Infrastructure Asset Management Market Size, Share & Trends Analysis Report By Application, By Component, By Service Type (Strategic, Operational, Tactical), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global Infrastructure Asset Management market size was valued at USD 22.60 billion in 2018 and is expected to register a CAGR of 8.9% from 2019 to 2025. The market has witnessed considerable growth owing to the rapid adoption of IAM services to reduce the procurement and maintenance costs of infrastructure. The development of advanced wireless technologies and protocols such as High-Speed Downlink Packet Access (HSDPA) is expected to enable a rise in the adoption of technologies such as AI (Artificial Intelligence) and the Internet of Things (IoT), further driving the market growth.

Companies in the IAM industry are implementing a dual-track strategy called as Design-Build and Build-Operate-Transfer strategy. The design and construction are done by local start-ups while large corporations provide operation and maintenance software. For instance, Pitney Bowes, Inc. collaborated with IBM Corporation in 2016, for the integration of IBM Corporations IBM Cognos and IBM Watson Analytics Platform into Pitney Bowes asset management software.

Risks associated with aging infrastructure is a major driver for the market. Various industries such as manufacturing and oil and gas utilities require assets such as land, buildings, and machinery to obtain long-term service life.

Such industries need a large amount of capital to operate as the old designs cannot be modified or upgraded frequently. Hence, these industries deploy IAM solutions to enable efficient use of existing facilities and also ensuring a superior maintenance post-deployment. For instance, as per the study conducted by the U.S. Department of Energy, nearly 75% of transmission lines and transformers are more than 25 years old. In Europe, governments are facing challenges about water and wastewater infrastructure. The European region faces a wastage of more than three billion liters of water mostly due to leakage in distribution systems.

Moreover, decreasing return on assets for U.S. companies is anticipated to drive the market growth over the forecast period. As companies opt for IAM to gain maximum return on assets, the asset management processes can closely relate to achieving quality enhancements and organizational productivity.

Government initiatives reveal lucrative opportunities for developing economies in near future. Huge investments by companies for the development of solar energy infrastructure also enhance the growth of the infrastructure segment. Also, the growing awareness of energy conservation leads to the high adoption rate of IAM solutions for energy infrastructure. Moreover, governments around the world are making significant investments for the development of Smart Cities and emphasizing greater safety in public-owned structure.

Application Insights

Application category for the IAM market can be segmented into transportation, energy, water & waste, critical, and other infrastructure. The transportation segment accounts for a dominant position and was valued at USD 6.90 billion in 2018. Factors such as government investments for enhancing transportation activities for citizens and the integration of location-based services in transportation systems is responsible for driving the growth of the transportation segment.

Energy applications are gaining traction since several countries are now embracing concepts such as SMART cities wherein IAM services are fully used for developing and management of energy infrastructure. At present, government initiatives aligned with the availability of fund investors for SMART city projects is an ongoing trend.

The water and waste segment is expected to grow significantly owing to the concerns for global warming. Stringent government policies for implementing waste and water management across various cities are anticipated to influence growth. Also, several nations are aiming to fix and renew their existing and new construction for public water infrastructure.

Component Insights

Based on components, the infrastructure asset management (IAM) market can be segmented into solution and service. The service segment led the market accounting for around 65% in 2018. Services are cost-effective as support and maintenance are included in the service package itself. The companies operating in the services sector are putting a high emphasis on providing training facilities subjective to the services workforce for the IAM system.

Solutions for infrastructure asset management are gaining traction as they are becoming popular due to their features such as systematic and often combined approaches for the management of varied infrastructure in various sectors such as energy, water, and waste. Customization is a major feature provided in IAM solutions.

Service Type Insights

Strategic, tactical, and operational asset management are the service constituents for the infrastructure asset management market. Operational asset management maintains a dominant position during the forecast period owing to the wide usage in energy sectors. Changing dynamics in the energy sector is enabling the companies to look ahead for ways to cut down on energy costs, which is responsible for the segment growth.

Strategic Asset Management (SAM) service segment is projected to witness faster growth to the rise in popularity and involvement of planning, design, development, and maintenance of infrastructure. The rise in popularity of risk assessment accepted under SAM services is anticipated to drive the growth.

Regional Insights

Geographical segmentation for the infrastructure asset management (IAM) market comprises North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. North America accounts for a greater market share due to the rise in need to augment asset utilization simultaneously minimizing the operational costs. The U.S. Government encourages private investors to invest in infrastructure and promising fair returns, hence U.S. emerged as the most preferred destination for Greenfield investments in 2017.

The Asia Pacific is expected to emerge as the fastest-growing region, attributed to the major growth opportunities in the aviation industry. The regional spending on infrastructure gained traction in 2018, thereby opening new opportunities for market players. For instance, in India, the government plans to develop more than 100 smart cities by 2020 led by efficient telecommunications infrastructure that bodes well for market development.

Key Companies & Market Share Insights

The rapid adoption of IAM services results in minimizing the procurement and maintenance costs of infrastructure. Moreover, IAM services also offer security for infrastructure for airports, government buildings, and sports complexes.

Many companies are gaining long-term contracts based on their strategic initiatives and extended geographical presence. For instance, In April 2019, WS Atkins Limited was awarded a contract for implementing flood risk management solutions for Texas government infrastructure. In the same year, it also inaugurated its new office in Riyadh intending to establish its presence in Saudi Arabia.

Some of the key market players are WSP Global Inc.; RPS Group Plc.; Brookfield Asset Management Inc.; Macquarie Group Limited; SIMCO Technologies; Pitney Bowes Inc.; WS Atkins Limited; Aabasoft; ThomasLloyd Group; and EverStream Capital Management.

Infrastructure 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 2019 to 2025. For this study, Grand View Research has segmented the global Infrastructure Asset Management market report based on component, service type, application, and region:

• Component Outlook (Revenue, USD Million, 2014 - 2025)

  • Solution

  • Services

• Service Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Strategic Asset Management

  • Operational Asset Management

  • Tactical Asset Management

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Transportation

  • Energy Infrastructure

  • Water & Waste Infrastructure

  • Critical Infrastructure

  • Others

• Region Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa