Published: July 2020 | Report Code: IM10276 | Available Format: PDF | Pages: 210
The global enterprise asset management market size stood at $5.5 billion in 2019, and it is expected to reach $25.9 billion by 2030, exhibiting a CAGR of 17.0% during the forecast period (2020–2030). The major factors supporting the growth of the industry include the strong focus on the best utilization of assets, growing need to reduce maintenance and procurement expenses, digitalization in industries, increasing competitiveness in the market, surging cloud adoption, and growing internet penetration.
The COVID-19 outbreak has badly affected the enterprise asset management market worldwide. The complete or partial lockdown situation across the globe, which has resulted in the halting of business operations, is leading to huge losses for companies. As a result, they are not willing to spend much on automated asset management operations and, are therefore concentrating on reducing their expenditure.
The service category is expected to witness the faster growth in the enterprise asset management market during the forecast period, based on offering. This can be ascribed to the rising demand for managed and professional services from business owners, for smooth operations. Service providers implement, maintain, and monitor the EAM solutions and train end users to utilize them optimally, which further helps users cut long-term costs and streamline their business activities.
Based on service type, the enterprise asset management market is bifurcated into professional and managed. Of these, the managed bifurcation is expected to witness the faster growth during the forecast period. Managed services include the controlling, monitoring, and repairing of assets. Since managed service providers (MSPs) offer their services on a large scale and for the long term, the managed bifurcation is projected to display rapid growth in the coming years, globally.
The enterprise asset management market is classified into cloud and on-premises, on the basis of deployment. Between the two, the on-premises category held the larger market share in 2019. On-premises deployment of EAM software offers better organizational control and data security, since the software is installed on a company’s own computers and servers. Although the initial investment for on-premises EAM software is high, due to its better data security and customization abilities, presently, large enterprises are preferring on-premises deployment.
The small and medium enterprises (SMEs) category is expected to register the faster growth in the enterprise asset management market during the forecast period. This would be majorly due to the fostering competitiveness in the industrial landscape, where SMEs are expanding their growth scope by leveraging numerous developing technologies, globally. SMEs are adopting cloud-deployed EAM solutions, in order to achieve an amelioration in their business operations and cut costs optimally. Further, small companies in developing and developed countries are focusing on competing with big players, whilst steadily establishing themselves in the market landscape.
The manufacturing category held the largest share in the enterprise asset management market in 2019. This was mainly due to the rise in the digitalization rate of the manufacturing industry, with an increase in the infrastructural expenditure, and surge in the customer demand for customized products. EAM solutions facilitate streamlined operations and capital planning for physical assets, which is resulting in the increasing implementation of these solutions by manufacturing companies. Additionally, the increasing competitiveness in the global industrial landscape, together with the complex regulatory environment, is pushing industrialists to move toward cost-effective and investor-friendly methods, thereby contributing to the market growth.
North America dominated the enterprise asset management market during the historical period (2014–2019). The major factors supporting the industry growth include the rising need to meet the stringent regulations, strong presence of EAM vendors, and growing investments by private and public players for the better management of their assets and equipment. Furthermore, the strong focus on integrating EAM solutions with next-generation technologies, such as machine learning (ML), internet of things (IoT), and computer vision, is also resulting in a high market growth rate.
Furthermore, a number of companies are considerably proliferating in the region, with the expanding construction and building information modeling (BIM) industries, connectivity, and SMEs’ accessibility and digitization. Thus, players in the market are intensely emphasizing on the introduction of advanced EAM and predictive maintenance solutions, which provide support in maximizing asset utilization, real-time data collection, and artificial intelligence (AI)-powered monitoring.
Geographically, the fastest growth for the enterprise asset management market is expected in APAC in the coming years. Manufacturing, telecom, banking, and transportation are the key industries utilizing EAM solutions in the region. The large businesses in the region are asset-intensive and rapidly adopting EAM solutions for effectively utilizing their assets, simplifying work operations, reducing maintenance costs, and preventing machine malfunction.
