The global enterprise asset management market is anticipated to expand at a CAGR of 11.7% between 2024 and 2032. Enterprise asset management (EAM) is a collection of processes and tools that enable organizations to track and manage their physical assets, such as machines, equipment, buildings, and vehicles, throughout their entire lifecycle, from acquisition to disposal. EAM is used to plan, optimize, execute, and track all maintenance activities, as well as the associated priorities, skills, materials, tools, and other data. The expansion of the global EAM market is propelled by the rising demand for optimizing the performance of assets throughout their entire lifecycle. Moreover, reliance on physical infrastructure is a significant market driver. The implementation of the cloud deployment model and the incorporation of big data into EAM are likely to generate business opportunities. The expansion of the market was hindered, however, by high prices and a lack of awareness. Increasing adoption rates in Asia-Pacific and the Middle East and Africa would present numerous opportunities for market expansion in enterprise asset management.
A number of businesses around the world employ EAM systems to improve work efficiency, streamline processes, increase company agility, and manage facilities. In addition, cloud-based enterprise asset management software and services are used to optimize vital corporate assets and acquire business analytics for decision-making. Additionally, these solutions enable businesses to cut costs. Cloud-based enterprise asset management systems also provide superior technical support and services, such as managed services with integrated debugging and performance monitoring tools. Moreover, it reduces the additional asset management costs that businesses incur. Consequently, the expansion of the enterprise asset management industry is being driven by the growing demand for cloud-based EAM solutions.
The EAM software is a worthwhile investment because it supports essential business operations. However, the installation and maintenance of this software are costly, preventing small and medium-sized businesses from adopting it. In addition, the lack of awareness of EAM software among companies in developing economies is a significant factor impeding the global market. Consequently, because these companies are cost-conscious, they employ conventional asset management practices. Thus, the high cost of software and the lack of awareness in developing countries inhibit the growth of the enterprise asset management industry.
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Cyberattacks are increasing exponentially in tandem with the expansion of digital technology. For businesses to remain competitive in the global market, data security has become crucial. Companies that adopt innovative digital technologies expose their data to risks. As malicious parties are able to attack servers, networks, and communication channels, the transfer of data from the field to the cloud platform has greatly increased security concerns. According to the Ultimo Enterprise Asset Management Trend Report 2023, more than 80% of organizations use software-based solutions to manage their assets, such as cloud or on-premises EAM software; however, cybersecurity does not appear to be a priority among respondents. While the majority of respondents viewed security features as moderately important for future asset management software, more than 30% disregarded them. Increasing connectivity and integration between devices and solutions can create new vulnerabilities that are challenging to address if personnel does not know what to look for.
The digital asset management strategy of a company is an integral component. Enhancing the dependability and functionality of assets is a top priority for many organizations. Implementing and deploying enterprise asset management (EAM) solutions across an organization can be difficult and involve numerous strategic and technical choices. Businesses are focused on minimizing expenses and maximizing investment returns. The lack of a digital asset management strategy is the greatest obstacle for businesses. However, businesses have begun to recognize the potential of digital asset management strategies and have made significant improvements in labor utilization, equipment downtime, and inventory needs. A well-designed asset management strategy with multiple touchpoints would help businesses maximize the use of their assets.
Asset management is essential for the effective operation of a wide range of industries. ERP and EAM systems are required for organizations with numerous assets. The effective integration of these systems enables businesses to maximize their asset management capabilities and improve their core business processes. Due to the prevalence of legacy ERP systems in the majority of businesses, EAM and ERP system integration can be challenging at times. This could make it extremely difficult for these organizations to upgrade to new ERP systems with EAM functionality integrated.
In 2023, the on-premises segment held more than 60% of the market and is expected to maintain its dominance throughout the forecast period. Large enterprises with extensive assets and sensitive data prefer to deploy an on-premise EAM system to meet compliance requirements and relevant legislation. Data security concerns influence the adoption of on-premise EAM software. In areas where internet connectivity is limited or in remote locations, businesses require on-premise asset management deployments.
The cloud segment is expected to record the highest growth rate during the forecast period. The adoption rate of cloud-based enterprise asset management (EAM) software on the global market is driven by increasing internet penetration, the availability of affordable database storage capacity, and the rising demand for user-friendly software deployments. Cloud EAM deployments are simple and inexpensive to implement, and this software requires minimal user upkeep. The cloud provider is accountable for the superior technical support and enterprise-level requirements of EAM software.
In 2023, the market share of the segment of large enterprises exceeded 60%. Large businesses rely heavily on enterprise asset management (EAM) software to streamline their operations and gain a competitive advantage. Important factors driving the segment include the growing need among large organizations to track KPIs related to asset performance, fleet, and other facilities, and the increasing desire to integrate multiple functions such as maintenance activities, inventory management, work order management, and reporting into a unified system. In addition, EAM software enables businesses in the heavy machinery industry to comply with safety codes and industry regulations and avoid hefty fines. This factor is also expected to increase the adoption rate of EAM in the heavy machinery sector.
