Enterprise Asset Management Market is Anticipated to Witness High Growth Owing to Increase in Adoption Across Industries

The enterprise asset management market comprises products and solutions that help organizations in efficiently managing the entire lifecycle of physical assets including repairs, maintenance, and monitoring. Enterprise asset management solutions enable organizations to optimize asset utilization, reduce operational and maintenance costs, and extend asset life. They provide a centralized platform for storing asset data, work order management, purchasing and procurement, inventory control, and performance tracking. The growing need for improved asset uptime and productivity across industries like oil & gas, transportation, manufacturing, healthcare, and utilities is driving the adoption of enterprise asset management solutions.

The Global Enterprise Asset Management Market is estimated to be valued at US$ 4687.8 Bn in 2024 and is expected to exhibit a CAGR of 7.5% over the forecast period 2024 to 2031.

Key Takeaways
Key players operating in The Enterprise Asset Management are IBM Corporation, SAP SE, Oracle Corporation, IFS, Infor, ABB Ltd, Maintenance Connection, GE Digital, and AVEVA Group Plc.
The increasing need for optimizing asset utilization and reducing operational costs present significant growth opportunities for vendors in the enterprise asset management market. The market is expected to witness increased demand from industries like oil & gas, transportation, utilities, and manufacturing globally.
Major players are focusing on new product launches and partnerships with local players to expand their footprint in high growth regional markets like Asia Pacific, Middle East, and Latin America. In February 2022, IBM partnered with Mahindra Group to provide asset-intensive businesses access to IoT and AI solutions to optimize their operations.

Market drivers
Increase in adoption of cloud-based EAM solutions: Cloud-based EAM solutions enable organizations to access asset data from anywhere, collaborate in real-time, and gain insights with analytics. This flexibility and scalability is driving more companies to adopt cloud EAM solutions.
Focus on predictive maintenance: Using IoT sensors, machine learning and analytics, EAM solutions can now predict equipment failures and recommend maintenance actions. This helps avoid unexpected downtime and saves substantial costs associated with unplanned repairs.

Market restraints
Lack of skilled talent: Effective implementation and use of advanced EAM solutions require new skills around IoT, analytics, cloud computing etc. However, there is a global shortage of talent with expertise in these emerging technologies. This acts as a challenge for wider EAM adoption.
Budget constraints: EAM projects require substantial upfront investments and have long return on investment timelines. Limited budgets especially for small and medium enterprises restrict the EAM market expansion.

Segment Analysis
The enterprise asset management market is dominated by the software segment. This is because software forms the core of any asset management system and enables organizations to track, maintain and maximize the use of their assets. Specific functions offered by enterprise asset management software include maintenance management, inventory control, warranty management, procurement and spend management. The maintenance management sub segment currently holds the largest share as maintaining physical assets requires accurate scheduling and tracking of maintenance, repair and overhaul activities across the asset lifecycle. This helps reduce downtime and maximize operational efficiency.

Global Analysis
The North American region currently dominates the global enterprise asset management market owing to high technology adoption across sectors like oil & gas, manufacturing, healthcare etc in countries like the US and Canada. North America is expected to continue its dominance during the forecast period as well due to ongoing digital transformation initiatives and increased innovation in AI and IoT based asset management solutions. The Asia Pacific region is poised to grow at the fastest rate during the forecast years. This is attributed to rapid industrialization and infrastructure development activities in developing economies of China and India. Government policies that promote digitization will further propel the APAC EAM market in the coming years.

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