Market Overviewand Impact of COVID-19
Enterprise Asset Management (EAM) solutions facilitate optimization and control of an asset throughout its lifecycles, such as designs, operation, and replacement. These solutions improve business operations through better asset reliability, availability, and utilization. Ease of collection, consolidation, and analysis of physical or human assets is bolstering the market growth. Physical assets include plant and production, infrastructure, transportation, and facilities, whereas human assets include personnel expertise, motivation, and roles and responsibilities. Asset Management automates asset lifecycles with intuitive workflows helping enterprises make informed decisions about their asset capacity and vendors. Organizations are focusing on investing in technologies such as Augmented Reality, Internet of Things, and Artificial Intelligence, predictive maintenance, digital twin, and telematics, etc. to radically transform and improve their operational processes and to increase the life of assets
2019 SARS-Cov-2 is presenting multifold challenges to the global enterprise asset managers, sovereign wealth funds, and asset classes, including private equity, real estate infrastructure, and others. Primary end-user verticals such as Energy and Utility, Manufacturing, Healthcare, Transport and Logistics, Public Administration, Retail, Telecommunication, and others have also been severely impacted. This has garnered the attention of asset management teams for the timely access of resources and information that can help end-users to tackle the current challenges, adapt to the new normal and prepare for the future. There is a rising trend of integration of the internet of things (IoT) with EAM solutions to provide real-time data to the EAM system, and consequently to the consumer. IoT connectivity helps businesses to manage and supervise their assets in real-time. Integration of IoT with EAM provides potential process control modifications, risk identification, and asset replacement opportunities to serve the ever-increasing consumer demand
Growing Demand for Cloud-Based EAM Solutions
High capital requirements for the on-premise implementation of enterprise asset management solutions and huge investments in finding the right servers, storage devices, and communication infrastructurealong with skilled professionals to maintain the system is fuelling the cloud-based EAM solution segment. It is, thereby,compelling organizations to opt for convenient cloud-based deployments thatnecessitate little or no hardware other than a few hand-held devices. Cloud-based technologies are scaled to fit the needs of an organization and are reliableowing to geographically dispersed data centers
Organizations’ Concerns Pertaining to Data Security and Confidentiality
Data security and privacy arecritical concerns among organizations worldwide on account of the digitization that has increased the chances of cyberattacks. Advanced digital technologies make valuable information vulnerable. Data transfer from the field to the cloud increments the chances of a malicious attack on servers, networks, and communication channels. As a result, several enterprises are developing digital twin solutions to test and build equipment for a virtual environmentand predict asset conditionbeforehand. Any compromise with these parameters can reveal elements of Intellectual Property (IP);as a result, many service organizations are skepticalabout adopting modern enterprise asset management solutions.This is predominantly hampering global market growth.
Extending the Asset Lifecycle By Dint of Advanced Technologies
There is a growth in the dynamic, complex, and digital work environmentand a rise in customer expectations across asset-intensive industries such as process manufacturing, automotive, metals, mining, and utilities. Disruptive challenges from changing business requirements are forcing corporate owners to adopt the latest technology that focuses on efficiency, reducing cost, avoiding unexpected incidents, and coping with business revenue objectives.
