The global enterprise asset management market is expected to grow at a CAGR of 11.7% during the forecast period of 2024 to 2032. Enterprise asset management (EAM) is a set 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 procurement to disposal. At its core, EAM is utilized to plan, optimize, execute, and track all maintenance activities, as well as the associated priorities, skills, materials, tools, and other data. Increasing demand for optimizing the performance of assets over their entire lifecycle drives the expansion of the global EAM market. Moreover, reliance on physical infrastructure is a major factor driving the market. The introduction of the cloud deployment model and the integration of big data with EAM are likely to generate business opportunities. However, high prices and a lack of awareness inhibited market expansion. Increasing adoption rates in Asia-Pacific and the Middle East and Africa would present numerous opportunities for the enterprise asset management market's expansion.
Increase Enterprise Demand for Cloud-Based EAM Solutions
Several companies around the world use EAM systems to increase work efficiency, streamline processes, increase company agility, and manage facilities. Additionally, cloud-based enterprise asset management software and services are utilized to optimize essential corporate assets and acquire business analytics for decision-making. Moreover, these solutions enable businesses to reduce expenses. In addition, cloud-based enterprise asset management systems offer superior technical support and services, including managed services with integrated debugging and performance monitoring tools. Moreover, it reduces the additional costs that businesses must incur for asset management. Thus, the increase in enterprise demand for cloud-based EAM solutions is driving the expansion of the enterprise asset management industry.
Lack Of Awareness and The High Cost of Software in Developing Economies
Essential business operations are supported by EAM software, which is a worthwhile investment. However, the installation and maintenance of this software are expensive, which prevents SMEs from adopting it. In addition, the lack of awareness of EAM software among businesses in developing economies is a major factor restraining the global market. Therefore, because these businesses are cost-conscious, they employ conventional methods for managing their assets. Thus, the high cost of software and lack of awareness in developing nations inhibit the enterprise asset management industry's growth.
Concerns About Data Security and Privacy
Cyberattacks are escalating exponentially alongside the growth of digitization. For organizations to remain competitive in the global market, data security has become an important factor. Organizations that adopt cutting-edge digital technologies expose their data to risks. As malicious parties can attack servers, networks, and communication channels, the transfer of data from the field to the cloud platform has significantly increased cybersecurity concerns. According to the Ultimo Enterprise Asset Management Trend Report 2023, more than 80% of organizations use software-based solutions, such as cloud or on-premises EAM software, to manage their assets; however, cybersecurity does not appear to be a priority among respondents. While the majority viewed security features as moderately essential for future asset management software, more than 30% disregarded them. Increasing connectivity and integration between devices and solutions can create new vulnerabilities that are difficult to address if personnel are unaware of what to look for.
Implementation Of a Digital Asset Management Strategy to Improve Return on Assets
A business's digital asset management strategy is an integral component. Improving the dependability and performance of assets is a top priority for many organizations. Implementing and deploying enterprise asset management (EAM) solutions across organizations can be complicated and involve numerous strategic and technical decisions. Businesses are concentrating on minimizing expenses and maximizing returns on investments. The greatest obstacle for businesses is their lack of a digital asset management strategy. However, organizations have begun to recognize the potential of digital asset management strategies and have made substantial improvements in labor utilization, equipment downtime, and inventory requirements. A well-designed asset management strategy with multiple touchpoints would aid organizations in maximizing the use of their assets.
Integration of EAM with Third-Party ERP Systems Is a Challenge
Asset management is essential for the efficient operation of a vast array of industries. ERP and EAM systems are necessary for organizations with a large number of assets. The effective integration of these systems permits organizations to make greater use of their asset management capabilities and enhance their core business processes. As a result of the presence of legacy ERP systems in the majority of organizations, EAM and ERP system integration can at times be quite difficult. This could make it extremely challenging for these organizations to upgrade to new ERP systems with integrated EAM functionality.
The On-Premises Deployment Dominates the Market
The on-premises segment held over 60% of the market share in 2023 and is anticipated to maintain its dominance throughout the forecast period. To meet compliance requirements and relevant legislation, large enterprises with vast assets and sensitive data prefer to deploy an on-premise EAM system. Concerns about data security contribute to the adoption of on-premise EAM software. Enterprises require on-premise asset management deployments in areas where internet connectivity is limited or in remote locations.
During the forecast period, the cloud segment is expected to record the highest growth rate. In the global market, the adoption rate of cloud-based enterprise asset management (EAM) software is driven by growing 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 install, and this software requires minimal user maintenance. The cloud provider is responsible for EAM software's superior technical support and enterprise-size requirements.
Large Enterprises Dominated the Market by Enterprises Size
In 2023, the segment of large enterprises held the largest market share, surpassing 60%. Large corporations heavily rely 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 associated with 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 cohesive system. In addition, EAM software enables organizations in the heavy machinery industry to comply with safety codes and industry regulations and avoid costly penalties. This factor is also anticipated to increase the rate of EAM adoption in the heavy machinery industry.
