EAM Market Is Down, But Forecast Recovery to New Heights
Enterprise Asset Management (EAM) functions include asset information, work orders, MRO materials, labor, service contracts, analytics, and mobility. The EAM market is segmented into two application types for EAM On-site (assets on the company’s property) and EAM Field Service (assets on the customer’s property).
The poor macro-economic conditions are a major driver for this market during the forecast period. Some regions will recover more quickly based on government response and other economic trends. Though the EAM market will decline during the difficult global economy, recovery is forecasted with significant net growth.
Current business conditions are causing firms to reduce operating costs and capital expenditures. Maintenance is among those being told to lower their operating costs. Maintenance managers cannot respond by allowing higher failure rates with the aging equipment. Production requires high availability to be responsive for the orders they have. Also, there are safety issues. Enlightened managers are finding opportunities to acquire EAM solutions with quick payback.
Strategic Issues
Users are exhibiting a cautious optimism towards EAM solutions. Rather than big projects like ERP replacement, users are tackling smaller items with lower risk and fast time-to-benefit — including EAM.
- How can suppliers increase their value proposition?
- Which industries and geographies offer the best opportunities?
- What are the application areas that will recover the soonest?
- How will SaaS affect your revenue and what should your response be?
- Is the EAM market being absorbed by the ERP suppliers?