Factors such as the surging deployment of enterprise asset management (EAM) solutions for effective utilization of assets, increasing need for the reduction of procurement and maintenance expenses, improved return on assets (ROA), growing internet of things (IoT) sector, rising number of construction projects, and mounting alertness regarding predictive analytics among large enterprises are expected to drive the enterprise asset management market in the foreseeable period (2020–2030) at a CAGR of 14.2%. According to P&S Intelligence, the market size stood at $5,682.1 million in 2020, which is expected to reach $21,471.3 million in 2030.
One of the prime factors aiding the enterprise asset management market is the surging need for the reduction of procurement and maintenance expenses. EAM can help in minimizing maintenance costs by providing better information on capital investment, closely tracking of operations, and effectively controlling of equipment. Furthermore, it can reduce operating costs by mounting project return on investment (ROI), minimizing procurement cost of materials, and reducing maintenance cost. Further, the surging need of enterprises to optimize their operation costs by a significant number results in high demand for EAM solutions.
The offering segment of the enterprise asset management market is categorized into solution and service. Between the two, the solution category accounted for a larger market share in 2020. This is ascribed to the increasing need for better ROI on assets, rising demand for effective management of enterprise assets and resources, mounting need for streamlined business operations, and growing industries, such as retail, manufacturing, telecommunications, and healthcare. Whereas, the service category is projected to record faster growth in the coming years, owing to the increasing need for professional and managed services from businesses for smooth business operations.
Moreover, on the basis of vertical, the enterprise asset management market is classified into energy and utilities, healthcare and life sciences, manufacturing, government and defense, transportation and logistics, IT and telecom, oil and gas, and others. Out of these, the healthcare and life sciences category is expected to witness the fastest growth in the coming years. This can be ascribed to the high healthcare spending, rapid utilization of advanced medical equipment, increased focus on advanced patient care management, improved performance monitoring, and rise in` need to accomplish compliance procedures.
Geographically, the North American enterprise asset management market accounted for the largest share in 2020. This is ascribed to the existence of several market players, increase in adoption of EAM services and solutions in several industries, presence of a large number of end users, rise in need to meet strict regulatory compliances, and high public and private investments for better management of equipment and assets, in the region. Moreover, companies focusing on safeguarding supply chain management (SCM), asset utilization, and predictive utilization, to streamline business operations, are also driving the regional market growth.
Thus, the surging need for the reduction of procurement and maintenance expenses and the increasing deployment of EAM solutions for effective utilization of assets are expected to propel the market growth during the forecast period.
