It is expected to grow steadily at a five-year compound annual growth rate (CAGR) of 10%, reaching US$233.1 million by 2013. The five-year CAGR for EAM application is the highest in the Enterprise Resource Management (ERM2) market for the forecast period. The other applications with high CAGR are Order Management at 8.5% and Procurement at 6.5%.
“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.
With the slowdown in global demand for manufactured goods, manufacturers are deferring the replacement cycles of their working assets. Accordingly EAM tools are necessary to help enterprises establish preventive maintenance to both extend the useful life and monitor the performance of equipment and machinery. Furthermore, with increased attention on the bottom line enterprises will also be able to monitor their asset-based expenses and embark on corrective measures if required.
Figure 1: ERM Functional Market Growth, 2009 to 2013
Source: IDC AP Semiannual EA Tracker, 2H 2008
1. APEJ here includes Australia, China, Hong Kong, India, Korea, Malaysia, New Zealand, Taiwan, Thailand and Singapore.
2. Enterprise Resource Management (ERM) includes the following applications: Enterprise Asset Management; Financial Accounting; Human Capital Management; Order Management; Payroll; Procurement; Project and Portfolio Management; Financial Performance; and, Strategy Management.