Atlas Copco AIRPlan - Transforming the delivery of compressed air with innovative service models
What if industrial machines could be delivered to customers with the latest technology, higher uptime and no capital investments needed? Atlas Copco’s AIRPlan accomplishes this through a circular, Machines-as-a-Service, business model. By offering their compressed air solutions through a service, Atlas Copco is able to promote the use of more energy efficient machines, while also contributing to material efficiency through longer product lifetimes.
The challenge
Industrial machinery and installations often suffer from premature product lives or wasted end-of-life value due to poor maintenance and lack of return schemes. Companies may find it difficult to prioritize the lifetime optimization of specific parts of their production lines, like air compression, which leaves the door open for inefficiencies in the utilization of these products and components.
Furthermore, in today's competitive market, compressed air users are increasingly focused on maximizing their return on investment, minimizing ownership costs, and ensuring the highest reliability of their equipment. Customers seek flexible solutions that adapt to production cycles and deliver consistent performance.
The solution
To tackle these challenges, Atlas Copco launched AIRPlan in 2018, their innovative Machines-as-a-Service product. AIRPlan offers a sustainable and efficient solution for customers looking to optimize their compressed air systems without the burden of upfront investments.
AIRPlan leverages advanced variable speed drive equipment, replacing outdated, less efficient machinery with state-of-the-art technology. In addition to upgrading existing machines, AIRPlan services completely new production facilities as well. The subscription-based model allows customers to pay for usage, ensuring they only invest in what they need. This approach guarantees high-quality air supply while eliminating the hassle of equipment maintenance.
The business model
Under the AIRPlan contract, customers can customize their compressor room with a range of equipment, including compressors, dryers, filtration systems, and gas generators. All devices are integrated into a sophisticated remote diagnostics system, enabling Atlas Copco to proactively address potential issues before they arise. The contract is flexible, allowing for extensions and adjustments to meet evolving production requirements.
AIRPlan service exemplifies circular economy principles by shifting from a traditional ownership model to a service model, where product ownership is retained by Atlas Copco. This type of a circular business model incentivizes companies to design durable, energy-efficient systems that are easy to maintain, upgrade, and eventually refurbish or recycle - maximizing resource use over multiple life cycles.
The customer benefits
Flexible Payment: Customers pay based on production needs. Depending on demand, equipment can be upgraded or downgraded to match production requirements.
Streamlined operations: Regular maintenance and troubleshooting are included in the contract, eliminating the need for an in-house service department. Also, utilizing the most efficient equipment helps customers reduce energy costs.
CAPEX Savings: The Machines as a Service model helps customers avoid capital expenditures, preserving their investments.
Asset Management: Atlas Copco retains ownership of the equipment, freeing customers from the burden of new asset acquisition.
Fact sheet: Atlas Copco
Industry: Industrial equipment manufacturing
Annual revenue: 176 BSEK
Founded: 1873
Employees: 55 146
Launch of circular business model: 2018
Phase of circular business model: Scale-up
How was the solution developed: Developed by Atlas Copco Compressor Technique Business Area