The global asset management market size was valued at USD 20.44 Billion in 2022 and is projected to reach USD 49.39 Billion by 2031, expanding at a CAGR of around 10.3% during the forecast period, 2023 – 2031. The growth of the market is attributed to the growing demand for cloud-based asset management solutions along with the incorporation of drone & AI-based asset management across business verticals.
Asset management is the process of overseeing investments on behalf of others. The approach fundamentally has two goals that is increasing the value of a client's assets over time and reducing risk. There are investment minimums, therefore only high net worth individuals, corporations, financial intermediaries, and government entities can use this service.
Moreover, asset management includes several activities, such as investment strategies, portfolio planning, design & construction, maintenance, rehabilitation, replacement, and asset disposal. Furthermore, through predictive maintenance, condition tracking, and preventative upkeep, it helps to avoid the need for costly emergency repairs along with enhancing asset lifecycle and uptime. Hence, in highly dynamic and competitive market conditions, several firms are investing extensively in order to reap profits.
On the other hand, during COVID-19 cloud- based asset management solutions are being used by businesses to manage assets since it is enabled for day to day operations to be performed remotely. Furthermore, several companies across verticals have adopted the work from home model to protect employee well-being and ensure operational efficiency, resulting in a surge in demand for cloud-based solutions.
Asset Management Market Trends, Drivers, Restraints, and Opportunities
Increasing adoption of advanced technology for extending asset lifecycle and rising incorporation of predictive analytics in asset management solutions are expected to boost the market growth in the coming years.
Growing usage of Internet of Things (IoT) platforms to manage enterprise assets, and increasing mobility usage among end users are some of the major factors fueling the market expansion.
Increasing concerns related to data security and confidentiality are estimated to hamper the market expansion.
Existing gap between customer expectations and solutions delivered pertaining to asset management solution implementation is one of the keys factors hindering the market growth.
Ongoing digital transformation initiatives taken by the government across emerging economies are anticipated to offer high growth opportunities for the market in the coming years.
Scope of Asset Management Market Report
The report on the global asset management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Asset Management Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Types (Digital Assets, Staff/Personnel, Returnable Transport Assets, Manufacturing Assets, and In-transit Assets), Components (Service [Tactical Asset Management, Operational Asset Management, and Strategic Asset Management], and Solution [Global Positioning System, Barcode, Real-Time Location System, Labels, Mobile Computer, and Others]), Applications (Healthcare Asset Management, Infrastructure Asset Management [Critical Infrastructure, Energy Infrastructure, Water & Waste Infrastructure, Transportation, and Others], Enterprise Asset Management, Aviation Asset Management, and Others), and Functions (Check In/ Check Out, Location & Movement Tracking, Repair & Maintenance, and Others)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
ABB Inc.; Zebra Technologies Corp.; Adobe Systems Inc.; Siemens AG; Brookfield Asset Management Inc.; IBM Corp.; Honeywell International Inc.; Rockwell Automation, Inc.; Oracle Corp.; and WSP Global Inc.
Asset Management Market Segment Insights
Digital asset segment is expected to grow at a rapid pace
Based on types, the global asset management market is segmented into digital assets, staff/personnel, returnable transport assets, manufacturing assets, and in-transit assets. The digital asset segment is expected to grow at a rapid pace during the forecast period, owing to the rapid adoption of digital solution by businesses in order to lower overall operational expenses and standardize company operations. Furthermore, the ongoing digitalization trend along with the rising volumes and densities of digital assets across companies are expected to boost the segment growth.
However, the in-transit segment is projected to expand at a considerable rate in the coming years due to the growing e-commerce activities throughout the world. Furthermore, in-transit management solutions assist transportation service companies in tracking and identifying the assets during the transition. In addition, the expanding population and continued digitalization are propelling the segment growth.
The solution segment is projected to expand at a considerable CAGR
On the basis of components, the market is bifurcated into service and solution. The solution segment is projected to expand at a considerable CAGR during the forecast period. The solution segment is further segregated as Global Positioning System (GPS), barcode, real-time location system, labels, mobile computer, and others.
Furthermore, the long-term reliability, 2D code-reading capabilities, multiple code-reading abilities, and image-based barcode scanners are progressively embraced across many industries, such as healthcare, logistics, food & beverage, and consumer products.
However, the service segment is estimated to constitute a major market share in the coming years. The service segment is further segmented into tactical asset management, operational asset management, and strategic asset management. The growth of the segment is attributed to the increasing adoption of strategic and operational plans by various businesses all around the world.
Moreover, strategic management entails managing investments over a long period of time in order to increase Return on Assets (RoA). Furthermore, these services are intended to assist organizations in achieving the objectives by ensuring that all functions work together to attain the same objectives.
