Digitization and IIOT-based Technologies Drive Demand for Enterprise Asset Management Solutions: Frost & Sullivan
The emergence of digitization and integration of Industrial Internet of Things (IIoT)-based technologies will boost demand for EAM software and create a connected environment, according to new research from Frost & Sullivan.
Revenues are forecast to reach $2,853.9 million by 2022 due to an increased focus on enhancing asset health and reducing operational costs, especially in asset-intensive industries. The analysis also provides a detailed assessment of key market dynamics, drivers and restraints, revenue forecasts by region, market share and competitive analysis.
“Cloud-based EAM software is expected to gain more traction in the future given its ease of deployment, accessibility to various modules through mobile applications, and improvement in execution and monitoring of business operations,” said Kiravani Emani, Industrial Automation & Process Control Senior Research Analyst at Frost & Sullivan. “Moreover, there is increasing demand for analytical tools that support data consolidation and visualization, which, in turn, help effective decision making.”
Highlights of this analysis include:
- EAM has the potential to minimize manufacturing costs and prevent production downtime as end-user industries tighten their CAPEX spend and reform company’s strategic investment towards achieving key performance indicators;
- The adoption rate will increase in the forthcoming years due to the standardization of the software with pre-defined modules based on the industry practices, this feature will reduce implementation time and mitigates the risk of integration across various business processes;
- Optimistic outlook in the North American market (nearly 35 percent of the EAM software revenue) as regulatory bodies formulate stringent norms on energy efficiency, financial transparency and product quality;
- Majority of the project investments across industry verticals (especially power and utilities sector) in the EMEA region are focused towards plant modernization which again boosts demand for EAM software;
- Higher growth opportunities from the Asia-Pacific market with a compounded annual growth rate of 4.8 percent in the next five years due to the renewal of LNG projects in Australia, investments towards infrastructure modernization in India and deploying advanced automation solution in manufacturing processes in China.
Key factors driving market growth include embedded IIoT-based technologies pushing demand for EAM to analyze business functions and asset health conditions; Service-based business model generating higher demand for EAM to integrate manufacturing operations; Strategic partnerships with ERP vendors, IT participants and niche IIoT technology companies expanding market revenues.
“Market growth is being impinged by end users’ lack of clarity on the functionality of EAM software and its integration with existing software solutions,” Emani said. “To address these constraints, EAM vendors are trying to increase business and value proposition awareness of the solutions they provide for specific end-user industries.”
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