The increasing need for the reduction of maintenance and procurement expenses, improved return on assets (ROA), growing adoption of enterprise asset management (EAM) solutions for the effective utilization of assets, ameliorating internet of things (IoT) market, growing awareness regarding predictive analytics, among small and large enterprises, and strong growth in construction activities are the major factors resulting in the rising demand for EAM solutions. Due to these factors, the global enterprise asset management market is expected to reach $25.9 billion by 2030, registering a CAGR of 17.0% during the forecast period (2020–2030).
COVID-19 Impact Analysis
Due to COVID-19, the enterprise asset management industry has been severely affected, globally. This is mainly due to the complete or partial lockdown situation in several countries, which has resulted in a temporary closure of business operations, thereby resulting in huge losses for enterprises. As a result, the slowdown of the economic activities has reduced the demand for industrial products, globally. Moreover, organizations are also not willing to spend on automated asset management solutions, as there is no or less demand for products, and hence focusing on eliminating additional expenses.
Solution Is Dominating Category under Offering Segment
Based on offering, the enterprise asset management market is bifurcated into solution and service. Of these, the solution bifurcation accounted for the larger revenue share in the market in 2019. This was mainly due to the increasing need for the effective management of enterprise resources and assets and comprehensive visibility of assets and rapid growth in industries, including manufacturing, retail, telecommunications, and healthcare.
On the basis of enterprise, the enterprise asset management market is classified into large enterprises and small and medium enterprises (SMEs). Between the two, the large enterprises category held the larger market share in 2019. This was mainly due to the need for the efficient management of a large number of assets, focus on predicting the machine downtime, predicting the causes of equipment failure, and meeting specific compliance requirements in large companies.
Geographically, the fastest growth in the demand for EAM solutions is expected in the Asia-Pacific (APAC) region during the forecast period. This would mainly be due to the rapid adoption of digital services by organizations, growing IT spending, rising support from governments for SMEs, increasing residential construction activities, and surging focus of enterprises on business improvement and expansion. Moreover, the region’s most competitive manufacturing locales include China, India, Singapore, Thailand, Vietnam, and Indonesia. Hence, APAC is being regarded as a manufacturing hub, wherein enterprises are heavily adopting EAM solutions in order to manage industrial operations, thereby resulting in robust enterprise asset management market growth.
Market Players Are Emphasizing on Launch of Innovative EAM solutions
Players in the enterprise asset management market are focused on introducing advanced solutions, in order to enhance their market presence and meet the growing demand. For instance, in June 2020, IBM Corporation and Siemens AG announced the availability of a new solution, designed to optimize the service lifecycle management (SLM) process for assets. This new solution establishes an end-to-end digital thread between equipment manufacturers and owners/operators. The solution combines the elements of Siemens’ Xcelerator portfolio and IBM Maximo, to continuously improve the asset performance and maintenance activities.
Similarly, in November 2019, IBM Corporation launched Maximo Asset Monitor, a new artificial intelligence (AI)-powered monitoring solution, designed to help maintenance and operations executives better understand and improve the performance of their high-value physical assets. This new solution extends the capabilities of IBM Maximo and provides essential insights, with AI-powered anomaly detection and enterprise-wide visibility into critical-equipment performance. This further results in a reduced machine downtime and enhanced decision-making ability.
Browse report overview with detailed TOC on "Enterprise Asset Management (EAM) Market Research Report: By Offering (Solution, Service), Enterprise (Large Enterprises, SMEs), Deployment (On-Premises, Cloud), Vertical (Energy and Utilities, Manufacturing, Healthcare and Life Sciences, Transportation and Logistics, IT and Telecom, Government and Defense, Oil and Gas) - Global Industry Analysis and Growth Forecast to 2030" at:https://www.psmarketresearch.com/market-analysis/enterprise-asset-management-market
Some of the key players operating in the enterprise asset management market are Oracle Corporation, SAP SE, IBM Corporation, ABB Ltd., Industrial and Financial Systems (IFS) AB, CGI Inc., Ramco Systems Limited, Infor Inc. (part of Koch Industries Inc.), MRI Software LLC, Rockwell Automation Inc., AssetWorks LLC, UpKeep Technologies Inc., Ultimo Software Solutions bv, and Maintenance Connection LLC.