Enterprise Asset Management Market to Grow to $2.8 Billion by 2010

Dedham, Massachusetts; December 21, 2005: The worldwide market for Enterprise Asset Management (EAM), including IT assets, is currently at $2.2 billion and is estimated to grow at the Cumulative Annual Growth Rate (CAGR) of 5.0 percent reaching $2.8 billion in 2010, according to a new study by the ARC Advisory Group entitled EAM/CMMS Solutions Worldwide Outlook.

“The majority of the EAM market growth will come from important market trends and new developments in EAM and industrial IT Enterprise Asset Management (ITEAM) solutions,” said ARC Research Director and Author Houghton LeRoy. LeRoy continued, “The EAM and ITEAM markets are beginning to merge, creating new opportunities for suppliers and good potential cost savings for customers.”

Factors Contributing to Growth

Market maturity in North America and Europe has created many new opportunities for suppliers. Customer service and support expectations have increased, requiring more consulting and continuous improvement services from suppliers. Emerging markets in Asia Pacific and Eastern Europe are witnessing the importance and proven benefits of EAM/CMMS and ITEAM solutions in the mature markets. EAM software suppliers with a strong presence in global markets and a focus on Collaborative Asset Lifecycle Management (CALM) will continue to see an increase in sales, as customers adopt best practices and drive continuous improvement.

New Developments and Important Market Trends

Asset Management has never been more challenging for organizations. Aging assets, tougher regulatory compliance, and increasing security requirements are driving up costs while budgets are continuously being cut. Professional asset managers have implemented most of the conventional practices and need new ways to drive improved asset performance and lower costs.

Enterprise Asset Management (EAM) solution providers are addressing this challenge in many ways. They are offering product enhancements that exploit better information management to finally enable true lifecycle management strategies. They are also incorporating enhanced performance measurement and analysis tools to drive continuous improvement; supporting new technologies that can enable improved productivity; and, embedding growing compliance requirements directly within work processes. Anyone not following these developments is likely missing some significant opportunities.

ARC’s 2005 EAM/CMMS Solutions Worldwide Outlook reveals new developments and important market trends that will have a major impact on the future of asset management. These trends are being driven by new technologies, like the internet, mobile wireless devices, RFID and new condition monitoring devices as well as emerging standards and new regulations. They represent a major portion of product development for leading solution providers and will provide significant benefits for EAM end users in coming years. It is estimated that the market for EAM products that support these trends will grow from 10-20% over the next few years and this will be a key driver of activity and new opportunities in an otherwise mature market segment.

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