Enterprise Asset Management (EAM) Market by Deployment, End-user And Geography - Forecast And Analysis 2023-2027

Enterprise Asset Management (EAM) Market Size 2023-2027

The Enterprise Asset Management (EAM) Market size is estimated to grow by USD 2.04 billion at a CAGR of 7.85% between 2022 and 2027. The market's expansion hinges on various factors, notably the proliferation of partnerships and acquisitions, adherence to regulatory standards, and the rising need for a comprehensive view of assets. The trend towards increased collaboration and mergers among industry players is fostering growth and innovation, driving market expansion. Regulatory compliance is becoming increasingly critical, prompting companies to invest in solutions that ensure adherence to standards and mitigate risks. Additionally, the growing demand for a holistic view of assets, encompassing their entire lifecycle, is driving the adoption of asset management solutions. These factors collectively contribute to the market's growth trajectory, reflecting the industry's dynamic nature and the evolving needs of businesses.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

This market report extensively covers market segmentation by deployment (on-premises and cloud-based), end-user (large enterprises and SMEs), and geography (North America, Europe, APAC, Middle East and Africa, and South America).

By Deployment

The market share growth by the on-premises segment will be significant during the forecast period. Organizations across various industries, including transportation logistics, government and defense, finance, and defense, manage their assets through these systems. EAM solutions enable departments and business units to optimize asset utilization, ensure safety standards, and perform predictive maintenance on both linear and non-linear assets.

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The on-premises segment showed a gradual increase in the market share of USD 2.03 billion in 2017. Geopolitical factors and data analytics driven by AI and ML play a significant role in EAM adoption. Large Enterprises prefer on-premise deployment for data protection reasons and to integrate with legacy systems. However, this model requires substantial investments for product purchases, installation, maintenance, upgrades, and in-house IT workforce training. On-premise EAM is more secure due to data breaches and cyberattacks concerns, such as the SolarWinds cyberattack. EAM verticals include IT and telecom, logistics, government and defense, energy and utilities, and others. Predictive maintenance, field service management, and asset availability are key features. Cloud technology is an alternative deployment mode, but on-premise remains popular among large enterprises. Therefore, the on-premise segment is expected to grow significantly during the forecast period.

By End-User

The large enterprises segment was the dominant segment in the global enterprise asset management market. The market plays a significant role in optimizing business operations for large enterprises, particularly in sectors like manufacturing, logistics, banking, and finance. The primary motivators for this segment's growth are the increasing need for digitization and managing diverse industries. Modern EAM systems, such as cloud-based EAM software, enable operational efficiency, cost reduction, and compliance with regulations. IoT and AI technologies are transforming traditional asset management by providing predictive analytics and Asset Lifecycle Intelligence. However, data security concerns are a major challenge, with potential data loss from cell phones and sensitive data vulnerabilities. On-premise EAM systems face these risks, while cloud-based solutions offer enhanced security. Compliance requirements and relevant legislation necessitate data security and adherence to safety codes and industry regulations. Non-compliance can result in expensive penalties. Spreadsheets and manual methods are being replaced by digital solutions to streamline maintenance costs, workflow, production efficiency, and reporting. Government segments and transport operators also benefit from EAM systems, ensuring security and compliance with standards. IoT, predictive analytics, and work order management are essential features for fleet management and inventory control. Hence, these factors are driving the growth of the large enterprise segment in the market during the forecast period. 

By Region

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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. 

In North America, the market is thriving due to technological advancements and data-intensive business operations in industries such as manufacturing, telecommunications, infrastructure development, BFSI, and retail. IoT and AI technologies are driving the need for modern EAM systems to manage the vast amounts of data generated. Data security concerns are paramount, with sensitive data at risk from data loss. Traditional asset management methods are being replaced by on-premise and cloud-based EAM software. Large enterprises, fleet management, maintenance activities, inventory management, and work order management are key areas of focus. Reporting, safety codes, and industry regulations require compliance, with expensive penalties for non-compliance. Spreadsheets are being supplanted by digital solutions to reduce maintenance costs and improve workflow and production efficiency.