Rise of Industry 4.0 has further augmented the scope of emerging technologies like artificial intelligence, the internet of things (IoT), machine learning, predictive maintenance, digital twin, and telematics. EAM tools integrated with such technologies need to be combined with proper strategies and management for the organizations to gain real-time visibility of their assets. Therefore, organizations in developing nations such as India and China are focusing on the implementation of technology equipped EAM solutions to enhance the asset lifecycle. Many asset-intensive organizations around the world are making investments to radically transform and improve their operational processes. High competition from established and emerging vendors willincrease the demand for EAM solution that can accurately forecast the future of physical assets. According to a few respondents and industry experts, organizations are adopting modern enterprise asset management solutions to increase the longevity of assets, cope with technological disruptions, and improving profitability
The Cloud Deployment Segment to witness Significant GrowthDuring the Forecast Period
Technological advancements, increasing complexity, and unprecedented volume of assets are significantly propelling the growth of the cloud-based EAM software segment for effective data storage and asset lifecycle management. According to a report by the Cloud Security Alliance, over 70% of enterprises have migrated data from on-premise applications to the cloud in the last few years. Many are also using hybrid cloud systems that combine aspects of both on-premise and cloud to get the best of both worlds. Some of the prominent benefits of an EAM Cloud System include manageable costs and easy maintenance. In April 2020, IBM partnered with Tech Mahindra Ltd., a leading provider of digital transformation, to help businesses transform their operations and accelerate their hybrid cloud strategies. Tech Mahindra will help clients migrate core business applications to the IBM public cloud using IBM Cloud Paks. The partnership will also aidclients who prefer hosted cloud-based solutions for EAM applications. Tech Mahindra has already delivered implementations of Maximo on IBM SaaS, AWS, and Azure in Australia, APAC, Europe and North America
North America to Lead the Global Market for Enterprise Asset Management
The rising demand for effective management of enterprise resources, assets maintenance, repair, and operations (MRO) is expected to boost North America’s Enterprise asset management market during the forecast period. The U.S. Healthcare industry is expected to register the highest CAGR on account of the changing regulatory standards that industries need to comply with and manage medical equipment more so after the decline of the pandemic.Large scale enterprises in the region are expected to adopt more cloud-based solutions as compared to small scale enterprises. This is attributed to their significantly higher budgets and availability of cloud-based EAM solutions.
The segment accounted for the largestEAM market share of around 60% in 2017. Mexico is anticipated to grow significantly due to the snowballing asset-intensive industries such as oil and gas, manufacturing, as well as transportation and logistics. Demands of efficient planning and management during drilling and production are expected to result in healthy growth of the North America enterprise asset management market in the upcoming years.Furthermore, demands foroptimum asset utilization management such as asset inventory tracking, maintenance agreement management, tracking of meter readings and invoice charges, the examination of trends in invoice payments,and funding information are also significantly aiding the regional market growth
APAC Expected to Hold the Highest CAGR During the Forecast Period
Asia-Pacific is expected to witness significant growth in the enterprise asset management market in the upcoming years. Burgeoning macroeconomic uncertainties, rising cost pressures, pressure on margins for traditional products, increased demand for cross-border products, and digitization are likely to affect the future growth of the regional EAM Market. The primary focus of domestic and foreign firms seeking robust growth opportunities is also expected to support Asia’s market. Mckinsey,in October 2018, conducted a survey of Asia’s leading asset managers, gauging their views on the market, its prospects, and the management approaches that are working well in order to supplement their insights with the new asset-management research solution. Asia is an emerging source of capital for fund managers. Many foreign investors have traditionally favored locally-focused funds, and many continue to view Asia as a quintessential investment hubin the upcoming years. India and China are emerging as the fastest-growing economies. On the other hand, Japan and South Korea are the most preferred investment hubs for marketers around the world.
- In July 2020, IBM, along with Adobe and Red Hat, announced a strategic partnership to help accelerate digital transformation and strengthen real-time data security for enterprises.The partnership is intended to enable companies to deliver more personalized experiences across the customer journey, driving improved engagement, profitability, and loyalty
- In February 2020, Infor acquired Intelligent InSites Inc., a leading healthcare software and services provider leveraging location-based intelligence from real-time location systems (RTLS). This acquisition enables Infor to offer an expanded suite of technology for healthcare organizations enabling support across the continuum of care including clinics, urgent care, emergency departments, inpatient care, procedural care, and behavioral health
- In December 2019, IFS acquired 100% shares of global software company Astea International. The acquisition will enable the combined company to serve more customers in more markets, through a broader network of partners
Key players in the global Enterprise Asset Management market include Oracle, IFS, Infor, IBM, SAP, ABB, Intelligent Process Solutions (IPS), Schneider Electric, Aptean, CGI Inc., Rfgen Software, AssetWorks, LLC, Ultimo Software Solutions, Mainsaver, Inc., Ramco Systems, SwainSmith, Inc., Upkeep Maintenance Management, eMaint by Fluke Corporation, Siveco Group SA, Maintainence Connection, Yardi Systems, Inc., Planon, and Optiware among others
- Energy and Utility
- Healthcare and Life Sciences
- Transportation and Logistics
- Public Administration
- IT and Telecom
- Oil and gas
- North America