It is anticipated that the segment of small and medium-sized businesses will expand significantly. Initially, asset management and maintenance activities were scheduled by small and medium-sized businesses using spreadsheets and manual methods. To gain a competitive edge on the global market, however, SMEs have begun transitioning to modernized deployments that streamline operations, provide a centralized platform for asset management, and reduce the excessive costs associated with maintenance and management activities. In addition, growing awareness of the benefits of cloud-based EAM software in business processes and increasing government support for small businesses worldwide are anticipated to create numerous opportunities for EAM vendors during the forecast period.
In 2023, the market revenue share of the others segment was greater than 30%. The manufacturing sector held the second-largest share of the economy in 2023. The manufacturing industry has made significant progress by incorporating digital solutions into business processes. Key factors driving the industry's adoption of EAM solutions include the growing need among these organizations to control and reduce maintenance costs, increase the usable lifespan of their business assets and equipment, streamline workflow, and maximize production efficiency. Numerous large organizations are becoming increasingly dependent on EAM solutions. General Motors (GM), one of the world's most renowned automakers, relies on its EAM solution data. RFID tracking and other connected devices allow the company to monitor and track its assets and collect accurate performance data.
The government market segment is anticipated to grow significantly over the forecast period. When managing and maintaining their assets, local, state, and federal government agencies must prioritize security, compliance with standards, and seamless processes. The implementation of EAM software enables government agencies to extend the life of their most essential assets and increase accountability and transparency across the entire organization. The growing need to automate the manual and time-consuming processes of filling spreadsheets, the increasing emphasis on preventing information loss, and the constant communication failures that impede the organization's overall functioning are the primary factors driving government agencies to implement EAM software in business processes.
Inventory Management Application Segment to Experience the Highest CAGR During the Forecast Period
The enterprise asset management market is dominated by the asset lifecycle management segment, which facilitates the effective planning, design, and delivery of complex asset projects into asset operations and maintenance. In addition, managing the entire asset planning and realization process saves time, reduces errors, and controls costs and progress. The inventory management segment is anticipated to grow at the fastest rate during the forecast period. This is due to the fact that an EAM can provide valuable information regarding the utilization and costs of parts. This makes it easier to determine the actual cost of individual components and enhances component sourcing in order to reduce inventory costs. A further feature of an EAM is automated inventory control, which streamlines the process of inventory management.
North America held the largest share of over 30% in 2023. The market is driven by the presence of major EAM players in the region, including Aptean, AssetWorks, LLC, CGI Inc., and Infor. In addition, the early adoption of the newest technologies, the proliferation of cloud deployments, a highly developed IT infrastructure, government investments in advanced technologies, and the increasing emphasis on meeting regulatory and compliance requirements by organizations all contribute to regional growth.
The European region is anticipated to offer numerous opportunities for industry expansion. In Europe, manufacturers and transport operators are increasingly adopting advanced deployments and asset management technologies, such as the Internet of Things and predictive analytics. These technologies will help predict the failure of machinery and equipment and optimize asset maintenance processes. In addition, more than 80% of European businesses are prepared to implement enterprise asset management solutions to establish a centralized system that streamlines all industrial processes and maintains assets effectively. Consequently, deployments of enterprise asset management with predictive maintenance and management capabilities are in high demand across a variety of industries.
In 2023, North America dominated the enterprise asset management market share, and this dominance is expected to persist throughout the forecast period. As a result of the introduction of new and additional technologies, the regional market is undergoing a significant transformation. The demand for EAM software has increased as the prevalence of the industrial Internet of Things (IIoT) has grown. IoT facilitates remote data monitoring and retrieval even further. In spite of this, Asia-Pacific is anticipated to experience substantial growth over the forecast period. This is due to the increased need for asset management regulatory compliance, the increase in the number of EAM suppliers, and the reduction in government aid for EAM, all of which contribute to the growth of the region's market.
The market is extremely competitive, with a multitude of players serving diverse sectors. The existence of established competitors discourages new market entrants significantly. The development of increasingly differentiated enterprise asset management deployments and enterprise sizes is expected to generate growth opportunities for new entrants. Major players are concentrating on expanding their businesses and bolstering their positions through collaborations and partnerships.
Key players are frequently utilized to achieve market success and maintain global supremacy in their respective fields. One of the most effective methods is to create an innovative system or product that is in high demand among end-users and customers. Aptean, for instance, launched a cloud-based enterprise asset management deployment in March 2023 for manufacturing and other businesses that relied on complex equipment for production. The deployment in the cloud met the needs of small and medium-sized manufacturers. In addition, it enabled business intelligence via configurable dashboards and reports, delivering key KPIs on asset performance for more informed decision-making. The enterprise asset management market is dominated by IBM, SAP, Oracle, Hexagon, IFS, Hitachi Energy, IFS Intelligent Process Solutions, Accruent, AVEVA, Aptean, eMaint, CGI, UpKeep, RFgen Software, AssetWorks and Ramco Systems and Other Notable Players. These suppliers have a large customer base, a substantial geographical presence, and global distribution channels to drive business expansion and revenue growth.
