Asset Management Market Size, Share & Trends Analysis Report By Component, By Asset Type (Digital, In-transit), By Function (Location & Movement Tracking, Repair & Maintenance), By Application, And Segment Forecasts, 2020 - 2027

Report Overview

The global asset management market size was valued at USD 216.98 billion in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 25.9% from 2020 to 2027. The capabilities of asset management solutions to streamline the operations, optimize the utilization of existing resources, and subsequently help enterprises in saving costs, enhancing profits, and improving the Return on Investment (RoI) are expected to drive the market growth. These solutions and services help organizations in reducing inventory and stock management costs. They also help enterprises in utilizing their existing assets efficiently by tracking and managing them in real-time. Personnel tracking solutions can help organizations in ensuring workforce safety and enhancing workforce efficiency. In the healthcare industry, tracking both personnel and equipment can particularly help in enhancing patient care.

Rapid digitization and abundant availability of orthorectified images through satellites have enabled the use of Geographical Information Systems (GIS). The use of GIS enables better planning, designing, development, and maintenance of assets in industries such as the energy and transportation sectors. Moreover, the asset management solutions also help organizations in utilizing their assets efficiently by providing vital statistics on the utilization of the assets and making favorable recommendations to optimize the utilization. The life and value of the assets can thereby be increased and the RoI can be improved.

Digitization has opened immense opportunities for organizations to enhance their relationship with customers. Asset-intensive organizations have realized that amid the intensifying competition, the success or failure of their business depends on addressing the complexities involved in their management. Hence, several asset-intensive organizations are aggressively investing in advanced and innovative solutions to transform and upgrade their operational processes significantly. They are adopting advanced technologies, such as Artificial Intelligence (AI), predictive maintenance, Augmented Reality (AR), Internet of Things (IoT), digital twin, and telematics, for accurately assessing the performance of their physical properties. They are readily deploying modern management solutions to improve the longevity of their assets.

On-premise solutions typically tend to consume more time, capital, and space. Moreover, skilled professionals are required for the maintenance and operations of on-premise solutions. On the contrary, cloud-based solutions and services eliminate the need for installing additional hardware as they can be accessed on all sorts of basic devices, such as smartphones, tablets, laptops, and personal computers. Cloud-based solutions also ensure reliability and easy availability of data as they store the data in various data centers located across the globe. Additionally, cloud-based solutions also make it easier for organizations to secure business intelligence and optimize the use and value of the assets available. Hence, cloud-based solutions and services are gaining popularity among enterprises across various geographies. Asset-intensive organizations and businesses are managing to gain access to the latest hardware, software, and service features available in the market by implementing cloud-based solutions.

However, the high capital investment associated with the implementation of management solutions is emerging as one of the major factors restraining the growth of the market. Offerings based on Real-Time Location System (RTLS) can potentially reduce the costs associated with the workforce and boosts the efficiency of resource utilization across various industries and industry verticals. However, these offerings can be highly capital intensive. Although the prices of some of the components associated with these solutions, such as readers and tags, are plummeting; the overall costs of these systems are expected to remain high, particularly owing to the costs associated with software and servers along with the maintenance services.

Component Insights

The solution segment dominated the market in 2019 with a revenue share of over 55%. The solution segment has been further segmented into a Real-Time Location System (RTLS), barcode, mobile computer, labels, and Global Positioning System (GPS), and others. The barcode segment is particularly aiding the solution segment to dominate the market. Image-based barcode readers are being increasingly adopted across various industries and industry verticals, including healthcare, logistics, food and beverage, and consumer goods owing to their 2D code-reading capability, long-term reliability, and multiple code-reading abilities.

The service segment is projected to register a high CAGR over the forecast period. The growth of the segment can be attributed mainly to the growing adoption of strategic and operational plans by several organizations across the globe. Strategic management envisages managing the investments in a long-term strategy for improving the Return on Assets (RoA). These services are designed to help organizations in meeting their objectives by making every function work efficiently and achieve the same goals.

Asset Type Insights

The digital segment dominated the market in 2019 with a revenue share of over 25%. Companies are aggressively adopting digital solutions and services to reduce the overall operational costs and standardize business processes. The trend of continued digitization bodes well for the providers of digital solutions and services. The growing volumes and densities of digital assets across organizations are anticipated to drive the demand for digital solutions over the forecast period.

The in-transit segment is anticipated to register a high CAGR over the forecast period. The growth of the segment can be attributed to the growing e-commerce activities across the globe driving the demand for in-transit solutions for tracking the goods shipped by the seller. Additionally, in-transit management solutions can also help transportation service providers in tracking and locating their assets in transit. The demand for in-transit management solutions is anticipated to increase in line with the growing population and continued digitalization.

Application Insights

The aviation segment dominated the market in 2019 with a revenue share of over 80%. The surge in air passenger traffic and the introduction of new aircraft models are the key factors driving the growth of the aviation segment. The aviation industry relies on several interdependent assets, which means each of them needs to be managed effectively to ensure profitability and reliability in the long term. Some of the significant aviation management solutions that are being increasingly deployed include predictive and prescriptive maintenance solutions, GR-aware software suites, and tracking solutions.

