Emerging technologies and competitive pressures are driving increased interest in enterprise asset management (EAM). With the right strategy and an experienced partner, organizations can capitalize on the opportunities of EAM while minimizing its challenges.
According to multiple industry reports, the market for EAM systems is experiencing steady growth. Scalar Market Research pegged the market at $3.89 billion in 2016 and expects it to reach $6.51 billion by 2022, a compound annual growth rate (CAGR) of 8.9 percent. MarketsandMarkets estimates 2016 EAM revenue at $3.15 billion and predicts it will hit $5.24 billion by 2021, a CAGR of 10.7 percent. Future Market Insights is less bullish, expecting the market to grow 7.2 percent annually to $4 billion by 2026.
While these industry analysts differ somewhat in their projections, they all agree about the reasons the EAM market is growing. The primary driver is an increased focus on enhancing the useful life of rapidly aging infrastructure. Organizations are also looking to improve the Return on Assets associated with physical infrastructure and to reduce long-term operational and maintenance costs.
However, cost containment and the maintenance of existing infrastructure aren’t the only market forces having an impact. Analysts say that the rapid rise of Internet of Things (IoT) technologies is boosting the EAM market across all industries, particularly the manufacturing and energy sectors. As organizations deploy IoT devices to monitor and manage critical infrastructure, they are seeking to integrate those devices and the data they collect into EAM systems.
The field service management (FSM) software segment is expected to hold the largest share of the EAM market. In the era of mobility, FSM software has evolved as a vital tool for any business that relies on scheduling and deploying resources. The increasing demand for EAM in the transportation, automotive, logistics, and manufacturing industries acts as a major driving factor for the growth of FSM software.
However, analysts say the high cost of implementation may hinder the growth of EAM. In addition, many organizations lack an overarching strategic plan for optimizing the EAM system after deployment, or the skilled personnel needed to manage it long-term. This has led to the rise of cloud-based EAM solutions and so-called “low-code” development platforms that enable non-technical business users to create and modify business applications. There are two primary problems with this approach. First, cloud-based and low-code options don’t address the “people and process” components of EAM. An organization that’s struggling to execute an effective EAM strategy will not resolve those issues with a hosted or ad hoc solution. Further, those solutions tend to create operational and data silos that are difficult to integrate and might increase security and regulatory compliance risks.
At DIT, we specialize in the design and deployment of EAM systems based on IBM Maximo. Over the course of numerous implementations, we have developed configuration templates that encapsulate EAM best practices for full lifecycle asset management. These templates, combined with our expertise, speed the implementation of the Maximo platform while helping to optimize business processes and system functionality. The result is reduced risk and rapid time-to-value of the EAM solution.
If you would like more information about how the right Enterprise Asset Management solution can transform your organization, send us an email at firstname.lastname@example.org.