Aviation asset management segment anticipated to gain a large revenue share
Based on applications, the global asset management market is segregated as healthcare asset management, infrastructure asset management, enterprise asset management, aviation asset management, and others. The aviation asset management segment is anticipated to gain a large revenue share during the forecast period, owing to the rising air passenger traffic and the launch of new aircraft models.
Furthermore, the aviation sector relies on a number of interrelated assets, which is managed properly in order to assure long-term profitability and reliability. In addition, predictive and prescriptive maintenance solutions, GR-aware software packages, and tracking systems are some of the key aviation management technology broadly used in aviation sector.
However, the infrastructure asset management is estimated to expand significantly in the coming years due to the cost- effective infrastructure purchase and maintenance. The infrastructure asset management is further segmented into critical infrastructure, energy infrastructure, water & waste infrastructure, transportation, and others.
Furthermore, suppliers in the infrastructure management sector are employing a two-track method known as design- build and build operate transfer. This method helps local suppliers to carry out the construction work, while multinational firms are providing operation and maintenance software & services. Thus, aforementioned factors are propelling the segment growth.
Location & movement tracking segment is expected to gain a large market share
On the basis of functions, the market is divided into check in/ check out, location & movement tracking, repair & maintenance, and others. The location & movement tracking segment is expected to gain a large market share during the forecast period, owing to the extensive usage in aviation, shipping corporations, third-party logistics (3PLs), and shared mobility providers in order to keep track of the assets in real time.
Furthermore, disruptive technology that can give real-time details on asset health and availability for the maintenance are gaining traction. Additionally, the integration of the Geographic Information System (GIS) and the Global Positioning System (GPS) allows for easier access to spatial data in a single perspective. Thus, all these factors are estimated to fuel the segment growth in the coming years.
North America is anticipated to constitute a key market share
In terms of regions, the global asset management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key market share during the forecast period due to the growing infrastructure development and increasing adoption of advanced technology across businesses. Furthermore, a significant presence of large IT corporations and rapid digitization in the United States and Canada are expected to boost the market expansion in the region.
However, the market of Asia Pacific is estimated to expand at a considerable rate in the coming years, owing to the increasing adoption of modern technology such as Artificial Intelligence (AI), cloud-based solutions, big data analytics, and IoT. Furthermore, the region is home to developing economies such as India and China, providing considerable prospects for asset management systems and services implementation. Additionally, the existence of a big number of SMEs in the region is expected to fuel the demand for cost- effective cloud-based solutions.
The global asset management market has been segmented on the basis of
- Digital Assets
- Returnable Transport Assets
- Manufacturing Assets
- In-transit Assets
- Tactical Asset Management
- Operational Asset Management
- Strategic Asset Management
- Global Positioning System
- Real-Time Location System
- Mobile Computer
- Healthcare Asset Management
- Infrastructure Asset Management
- Critical Infrastructure
- Energy Infrastructure
- Water & Waste Infrastructure
- Enterprise Asset Management
- Aviation Asset Management
- Check In/ Check Out
- Location & Movement Tracking
- Repair & Maintenance
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- ABB Inc.
- Zebra Technologies Corp.
- Adobe Systems Inc.
- Siemens AG
- Brookfield Asset Management Inc.
- IBM Corp.
- Honeywell International Inc.
- Rockwell Automation, Inc.
- Oracle Corp.
- WSP Global Inc.
Some of the major players competing in the global asset management market are ABB Inc.; Zebra Technologies Corp.; Adobe Systems Inc.; Siemens AG; Brookfield Asset Management Inc.; IBM Corp.; Honeywell International Inc.; Rockwell Automation, Inc.; Oracle Corp.; and WSP Global Inc.
These major players in the market are using a variety of organic and inorganic growth tactics, such as new product development, strategic alliances and collaborations, and mergers & acquisitions in order to sustain their position in the industry. Furthermore, players are enhancing their solutions' capabilities by incorporating new technology such as Machine Learning (ML), Artificial Intelligence (AI), Augmented Reality (AR), Virtual Reality (VR), mobility, Geographic Information System (GIS), and Mixed Reality (MR).
For example, IBM Corporation announced a partnership with Sund & Blt Holding A/S in April 2019 to develop AI-powered Internet of Things (IoT) solutions and grow its IBM Maximo portfolio.
Moreover, IBM Corp. is one of the most well-known companies in the industry. IBM Maximo is the brand name for the company's asset management systems. Furthermore, the company's solutions facilitate real- time visibility into asset usage, which aids in increasing Return on Asset (RoA) and expanding functions across several sites. In addition, the company is concentrating on augmenting data management and analysis tools in order to meet the growing expectation of its customers.