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.

07/08/2003


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.'

Growth factors
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
jmontague@reedbusiness.com





No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Integrated mobility; Artificial intelligence; Predictive motion control; Sensors and control system inputs; Asset Management; Cybersecurity
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me