Why aftermarket services are becoming the real growth engine for industrial manufacturers
Estimated reading time: 4 minutes
by
For many industrial manufacturers, growth has traditionally meant one thing: sell more equipment.
But that model is under pressure. New equipment sales are increasingly cyclical, margins are tight, and customers are demanding more than just a product. They want uptime, performance, certainty and sustainability.
Recent research from Boston Consulting Group (BCG) reinforces what we’re seeing in the market every day: aftermarket services are no longer a support function – they’re becoming one of the most powerful drivers of profitable growth.
This shift has major implications for how manufacturers think about revenue, pricing and sales strategy.
Aftermarket services: the profit pool many manufacturers underuse
BCG’s 2025 research shows that aftermarket services – including spare parts, maintenance contracts, digital services, upgrades and end-of-life support – are growing faster than equipment sales and consistently delivering higher margins.
As BCG puts it:
“Services have become a key growth driver for industrial manufacturers, offering higher margins, more stable revenue streams, and stronger customer relationships than equipment sales alone.”
This confirms what many manufacturers already suspect: the most reliable growth opportunities often sit in the installed base, not the sales pipeline.
Yet despite this, many organisations still struggle to fully monetise their aftermarket potential.
From selling machines to selling outcomes
The most successful manufacturers are shifting how they position value.
Rather than selling products, they’re selling:
Guaranteed uptime
Predictable performance
Reduced operational risk
Compliance and sustainability outcomes
BCG’s research highlights that top-performing companies outperform peers by excelling at spare-parts capture, long-term service agreements and service productivity.
In practice, this turns one-off transactions into recurring revenue streams – and transforms sales conversations from price-led to value-led.
Digital and green services: opportunity with a warning
Digital services such as predictive maintenance and remote monitoring are often seen as the next frontier for industrial growth.
But the reality is more nuanced.
BCG notes that while many manufacturers are investing in digital services, only a small proportion have successfully monetised them at scale. Technology alone doesn’t guarantee revenue – customers must clearly understand the value, and sales teams must be equipped to sell it.
The same applies to sustainability-driven or “green” services. Retrofit programmes, modernisation kits and end-of-life management are growing in demand, but only when positioned around commercial and operational outcomes, not just ESG commitments.
What this means for revenue leaders in industrial manufacturing
Aftermarket services represent one of the most underleveraged growth strategies in industrial sales.
The biggest barriers we see are rarely technical – they’re commercial.
The most common gaps include:
Limited visibility of the installed base
Service offers that aren’t clearly differentiated
Inconsistent or cost-plus pricing models
Sales teams lacking confidence to lead service-led conversations
Addressing these issues often unlocks growth faster – and more sustainably – than chasing new equipment sales.
Final thoughts…
BCG’s research validates a trend we see repeatedly with industrial clients: the fastest route to profitable growth is often already installed at the customer site.
Winning in aftermarket services requires:
Commercial clarity
Value-based pricing
Confident, capability-led sales teams
Alignment between sales, service and leadership
Manufacturers that get this right don’t just increase revenue – they become long-term partners their customers depend on.
For industrial manufacturers willing to rethink how they sell, price and position services, the upside is significant and increasingly essential.