Computerized Maintenance Management System (CMMS) Market

Market Overview

The global computerized maintenance management system (CMMS) market was valued at approximately USD 860.6 million in 2019, expected to reach USD 1465.8 million and grow with a CAGR of 9.0% during the forecast period, 2020–2029.

A computerized maintenance management system (CMMS) is application software that tracks and stores maintenance information and facilitates maintenance operations. It also helps to improve the performance of the physical assets of any equipment including heavy machinery, vehicles, communications devices, and plant infrastructure, among others.

The software is extensively used in the industrial units, notably in the manufacturing sector, oil and gas production, power generation, construction, transportation, and other discrete and process industries. In layman terms, the sole purpose of implementing CMMS solutions for any size of the enterprise is to monitor the equipment condition. Additionally, it supports in gathering accurate information for decision-making for maintenance purposes. It also offers various solutions that include resource and labor management, work order management, preventive maintenance solution, material and inventory management solution, and facility management, among others.

Source: Investor Presentation, Company Websites, Annual Reports, Primary Interviews, Secondary Research, and SR Analysis

A CMMS is an attractive solution for small maintenance operations where maintenance personnel require a straightforward way to manage work orders, equipment records, and spare parts. On the other hand, an EAM is preferable for large enterprises, where sets of industrial assets across multiple locations need to be managed and tracked.

EAM solutions enable project management and multi-site management and offer other features that are essential to managing multiple business units; therefore, large enterprises are rapidly emerging as more prominent adopters of EAM solutions compared to SMBs.

The rising adoption of cloud-based solutions subsequently results in increased competitiveness in the cost of EAM solutions compared to CMMS, making the former a more cost-effective option, even for small enterprises. However, most of the industries yet prefer CMMS for their higher focus on maintenance. EAM solutions are diverse and focus on an organization’s many assets, incorporating multiple business functions. Thus, a CMMS is a narrower and more focused solution when it comes to maintenance management.

CMMS are extensively adopted for small-scale maintenance operations, and CMMSs are relatively inexpensive compared to EAM solutions. Thus, a CMMS is an ideal solution for enterprises limited to only certain business units seeking preventive solutions.

Market Dynamics

The Rapid Adoption of Innovative Technologies

The advent of Asset Performance Management (APM) solutions is expected to pave the way for the maintenance management industry’s further development as they blend CMMS’s maintenance scheduling with EAM’s asset tracking and management of EAM, further integrating the interconnectivity of the internet to bring forth a powerful, proactive solution. The adoption of technologies, such as Artificial Intelligence (AI), Industry 4.0, and IIoT, is expected to improve the experience of maintenance management solutions as smart technology works with minimum human intervention and sends real-time data back to managers, preventing a wide range of unprecedented failures. As per the Facility Management Association (FMA), close to 30% of enterprises planned to invest in wireless connectivity for field workforce and smartphones in 2018, which depicts the increasing adoption of maintenance management solutions for enhanced productivity.

Segmental Analysis

For estimation and study, the Computerized Maintenance Management System (CMMS) market has been segmented based on component, organization size, deployment mode, vertical, and region

The solution segment accounted for the larger market share of exceeding 63% and continues to dominate the market during the forecast period. The market growth is attributed to the need to reduce downtime, eliminate human error, and optimize resources. As per our findings, for any industry, the average downtime cost per hour ranges between USD 300,000to USD 400,000. Three of the most common downtimes observed in recent years are Amazon Web Service (March 2018), Google Cloud (July 2018), and British Airways IT crashes (2017). CMMS features, such as consistent monitoring, operational workflow, and immediate actions, effectively reduce downtime.

The software segment is gaining traction, mainly due to the rapid increase in the number of start-ups/businesses, which propels adoption. The segment is further divided into inventory management, work order management, labor management, preventive and predictive maintenance, facility management, and others.

The on-premise segment holds the dominant position in the adoption of the Computerized Maintenance Management System (CMMS) market. In on-premise PIM products, data management solutions and processes use in-house servers, and all of the software’s features are intended for use within the organization’s network. On-premise systems are safer and more secure; thus, large enterprises opt for them to secure sensitive data about sales, employee information, and marketing and product strategies. However, the cloud segment is anticipated to reach a higher CAGR during the forecast period.

The cloud segment accounts for more than 62% of the global market share on account of the mode of deployment’s ease of operation, low ownership and maintenance costs, fast connectivity, and easy accessibility. Cloud deployment allows SMEs to lower operational costs, and cloud-based CMMS offers hassle-free, easy-to-immediate app updates for the latest releases. Lowered IT costs, improved communication capacity, scalability, data storage, accessibility, disaster recovery, and other benefits have contributed to the growing adoption of cloud deployment among small and medium-sized businesses.

The SME segment holds the dominant position in the adoption of the Computerized Maintenance Management System (CMMS) market. SMEs hold a larger market share since CMMS offers advanced maintenance functions in a single package of software at an affordable price point. Favorable government regulations and rising investments, partnerships, and collaborations have bolstered the growth of SMEs around the globe. As per the SME Finance Forum managed by the International Finance Corporation (World Bank Group), the East and the Pacific regions account for the highest number of MSMEs, followed by South Asia and the Sub Saharan African region. However, considering the ICT expenditure, these regions lag far behind advanced countries.