With a strong focus on business improvement and expansion, along with the goal of augmenting their competitiveness, enterprises are robustly adopting predictive maintenance measures, which is further encouraging them to adopt EAM solutions. The region is displaying a stimulating increment in the number of start-ups, with government funding and initiatives for new entrants. For instance, the Indian government’s Make in India initiative and funding allotted to new businesses for the manufacturing of products are propelling the regional market growth.
There has been a growing inclination of enterprises toward cloud-based EAM solutions, to streamline work and manage facilities. Cloud computing enables enterprises to lessen their overhead cost, by reducing their investments in IT infrastructure. Additionally, cloud computing enables online and offline mobility for managing assets and lessens the functional limitations. It also offers better technical support and services, by integrating debugging and performance monitoring tools in the system; increases the business agility, and enables maintenance personnel to be more mobile. Companies in the EAM business are allowing enterprises to transfer their data on the cloud, while maintaining accuracy and integrity, thereby enhancing the enterprise asset management market growth prospects.
Enterprises require EAM solutions for the management of buildings, machines, IT infrastructure, and other assets. ROA shows how profitable a company’s assets are in generating revenue. EAM offers timely maintenance for assets, which helps prevent the malfunctioning of machines or equipment and thus reduces the machine downtime. It extends the life of assets, which preserves capital and helps companies escape the environmental and financial impacts of decommissioning the existing assets. EAM software optimizes the utilization and productivity of the company’s resources, and, in turn, increases the ROA.
In February 2020, a Europe-based textile manufacturing company, Cotonificio Albini S.p.A., deployed Infor CloudSuite EAM in order to digitize its asset management operations. Thus, the rising need to improve the ROA will drive the enterprise asset management market.
|Base Year (2019) Market Size||$5.5 Billion|
|Forecast Period CAGR||17.0%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling|
|Market Size by Segments||Offering, Enterprise, Deployment, Vertical, Region|
|Market Size of Geographies||U.S., Canada, U.K., Germany, France, Italy, Spain, China, Japan, India, Australia, South Korea, U.A.E., Saudi Arabia, Turkey, South Africa, Brazil, Mexico|
|Secondary Sources and References (Partial List)||All India Council for Robotics & Automation (AICRA), Association for the Advancement of Artificial Intelligence (AAAI), Association of Asset Management Professionals (AMP), Association of International Wealth Management (AIWM), Automation Industry Association (AIA), Industrial Asset Management Council (IAMC), Indian Machine Tool Manufacturers' Association (IMTMI), Malaysian Association of Asset Managers, Motor & Equipment Manufacturers Association (MEMA), Singapore Industrial Automation Association (SIAA), Measurement, Control & Automation Association (MCAA)|
Enterprises use the asset turnover ratio to calculate their efficiency and productivity. The asset turnover ratio is a financial ratio of sales and prices of assets; thus, to increase the ratio, a company simply has to increase its sales, compared to the prices of its assets. The use of EAM for asset utilization management allows for maintenance agreement management, asset inventory tracking, examination of trends in invoice payments and excess charges, meter reading and invoice charge tracking, and invoice and funding information analysis.
Through these processes, EAM software generates a set of reports that enable decision makers to compare invoices and expected billing amounts, view each asset or group of assets, and detect unusual activity, to reduce waste and fraud. Thus, with the growing demand of organizations for the effective utilization of assets, the enterprise asset management market is registering positive growth across the globe.
The EAM industry is fragmented in nature and currently witnessing high competition, owing to the presence of several players, such as IBM Corporation, AVEVA Group plc, SAP SE, Infor Inc. (part of Koch Industries Inc.), Oracle Corporation, Aptean Group of Companies, and ABB Ltd. They are continuously emphasizing on acquiring other players, in order to gather a larger share in the enterprise asset management market.
The enterprise asset management market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Offering
Based on Enterprise
Based on Deployment
Based on Vertical
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