According to a recent report published by Allied Market Research, titled, “U.S. Enterprise Asset Management Market by Component, Deployment model, Organization Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2021-2030,”
The U.S. enterprise asset management market was valued at $1,604.68 million in 2020, and is projected to reach $4,391.99 million by 2030, registering a CAGR of 11.5% from 2021 to 2030.
Enterprise asset management (EAM) is a combination of software, systems and services used to maintain and control operational assets and equipment. EAM is used to plan, optimize, execute, and track the needed maintenance activities with the associated priorities, skills, materials, tools, and information. The aim is to optimize the quality and utilization of assets throughout their lifecycle, increase productive uptime and reduce operational costs. EAM is widely used in industries that heavily depend on expensive and complex physical assets such as vehicles, plants and heavy equipment. Major consumers include the oil and gas, manufacturing, mining, energy, government, utility and aerospace & defense industries.
Increasing demand to extend the life span of key enterprise assets with the help of advanced technologies is contributing to the growth of the EAM industry in the U.S. Moreover, EAM Solutions help business owners or companies with uptime, inventory management as well as strategic planning. In addition, increase in demand for SaaS-based EAM solutions is also driving the market growth. However, issues associated with regulatory compliance along with cyber security and concern over data security are hampering the market growth.
Furthermore, convergence of technologies such as AI, ML, IoT, and analytics with EAM solutions, has created numerous opportunities for market growth.
By Component, the solution segment dominated the growth in the U.S. Enterprise Asset Management market in 2020, and is expected to maintain its dominance in the upcoming years. EAM solutions can be used by the entire organization to increase asset performance throughout the asset life cycle, to achieve better return on investment, to keep offices safer, to improve ownership costs with improved lifecycle cost, and to improve efficiency. However, services segment registered highest growth rate during forecasted period. As services help implement and integrate specific IT solutions into the enterprise ecosystem, they serve as an essential part of any organization. They play an important role in the enterprise asset management market because they help the organization focus on identifying, and rectifying the asset.
By deployment, the on-premise segment dominated the growth in the U.S. Enterprise Asset Management market in 2020, and is expected to maintain its dominance in the upcoming years. On-premise-based solutions are known for better maintenance of servers, and continuous system facilitates the implementation of EAM solutions. In addition, the on-premises deployment mode is considered widely useful in large enterprises, as it involves a significant investment to implement, and organizations need to purchase interconnected servers as well as software to manage the system.
By Industry Vertical, the energy and utilities segment dominated the U.S. EAM market in 2020. Enterprise Asset Management (EAM) solutions are used in energy and utilities industries to ensure their infrastructure is able to meet diverse challenges. In addition, power generation companies are now finding alternatives and also investing in renewable energy to meet sustainability requirements. Thus, for operations management and inventory management, EAM solutions are the key for better and smooth operations and smooth transition from conventional to renewable energy adoption. Moreover, preventive and predictive maintenance solutions of EAM help in better and exact planning. However, healthcare segment will register highest growth rate during forecasted period.
The U.S. enterprise asset management market was valued at $1,604.68 million in 2020, and is projected to reach $4,391.99 million by 2030, registering a CAGR of 11.5%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. During the COVID-19 pandemic, manufacturing and utility industries were hampered due to non-maintenance of assets and were not able to operate efficiently; however, due to adoption of EAM solutions, the effective management of assets was possible and they were widely adopted. Moreover, the COVID-19 impact has prompted every company and business to shift their business operations a remote work environment. As a result of the dire situation, companies began to implement the BYOD program or enterprise-owned equipment. Therefore, the need EAM solutions have increased for asset management and cost effective operations during WFH policies.
Key Findings Of The Study
- By Component, in 2020 the Solution segment dominated the U.S. Enterprise Asset Management market size.
- Depending on deployment, the on-premise generated the highest revenue in 2020 of U.S. Enterprise Asset Management market share. However, cloud segment is expected to exhibit significant growth during the forecast period.
- By Organization Size, in 2020, the large enterprises segment dominated U.S. EAM market.
- By Industry vertical, the U.S. Enterprise Asset Management industry was dominated by energy & utilities in 2020.
Some of the key U.S. Enterprise Asset Management industry players profiled in the report include ABB Group, CGI, International Business Machines Corporation (IBM), IFS (Industrial & Financial Systems), Infor, Inc., MRI Software, LLC, Oracle Corporation, Ramco Systems, SAP SE, and Schneider Electric. This study includes market trends, U.S. Enterprise Asset Management market analysis, and future estimations to determine the imminent investment pockets.