ARC Sees Enterprise Asset Management Market Growing to $2.8 Billion by 2010

New challenges make EAM tougher than ever, but evolving solutions offer "significant opportunities" for improvements

New challenges make EAM tougher than ever, but evolving solutions offer "significant opportunities" for improvements

Dedham, MA — January 6, 2006 — New business challenges are making enterprise asset management tougher than ever, but evolving and emerging solutions are offering enterprises "significant opportunities" to achieve improvements in how they manage their companies' assets, according to a new study by the ARC Advisory Group

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 of 5.0 percent, reaching $2.8 billion in 2010, according to the ARC study, "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 Houghton LeRoy, ARC research director and author of the report. "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, ARC found. Customer service and support expectations have increased, requiring more consulting and continuous improvement services from suppliers.

In addition, 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

As ARC sees it, 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, the analyst firm asserts.

Meanwhile, enterprise asset management (EAM) solution providers are addressing this challenge in many ways. For example, they are offering product enhancements that exploit better information management to finally enable true lifecycle management strategies. Solution providers also are 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 warns.

Growth Ahead

ARC's 2005 EAM/CMMS Solutions Worldwide Outlook tracks new developments and important market trends that the analyst firm believes 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.

ARC believes that the market for EAM products that support these trends will grow from 10-20 percent over the next few years and that this will be a key driver of activity and new opportunities in an otherwise mature market segment. Additional information can be found at

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