Enterprise asset management market to reach $1.9 billion by 2007
Dedham, MA—The worldwide market for Enterprise Asset Management (EAM) including IT assets is projected to grow at 3.1% cumulative annual growth rate (CAGR) from $1.6 billion at present to $1.9 billion in 2007, according to a new study, “EAM/CMMS Solutions Worldwide Outlook,” by ARC Advisory Group.
Dedham, MA— The worldwide market for Enterprise Asset Management (EAM) including IT assets is projected to grow at a 3.1% cumulative annual growth rate (CAGR) from $1.6 billion at present to $1.9 billion in 2007, according to a new study, “ EAM/CMMS Solutions Worldwide Outlook ,” by ARC Advisory Group .
'Most growth in the EAM market will come from application service providers’ (ASPs) web-hosted solutions and industrial IT enterprise asset management (ITEAM) opportunities,' says Houghton LeRoy, ARC’s research director. 'The EAM market has matured where software license sales are declining and customer service requirements are increasing.'
The study found that, as customer service and support expectations increase in asset-intensive industries, they need more consulting and continuous improvement services from suppliers. Companies experiencing good benefits are expanding EAM functionality to other groups and facilities. Companies with little or no payback justification are seeking help to establish key performance indicators to measure ROI. The study adds that some are even outsourcing the problem to service providers that offer performance guarantees.
Several EAM suppliers are realizing strong growth potential for outsourced services, such as ASP Web hosting, which includes maintenance, repair and operations electronic procurement (eMRO). Web hosting is reportedly an attractive, cost-effective approach for asset management, electronic purchasing and other enterprise applications. It permits faster implementation; simplifies support; integrates distributed operations; facilitates collaborations; and reduces total cost of ownership (TCO). Customers pay only for needed functionality and can accurately determine costs.
IT organizations have managed office networks, servers, and PC workstations for many years. Proliferation of IT standards and equipment throughout enterprises has forced considerable overlap in IT and EAM solutions. ITEAM is expected to become a natural extension of many EAM solutions during the next five years, offering considerable opportunities for sharing best practices and emerging technologies. A one-solution approach will eliminate unnecessary duplication of many common functions, helping reduce costs, increase productivity, and better share critical asset information. ARC expects to see more mergers, acquisitions, and consolidation of EAM and ITEAM suppliers.
TEAM supports CALM
To help strengthen revenue growth, the study adds that many suppliers have adopted a total enterprise asset management (TEAM) strategy that addresses asset management for all hardware and software assets. This approach requires collaboration between operations, maintenance, financial and IT groups in a company. It promotes sharing of best practices and important asset information for optimizing performance, availability and quality in a large corporation. It lays the foundation for the collaborative asset lifecycle management (CALM) model for sharing the risks and responsibilities of asset management with partners, suppliers, and third-party service providers during all lifecycle phases.
Control Engineering Daily News Desk
Jim Montague, news editor