May 18, 2024
Enterprise Asset Management Market

Growing Adoption of Cloud-based Solutions to Boost the Growth of Enterprise Asset Management Market

Enterprise asset management refers to software applications and systems that help organizations in managing physical assets and equipment over their entire lifecycle. The software helps organizations keep track of repair history, maintenance schedules, warranties, and optimal replacement times of assets. It helps reduce operational costs, downtime, and maintenance expenses by streamlining asset management processes. Enterprise asset management solutions are widely adopted across industries such as manufacturing, healthcare, transportation & logistics, energy & utilities, and government to efficiently plan asset maintenance, optimize asset performance and utilization.

The global Enterprise Asset Management Market is estimated to be valued at US$ 4069.27 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The global enterprise asset management market size is witnessing significant growth owing to the growing adoption of cloud-based EAM solutions. Cloud-based EAM solutions offer benefits such as scalability, lower upfront costs, easy access from any location, and automation of asset management processes. They eliminate the need for large on-premise infrastructure and reduce IT expenses. This is prompting various organizations to migrate their legacy on-premise EAM solutions to cloud-based platforms. Furthermore, integration of modern technologies such as IoT, AI, and analytics is helping EAM software providers enhance their solutions. Asset performance monitoring and predictive maintenance capabilities of EAM systems are being improved with integration of IoT sensor data and analytics. This is enabling organizations to optimize asset uptime and reduce unexpected maintenance costs.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the enterprise asset management market is low as it requires substantial initial investments to establish presence. Moreover, existing players have strong brand visibility and customer loyalty, posing barriers for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative options. However, switching costs associated with changing asset management solutions increases buyer dependence on existing vendors.

Bargaining power of suppliers: A few large players dominate the supply side. However, presence of many small and mid-sized suppliers ensures competitive pricing without compromising quality.

Threat of new substitutes: Threat of substitutes is low as asset management solutions integrate various operational aspects and have no close substitute. Product differentiation further limits threat from substitutes.

Competitive rivalry: The EAM market comprises large established players with global presence intensifying competition. Players differentiate through product innovation and customization.

Key Takeaways

The global Enterprise Asset Management market is expected to witness high growth, exhibiting CAGR of 8.9% over the forecast period, due to increasing need for optimized asset utilization and maintenance strategies across industries.

North America held the largest share of the global EAM market in 2022 owing to widespread technology adoption and presence of major players in the region. Europe and Asia Pacific are expected to grow at a significant pace during the forecast period with increasing digitization initiatives in manufacturing, oil & gas and utilities industries.

Key players operating in the Enterprise Asset Management market are 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. Players are focusing on partnerships and product innovation to expand their offerings and global presence.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it