ARC Sees Enterprise Asset Management Market to Grow to $2.1 Billion by 2008.

DEDHAM, Mass. -- The worldwide market for Enterprise Asset Management (EAM), including IT assets, is currently $1.7 billion and is estimated to grow at the Cumulative Annual Growth Rate (CAGR) of 4.4 percent, reaching $2.1 billion in 2008, according to a new study by the ARC Advisory Group entitled EAM/CMMS Solutions Worldwide Outlook.

"The majority of the EAM market growth will come from Collaborative Support Solutions (CSS) and industrial IT Enterprise Asset Management (ITEAM) opportunities," said Houghton LeRoy, ARC Research Director and the author of the study. He continued, "The EAM market has matured, causing a small decline in software license sales but compensated by an increase in customer service requirements."

Factors Contributing to Growth

Market maturity in North America and Europe has created many new opportunities for suppliers. Customer service and support expectations have increased, requiring more consulting and continuous improvement services from suppliers. Emerging markets in Asia Pacific and Latin America are witnessing the importance and proven benefits of EAM/CMMS and ITEAM solutions in the mature markets. EAM software suppliers with a strong presence in global markets and a focus on Collaborative Asset Life-cycle Management (CALM) will continue to see an increase in sales, as customers adopt best practices and drive continuous improvement.

Collaborative Support Solutions (CSS)

Companies that have derived good benefits from best practices, such as the CALM model, are expanding EAM functionality to other groups and facilities using Collaborative Support Solutions (CSS) such as Asset Information and Performance Management (AIPM). Companies with little or no pay-back justifications are looking for help establishing best practices, such as Key Performance Indicators (KPIs), to measure ROI. EAM suppliers or service providers often satisfy KPI requirements to help fulfill the ROI payback promised using CSS.

AIPM has become the fastest growing EAM solutions for CSS over the last couple of years as more companies adopt best practices to drive continuous improvements. Workforce reductions, limiting available IT resources along with cost constraints and a need for better collaboration, have forced many companies to consider ASP hosting as a reasonable alternative to managing in-house EAM solutions. Electronic procurement remains important to many companies but it also requires significant content management to be effective. Most EAM/CMMS suppliers do not consider this costly effort a core competency and have outsourced eMRO to strategic partners, minimizing its EAM-related growth.

Additional information on this market study can be found at: www.arcweb.com/res/eam

Note to Editors: This document can be used with attribution to ARC Advisory Group. For a graphic entitled "Worldwide Shipments of Core EAM/CMMS, CSS, and ITEAM Software and Services in Millions of Dollars", please contact mailto:[e-mail] .

Founded in 1986, ARC Advisory Group has grown to become the Thought Leader in Manufacturing and Supply Chain solutions. No matter how complex your business issues, our analysts have the expert industry knowledge and first-hand experience to help you find the best answer. We focus on simple yet critical goals: improving your return on assets, operational performance, total cost of ownership, project time-to-benefit, and share-holder value. Further information can be obtained from ARC, Three Allied Drive, Dedham, MA 02026, 781-471-1000, Fax [phone], E-mail [e-mail], Web www.ARCweb.com.