Government segments also utilize EAM systems for security and compliance with standards. Transport operators benefit from predictive analytics and Asset Lifecycle Intelligence. The cloud segment is gaining popularity due to its flexibility and cost savings. Data security is a priority in both on-premise and cloud-based solutions. Cell phones and other mobile devices are integral to EAM systems. IoT and predictive analytics enable proactive maintenance and optimize asset performance. Hence, such factors will drive the growth of the market in this region during the forecast period.

Market Dynamics

The market encompasses organizations across various industries, including Transportation and Logistics, IT and Telecom, Government and Defense, and Vertical markets. Assets under management span Linear Assets, such as vehicles and machinery, and Non-Linear Assets, like IoT devices and cell phones. Modern EAM systems employ advanced technologies like Data Analytics, Cloud, and On-Premise solutions to optimize asset availability and minimize asset breakdowns. These systems are crucial for business operations in sectors like Transportation Logistics and Government and Defense, where asset performance directly impacts mission success. Geopolitical factors and data security concerns are significant considerations in the EAM market. EAM solutions must address asset maintenance, repair, and overhaul (MRO) requirements for both Linear and Non-Linear Assets. Field Service Management plays a vital role in ensuring efficient asset maintenance and minimizing downtime. In conclusion, the market is a dynamic and evolving landscape, driven by the need for optimizing asset performance, enhancing data security, and addressing the unique requirements of various industries.

Key Market Driver

The growing number of partnerships and acquisitions is the key factor driving the growth of the market. Organizations across various sectors, including transportation logistics, government and defense, finance, defense, and others, are increasingly focusing on these systems to ensure transparency in their business strategies. Companies in this market are forming strategic partnerships and making acquisitions to expand their offerings and gain a competitive edge. IFS, a leading cloud enterprise software provider, recently announced increased investment in IFS Ultimo to meet the growing demand.

EAM solutions enable large enterprises to manage both linear and non-linear assets, including IT and telecom, transportation and logistics, government and defense, energy and utilities, and safety standards. Deployment modes include cloud and on-premise. EAM solutions employ data analytics, artificial intelligence, and machine learning for predictive maintenance, asset availability, and data protection. Geopolitical factors, data breaches, and cyberattacks, such as the SolarWinds cyberattack, highlight the importance of data security and compliance with regulations like GDPR and HIPAA. EAM solutions also offer field service management and asset MRO capabilities. Hence, these factors are expected to drive the growth of the market during the forecast period.

Significant Market Trend

Increased demand for cloud-based enterprise asset management solutions is the primary trend in the market. Organizations across various departments and business units are increasingly adopting cloud-based enterprise asset management solutions due to the growing volume of assets and rising storage costs. Cloud deployments offer direct access to resources without upfront infrastructure investments and provide benefits such as scalability, reliability, and high resource availability. Enterprise asset management solutions in the cloud include debugging and monitoring tools. This trend is observed in sectors like transportation logistics, government and defense, and the finance and defense industries. Geopolitical factors, data analytics, artificial intelligence (AI), and machine learning (ML) are key drivers.

However, data breaches and cyberattacks, such as the SolarWinds cyberattack, necessitate robust data protection regulations. Predictive maintenance, logistics industry, and safety standards are other areas of focus. Large Enterprises can choose between cloud and on-premise deployment modes for managing assets, including MRO for non-linear and linear assets. Field Service Management is a vertical that also benefits from this trend. IT and telecom, transportation and logistics, government and defense, energy and utilities are some of the verticals adopting cloud technology to enhance asset availability and prevent asset breakdowns. Cloud Technology is transforming legacy systems and improving asset performance through AI and ML. Cybersecurity is a critical concern in this context. This is expected to increase the demand for the enterprise asset management market during the forecast period. 

