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

ERM Functional Market Growth, 2009 to 2013

 Source: IDC AP Semiannual EA Tracker, 2H 2008

Note:

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.

Upcoming Events

August 9 - August 11 2022

MaximoWorld 2022

View all Events
banner
80% of Reliabilityweb.com newsletter subscribers report finding something used to improve their jobs on a regular basis.
Subscribers get exclusive content. Just released...MRO Best Practices Special Report - a $399 value!
DOWNLOAD NOW
Harmonizing PMs

Maintenance reliability is, of course, an essential part of any successful business that wants to remain successful. It includes the three PMs: predictive, preventive and proactive maintenance.

How an Edge IoT Platform Increases Efficiency, Availability and Productivity

Within four years, more than 30 per cent of businesses and organizations will include edge computing in their cloud deployments to address bandwidth bottlenecks, reduce latency, and process data for decision support in real-time.

MaximoWorld 2022

The world's largest conference for IBM Maximo users, IBM Executives, IBM Maximo Partners and Services with Uptime Elements Reliability Framework and Asset Management System is being held Aug 8-11, 2022

6 Signs Your Maintenance Team Needs to Improve Its Safety Culture

When it comes to people and safety in industrial plants, maintenance teams are the ones who are most often in the line of fire and at risk for injury or death.

Making Asset Management Decisions: Caught Between the Push and the Pull

Most senior executives spend years climbing through the operational ranks. In the operational ranks, many transactional decisions are required each day.

Assume the Decision Maker Is Not Stupid to Make Your Communication More Powerful

Many make allowances for decision makers, saying some are “faking it until they make it.” However, this is the wrong default position to take when communicating with decision makers.

Ultrasound for Condition Monitoring and Acoustic Lubrication for Condition-Based Maintenance

With all the hype about acoustic lubrication instruments, you would think these instruments, once turned on, would do the job for you. Far from it!

Maintenance Costs as a Percent of Asset Replacement Value: A Useful Measure?

Someone recently asked for a benchmark for maintenance costs (MC) as a percent of asset replacement value (ARV) for chemical plants, or MC/ARV%.

OEM recommended maintenance plans

One-third of CEO Terrence O'Hanlon's colleagues think so - at least as a starting point. What do you have to say?