The infrastructure segment is anticipated to exhibit a noteworthy CAGR over the forecast period. Infrastructure solutions and services help in reducing the costs associated with the procurement and maintenance of infrastructure. Hence, the demand for infrastructure management solutions and services is anticipated to gain significant traction over the forecast period. Moreover, the vendors operating in the infrastructure management market are adopting a dual-track strategy known as the Design-Build and Build-Operate-Transfer strategy. The strategy envisages the local vendors undertaking the construction work while the large corporations providing operation & maintenance software and services. For instance, in October 2016, IBM Corporation announced a collaboration with Pitney Bowes, Inc. for the integration of IBM Cognos and IBM Watson Analytics Platform with Pitney Bowes, Inc.’s asset management software.

Function Insights

The location and movement tracking segment dominated the market in 2019 with a revenue share of 35%. Aviation companies, shipping companies, third-party logistics (3PLs), and shared mobility providers are aggressively deploying location and movement tracking solutions to maintain the records of their assets in real-time. The deployment of disruptive technologies that can potentially provide real-time details of the asset health and availability for utilization and maintenance is gaining traction. At the same time, the integration of Geographic Information System (GIS) and Global Positioning System (GPS) is providing better access to spatial data in a single view. This is aiding in the management of working assets within the context of the location while providing the ability to visualize and search for them on a map.

The repair and maintenance segment is expected to witness strong growth over the forecast period. Assets, such as equipment, machinery, transportation, and infrastructure, among others, require regular maintenance for their effective functioning and extended life. Hence, the demand for support & maintenance solutions is anticipated to gain significant traction over the forecast period. Once the installation and development or manufacturing are accomplished, the support and maintenance services take over and play a vital role throughout the life cycle of the assets. Support and maintenance services can potentially help organizations in enhancing efficiency and subsequently boosting their overall revenue generation.

Regional Insights

North America dominated the market in 2019 with a revenue share of over 30%. North America has taken a significant lead in terms of both infrastructure development and technology adoption. A strong presence of large IT companies and rapid digitalization in the U.S. and Canada would particularly drive the regional market growth. The rising adoption of connected, smart, and secure technologies for asset-centric applications is also expected to drive the growth of the market.

The Asia Pacific is emerging as one of the fastest-growing regional markets and hence offers immense potential for the growth of the market. The growing adoption and deployment of advanced technologies, such as cloud-based solutions, AI, IoT, and big data analytics, are particularly driving the growth of the regional market. The Asia Pacific is also home to growing economies, such as India and China and hence offers significant opportunities for the deployment of asset management solutions and services. The presence of a large number of SMEs in the region is also fueling the demand for cloud-based solutions as cloud-based solutions tend to be highly cost-effective.

The ongoing COVID-19 pandemic has forced lockdowns across several major economies in the Asia Pacific. As a result, transportation is confronting limitations, and supply chains have been disrupted. Several economies are also suffering from a tremendous revenue loss as manufacturing units are shut down due to the lockdowns. The overall situation has adversely affected the demand for asset management solutions and services in 2020.

Key Companies & Market Share Insights

The vendors operating in the global market are adopting various organic and inorganic growth strategies, including new product launches, strategic partnerships and collaborations, and mergers and acquisitions, to strengthen their portfolio. Vendors are also expanding the capabilities of their solutions by integrating various emerging technologies, such as Machine Learning (ML), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), mobility, Geographic Information System (GIS), and Mixed Reality (MR). These solutions are also evolving in line with the growing R&D investments in the development of cloud-based predictive analytical solutions. Advances in technology and evolving digital solutions are equally paving the way for the implementation of asset management solutions across the globe.

IBM Corporation happens to be among the eminent players operating in the market. The company offers asset management solutions under the name IBM Maximo. The solutions offered by the company provide real-time visibility into asset usage, which helps in improving the RoA and expand the functions across various sites. The company is highly focused on developing data handling and analyzing software to cater to the growing demands of its customers. Almost 33% of the company’s spending goes toward analytics and cognitive computing. For instance, in April 2019, IBM Corporation announced a collaboration with Sund & Bælt Holding A/S to design and develop AI-powered IoT solutions and expand its IBM Maximo portfolio. Some of the prominent players in the global asset management market include:

• ABB Inc.

• Adobe Systems Incorporated

• Brookfield Asset Management Inc.

• Honeywell International Inc.

• IBM Corporation

• Oracle Corporation

• Rockwell Automation, Inc.

• Siemens AG

• WSP Global Inc.

• Zebra Technologies Corporation

Asset Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global asset management market report based on component, asset type, function, application, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2027)

  • Solution

    • Real-Time Location System (RTLS)

    • Barcode

    • Mobile Computer

    • Labels

    • Global Positioning System (GPS)

    • Others

  • Service

    • Strategic Asset Management

    • Operational Asset Management

    • Tactical Asset Management

• Asset Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Digital Assets

  • Returnable Transport Assets

  • In-transit Assets

  • Manufacturing Assets

  • Personnel/ Staff

• Function Outlook (Revenue, USD Billion, 2016 - 2027)

  • Location & Movement Tracking

  • Check-In/ Check-Out

  • Repair and Maintenance

  • Others

• Application Outlook (Revenue, USD Billion, 2016 - 2027)

  • Infrastructure Asset Management

    • Transportation

    • Energy Infrastructure

    • Water & Waste Infrastructure

    • Critical Infrastructure

    • Others

  • Enterprise Asset Management

  • Healthcare Asset Management

  • Aviation Asset Management

  • Others

• Region Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa