The global Enterprise Asset Management (EAM) market size is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.7% during the forecast period, to reach USD 5.5 billion by 2026 from USD 3.3 billion in 2020. Digital business transformation has entered a more challenging and urgency-driven phase due to the COVID-19 pandemic. Global giants are providing customers with cost-effective and productive digital solutions as every industry is economically hard-hit from the pandemic. The sudden shutdowns of organizations and institutions increased the demand for cloud solutions and other online services. In current times, the EAM market is profitable for EAM vendors as several companies from diverse verticals are progressively adopting cloud-based solutions and services. This market is expected to grow further in North America and Europe, whereas it is expected to hold a significant growth rate in APAC, Latin America, and MEA. Factors such as the increased adoption of cloud among SMEs and the Work From Home (WFH) business model due to COVID–19 are expected to drive the market growth.
Need for extending the life span of assets with the help of advanced technologies
Digitization across different verticals is creating new opportunities for organizations to optimize their relationships with customers. Many asset–intensive organizations are focusing on investing in new and ground–breaking technologies to radically transform and improve their operational processes. In today’s highly competitive business environment, asset–intensive businesses succeed and fail based on how they manage complexities in the face of increased competition. Best–in–class organizations are embracing emerging technologies, such as AR, IoT, AI, predictive maintenance, digital twin, and telematics, as the next big thing in industrial services would be to accurately forecast the future of physical assets. The impact of EAM solutions is more than just boosting the bottom line. According to a few primary respondents and industry experts, organizations readily adopt modern EAM solutions to increase the longevity of assets.
The Manufacturing vertical expected to hold largest market share in 2020.
The manufacturing vertical includes automotive, aerospace, heavy machinery, chemicals, and electronics and semiconductors. It is transforming its business functions, such as integration of supply chains, product designing, inventory management, and product deliveries. Manufacturing organizations have disconnected systems and departments working through information silos, making it complex for the EAM system to work with other IT systems. This information isolation prevents the efficient management of assets throughout their lifecycle. Inventory and asset management is considered as the most critical aspect of manufacturing businesses. In case inventory runs out of stock, or there is an unplanned breakdown, the production output would decrease, deliveries would get delayed, and work would be interrupted. This would cost a hefty amount to manufacturers.
North America to hold the largest market size and Asia Pacific (APAC) to grow at a higher rate during the forecast period
APAC is one of the fastest-growing regions in terms of technology adoption, and the demand for digitization is driven by various initiatives carried out by different governments and large enterprises in the region. Countries such as China, Japan, Australia, Singapore, India, and Indonesia are leading this technology adoption, which includes embracing new-age technologies such as AI, edge, IoT, analytics, and cloud. The region houses a large number of enterprises related to manufacturing, energy and utilities, transportation and logistics, chemicals, and aerospace, which is further expected to drive the demand for EAM. Rapid advancements in telecommunications, cloud computing, and IoT have led several organizations to adopt cloud-based strategies.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with the key people.
The breakup of the profiles of the primary participants as follows:
- By Company Type: Tier I: 37%, Tier II: 25%, and Tier III: 38%
- By Designation: C-Level: 22%, D-Level: 33%, and Others: 45%
- By Region: North America: 42%, Europe: 25%, APAC: 18%, and RoW: 15%
The report segments the global EAM market by Application, the EAM market has been segmented into asset lifecycle management, inventory management, work order management, labor management, predictive maintenance, facility management, and other applications. By the deployment model, the EAM market has been segmented into public cloud and private cloud. Based on organization size, the market has been classified into Small and Medium-sized Enterprises (SMEs) and large enterprises. By vertical, the EAM market has been classified into Manufacturing; energy and utilities; healthcare and life sciences; government and public sector; transportation and logistics; IT and telecommunications; and others. By region, the market has been segmented into North America, Europe, APAC, MEA, and Latin America.
Key Benefits of Buying the Report
The report will help the market leaders/new entrants in the EAM market with information on the closest approximations of the revenue numbers for the overall EAM market and the subsegments. The report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and to plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.