According to estimates, the worldwide fixed asset management software market will be worth USD 3.8 Billion in 2021 and USD 4.2 Billion in 2022. Fixed asset management software sales are expected to reach USD 11.4 Billion in 2032, with a 10.6% CAGR from 2022 to 2032, supported by:
The coronavirus pandemic has had a substantial impact on businesses. The key driver driving the market is the growing demand to improve organizational efficiency by using innovative technology to fulfill corporate objectives.
To assist employees in keeping their data secure during the COVID-19 pandemic, data storage suppliers have provided free data storage solutions such as basic data protection software. Few of these free data-storage software applications are intended for short-term usage, while others are meant to have a long-term influence on businesses.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value in 2022 | USD 4.2 Billion |
| Projected Market Value in 2032 | USD 11.4 Billion |
| Growth Rate (2022 to 2032) | 10.6% CAGR |
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According to the report, North America is expected to lead the market over the forecast period. The region's growth may be ascribed to the region's strong presence in the industrial and transportation sectors, as well as the region's rising embrace of technological innovations.
Among all, the United States is expected to have the largest market share throughout the projection period. During the projection period, the country is predicted to earn USD 4 billion while growing at a 10.4% CAGR. Government actions and regulations in a variety of end-user sectors are expected to significantly enhance the market.
For example, the Federal Highway Administration (FHWA), the American Association of State Highway and Transportation Officials (AASHTO), and state and local transportation departments (DOTs) have all made efforts to encourage the use of asset management software in the transportation and logistics sectors.
The country has a strong position in terms of technology adoption in every end-use industry, including automotive, manufacturing, IT & telecom, and others. This is likely to provide different chances for the United States to expand its worldwide market reach.
Fixed asset management software enables firms in the manufacturing industry to optimize maintenance operations, prolong asset longevity, and boost production. The industrial industry is in desperate need of centralized software to handle its vast array of assets.
The data acquired by asset performance software aids in predicting the exact breakdown point of a vital asset, enhancing uptime.
Fixed asset management software also aids industrial enterprises in the administration of maintenance, spare parts, and inventories. It helps manufacturers to maximize asset control, performance, and warranty return by properly managing inspections and audits. Furthermore, fixed asset management software assists industrial companies in improving their plant and machinery maintenance operations.
Increasing adoption of IoT-based services across several industries like Oil & Gas, Manufacturing, Energy, Power, and Construction is projected to play a salient role in driving the market in the assessment period.
The emergence of Industry 4.0 in the Manufacturing Sector to Fuel the Market in the Forecast Period
With the emergence of Industry 4.0 in the manufacturing sector, several plants have adopted digital technologies to improve, enhance, and smoothen the manufacturing process while optimizing the management of fixed assets.
The software allows the manufacturers to predict the manufacturing costs, thereby, aiding them to prepare a cost-efficient budget.
Besides, technologies like Industrial IoT offers various benefits such as real-time alters and asset tracking solutions, which assist in managing fixed assets efficiently.
In addition, technological development across various sectors such as cloud computing, artificial intelligence, machine learning, and others are projected to boost the adoption of fixed asset management software since these technologies offer scalability, agility, and efficiency to the business.
Therefore, solution providers are introducing technologically developed solutions to procure maximum gains.
For instance, in September 2019, Adapt IT announced a partnership with i-Chain, a South Africa-based fixed asset management services, and solutions company to offer a Web-based system providing easy access to a cloud-based environment, particularly designed for educational institutions to assist them to manage their assets.
Lack of awareness of fixed asset management software is expected to hinder the market in the forecast period. Also, the reluctance of SMEs to adopt fixed asset management software is due to financial restrictions.
SMEs generally have lower capital expenditure, which does not allow them to procure expensive software. Moreover, the growing cost associated with the maintenance of the on-premises infrastructure is another factor impeding the market during the forecast period.
The advent of big data and analytics will grow the adoption of fixed asset management software and is expected to create opportunities for expansion in the forecast period. Also, rising initiatives by players are projected to augment the opportunities in the market.
For instance, Comparesoft, an AI-Driven Software Recommender, announced the renewal of its partnership with FMIS, which offers asset management solutions in a broad range of industries, comprising health, manufacturing, public sector, education, and non-profile sectors. This is expected to offer various opportunities for expansion by helping them engage with businesses.
