May 18, 2024

Enterprise Asset Management Market is Estimated to Witness High Growth Owing to IoT and Cloud Computing

Enterprise asset management (EAM) involves the management of physical assets and infrastructure in an organization, including processes such as procurement, operations, maintenance, and disposal of assets. EAM enhances equipment uptime by improving maintenance strategies, operational processes, and inventory management. It also helps optimize asset lifecycles and reduce operational and maintenance costs. The increasing adoption of internet of things (IoT) and cloud technologies has been enabling better connectivity for assets and facilities, remote monitoring, predictive maintenance, and analytics. This is driving the demand for EAM software solutions that can leverage real-time data from connected assets to optimize asset performance and utilization.

The Global Enterprise Asset Management Market is estimated to be valued at US$ 4687.8 Bn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in The Enterprise Asset Management are Bio Botanica, Inc, Gaia Herbs Farm, Herbochem, Natureā‚¬TMs Bounty, NUTRAMARKS, INC., Now foods, OREGON’S WILD HARVEST, Pharmaca, Pure Encapsulations, LLC, and Sydler India Pvt. Key opportunities in the market include leveraging IoT and cloud for real-time asset performance monitoring and predictive maintenance. Advancements in areas like AI, analytics, augmented reality, and machine learning are allowing organizations to optimize utilization of physical assets and infrastructure.

Technological advancement in IoT and cloud computing is driving the adoption of EAM solutions. IoT sensors deployed on assets capture real-time performance data that can be leveraged by EAM systems for predictive maintenance and remote asset monitoring. Cloud-based EAM solutions allow accessing asset data from anywhere and orchestrating maintenance tasks.

Market drivers

The growing need for optimized asset and equipment uptime across manufacturing and process industries is a key driver for the EAM market. Downtime of critical assets can be costly for organizations. EAM solutions help schedule preventive maintenance, reduce reactive repairs, and improve overall asset reliability. They allow data-driven decisions for procurement, maintenance budgeting, and asset lifecycle management. This enhances productivity and lowers operational expenses. The rising awareness of benefits of EAM among end-user industries will continue fueling the adoption of EAM software in the coming years.

Current challenges in Enterprise Asset Management Market:

The Enterprise Asset Management Market is facing challenges like integration issues while implementing EAM solutions across complex and dispersed assets. Compatibility with legacy systems is another key challenge as many organizations have older assets and systems in place. Managing vast volumes of asset data from various sources and keeping it organized is also a difficult task for companies. Ensuring seamless data exchange between different EAM modules and connecting them with various operational technologies poses integration challenges. Lack of skilled professionals who can implement and support EAM solutions is a major roadblock for growth. High initial investment and maintenance costs associated with EAM also restricts its adoption.

SWOT Analysis

Strength: EAM solutions help improve asset reliability, utilization and performance through predictive maintenance. They offer consolidated visibility of assets via a centralized database.
Weakness: Significant training needs and large upfront costs hinder its adoption. Integration issues with legacy systems remain a key challenge.
Opportunity: Growing digitization and focus on enhancing Industry 4.0 capabilities will boost demand. Emerging technologies like AI, IoT, predictive analytics are creating new opportunities.
Threats: changing regulations and standards around asset data security and privacy. Stiff competition from new and existing vendors.

Geographical regions

North America accounts for the largest share in the Enterprise Asset Management market in terms of value. This is attributed to strong adoption by enterprises across industries to optimize asset performance and reduce operational costs. Presence of major EAM vendors and early technology adoption further boosts the market in the region.

The Asia Pacific region is expected to be the fastest growing market during the forecast period. Rapid economic growth, heavy investment in infrastructure development and increasing focus on digitization are driving the demand. Proliferation of IIoT and growth of manufacturing sectors is supporting the EAM market expansion in countries like China, India.

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