The global asset management software industry size stood at USD 56.76 billion in 2022 and will depict a healthy CAGR of 11.1% during the forecast period 2023 to 2030, according to the “Asset Management Software Industry Data Book, 2023 – 2030,” published by Grand View Research. Technology leaders have sought automation products to streamline tasks, asset tracking, foster organization’s performance and bolster decision-making. Software tools have become trendier to prevent breakdown and downtime. Some other attributes, such as sustainability concerns, aging assets, and climate issues, have compelled incumbent players to inject funds into asset management tools.
Companies across industry verticals, including healthcare, retail, construction, oil & gas, mining, manufacturing, and telecom, have exhibited an inclination for software asset management. For instance, a healthcare organization can use tools to track major devices and equipment, thereby fostering patient care. These trends have fueled the demand for enterprise asset management (EAM), asset performance management (APM), and infrastructure asset management (IAM) software.
Of late, industrial Internet of Things (IIoT) and sensorization have become instrumental in providing flexibility. In essence, IIoT leverages companies to connect asset information to the cloud. The prevalence of smartphones has prompted industry leaders to inject funds into asset management systems; machine learning, IoT, and mobile are slated to redefine the global ecosystem. Specifically, the integration of machine learning into EAM has come to the fore to help manufacturers implement intelligent recommendation systems.
Unlocking EAM Potentials
Asset-intensive industries have banked on enterprise asset management to optimize the quality of operational assets. Industry players are bullish on the foray of artificial intelligence and IoT in EAM. These state-of-the-art technologies have witnessed an exponential demand to help organizations optimize, track, manage, and assess assets. For instance, AI-built remote monitoring devices have gained popularity in providing inputs on assets’ condition. The enterprise asset management market was valued at USD 5.74 billion in 2022 and will witness a strong CAGR of 16.9% during the assessment period. The growth is partly attributed to the rising footprint of cloud-based EAM solutions due to growing smartphone penetration and internet services.
Cloud-based solutions have become paramount in EAM to automate approvals, manage work orders, conduct mobile compliance inspections, and track spare parts inventory. In essence, the expanding footfall of cloud-based tools has led to the prevalence of data, furthering the need for cloud-based asset management solutions across the region. To illustrate, in March 2022, Aptean announced the rollout of a cloud-based EAM solution for manufacturers. The solution is expected to underpin asset maintenance and management, thereby automating approvals, managing work orders, scheduling preventive maintenance, tracking spare parts inventory, and conducting mobile compliance inspections.
Infrastructure Asset Management Redefines Global Outlook
An uptick in the infrastructural development plans across advanced and emerging economies has expedited the demand for infrastructure asset management systems. IAM can help governments and other stakeholders to spearhead sustainable development. The United Nations infers that more than 90% of the Sustainable Development Goals are pegged to infrastructure. Asset management has become invaluable to augment workforce safety, minimize risks, and boost economic practices across railways, ports, waterways, bridges, electric grids, and water supplies. The infrastructure asset management market size logged USD 31.70 billion in 2022 and could exhibit a 9.2% CAGR through 2030.
Trends and opportunities that are poised to bring a paradigm shift in the global landscape are highlighted below:
- Asset performance management software has received an impetus to optimize asset reliability and operation. The solution can underpin risk management, asset strategy, and predictive maintenance, providing a holistic view of assets. APM software has become the go-to option to bolster productivity, minimize the total cost of ownership, and reduce accidents (asset-related) and unplanned downtime.
- Stakeholders will likely invest in software tools to automate asset management and make them auditable. Organizations are expected to seek these tools to enhance KPIs and boost asset availability.
- North America could contribute notably to the global market with buoyant investments in bespoke solutions, including AI, analytics, and IoT.
Asia Pacific—a Happy Hunting Ground
Incumbent players are poised to inject funds into the Asia Pacific market, largely due to an exponential rise in digitization and automation across China, Japan, India, and Australia. Predominantly, predictive maintenance, remote monitoring, and computer vision have become paramount to reducing equipment failure, augmenting asset life, and managing risk. Well-established and emerging companies are slated to count on advanced tools and digital twins to optimize asset health using AI and IoT platforms. It is worth mentioning that digital twins create virtual replicas of physical assets (airplanes, bridges, or a building).
Mapping Stakeholders’ Strategies
Key leaders are leaving no stone unturned to underscore cloud deployment, streamline planning and monitoring of strategies, reduce risks with data insights to forecast failures take corrective actions, and balance the performance of each asset. In doing so, industry players are expected to invest in organic and inorganic strategies, such as technological advancements, product offerings, innovation, R&D activities, geographical expansion, mergers & acquisitions, and partnerships.
In September 2022, WSP announced the acquisition of John Wood Group’s Environment & Infrastructure business to foster penetration in the environmental and water sectors. Meanwhile, in October 2022, Oracle included an asset-based service solution in its cloud applications suite. The software company asserts the launch will help boost revenue, minimize costs, and foster customer satisfaction by optimizing asset’s service lifecycle management.