Based on deployment type, the global fixed asset management software market can be segmented into cloud and on-premises. According to the analysis, the on-premises segment is anticipated to secure a larger market share while exhibiting a 10.2% CAGR in the forecast period.
Based on components, the global fixed asset management software market can be segmented into services and software.
Based on organization size, the global fixed asset management software market can be segmented into SMEs and large enterprises.
Based on vertical, the global fixed asset management software market can be segmented into IT, telecom and media, energy and utilities, manufacturing, transportation & logistics, healthcare, and life sciences, and others.
According to the analysis, the manufacturing segment is anticipated to garner maximum traction during the forecast period. The segment is likely to expand at a CAGR of 10.4%.
The on-premises segment is anticipated to dominate the market with a growth rate of 10.2% during the forecast period. An on-premises deployment type is a conventional approach to implementing solutions at the premises of an organization.
Currently, the approach is being followed in organizations where security is the vital pillar of business operations since it is considered a safer option against the cloud-deployment type.
Aerospace & defense, healthcare, and the BFSI sector are projected to be significant consumers of on-premises fixed asset management software deployment since they deal with sensitive data such as finance, national security, and healthcare.
On the other hand, the manufacturing segment is anticipated to garner maximum traction in the forecast period. The manufacturing sector is projected to be a lucrative segment and has a massive demand for centralized software to manage its assets. The Fixed asset management software aids manufacturing organizations to improve their plant and machinery maintenance processes.
As per the analysis, North America is anticipated to lead the market in the forecast period. The development of the region can be attributed to the robust presence of manufacturing and transportation sectors and the increasing adoption of technological advancements in the region.
Among all, the USA is anticipated to secure the maximum market share during the forecast period. The country is expected to garner USD 4 Billion while exhibiting a 10.4% CAGR in the forecast period.
Government initiatives and regulations in several end-user sectors are projected to provide a significant boost to the market.
For instance, the Federal Highway Association (FHWA), the American Association of State Highway and Transportation Officials (AASHTO), and State and local departments of transportation (DOTs) have taken various efforts to motivate the usage of asset management software in the transportation and logistics sector.
In addition, the country also possesses a dominant position with respect to technology adoption in every end-use sector such as automotive, manufacturing, IT & telecom, and others. This is expected to offer various opportunities to the USA to augment its reach in the global market competition.
Europe is projected to be another lucrative market in the assessment period. The United Kingdom is expected to garner USD 478 Million, witnessing a 9.6% CAGR in the forecast period. Increasing demand to lessen operational costs and the penetration of IoT technology are some of the vital factors augmenting the industry in the forecast period.
As per the analysis, Asia Pacific is the fastest-growing market during the forecast period. Among all, China, Japan, and South Korea are projected to be the most lucrative market in the region. China is anticipated to garner USD 794.4 Million, recording a CAGR of 9.9% during the forecast period.
The contribution of China can be attributed to the high number of SMEs which are expected to boost the demand for cloud-based fixed asset management software since they are cost-effective. Also, organizations in the country are leveraging fixed asset management software to manage their assets efficiently.
Japan and South Korea are estimated at USD 940 Million and 397 Million respectively. The growth rate of Japan and South Korea is estimated at 8.9% and 8.1% sequentially.
| Countries | Estimated CAGR |
|---|---|
| USA | 10.4% |
| United Kingdom | 9.6% |
| China | 9.9% |
| Japan | 8.9% |
| South Korea | 8.1% |
Key players in the global fixed asset management software market include IBM, Infor, SAP, Microsoft, and Oracle, among others.
Recent key developments among players are:
The global fixed asset management software market is estimated at USD 3.8 Billion.
The global fixed asset management software market is projected to secure USD 11.4 Million while recording a CAGR of 10.6% during the forecast period.
The emergence of big data and analytics will offer significant opportunities for market expansion in the forecast period.
The emergence of Industry 4.0 in the manufacturing sector to propel the market significantly in the forecast period.
The USA market is projected at USD 4 billion, exhibiting a CAGR of 10.4% during the forecast period.
China is projected at 794 Million, recording a 9.9% growth rate during the forecast period.
Fixed Asset Management Software Market
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