Major Market Challenge

Implementation issues associated with enterprise asset management are the key challenges hindering the growth of the market.  Organizations across various departments and business units rely on these solutions to optimize the use of their assets. EAM implementation in the Finance and Defense industries, among others, is crucial due to the significant impact on business strategies and financial planning. Integration of EAM systems into existing applications can be challenging, particularly with legacy systems.

Geopolitical factors, data analytics, AI, and ML play a role in EAM solutions. Predictive maintenance, field service management, and safety standards are key features. Large Enterprises deploy EAM solutions in Cloud or OnPremise modes. Assets MRO for Linear and Non-Linear Assets is managed. IT and Telecom, Transportation and Logistics, Government and Defense, and Energy and Utilities are verticals utilizing EAM. Data protection regulations, cybersecurity, and data breaches are concerns. SolarWinds cyberattack is an example. Predictive maintenance using AI and ML is a trend. Cloud Technology facilitates deployment. Asset availability and breakdowns are primary concerns. Therefore, these factors are expected to impede the growth of the market during the forecast period. 

Key Market Customer Landscape

The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• ABB Ltd.: The company offers enterprise asset management solutions that deliver real value, with reliable and meaningful information about the process and asset to sustain actionable decisions.
• Aptean Group of Companies: The company offers enterprise asset management solutions that include additional features to streamline enterprise level operations and inform maintenance strategy for business.
• AVEVA Group Plc: The company offers enterprise asset management solution which provides maintenance management, spares, and inventory management and provides complete procurement capabilities for asset-intensive industries.
  

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• CGI Inc.
• Cheqroom NV
• Fortive Corp.
• Fracttal Tech S L
• IFS World Operations AB
• International Business Machines Corp.
• IPS Intelligent Process Solutions GmbH
• Koch Industries Inc.
•  Limble Solutions LLC. 
• Oracle Corp.
• PcsInfinity
•  PDI Technologies Inc. 
• Rockwell Automation Inc.
• SAP SE
• SOCIETE SAS
• Techgate LLC
• Constellation Software Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.

• Deployment Outlook 
  • On-premises
  • Cloud-based

• End-user Outlook
  • Large enterprises
  • SMEs

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile 
    • Brazil 
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Enterprise Asset Management (EAM) refers to the strategic management of an organization's assets and resources to maximize efficiency and productivity. The market is significant and growing, driven by various factors such as increasing complexity of asset management, need for real-time data access, and the importance of predictive maintenance. Asset-intensive industries like manufacturing, utilities, and transportation are major consumers of EAM solutions.

Furthermore, these industries require effective management of their physical assets to ensure optimal performance, reduce downtime, and minimize maintenance costs. EAM systems enable organizations to track and manage their assets throughout their entire lifecycle, from acquisition to disposal. They provide features like work order management, preventive maintenance scheduling, inventory management, and reporting and analytics. The EAM market is expected to grow at a steady pace due to the increasing adoption of cloud-based solutions, the integration of Internet of Things (IoT) technology, and the rising demand for predictive maintenance. Additionally, the trend toward digital transformation and the need for real-time data access are also driving the growth of the EAM market.

Market Scope
Report Coverage	Details
Page number	159
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.85%
Market growth 2023-2027	USD 2.04 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	7.31
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 32%
Key countries	US, Canada, China, UK, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ABB Ltd., Aptean Group of Companies, AVEVA Group Plc, CGI Inc., Cheqroom NV, Fortive Corp., Fracttal Tech S L, IFS World Operations AB, International Business Machines Corp., IPS Intelligent Process Solutions GmbH, Koch Industries Inc.,  Limble Solutions LLC. , Oracle Corp., PcsInfinity,  PDI Technologies Inc. , Rockwell Automation Inc., SAP SE, SOCIETE SAS, Techgate LLC, and Constellation Software Inc.
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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