authored directly from Windchill CAD and BOM data, accessible to technicians in the field through ServiceMax so they're always working from the same engineering record used to build it. Generative AI capabilities allow technicians to further surface asset information and work instructions instantly through a conversational interface.

When your technician stands in front of a machine, they should see instructions built for that exact asset. Arbortext delivers configuration-specific work instructions and parts information authored directly from Windchill CAD and BOM data, accessible to technicians in the field through ServiceMax so they're always working from the same engineering record used to build it. Generative AI capabilities allow technicians to further surface asset information and work instructions instantly through a conversational interface. Explore ServiceMax

The power of servitization: unlocking efficiency and growth

Discover how service is transforming industrial business models and fueling new revenue streams. Hear directly from industry leaders as they reveal how servitization drives growth and strengthens customer relationships.
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Customer stories

Metso’s inventory optimization success saves EUR 41.6 million

<p>Metso had parts inventory spread across a global supply chain with no reliable way to predict what would be needed, where, and when. After implementing Servigistics technology from PTC, Metso identified EUR 41.6 million in inventory optimization value without cutting service levels. </p>

Marel’s Global Service Transformation With ServiceMax at the Hub

<p>Marel operates across multiple brands and service regions. The challenge was establishing a consistent global service standard while keeping customers' food processing lines running around the clock. ServiceMax became the operational hub connecting every service event; scheduling, entitlements, mobile execution, and customer data all in one platform. </p>

McKinley Equipment Increases Service Revenue

<p>McKinley Equipment increased service revenue by 38% in the first year of implementing ServiceMax technology from PTC. Within 12 months, the company had a measurable, attributable outcome that their service leadership could take to the board.</p>

Metso’s inventory optimization success saves EUR 41.6 million Metso had parts inventory spread across a global supply chain with no reliable way to predict what would be needed, where, and when. After implementing Servigistics technology from PTC, Metso identified EUR 41.6 million in inventory optimization value without cutting service levels. Marel’s Global Service Transformation With ServiceMax at the Hub Marel operates across multiple brands and service regions. The challenge was establishing a consistent global service standard while keeping customers' food processing lines running around the clock. ServiceMax became the operational hub connecting every service event; scheduling, entitlements, mobile execution, and customer data all in one platform. McKinley Equipment Increases Service Revenue McKinley Equipment increased service revenue by 38% in the first year of implementing ServiceMax technology from PTC. Within 12 months, the company had a measurable, attributable outcome that their service leadership could take to the board.

Expert Panel: Turning Product Data Into Your Aftermarket Advantage

Our expert panel will discuss how extending PLM beyond engineering enables both engineering and aftermarket functions to deliver better outcomes.

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Join Us at PTC NEXT Chicago

Our first flagship event will highlight what’s new and what’s next for PTC product innovations, the Intelligent Product Lifecycle, and more.

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The PTC servitization difference

Organizations should also consider PTC due to its strong integration with PLM and engineering systems and its pragmatic approach to AI that is applied to real-world service challenges, as opposed to experimental use cases.

IDC Marketscape

 Read the Assessment

Get started with servitization


Evaluating SLM & FSM: Analyst Perspectives for Industrial Leaders

An expert-driven guide to choosing SLM and FSM platforms for service-driven manufacturing.

/en/resources/industrials/ebook/slm-fsm-vendor-assessment-collection

Why Unlocking Full Field Service Revenue Potential Requires Transformation

Margins are shrinking. Costs are rising. Talent is scarce. And yet, hidden within these challenges lies a massive opportunity—service revenue.

/en/blogs/service/how-to-increase-field-service-revenue

The Servitization Advantage: ROI Insights from Industrial Leaders

Transform service into a strategic growth engine for industrial companies—boosting ROI, optimizing operations, and fostering lasting customer loyalty.

/en/resources/industrials/ebook/the-servitization-advantage-roi-insights-from-industrial-leaders

Connect with our industrials experts

Our dedicated industrials team brings decades of industry expertise to help you accelerate your digital transformation journey and achieve servitization excellence.

Dr. Florian Harzenetter

Senior Director and Global Advisor, Industrials

Dr. Florian Harzenetter on LinkedIn

Dr. Florian Harzenetter is the Senior Director and Global Advisor for Industrial customers at PTC. In this role, Florian identifies the specific needs of customers and helps align their roadmaps and strategies to ensure successful adoption of PTC technologies. From this perspective, he also helps to align PTC's offerings with customers' needs.

Today, Florian serves as a global expert representing the voice of the customer in the PLM product segments and developing thought leadership for Industrial customers.

Mike Marshall

Director of Growth Marketing, Industrials

Mike Marshall on LinkedIn

Mike Marshall is a Director of Growth Marketing for Industrials, where he leads campaigns and content designed to help industrial organizations drive efficiency, quality, and measurable business impact. He works closely with crossfunctional teams to translate complex industry challenges into clear, actionable insights for executives and practitioners alike. If you have any questions about this content or want to learn more about upcoming events, you’re encouraged to contact Mike directly.

Alyanna Ilyadis

Senior Principal Industry Marketing Manager, Industrials

Alyanna Ilyadis on LinkedIn

Alyanna Ilyadis is a Senior Industry Marketing Manager at PTC, where she develops messaging and positioning that connects PTC's software solutions to the business outcomes industrial leaders care about most. She translates market trends and technical capabilities into value-based insights for executives, helping industrial organizations turn technology into a driver of growth and operational excellence. If you have questions about PTC's industry strategy or solutions, you're encouraged to contact Alyanna directly.
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