Beyond the Machine: How Heavy Equipment OEMs Are Building Aftermarket & Service Revenue

Heavy equipment OEMs are increasingly looking beyond equipment sales to unlock growth from aftermarket and service revenue. As customers prioritize uptime, productivity and lifecycle cost efficiency, leading manufacturers are expanding service offerings through lifecycle contracts, predictive maintenance, remote monitoring and equipment-as-a-service. These developments highlight the growing importance of installed-base monetization, service revenue growth and aftermarket strategies in shaping OEM competitiveness and long-term growth.

The economics of heavy equipment are evolving beyond the initial sale. As customers increasingly prioritize uptime, productivity and operational flexibility, aftermarket services are becoming a critical source of growth and competitive differentiation. Yet, while service revenues are expanding across leading OEMs, the pace of growth, revenue contribution and approaches to monetization vary considerably.

For decades, OEMs have relied heavily on new machinery sales, supported by spare parts and maintenance services. That balance is gradually shifting. Rising equipment ownership costs, persistent labor constraints and the financial impact of unplanned downtime are changing how industrial customers evaluate equipment investments. Increasingly, the value proposition extends beyond machine performance at the point of purchase to reliability, utilization and productivity throughout the equipment lifecycle. For OEMs, this creates opportunities to deepen customer relationships and capture a greater share of lifecycle expenditure.

Aranca's analysis of nine leading equipment manufacturers across construction, agriculture, mining, process industries and industrial compression indicates that service-related revenues grew faster than revenues from other businesses for most companies assessed during 2020–2025. However, performance varies by OEM, reflecting differences in service penetration, growth trajectories and profitability trends. The distinction is important: expanding aftermarket revenue creates an opportunity, but building a scalable and economically attractive service business requires a broader set of capabilities.

One notable example is Sandvik, where aftermarket activities increased from 31% of group revenue in 2019 to 40% in 2025, illustrating the growing significance of installed-base monetization. Across the industry, OEMs are also exploring new ways to capture value through connected equipment, predictive maintenance, lifecycle service agreements and usage- or performance-linked models. These developments signal a broader evolution in the OEM-customer relationship, with manufacturers increasingly seeking to participate in equipment performance and operating outcomes rather than relying solely on product transactions.

The strategic question is no longer simply whether aftermarket services can support growth, but which service models create the greatest value, and which OEMs are best positioned to capture it. Aranca's latest industry report examines the service revenue trajectories of leading manufacturers, compares their relative positioning in the shift towards service-led business models, and explores how emerging monetization approaches could reshape competition. It also highlights the strategic questions facing OEM leadership teams as they evaluate service penetration, recurring revenue opportunities and the capabilities needed to compete in an increasingly outcome-oriented equipment market.

Download the report to explore how leading equipment OEMs are advancing their service strategies, where their approaches diverge, and what these developments could mean for the next phase of industrial aftermarket growth.