This paper gives service executives of industrial equipment (IE) companies and original equipment manufacturers (OEMs) guidance on the top services business challenges and discusses opportunities to create momentum for service revenue and margin growth. TSIA recommends that IE companies improve their capabilities to provide services remotely, enriched with predictive insights created with AI. Service executives in IE are spearheading the digital transformation in their organizations. In IE, 2023 was the year for a new and deeper market orientation. Offer and portfolio management is back as the number one challenge. Last year, marketing and sales, improving operations, and optimizing pricing gained much stronger attention. In a volatile economic environment, the TSIA Industrial Equipment 40 Index showed shrinking margins for products in 2023, while service margins are reaching a record high and are exceeding ‌product margins for the first time in the index’s history.