The ‘product as a service’ trend (XaaS) is gaining ground around the world. Customers are increasingly asking for service over ownership, while the growing world population and pressure on natural resources are pushing the industry in this same direction. Should manufacturers consider this as a temporary trend or is the service-based business model becoming the new normal?
Changing customer needs
Not too long ago, consumers were primarily focused on owning assets. Ownership allowed for a certain sense of control over their project and needs. However, today’s new generation wants access to equipment and technology without the burdens of ownership. This generation prefers easy, accessible, fast and flexible services over ownership of an asset. They don’t feel that leasing or renting puts them in a more precarious position than owning an asset. Rather, leasing or renting gives them flexibility, convenience, and peace of mind; that is what this generation in general is looking for.