The enterprise asset management market is booming. The market has changed accordingly as the focus has moved from simple maintenance management to organization-wide asset management. We’ve listed the latest EAM market trends, EAM market size and share and the state of the market in this article.
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Key Takeaways
- The enterprise asset management market is predicted to grow to $21.47 billion by 2030.
- Asia and North America are the fastest growing EAM markets.
- There are three main revenue cycles that are driving growth in the EAM market — asset performance management, project and performance management, and project portfolio management.
- 96% of asset managers already use cloud computing technologies in their front-to-back offices, and 67% plan to increase that reliance on core financial services by 2024.
EAM Market Share, Size and Scope
Asset life cycle management is the main focus of EAM software. If a task requires interacting with an asset, EAM software can probably complete it. This includes anything from maintenance execution to asset monitoring to purchase forecasting.
The enterprise asset management software market is predicted to reach $21.47 billion by 2030 at a CAGR of 14.2%.
There are three main revenue cycles that drive it:
Performance and Project Management
Users may track and manage projects from start to finish in an organized, effective manner with the use of project and performance management. To make sure everyone is upholding their end of the bargain and keeping projects on track, users can keep an eye on the performance of either individual team members or the entire project team.
Asset Performance Management
The goal of asset performance management is to increase the dependability, availability or performance of physical assets by combining analytics, data collection and visualizations. Making your assets work for you involves condition monitoring, reliability-centered maintenance and predictive forecasting.
Project Portfolio Management
Asset performance management data is used in asset and project portfolio management to support users in making more informed decisions about the future acquisition and upkeep of assets. Its objective is to raise ROI and increase every asset’s return on investment.
The top solutions on the EAM market are (in no particular order):
- Maximo
- Oracle
- Infor
- SAP
- Assetworks
- eMaint
- Aveva
- Asset Essentials
- IFS
- Fiix
- MAPCON
- MPulse
- Tabware
- MicroMain
- UpKeep
EAM offers benefits to almost every area of an asset-focused organization, so it’s no wonder that the use of this type of CMMS software is becoming more prevalent.
Top Trends
So what’s happening in the enterprise asset management market?
Dealing With Inflation
Asset managers must find measures to counteract excessive inflation in this environment, but it is getting harder to find safe havens.
Many investors anticipate reducing their exposure to traditional fixed income assets because it is commonly anticipated that inflation will rise higher before the end of the year. However, despite issues with liquidity and price, investors aren’t completely turned off by fixed income as structured credit becomes a more appealing investment.
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Leveraging Technology To Cut Costs
Asset managers are actively seeking to accelerate growth by reducing costs and enhancing their capabilities as fee pressures remain and the competitive environment becomes more intense.
Thankfully, technology is offering unmatched benefits in achieving both goals. Recent advances in artificial intelligence and IoT are enabling businesses to uncover creative, cost-efficient ways to increase productivity and generate value.
EAM solutions are improving at failure prediction by fusing the capabilities of the Internet of Things (IoT) and artificial intelligence.
You can monitor the wear and condition of many sorts of components using a vast network of cutting-edge sensors, which will promptly notify you when maintenance is required. What is particularly significant is that data analysis occurs continuously online, making it possible to identify potential issues very quickly.
Business models and customer expectations are raising the competitive threshold across the asset management industry as other companies take note and adopt comparable innovations.
Operations might be one area to minimize costs. Asset managers can hire other companies to do their back- and middle-office tasks. They gain from cost reductions and prompt, accurate reporting as a result.
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Rethinking Data Capabilities
Asset managers have traditionally relied on good data collection and use to stay competitive, but the pandemic’s general acceleration of digital transformation has dramatically upped industry standards, leaving many businesses suffering with antiquated systems that can no longer handle daily demands.
Companies are now reviewing their data strategy in order to dismantle internal data silos and raise the caliber of data utilized for portfolio analysis, client and regulatory reporting as businesses search for operational efficiencies.
The ability of asset managers to aggregate and combine data from many systems is becoming more and more crucial to their capability to meet regulatory reporting requirements. Many people are discovering that legacy systems are unable to handle the volumes of data required due to the strain of incorporating new ESG criteria into portfolio analysis and reporting.
Since accurate and timely data provision is crucial given the underperformance some managers experience in the current market environment, thorough performance and risk reporting also depends on it.
In a recent asset management transformation study by BNY Mellon, more than 200 asset managers from around the world were polled. The results showed that 96% of them already use cloud computing technologies in their front-to-back offices and 67% plan to increase that reliance on core financial services by 2024.
Conclusion
Big, exciting things are happening across the globe as technology advances and EAM software becomes more prevalent and more powerful.
Rising inflation will impact the EAM market as organizations look at numerous ways to cut down costs. This will inevitably lead to greater adoption of technology to reduce man hours and increase productivity. Adoption of technology will also turn the focus to data management and storing capabilities to make information more secure and accessible to team members.
What insights do you have into the enterprise asset management market size and share? Share them with us in the comments!