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[239 Pages Report] 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. Major factors that are expected to drive the growth of the EAM market include increasing shift from legacy asset management methods to modern asset management by enterprises, rising popularity of SaaS-based EAM solutions, growing need for gaining a 360-degree view of assets, increased usage of IoT platforms and devices to manage enterprise assets, elimination of overheads caused due to adherence to compliance, convergence of technologies such as AI, IoT, and analytics, and increase in mobility usage among end users.

COVID-19 Impact EAM Market

Enterprises are opting for cloud based EAM solutions to manage asets during the COVID-19 times as it allows to remotely execute day to day operations. The demand for EAM is expected to surge in 2020 as it offers effective management of assets. Many of the enterprises across verticals have adopted the work from home model to safeguard employee well-being and maintain operational efficiency, surging the demand for cloud based solutions. As more enterprises would turn to advance its IT infrastructure, the demand for EAM solutions will continue to grow.

EAM Market Dynamics

Drivers: Increased usage of IoT platforms and devices to manage enterprise assets

The EAM market is undergoing a significant transition with the advent of supplementary and new technologies. The evolution of Industrial Internet of Things (IIoT) has increased the demand for EAM systems. IoT helps in monitoring and procuring data from remote sites. This data is helpful when integrated with EAM systems as it helps in inferring insightful information.

Restraints: Implementation challenges for enterprises with diverse operational structures

EAM has evolved as an operational platform in recent years. Several organizations have reported the successful implementation of EAM, while a few organizations have not fully implemented EAM. One of the major reasons behind this is the substantial gap between customer expectations and solutions delivered. For organizations with different functional domains, the implementation of EAM can be a difficult and complex task. To avoid complexities, asset managers should have a proper understanding of the work processes of assets or components that might get altered during the implementation process. An EAM system affects people, processes, and technologies. Therefore, it is important to have a proper understanding of all these entities while implementing the EAM system. The implementation of the EAM system requires cross-functional coordination as it impacts multiple systems and processes.

Challenges: Selecting the right mix of solutions

Due to the rising awareness of EAM utilities, and increasing presence of major vendors and specialist solution providers, it is becoming challenging for asset–intensive organizations to select the right mix of solutions. Although a few EAM service providers offer a free demo of their solutions, there is no specific criteria for selecting the right solution. Organizations are concerned about their data, and data security is their top priority as data losses can cause both tangible and intangible losses.

Opportunities: 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.

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Based on application, the asset lifecycle management segment to be a larger contributor to the EAM market growth during the forecast period

Asset lifecycle management is the process of optimizing profits generated by assets throughout their lifecycle. It comprises a few inter-management processes, such as comprehensive asset portfolio management, rigorous project execution, and effective and efficient asset management practices, which help deliver desired outcomes. It helps increase organizational productivity by helping end users to make informed decisions on IT needs and services. It also helps increase organizational productivity by helping organizations to make informed decisions on IT needs and services. Most of the EAM vendors offer the asset lifecycle management solution to streamline asset lifecycle processes, reduce maintenance costs, and improve the quality of IT services.

Based on deployment model, the on-premises segment to be a larger contributor to the EAM market growth during the forecast period

The on-premises version of EAM is mainly preferred by organizations that need control over the security of information about customers and companies. This deployment is installed and hosted on organizations’ IT infrastructure and is managed by their internal IT staff. The on-premises deployment of EAM solutions requires high initial investment by organizations, though it does not require incremental costs throughout the ownership as in the case of cloud deployment. Security concerns associated with the private data of customers is a major reason for the adoption of on-premises deployments over cloud deployments. It is challenging for IT teams to frequently update on-premises systems. In case of any fault, operations of various functional departments also get hampered. Owing to these reasons, currently, many organizations are using on-premises solutions and realizing that the SaaS delivery model lowers operating costs and reduces asset maintenance stress. SMEs do not prefer the on-premises deployment model due to budget constraints.

Asia Pacific (APAC) to grow at the highest CAGR 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 rising adoption of cloud technologies and increasing amount of data lead to the complexity of managing workloads and applications manually, which would act as a major factor driving the adoption of EAM among enterprises in this region. The affordability and ease of deployment of cloud services would act as major factors for the adoption of cloud technologies among enterprises. Some of the major vendors operating in the region are IBM, Infor, IFS, and SAP.