Enterprise asset management (EAM) refers to the management of physical assets of an enterprise throughout each asset’s lifecycle, in order to augment their use, enhance quality and efficiency, save money, and protect health and the environment. EAM majorly finds applications in various industries that are dependent on complex and expensive assets including plants, vehicles, heavy equipment, etc. Major industries employing EAM are energy, government, oil and gas, mining, utility, shipbuilding, defense, and aerospace. A specialized software is often used that handles every aspect of running a public works or asset-intensive organization. For instance, EAM software can alert operations managers to failure of machine part and provides necessary information and tools required to dispatch to person to prevent further causalities.
Increasing investment by organizations on enterprise asset management software is expected to drive growth of the global enterprise asset management market during the forecast period. Various governmental and corporate organizations around the world are employing EAM software, in order to optimize the company’s work efficiency and save money. For instance, in August 2019, Infor, Inc., a U.S.-based enterprise software company, received the contract for EAM solution from Auckland Transport (AT) to manage its asset in future. AT manages a public transport system that includes assets of US$ 1.02 billion with 43 railway stations, 21 ferry wharves, and 2,337 bus stations.
Lack of long-term strategy, especially in small- and mid-sized companies to restrain the market growth. Although numerous companies deploy EAM solutions, they often fail to create a long-term strategy, which in turn, is expected to restrain the global enterprise asset management market growth over the forecast period. The companies often focus on short-term problems without considering the long-term goals of their assets. Moreover, organizations are required to form a unique strategy for post-installation activities, which will be suitable for the nature of their business.
Global Enterprise Asset Management Market- Impact of Coronavirus (Covid-19) Pandemic:
The spread of the COVID-19 has had a severe impact on people and businesses across the globe. The automotive, healthcare, oil and gas, and other industries faced severe losses due to the pandemic. The supply chain operations were disrupted and asset management was a major challenge to these industries. This situation gave an opportunity for EAM players to capture the market and help these industries to restructure their asset management process and help them attain efficiency, improve asset reliability, lower asset downtime, and enhanced decision making. All these factors helped in the growth of the global enterprise asset management market and hence during the pandemic the global enterprise asset management market witnessed a positive growth.
North America held a dominant position in the global enterprise asset management market in 2021
North America held a dominant position in the global enterprise asset management market in 2021, accounting for 33.0% share, in terms of market share, followed by Asia Pacific.
|Base Year:||2021||Market Size in 2021:||US$ 2,957.0 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||11.5 %||2030 Value Projection:||US$ 7,775.66 Mn|
IBM Corporation, SAP SE, Oracle Corporation, ABB Ltd., Infor, Inc., Ultimo Software Solutions BV, CARL International SA, eMaint Enterprises, LLC, Mainsaver, Inc., MEX Pty Ltd., Asset Works LLC, and CGI, Inc.
|Restraints & Challenges:||
Figure 1: Global Enterprise Asset Management Market Share (%), By Region, 2021
North America is expected to hold dominant position over the forecast period, owing to the growing adoption of EAM solution across various institutions and this is expected to drive growth of the North America enterprise asset management market. Numerous educational institutions such as universities and k-12 schools are adopting asset management solutions, in order to monitor assets such as schools, buildings, and other facilities. For instance, in June 2021, AssetWorks LLC a company that delivers industry leading business solution acquired Oasys Ltd a subsidiary of Arup Group Ltd. that provides special education software for K-12 school.
Europe is expected to witness significant growth over the forecast period. Increasing demand for EAM solutions across various industry verticals is expected to drive growth of the Europe enterprise asset management market during the forecast period. Industries such as manufacturing, energy, transportation, and more across Europe are focusing on adoption of EAM solutions, in order to enhance the efficiency of their business. For instance, in July 5 2022, IFS Company purchased Ultimo Software Solutions which provides the cloud Enterprise Asset Management (EAM) software.
Consulting service segment is expected to drive the global enterprise asset management market growth during the forecast period.
Among services, consulting service segment is expected to exhibit the highest growth rate over the forecast period. Companies across the globe in the manufacturing, healthcare, chemical and process industry, and other sectors have become aware of the benefits of using EAM enterprise asset management and hence demand for consulting services for EAM is growing rapidly. The consulting services work with higher management or project teams and consult on the implementation and integration of EAM. These consulting services help companies to achieve sustainable growth in the respective sector and hence the consulting services is expected to gain traction in the forecast period.
Figure 2: Global Enterprise Asset Management Market (US$ Mn) Analysis and Forecast, 2017 - 2030
Global enterprise asset management market was valued at US$ 2,957.06 Mn in 2021 and is expected to reach US$ 7,775.6 Mn by 2030, exhibiting at a CAGR of 11.5% between 2022 and 2030.
Major players operating in the global enterprise asset management market include IBM Corporation, SAP SE, Oracle Corporation, ABB Ltd., Infor, Inc., Ultimo Software Solutions BV, CARL International SA, eMaint Enterprises, LLC, Mainsaver, Inc., MEX Pty Ltd., Asset Works LLC, and CGI, Inc.
Enterprise asset management (EAM) is an optimal lifecycle management solution which manages the assets of a company. Enterprise asset management (EAM) includes the management of the maintenance of physical assets of an organization throughout each asset's lifecycle. EAM system helps enterprises to reduce the end-user’s maintenance costs. EAM is used to optimize, plan, execute, and track the required maintenance activities with the associated priorities, tools, skills, materials and information. Moreover, rising adoption of EAM has lowered the labor costs, production costs, reduced equipment breakdowns and boosted maintenance productivity. Furthermore, the EAM solution offers maximum control and visibility over important assets that affect business performance, risk as well as compliance. Reduction of maintenance and procurement expenses, improved return on assets and increasing adoption of EAM solutions are the major factors which are expected to further augment the growth of global enterprise asset management market during forecast period.
Enterprises require EAM for management of assets, buildings, machines, IT and other enterprise assets. The on premise implementation of enterprise asset management solutions requires a lot of time and capital. It requires organizations to make significant investments in finding the right servers, storage devices, and communication infrastructure. Moreover, cloud-based enterprise asset management solutions can be easily scaled to fit the needs of an organization. Additionally, there is far more reliability with a cloud-based system, because data centers are geographically dispersed along with storage. Asset-intensive organizations take advantage of the latest hardware, software, and communications features available in the market by adopting cloud-based enterprise asset management solutions. These solutions make it easier for organizations to gain business intelligence and optimize the use and value of enterprise assets.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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