Market Insight- Global IT Asset Management (ITAM) Software Market
Asset management software is a dedicated application used to track and record an asset throughout its life cycle, starting from procurement to disposal. It offers organization critical information regarding location of certain assets, who is using them, details about the assets, and how they are being utilized. The asset management software is used for management of both hardware and software assets. Asset management software is also called asset management tool. It provides various features such as vendor audit and policy compliance, optimization of costs for licensing, analyzing vendor performance, streamlining of procurement processes, and optimization of supplier portfolio. Asset management software offers various advantages such as maximum utilization and value of assets, service and asset management, proactive licensing compliance, etc.
The global IT asset management (ITAM) software market was valued US$ 955.6 Mn in 2019 and expected to grow at a CAGR of 6.9% over the forecasted period 2019-27.
Market Dynamics- Drivers
- Increasing need for centralization and automation in IT infrastructure is expected to drive growth of the global IT asset management (ITAM) software market during the forecast period
Growing trend of consolidation has led to requirement of establishing simplified and centralized IT operations and infrastructure, in order to attain success in business. Implementation of automation to a centralized IT environment allows constant monitoring of activities. Moreover, organization-wide centralization ITAM facilitates inventory visibility across the organization and helps in budgetary planning. It also provides information enabling advance planning for future asset requirements thereby capitalizing on existing asset utilization and minimizing unnecessary IT expenditures. Hence, these factors are expected to support growth of the market during the forecast period.
- Growing focus on cost, compliance, and security related to assets is expected to propel the global IT asset management (ITAM) software market growth over the forecast period
Asset inventory management enables an organization to record and track when equipment is procured, to what extent it has been utilized and whether there is a lease lapsing on the asset. Moreover, it is the same case with software where it is necessary to stay up-to-date regarding the latest software and OS. Asset management software identifies whether an unapproved or malicious software or hardware has been installed. It also allows managers to isolate any pertaining vulnerabilities and prevent major issues thereby ensuring compliance corporate security policies.
North America region dominated the global IT asset management (ITAM) software market in 2019, accounting for 30.5% share in terms of value, followed by Europe, Asia Pacific, Latin America, and Midde East and Africa respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
- High costs required for deployment is expected to hinder the global IT asset management (ITAM) software market growth over the forecast period
Many organizations are struggling to minimize their operational costs. ITAM software enables them to track inventory and helps them terminate all the excess costs associated with IT expenses. However, initial installment cost of ITAM is significantly high, which is not affordable to small and medium-sized enterprises. Thus, many organizations are unwilling to adapt to ITAM software, which in turn, is expected to hinder the market growth in the near future.
- Low awareness among small and medium-sized enterprises (SMEs) is expected to restrain growth of the global IT asset management (ITAM) software market during the forecast period
Since SMEs often lack adequate financial support, they avoid implementing ITAM software. Apart from that, lack of understanding regarding ITAM solutions combined with varied perceptions over their capabilities is major reason SMEs are not adopting these solutions. Hence, these factors are expected to hinder the global IT asset management (ITAM) software market growth in the near future.
- Lucrative opportunities offered by emerging markets such as MEA and Latin America
Volatility in economy and low awareness among organizations in these regions has impacted the regional market growth in the recent past. However, rising implementation of existing technologies and rising adoption of cloud-based solutions combined with strict regulatory policies has increased adoption of IT asset management (ITAM) software market.
- Advent of IoT and M2M can provide major business opportunities for market players
A significant rise in number of connected smart devices has made challenging to track them. Many organizations are focused on finding methods to implement ITAM with BYOD. ITMA provides inventory information to a security system, which crucial in tracking and recording activity of connected devices.
Source: Coherent Market Insights
- Growing integration of ITAM and ITSM software is a new trend in the market
It is difficult for any organization to minimize IT-related costs. Software leads to a major part of an organizations’ budget and unlike hardware, it is difficult to track and manage software. As a result, it often leads to overbuying and unnecessary investment. Moreover, organizations are understanding the true value of integration of IT service management (ITSM) and IT asset management (ITAM) processes and tools Furthermore, with this conjunction, an enterprise can drive down costs and lower the risk of license compliance violations while ensuring the smooth flow of business operations.
- Introduction of ITAM robot solution is another major trend in the market
Key companies in the market are focused on launching ITAM-integrated robots, in order to enhance the market presence. For instance, in November 2015, Avotus Corporation, the provider of Intelligent Communications Management (ICM) solutions introduced its robot solution for ITAM. The Avotus ITAM robot constructs and monitors IT asset inventory. Online analytical processes (OLAP) are further used to develop configuration management database (CMDB) of all IT and telecom assets.
In global IT asset management (ITAM) software market, by enterprise size segment, the large enterprise, sub-segment dominated the global market in 2019, accounting for 64.0% share in terms of value, followed by SME.
Source: Coherent Market Insights
Key players operating in the global IT asset management (ITAM) software market are Snow Software, Hewlett Packard Enterprise Development LP, Oracle Corporation, BMC Software Inc., Aspera Technologies Inc., CA Technologies Inc., LANDESK Software, Broadcom Inc., ServiceNow Inc., Flexera Software LLC, and Cherwell Software Inc.
- Key companies in the market are focused on mergers and acquisitions, in order to expand their market presence. For instance, in December 2019, Snow Software, a Sweden-based information technology company, acquired Embotics, a hybrid cloud management company.
- Major players in the market are involved in mergers and acquisitions, in order to gain a competitive advantage in the market. For instance, in August 2019, Hewlett Packard Enterprise Development LP acquired the business assets of MapR, a U.S.-based business software company.