Enterprise Asset Management is Estimated To Witness High Growth Owing To Digitalization Trends
Enterprise asset management (EAM) involves managing physical assets of an organization efficiently throughout its life cycle. EAM solutions offer operational efficiency, effective management of costs and risks associated with physical assets. EAM solutions help in predictive maintenance scheduling, calibration management, asset lifecycle management and tracking of warranty periods amongst others.
The Enterprise Asset Management Market is estimated to be valued at US$ 4069.27 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The enterprise asset management market size is witnessing high growth owing to increasing digitalization trends across industries. With growing connectivity and IoT, physical assets are increasingly being integrated with software for remote monitoring. This is enabling predictive maintenance of assets using analytics of operational data. Use of mobility solutions is also driving the need for EAM solutions that can function across mobile platforms for field inspections, work orders and asset servicing on the go. Adoption of cloud and security standards like ISO 27001 is further fueling demand for secure, scalable and cost-effective SaaS-based EAM solutions.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the enterprise asset management market is medium as the market is dominated by large established vendors. However, new players can enter the market by offering innovative solutions at competitive prices.
Bargaining power of buyers: The bargaining power of buyers is medium since there are many established vendors offering customized solutions according to their needs. Switching costs are also medium.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many component/software suppliers and customers can choose from multiple options.
Threat of new substitutes: The threat of new substitutes is low as no direct substitute currently exists and replacing EAM solutions would require high investment from customers’ side.
Competitive rivalry: is high due to presence of many large and small established players competing on the basis of product features and pricing.
SWOT Analysis
Strength: The major strength of the enterprise asset management market is robust features offered by vendors for predictive maintenance of assets and inventory management which helps in cost reduction.
Weakness: High initial investment and complexity involved in deployment and integration of EAM solutions are major weaknesses. Lack of awareness about benefits of EAM solutions in small enterprises also acts as a weakness.
Opportunity: Growing significance of predictive maintenance along with adoption of cloud, AI/ML and IoT based solutions is creating huge opportunities. Increasing focus on asset performance management also offers growth prospects.
Threats: Budgetary constraints in small and medium enterprises, lack of skilled workforce and data security threats pose major challenges.
Key Takeaways
The global Enterprise Asset Management Market is expected to witness high growth, exhibiting CAGR of 8.9% over the forecast period, due to increasing need for predictive maintenance of assets and reducing unplanned downtime. The market size for 2023 is estimated to reach US$ 4069.27 Mn.
Regional analysis: North America is expected to dominate the enterprise asset management market over the forecast period owing to increasing adoption of cloud-based EAM solutions and presence of major vendors. Asia Pacific is predicted to witness the fastest growth rate, growing at a CAGR of more than 10% due to rapid industrialization and infrastructure development activities in countries like China and India.
Key players operating in the enterprise asset management market are IBM Corporation, SAP SE, Oracle Corporation, ABB Ltd., Infor, Inc., Ultimo Software Solutions BV, CARL International SA, eMaint Enterprises, LLC, Mainsaver, Inc., MEX Pty Ltd., Asset Works LLC, and CGI, Inc. Key players are focusing on developing innovative solutions integrated with advanced technologies and acquiring smaller players to strengthen their market position.
Get more insights on this topic: https://creativenewsalert.blogspot.com/2023/12/growing-adoption-of-cloud.html
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