The segment of small and medium-sized businesses is anticipated to grow significantly. Small and medium-sized businesses initially scheduled asset management and maintenance activities using spreadsheets and manual methods. To gain a competitive advantage in the global market, however, SMEs have begun shifting to modernized deployments that help streamline operations, provide a centralized platform for asset management, and reduce excessive costs associated with maintenance and management activities. In addition, growing awareness of the advantages of cloud-based EAM software in business processes and increasing government support for small businesses around the world are anticipated to create numerous opportunities for EAM vendors over the forecast period.
The Other Verticals Dominate the Market by Industry Verticals
In 2023, the other segment held a revenue share of over 30% of the market. In 2023, the manufacturing sector held the second-largest share. By incorporating digital solutions into business processes, the manufacturing sector has made significant strides forward. 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 are key factors driving the industry's adoption of EAM solutions. EAM solutions are becoming increasingly dependent on several large organizations. General Motors (GM), one of the most well-known automakers in the world, relies on its EAM solution data. The company can track and monitor its assets and collect accurate performance data using RFID tracking and other connected devices.
During the forecast period, the government market segment is anticipated to grow significantly. Local, state, and federal government agencies must prioritize security, compliance with standards, and seamless processes when managing and maintaining their assets. The implementation of EAM software enables government organizations to extend the life of their most vital assets and increase accountability and transparency throughout the entire organization. The growing need to automate the manual and time-consuming processes of filling spreadsheets, the growing emphasis on preventing information loss, and the constant communication failures that impede the organization's overall functioning are the primary factors influencing government agencies to implement EAM software in business processes.
Inventory Management Segment to Witness the Highest CAGR Among Other Application Segments During Forecast Period
The asset lifecycle management segment holds the largest share of the enterprise asset management market, as it facilitates the effective planning, design, and delivery of complex asset projects into asset operations and maintenance. In addition, it saves time, reduces errors, and controls costs and progress by managing the entire asset planning and realization process. During the forecast period, the inventory management segment is expected to grow at the fastest rate. This is because an EAM can provide valuable insight into the utilization and costs of parts. This makes it easier to determine the actual cost of individual components and improves component sourcing to reduce inventory costs. A further capability of an EAM is automated inventory control, which streamlines the inventory management process.
North America to Remain the Global Leader and APAC the Growth Leader
In 2023, North America held the largest share of over 30%. The presence of major EAM players in the region, including Aptean, AssetWorks, LLC, CGI Inc., and Infor, is driving the market. In addition, the early adoption of the newest technologies, the proliferation of cloud-based deployments, a highly developed IT infrastructure, government investments in advanced technologies, and organizations' increasing emphasis on meeting regulatory and compliance requirements all contribute to regional growth.
It is anticipated that the European region will provide numerous opportunities for industry expansion. Manufacturers and transport operators in Europe are increasingly adopting advanced deployments and technologies for asset management, such as the Internet of Things and predictive analytics. These technologies will aid in predicting machinery and equipment failure and optimizing asset maintenance processes. In addition, over 80% of European businesses are prepared to implement enterprise asset management solutions to establish a centralized system that streamlines all industrial processes and effectively maintains assets. Consequently, enterprise asset management deployments with predictive maintenance and management capabilities are in high demand across a variety of industries.
North America dominated the enterprise asset management market share in 2023 and is anticipated to maintain its dominance throughout the forecast period. The region's market is undergoing a significant transformation as a result of the introduction of new and additional technologies. As the industrial Internet of Things (IIoT) has become more pervasive, the demand for EAM software has increased. IoT further facilitates remote data monitoring and retrieval. Nonetheless, Asia-Pacific is anticipated to experience significant growth over the forecast period. This is due to the increased need for strict regulatory compliance regarding asset management, 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.
Market Consolidation to Barricade the New Entrants
The market is extremely competitive, with numerous players serving various sectors. The presence of established competitors is a crucial factor in discouraging new market entrants. However, the development of increasingly differentiated enterprise asset management deployments and enterprise sizes is anticipated to create growth opportunities for new entrants. Through collaborations and partnerships, major players are concentrating on expanding their businesses and bolstering their positions.
To succeed in the market and maintain global supremacy in their respective fields, key players are frequently utilized. Developing an innovative system or product that is in high demand among end-users and customers is one of the most effective methods. In March 2023, for instance, Aptean launched a cloud-based enterprise asset management deployment for manufacturing and other businesses that relied on complex equipment for production. The cloud-based deployment satisfied the requirements of small and medium-sized manufacturers. In addition, it enabled business intelligence through configurable dashboards and reports, delivering essential KPIs on asset performance for more informed decision-making. 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. dominate the enterprise asset management market (India). These suppliers have a large customer base, a significant geographic presence, and global distribution channels to drive business revenue and expansion.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Enterprise Asset Management market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
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| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