The manufacturing sector comprises the largest share in the global CMMS market, owing to the pressing need to manage companies’ manufacturing sites, as the software offers features that streamline operations, control maintenance costs, maximize equipment uptime, avoid equipment failure, meet the service and production demand, extend equipment lifecycle, and increase productivity. According to UpKeep Maintenance Management, one of the CMMS/EAM solution providers, 30% of the total deaths at manufacturing facilities were caused by weak maintenance activity. Further, the article also stated that 80% of factories use preventive maintenance, and more than half use predictive maintenance with analytical devices.

Impact of covid-19

The COVID-19 pandemic has brought unprecedented times globally across various industry verticals. The CMMS market has observed a steep downturn on account of the temporary halt of business operations to support stringent regulations. Interestingly, the market has noted an uptick in the healthcare sector due to the increasing need for workload optimization, maintenance planning, and equipment maintenance in combating the pandemic.

The CMMS market is expected to witness a slump during 2020, with disrupted manufacturing, transportation and logistics, retail, and supply chain sectors curtailing growth. New investment areas, including the integration of advanced technologies such as IoT and IIoT, are expected to remain suspended till 2021.The market is expected to gain traction by late 2021 or early 2022 with the return of normalization.

• India’s industrial output shrank by 16.7% (National Statistical Office (NSO))
• Italy observed an 11% decline in industrial output (European Union)
• The U.K.’s manufacturing sector has marked a 6% decline in growth (European Union)

Lower industry output inevitably disturbs the CMMS market. The pandemic’s drastic impact on many business verticals has encouraged organizations to switch from an availability-driven strategy to a cost-driven strategy. This change is expected to pave the way for CMMS adoption for workload optimization, enhanced maintenance, and continuity of training and consultation services among limited industries.

In light of the evolving scenario, companies are introducing products that can tackle changing business needs. In 2020, Spacewell, a leading global CMMS provider, launched new digital solutions to help workplace managers with new and updated digital tools to monitor workforce and inventory and schedules, allocate workloads, and ensure compliance and mitigate short-term disruption. These people-centric tools will also help firms drive performance improvements and improve workplace well-being in the long term post-COVID-19.

Regional Analysis

North America — the Largest Shareholder with More Than  30.2% Value Share as of 2019

North America accounted for the largest market share in 2019 and is expected to dominate the market during the assessment period. North America dominates the CMMS market on account of the presence of a large number of key players, such as eMaint, Hippo, Service Channel, FIIX, Mpluse, DPSI, MicroMain, Fastrak, FMX, Limble CMMS, and CMMS Data Group, which cater to most domestic and international enterprises. As per the ‘Industry 4.0 Connecting with the Future’ report published by the German American Chambers of Commerce, 86% of the manufacturers in North America are willing to invest in Industry 4.0 due to its multiple benefits, such as reduced costs and increased revenue. ‘CyberStates,’ a report published by CompTIA Properties, LLC, approx. 13,400 new businesses/start-ups were launched in 2019, summing the total number of businesses to 557,000.

North America is home to technological advancements and proficient technological infrastructure. As per the ‘Digital Economy Report 2019’ published by the United Nations Conference on Trade and Development, the U.S. caters to 26% of the global IoT spending, rapidly increasing digitalization in the industrial sector. The report published by CompTIA Properties, LLC, titled 'IT Industry Outlook, 'forecasts the U.S. technology industry to reach approx. USD 1.7 trillion by the end of 2020. Thus, high technology adoption, rising need to manage advanced technologies, and the increasing number of businesses have bolstered the growth of the CMMS market.

 U.S. and Canada — the Frontrunners

The U.S. and Canada spearhead growth in North America, owing to increased ICT expenditure and robust cloud infrastructure. A large number of highly skilled and tech-savvy personnel adept at working with advanced solutions also propel the regional market. Vendors in the region are increasingly offering integrated solutions with disruptive technologies such as AI that enable end-users to lower the downtime and improve productivity. For instance, in 2019, Eagle Technology launched Proteus MMX, which is integrated with AI and Machine Learning capabilities. The solution enables clients to improve productivity tenfold and allows clients to explore different patterns that they could not discover before, all in real-time.

The Asia-Pacific to be exhibit the highest CAGR

Asia-Pacific is expected to exhibit the fastest growth in the PIM market, against a backdrop of high smartphone penetration, favorable government initiatives promoting digitalization, and the presence of countries such as China and India that are home to approx. 36% of the global population. As per the report titled ‘The Mobile Economy 2020’ published by the GSM Association, the smartphone penetration in Asia-Pacific and Greater China as of 2019 was 64% and 72%, respectively, and is expected to reach 81% and 89% by the year 2025.

Computerized Maintenance Management System (CMMS) Market Segmentation

By Component

• Solution

  • Work Order Management
  • Labor Management
  • Inventory Management
  • Preventive and Predictive Maintenance
  • Facility Management
  • Others

• Services

  • Managed Services
  • Professional Services

By Deployment Mode

• Cloud
• On-Premise

By Organization Size

• SMEs
• Large Enterprise

By Vertical

• Energy and Utility
• Manufacturing
• Healthcare and Life Sciences
• Transportation and Logistics
• Public Administration
• Retail
• IT and Telecom
• Oil & Gas
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa