Demand for energy and commodities drives EAM
The worldwide market for enterprise asset management (EAM/CMMS) software is expected to grow at a compounded annual growth rate (CAGR) of 6.5% over the next five years, says a study from ARC Advisory Group entitled Enterprise Asset Management (EAM/CMMS) Worldwide Outlook. The market was $1.34 billion in 2007 and is forecasted to be more than $1.8 billion in 2012.
A strong manufacturing sector with high demand for commodities and energy has allowed many companies to increase maintenance and capital expenditure budgets. However, some remain cautious as a slow global economy threatens growth prospects. Still, spending for asset management software and services has remained healthy in most regions.
Much of the growth in EAM sales is expected to be driven by services, with prominent growth from maintenance and support services and moderate growth in implementation services. This pattern is typical for mature markets such as EAM.
Limited growth is expected from Tier 1 companies (large companies) as most of them already have implemented an EAM solution and are fine tuning applications for best results. The Tier 2 companies’ (middle-sized) market is expected to experience moderate growth as they adopt best practices from proven implementation to remain competitive. The market for Tier 3 (small companies) is anticipated to experience the strongest growth as EAM adoption expands in this market segment of limited size.
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