EAM market is recovering and forecasted to reach $2.3B worldwide by 2014

The enterprise asset management (EAM) market was affected by the difficult and dynamic economic environment in 2009; however, growth is expected in 2010 with full recovery and net growth is expected in 2012. Overall, the market is forecasted to grow from $1.76 billion in 2009 to $2.3 billion in 2014 for a compound annual growth rate (CAGR) of 5.6 percent. 

Some regions will recover more quickly due to government response and macro-economic trends. Asia, with the exception of Japan, is leading the recovery. North America, the largest regional market, is expected to recover in 2010. Western Europe and Japan are forecasted to experience a delayed recovery starting in late 2010 and early 2011.

“With the delay of major improvement projects do to the economy, extending the life of existing equipment becomes critical and requires good maintenance execution. Also, with the improving economy and release of key projects, execution is more difficult with reduced resources. Both factors are driving the need for a modern EAM system,” according to Ralph Rio, research director, the principal author of ARC’s “Enterprise Asset Management Solutions Worldwide Outlook”.

ERP Suppliers Continue to Penetrate EAM
The factors contributing to growth include some that are relevant to the difficult economy and others that are applicable to the recovery. Capital improvement projects and upgrades are being delayed to conserve cash. At the same time, managers cannot allow higher failure rates for the existing, aging equipment.  Also, there are safety issues that must be mitigated. Extending the life of existing equipment requires good maintenance execution and a modern maintenance management system. Also, the recession put increased pressure on maintenance managers to control costs. Many companies are scrutinizing their maintenance costs and finding their EAM solutions are inadequate. By improving their EAM system, they do more with less resources including people, MRO spend and inventory.

Functions in Enterprise Asset Management
EAM has specific key areas of functionality required by maintenance organizations. Asset Information Management (AIM) includes the processes and technology for organizing, creating, controlling, change management, and auditing of the information related to assets and equipment. Work Order Management includes the creation, planning, scheduling, schedule optimization, execution, documentation, and tracking of activities.  MRO Materials Management includes the procurement and management of the needed materials. Labor Management is related to needs assessment, training, certification, and scheduling of labor resources (internal employees and contractor personnel) related to the management of covered assets. Service Contract Management includes the creation and management of contracts and service agreements. Mobility includes the application functionality needed for a mobile work-force. It is the bi-directional exchange, processing and presentation of information for EAM functional categories previously described.  Reporting & Analytics includes the functionality for the analysis of an asset and asset management performance. 

For more information on this study, visit the ARC Market Research section.