The enterprise asset management (EAM) market is expected to reach $8.7 billion by 2024, registering a CAGR of 13.5%, during 2019-2024, according to P&S Intelligence.
The need for effective utilization of assets, controlling maintenance and procurement expenses, and to improve the return on assets, are the major factors contributing to the growth of the enterprise asset management market, globally.
Insights into the market segments
Based on component, the enterprise asset management market is categorized into software, service, and solution. Software category is further classified into linear assets, non-linear assets, field service management (FSM), and asset management, repair, and maintenance (MRO). Of these, linear assets sub-category held the largest market share, in 2018. This can be attributed to the rising need for controlled management of the massive networks of railway lines, oil and gas pipelines, power lines, drainage and facilities, roads, and among others, across the globe.
In terms of deployment type, the enterprise asset management market is bifurcated into on-premises and cloud-based deployment. The market for cloud-based deployment is projected to register faster growth during the forecast period. Cloud-based EAM enables multiple number of users in an organization to access data at any time from different locations. As cloud-based deployment requires no hardware upfront costs, cloud solution is getting preferred by SMEs, that are inclined toward entering the market landscape quickly with lower investments.
On the basis of enterprise size, the enterprise asset management market is segmented into large enterprises and small and medium enterprises (SMEs). The SMEs category is projected to register the faster growth during the forecast period. SMEs are implementing EAM software to enhance operational efficiencies and maintain their assets. Further, due to the need for domain-specific technical personnel, SMEs are adopting EAM software.
Increasing adoption of EAM solutions to drive the market growth
Enterprises use asset turnover ratio to calculate the company’s efficiency and productivity. The use of EAM for asset utilization management includes maintenance agreement management, asset inventory tracking, examination of trends in invoice payments, and analysis of invoice and funding information. Through these, EAM software generates set of reports which enables decision-makers to compare invoice and expected billing amounts, and view each asset or group of assets and detect unusual activity to reduce waste, and fraud. Thus, with growing demand for effective utilization of assets from organization, the market for EAM is registering positive growth across the globe.
Growing need for reduction in maintenance and procurement expenses, is a key driver observed in the market
The main aim of an enterprise is to increase profits by cutting maintenance and procurement costs incurred during the process of product manufacturing. An EAM can reduce maintenance costs by closely tracking of operations, giving better information on capital investment decisions, and by integrating the procurement to maintenance jobs for effective control of the equipment. With rising need of enterprises to cutdown their maintenance and procurement costs by a significant number, is strengthening the demand for EAM solutions globally.
Browse report overview with 123 tables and 83 figures spread through 200 pages and detailed TOC on "Enterprise Asset Management (EAM) Market by Component (Software [Linear Assets, Field Service Management, Non-Linear Assets, Assets Maintenance, Repair, and Operations], Service [Managed, Professional], Solution[Planning and Forecasting, Logistics and Inventory, Network Field Operations, Asset Transfer and Retirement, Procurement of Material]), by Deployment Type (On-Premises, Cloud-Based), by Enterprise Size (Large Enterprises, Small and Medium Enterprises), by Industry (Manufacturing, Oil and Gas, Healthcare, Energy and Utilities, Transportation and Logistics, Government), by Geography (U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, Russia, China, Japan, India, South Korea, Singapore, Brazil, Argentina, Chile, Colombia, Peru, U.A.E., Saudi Arabia, Turkey, South Africa, Egypt) – Global Market Size, Share, Development, Growth and Demand Forecast, 2014–2024" at:https://www.psmarketresearch.com/market-analysis/enterprise-asset-management-market
Enterprise Asset Management Market Competitive Landscape
The enterprise asset management market is moderately competitive. In the recent past, product launches have been the major activities in the market in APAC. Companies like Bentley Systems Incorporated, IBM Corporation, MRI Software LLC, and Infor Inc. are majorly focusing on expanding their businesses in the region. For instance, in June 2018, IBM Corporation acquired Oniqua Holdings Pty Ltd., a service provider of MRO inventory optimization solutions, for an undisclosed amount. This acquisition would complement IBM's Asset Optimization Practice and enable its clients to optimize MRO inventories, and avoid unplanned downtime.
Some of the other key players operating in the enterprise asset management market includes Oracle Corporation, SAP SE, ABB Ltd., International Business Machines (IBM) Corporation, Schneider Electric SE, MRI Software LLC, CGI Group Inc., Industrial and Financial Systems (IFS) AB, Infor Inc., Ramco Systems Limited, Bentley Systems Incorporated, Rockwell Automation Inc., and AssetWorks LLC.
Enterprise Asset Management Market Segmentation
Market Segmentation by Component
Market Segmentation by Deployment Type
Market Segmentation by Industry
Market Segmentation by Enterprise Size
Market Segmentation by Region