PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209899
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1209899
According to Stratistics MRC, the Global Enterprise Asset Management Market is accounted for $4 billion in 2022 and is expected to reach $7 billion by 2028 growing at a CAGR of 10.7% during the forecast period. Enterprise asset management (EAM) is the management of an enterprise's physical assets throughout their lifecycle in order to increase their use, improve quality and efficiency, save money, and protect health and the environment. EAM is commonly used in industries that rely on complex and expensive assets such as plants, vehicles, heavy equipment and so on. Energy, government, oil and gas, mining, utility, shipbuilding, defence, and aerospace are some of the major industries that use EAM. Specialised software that handles every aspect of running a public works or asset-intensive organisation is frequently used.
According to DevSquad study published in 2022, 73% of businesses are switching all systems to SaaS and companies plan to increase their spending by 44% over the previous year. Major players in the enterprise asset management market are focusing on expanding their research and development efforts into new technologies which provides huge potential for the Enterprise Asset Management Market.
Increased enterprise demand for cloud-based EAM solutions
A variety of companies around the world use EAM systems to improve work productivity, streamline processes, increase company agility, and manage facilities. Furthermore, cloud-based enterprise asset management software and services are used to maximise critical corporate assets and collect business analytics for decision-making. Furthermore, these solutions enable businesses to reduce their overhead costs. Additionally, it reduces the additional costs that businesses must incur for asset management. As a result, the growing demand for cloud-based EAM solutions among enterprises is propelling the enterprise asset management market.
High software costs and a lack of awareness in developing economies
EAM software supports critical business operations and it is a valuable investment. However, the installation and maintenance of this software are expensive, limiting its adoption among SMEs. Furthermore, low awareness of EAM software among enterprises in developing economies is a major deterrent factor in the global market. As a result, these businesses are cost-conscious and they manage their assets using traditional methods. Hence, high software costs and a lack of awareness in developing countries suppress the growth of the enterprise asset management market.
Digitization in different industries
Digitization in various industries has played a crucial role in market growth and will provide more opportunities for growth during the forecast period. The use of this system has aided in the improvement of organisations' relationships with their customers. The demand for new and innovative technologies is increasing because they will aid in the transformation of business processes. Most large enterprises around the world are constantly investing in artificial intelligence, the Internet of Things, augmented reality, Telematics and predictive maintenance to ensure that they have accurate information about their assets.
Lack of long-term strategy
Although many companies implement EAM solutions, they frequently fail to develop a long-term strategy, which is expected to limit the global enterprise asset management market growth over the forecast period. Companies frequently prioritise short-term issues over long-term goals for their assets. Furthermore, organisations must develop a distinct strategy for post-installation activities that is appropriate for the nature of their business.
The COVID-19 pandemic has caused significant problems for the global economy and a wide range of economic sectors. Businesses have suffered significant losses as a result of the lockdowns put in place to contain the pandemic. This outbreak has caused significant issues in the enterprise asset management market. This crisis is being viewed by EAM vendors as an opportunity to restructure and reassess their current strategies and sophisticated product portfolio. As a result, the demand for cloud services for business applications such as partnerships and other efficiency and process improvement tools has increased. Many businesses across sectors have chosen the work-from-home model to adequately protect employees while also ensuring efficiency and productivity, resulting in a surge in demand for cloud-based solutions. As more businesses invest in their IT infrastructure, the demand for EAM solutions will rise.
The Solutions segment is expected to be the largest during the forecast period
The solutions segment dominated the market and is expected to hold the largest share during the forecast period. This segment grows in the coming years as more organisations seek advanced solutions while also requiring cost-effective and robust systems for enterprise asset management. The demand for enterprise asset management systems is increasing in order to prevent system errors and to report and predict such errors. Moreover, many businesses are implementing enterprise asset management systems in order to spend less on maintenance and control costs, which will expand the EAM market.
The Small and Medium-sized Enterprises (SMEs) segment is expected to have the highest CAGR during the forecast period
The small and medium-sized enterprises segment is expected to grow at a faster CAGR during the forecast period due to a rising demand for enterprise asset management among small and medium-sized businesses, specifically to increase utilisation and remain competitive in the market. Furthermore, the increasing number of small and medium-sized businesses entering the market is a key factor driving segment growth.
Region with largest share:
During the projection period, North America is expected to be the region with the largest share owing to Strong investments, rigorous R&D activities, and increased penetration of EAM preventive maintenance systems have increased the rate of deployment of enterprise asset management solutions in North America. The presence of large EAM firms, as well as several developing start-ups in the region, is primarily responsible for the region's significant market share.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period owing to the region's rising opportunities for industry growth. Advanced asset management deployments and technologies such as the Internet of Things and predictive analytics are increasingly being adopted by European manufacturers and transportation operators. These technologies will aid in the prediction of potential machinery and equipment failures as well as the optimization of asset maintenance processes. As a result, enterprise asset management deployments with predictive maintenance and management capabilities are in high demand across a wide range of industries.
Key players in the market
Some of the key players profiled in the Enterprise Asset Management Market include IFS AB, Infor, Oracle Corporation, Ramco Systems Ltd., SAP SE, Schneider Electric SA, Vesta Partners, LLC., Aptean, Sage Group PLC, ABB Ltd., CGI Group, Inc., Dude Solutions, Inc., eMaint Enterprises, LLC and IBM Corporation.
In July 2021, Infor, the industry cloud company, today announced it has entered into an agreement to sell its global EAM (Enterprise Asset Management) business to Hexagon AB.
In February 2021, SAP acquired AppGyver to help the partners and the clients in the modification of their information technology solutions depending upon their needs. It will also help in providing optimized accessibility to the applications.
In February 2021, SAP launched the SAP Learning Hub for its partners, which combines all the learning content required by their partners.
In January 2021, IBM collaborated with Atos to accelerate digital transformation in enterprises with AI and RedHat Open Shift technologies. The collaboration offers asset life cycle management solutions, asset monitoring and MRO optimization solutions, SMART waste and energy monitoring and optimization solutions, and packaging, transportation, and logistics optimization solutions to end users.
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