Published Date : 10 Jan 2023
The global enterprise asset management market size is expected to be worth around USD 10.80 billion by 2032 from USD 4.5 billion in 2022 with a CAGR of 11.80% over the forecast period from 2023 to 2032.
A combination of tools and procedures known as enterprise asset management enables businesses to track and govern their physical assets, such as structures, machinery, vehicles, and equipment, throughout their entire lifecycle, from acquisition to disposal. The rising emphasis on improving asset availability and removing asset breakdowns that impede corporate operations fuels the industry of enterprise asset management.
The need for cloud-based EAM deployments is influenced by factors such as rising data security concerns, increased internet and smartphone usage, coupled with customers' empowerment and awareness of adopting highly effective software deployments.
A significant transition is taking place in the EAM market as a result of new and supplementary technologies. As a result, EAM is evolving into a more intelligent system that can take in real-time data, communicate with devices, and provide engineers and operators access to cutting-edge insights. Widespread use of cloud-based and micro-enterprise scale designs is creating new opportunities for industry expansion.
The capabilities of enterprise asset management systems are growing to meet and exceed the changing requirements of asset-intensive enterprises. The visibility offered by these cutting-edge solutions is crucial for managing resources and business activities within an organization. Key operating areas include work management, MRO supplies, service contracts, labor skills, finance, and asset information along with digital transformation.
The importance of EAM systems as a storehouse for business asset data which can be exchanged with adjoining systems is expanding as these systems become more sophisticated and networked. Innovation across sectors is driven by customer demand in leveraging EAM to deliver better insight into areas like management of asset performance, and managing asset lifecycle.
Enterprise Asset Management Market Report Scope
|Market Size in 2023||USD 3.96 Billion|
|Market Size by 2032||USD 10.80 Billion|
|Growth Rate from 2023 to 2032||CAGR of 11.80%|
|Forecast Period||2023 to 2032|
|Segments Covered||By Component, By Application, By Organization, By Deployment and ByEnd User|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
In 2021, North America accounted for the largest share. The market growth is being driven by the presence of significant EAM businesses in the area. Additional factors influencing regional growth include early adoption of cutting-edge technology, fully advanced IT infrastructural facilities, government initiatives in cutting-edge technologies, and the growing emphasis of organizations to adhere the regulatory and compliance requirements.
The regional market is also being driven by the growing need to comply with more strict regulatory requirements, a strong vendor base, and increased investments by both private and public entities for improved management of current assets and equipment.
Significant potential for industry expansion is anticipated to be present in the European region. IoT technology and predictive analytics are two examples of modern asset management installations and technologies that European industries and transportation companies are progressively implementing.
These technologies will aid in predicting future equipment and machinery breakdown and will help to streamline asset maintenance procedures. Furthermore, to create a centralized system that simplifies all process control and efficiently maintains assets, over 80% of European businesses are prepared to implement enterprise asset management systems in their corporate operations.
However, during the projection period, the Asia Pacific market is anticipated to develop at the fastest rate. This can be attributed to several factors, including the quick uptake of digital services by businesses, rising IT spending, increasing government support for the growth of SMEs, expanding residential construction activity, and a sharp increase in the company's focus on growth and improvement.
Driver: Modern technologies and increased demand for cloud-based technology
The increased asset tracking capability in an organization, decreased maintenance and purchasing costs coupled with continuous improvement in return on assets are the main factors driving the EAM market growth. The key drivers propelling the growth of the EAM market include the proliferation of IoT devices across almost all industrial verticals, the incorporation of drones and asset management through Artificial Intelligence, and the growing adoption of cloud-based solutions.
Additionally, the market is expanding as a result of technical advancements, the growing acceptance of sophisticated technologies for asset lifespan extension, and the appearance of innovative digital technologies across industrial verticals. However, Selecting precise and effective solutions that meet an organization's business goals is one of the biggest challenges in the market.
Restraint: Data security concern for industries
Surging awareness regarding EAM utilities, as well as the increasing presence of significant vendors and specialized solution providers, asset-intensive industries are finding it more challenging to choose the correct combination of solutions. There are no set standards for choosing the best solution, even though some service providers offer free trials of their products.
Organizations have prioritised data security as losing data can lead to both immediate and long-term damage. Although many businesses employ EAM solutions, they usually neglect to develop a long-term approach, which is anticipated to impede the worldwide enterprise asset management industry's growth over the anticipated year.
Opportunity: Digitalization across several industries
Digitization creates new opportunities for organizations to strengthen client interactions across a variety of industries. Many organizations with heavy asset requirements are concentrating their efforts on making investments in cutting-edge technology that will fundamentally alter and enhance their operating processes. Asset-intensive companies' ability to handle complexity in the face of heightened competition determines whether they survive or fail in today's fiercely competitive business environment.
The ability to accurately predict the future of assets will be the upcoming big change in services, thus top organizations are embracing cutting-edge technologies like telematics, predictive maintenance, artificial intelligence, and augmented reality. EAM solutions have an impact that goes beyond just improving the bottom line.
Challenge: Increase in vendors and professional solution providers
It is getting challenging for asset-intensive enterprises to choose the best combination of solutions due to rising EAM awareness and growth in suppliers and professional solution providers. There are no predetermined standards for choosing the best solution, even though some EAM suppliers provide free product demos. Data security is a top concern for enterprises since a failed data backup can lead to both short-term and long-term losses.
key Market Players
Segments covered in the report
By End User
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