The worldwide market for Enterprise Asset Management (EAM/CMMS) is expected to grow at a compounded annual growth rate (CAGR) of 6.5% over the next five years, according to a new ARC Advisory Group study. The market was $1,343.5 million in 2007 and is forecasted to be over $1,800 million in 2012.
According to ARC, spending for asset management software and services has remained healthy in most regions despite economic uncertainty. "The emerging markets of Latin America, Asia Pacific, and Eastern Europe continue to offer the best opportunities for new sales of EAM software and services due to the growth in capital spending related to infrastructure projects and commodities demand," according to Clint Reiser, Analyst Enterprise Applications, ARC Advisory Group.
Much of the growth in EAM sales is going to be driven by services, with prominent growth from maintenance and support services and moderate growth in implementation services, said ARC. Mining & metals, oil & gas, and electric power are the industrial manufacturing industries from which strong EAM software sales growth is anticipated. These industries are currently experiencing growth due to emerging market demand and an increase in capital spending.
Limited growth is expected from Tier 1 as most of these companies in developed regions have implemented an EAM solution and are either reaping the benefits or struggling to improve solution performance. Tier 2 is expected to experience moderate growth as these companies are adopting best practices from proven implementation to remain competitive. Tier 3 is anticipated to experience the strongest growth as EAM adoption expands in this market segment of limited size.
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