North America Enterprise Asset Management (EAM) Market by Component (Software [Linear Assets, Non-linear Assets, Field Service Management {FSM}, Assets Maintenance, Repair & Operations {MRO}], Service [Professional, Managed], Solution [Planning & Forecasting, Procurement of Material, Logistics & Inventory, Network Field Operations, Asset Transfer & Retirement]), by Deployment Type (On-premises, Cloud-based), by Industry (Government, Oil & Gas, Healthcare, Transportation & Logistics, Manufacturing, Energy & Utilities), by Enterprise Size (Small & Medium Enterprises [SMEs], Large Enterprises), by Country (U.S., Canada, Mexico) –Market Size, Share, Development, Growth and Demand Forecast, 2013–2023

North America Enterprise Asset Management Market Overview

The North American enterprise asset management market was valued at $1,150.0 million in 2017 and is forecasted to record a CAGR of 10.9% during 2018–2023. The market is buoyed by several factors, predominantly rising need for optimum asset utilization, need to reduce operational cost, and protection measures for the supply chain availability and visibility.

U.S. EAM SOFTWARE MARKET, BY TYPE, $M (2013-2023)

Based on component, the North American enterprise asset management market is classified into software, services, and solutions. Of these, the software category accounted for more than 50% of the market share in 2017, and is further expected to continue to lead the market during the forecast period as well. Moreover, the EAM software have been categorized into linear assets, field service management (FSM), non-linear assets, assets maintenance, repair, and operations (MRO). Among these, assets MRO category is projected to register highest growth rate during the forecast period. This can be characterized by the growing demand for EAM software in asset intensive industries, primarily manufacturing industry.

In terms of deployment type, the North American enterprise asset management market has been classified into on-premises and cloud-based. Of the two, on-premises category held a larger revenue share of over 60% in 2017, owing to data security concerns by the organizations. However, during the forecast period, the market is expected to register faster growth in the cloud category. Cloud-based EAM provides increased versatility as well as connectivity, due to increased mobility throughout the supply chain. Real-time data can be accessed by any number of users in an organization at different locations using cloud based EAM.

On the basis of industry, the market is segmented into government, oil and gas, healthcare, transportation and logistics, manufacturing, energy and utilities and others (including retail, metal and mining). Among these, healthcare industry is projected to exhibit highest CAGR of around 14% during the forecast period. Hospitals can save up to 25% on maintenance cost by deploying EAM solution. This would also reduce capital and operating expenditure, improve core efficiency, patient safety, and staff productivity. These factors would further drive the adoption of EAM solutions in the healthcare industry in the North American enterprise asset management market.

North America Enterprise Asset Management Market Dynamics

Trends

Key trends observed in the North American enterprise asset management market are the integration of IoT and mobility with EAM, and inclination toward cloud-based EAM. With escalating rise of IoT deployments in North America, its integration with EAM has been increasing. IoT devices are increasingly being used in EAM to provide real-time data to the EAM system, which in-turn processes and provides powerful insights to the user/deployer. This way, enterprises are able to manage, maintain, and supervise their assets in real-time.

Also, there has been an inclination of enterprises toward cloud-based EAM systems to streamline work and manage facilities. Cloud computing enable 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 functional limitations. It also offers better technical support and services by integrating debugging and performance monitoring tools in the system, increased business agility, and enables maintenance personnel to be more mobile. Companies in the enterprise asset management business allow enterprises to transfer their data on the cloud, while maintaining accuracy and integrity.

Drivers

Adoption of enterprise asset management for effective asset utilization and need for reduction in operating cost are major factors driving the North American enterprise asset management market. EAM solutions for asset utilization management includes asset inventory tracking, maintenance agreement management, tracking of meter readings and invoice charges, examination of trends in invoice payments and excess charges, and analysis of invoice and funding information. Through these, the EAM system generates a set of dedicated reports, which enables the decision-makers to compare invoice and expected billing amounts and view each asset or group of assets and detect unusual activity to reduce waste, fraud and abuse.

Furthermore, the main motive of an enterprise is to increase profits by cutting operational costs incurred during the process of product manufacturing that has buoyed the demand for EAM. An EAM can reduce operating cost by increasing return on investment (ROI) from plant and equipment by optimizing asset utilization and maintaining critical equipment in peak operating conditions, along with performance improvement against key metrics by tracking improvements in the production field, scrap/rework, and overall equipment effectiveness (OEE).

Moreover, EAM reduces operating cost by reducing maintenance cost, procurement of material cost, and increasing project ROI. Enterprises in North America are effectively optimizing their operating cost by installing EAM software. The rising needs of enterprises to cutdown their operating cost by a significant number is boosting the demand for enterprise asset management.

Opportunities

Currently, the SMEs are unable to bear the cost of EAM software and the cost associated with its implementation. SMEs are using simpler computerized maintenance management system (CMMS) which is a cheaper alternative EAM. But an opportunity arises for the small companies, which accounts for around 90% share in the total of North American enterprises, to install the EAM in their premises, driven by the advent of cloud integration with the EAM system. Thus, SMEs would offer lucrative growth opportunities for players in North American enterprise asset management market.

North America Enterprise Asset Management Market Competitive Landscape

The North American enterprise asset management is fairly a mature market, where established companies such as IBM Corporation, SAP SE, Infor Inc., and Oracle Corporation are the prominent players in the region. Competition in the market are mainly on the basis of scalability, industry-specific customization, and after sales support.

SMEs in the region prefer cloud-based EAM delivery model, as the IT infrastructure including servers, and storage devices, is not a prerequisite for its deployment. EAM vendors like IFS AB, Oracle Corporation, IBM Corporation, CGI Group Inc, and Ramco Systems Ltd., are targeting this segment by offering innovative cloud-based EAM solutions such as mobile platform for anywhere accessibility.

Some of the key players operating in the North American enterprise asset management market are Schneider Electric SE, Oracle Corporation, IBM Corporation, SAP SE, ABB Ltd, IFS AB, MRI Software LLC, CGI Group Inc, Infor Inc, and Ramco Systems Limited.