EAM apps growth largest in ERP space: IDC

By Enterprise Innovation Editors | Sep 9, 2009

To stifle the effects of the recent downturn, companies are investing heavily on enterprise asset management (EAM) applications, forging the growth of the market by as much as $136.9 million this year, research firm IDC predicted recently.

Among critical ERP applications, EAM, IDC said, is expected to grow fastest at a steady compound annual growth rate of 10%, reaching $233.1 million by 2013.

"As the global economy continues to shrink, enterprises are exploring avenues to maximize the return of their asset investments," says Alan Tong, Senior Research Manager of Asia/Pacific Enterprise Applications Research at IDC. "For machinery and equipment, scheduling, preventive and predictive maintenance are important in preserving the working lifespan of these assets," he adds.

China led the EAM market in APEJ with a market share of 35.2% or US$50.9m in 2008. The EAM market in China is expected to reach US$123m in 2013. This is equivalent to a five-year CAGR of 19%. China continues to be the global manufacturing hub with significant worldwide investments in manufacturing and production infrastructures. Consequently, demand is growing for maintenance tools from the manufacturers for maintenance, repair, and overhaul operations. The other leading countries in EAM adoption are Australia and India with approximately 21.0% and 19.8% market share in APEJ respectively. Overall, these three key countries contribute close to 76% of the entire APEJ market.

In addition to manufacturing, telecommunication, banking, and transportation are the three other primary verticals adopting this application. The surge is driven primarily by large businesses, which are asset intensive. It is also worth noting that mid-market adoption has also gained in adoption rate pace.