The enterprise asset management market is expected to witness substantial growth through 2027 owing to prevalent product demand across varied industry verticals.
Enterprise asset management (EAM), which refers to a combination of systems, services, and software, is utilized to maintain and control operational equipment and assets. EAM is designed to optimize the quality and usage of assets along their lifespan, lower operational costs, and bolster productive uptime.
Recently, key industry players have been implementing strategic initiatives to enhance their market presence, which has positively influenced overall business growth. For instance, in October 2021, Infor, a major company in the EAM space, launched a dedicated multi-tenant cloud offering, dubbed Infor Public Sector, in the UK. Infor Public Sector aims to keep the central and local governments as well as arms-length bodies updated with the latest software releases to offer secure, robust, and easily managed services.
The enterprise asset management market has been segregated on the basis of component, deployment model, organization site, application, end-user, and region. Based on component, the market has further been divided into solution and service.
Under component, the solution segment has been categorized into inventory management, asset lifecycle management, facility management, labor management, predictive maintenance, and work order management. The work order management solution segment held a market share of about 9.2% in 2020 and is estimated to grow at a steady pace over 2021-2027 due to the increasing need for managing business operations.
The labor management segment is projected to expand at a CAGR of above 10% through the assessment timeframe. High product adoption for reducing labor costs while decreasing employee attrition by rewarding efficiency, quality, and safety is set to push segmental growth in the coming years. In 2020, the facility management segment was valued at over USD 500 million in revenue and is calculated to see strong development through 2027 driven by growing investments in the tourism sector.
The service component segment has been divided into managed services and professional services. The professional services segment is anticipated to see substantial growth at approximately 5% CAGR through the analysis period. Surging adoption of Software-as-a-Service (SaaS) or Platform-as-a-Service (PaaS) is likely to support the growth of the segment in the forthcoming years.
The managed services segment held a market share of about 30% in 2020 and is expected to progress at a substantial pace over 2021-2027. Mounting demand for consultation, deployment, integration, and maintenance services is foreseen to facilitate segmental development over the study timeline.
From the application perspective, the enterprise asset management market has been classified into non-linear assets, linear assets, field service management, and asset maintenance, repair and operations (MRO). The non-linear assets segment is calculated to observe robust growth by 2027, delivering a CAGR nearly 10% through the review period, due to soaring product utilization for the management of asset locations, historical information, workflow, and approvals.
By end-user, the enterprise asset management industry has been bifurcated into IT & telecom, energy & utilities, manufacturing, transportation and logistics, government & public sector, healthcare, and oil & gas. In 2020, the healthcare segment held a market share of above 5% and is estimated to observe notable growth over 2021-2027. Increasing implementation of IoT based platform and equipment is set to promote segmental demand through the assessment period.
The IT & telecom segment is expected to witness stable expansion at around 10% CAGR over the analysis timeline. Soaring product usage for tracking and managing connected servers, virtual servers, network equipment, and plotters is foreseen to propel the revenue growth of the segment by 2027.
The government & public sector segment held nearly 5% share in the market in 2020 and is projected to grow at a solid pace over 2021-2027. Booming need to track, reconcile, and maintain the assets and equipment within government & public sector facilities is anticipated to fuel segmental development in the upcoming years.
The enterprise asset management market from the oil & gas segment is estimated to see notable growth by 2027, delivering around 5% CAGR through the study timeframe. Proliferating demand for data-intensive assets, which necessitate smarter production and protection, is likely to stimulate segmental uptake over the following years.
In the regional landscape, the Latin America enterprise asset management industry is calculated to expand significantly at a CAGR of approximately 5% to reach a sizable valuation by the end of 2027. The growing trade industry in LATAM is expected to foster product outlook in the region.
Meanwhile, the Middle East & Africa region accounted for more than 5% of the global enterprise asset management market in terms of revenue in 2020 and is speculated to see considerable growth through 2027. Rising penetration of growing start-ups across the MEA region is slated to bolster regional market expansion over the forecast period.