Asset Management Market Size (2021-2026)
The global Asset Management Market was valued at USD 16.76 billion in 2020 and is expected to increase at a CAGR of 15.1% to USD 43.83 billion by 2026.
Reduced equipment downtime and optimal resource utilisation requirements are driving the asset management system industry forward. With the increase in terror acts, the need to protect an organization's or business's assets, personnel, and clients or customers has grown.
Asset management is a system that oversees, manages, and maintains a company's important assets. By being able to optimise the consumption of its services, the system essentially ensures the highest value return from a certain entity inside the group. This system contains a significant amount of cost management, making it the desired offering. Check-in/check-out, location tracking, and maintenance and repairs are just a few of the functions that asset management systems are utilised for. They're utilised to track a wide range of assets, including in-transit equipment, IT assets, manufacturing assets, workers and staff, and returnable transportation. Asset management systems are used in a variety of industries, including government, healthcare, hospitality, industrial production, IT services, retail, and transportation and logistics. Barcodes, the Global Positioning System (GPS), Radio-frequency identification (RFID), and the Real-Time Locating System (RTLS) are all common technologies used to integrate these systems. The introduction of RTLS, which has quickly superseded older types of technology, is likely to give the asset management systems market a boost.
The asset management system business is moving forward due to reduced equipment downtime and optimal resource utilisation requirements. Streamlining procedures and maximising the utilisation of current resources can help businesses save money and make more money. By tracking and managing assets in real-time, asset management solutions help businesses reduce inventory and stock management costs while also helping them to make greater use of their existing equipment. Personnel tracking software aids businesses in assuring employee productivity and safety, resulting in cost savings. Asset tracking of both equipment and staff is crucial in the healthcare industry for improving patient care. As a result of the implementation of asset management systems, considerable cost savings and a high return on investment (RoI) are realised, as well as optimal resource usage.
Factors hindering the market include a lack of knowledge with new technology and a lack of adequate integration of a security solution into a system. High deployment costs could make it difficult for SMEs to use these solutions. Over the projection period, the lack of experienced technicians or engineers to address technical and operational difficulties is projected to limit asset management system market growth.
In 2020, the solution category led the market with a revenue share of around 55%. Real-Time Location Systems (RTLS), barcodes, mobile computers, labels, and the Global Positioning System (GPS), among other things, are classified into the solution area. The solution segment is growing market share thanks to the barcode section. Image-based barcode scanners are increasingly being adopted across numerous industries and industry verticals, including healthcare, logistics, food and beverage, and consumer products, due to their 2D code-reading skills, long-term reliability, and multiple code-reading abilities.
Over the forecast period, the service segment is expected to grow at a fast rate. The increased adoption of strategic and operational plans by various businesses around the world is largely responsible for the segment's rise. Strategic management entails managing investments over a long period to increase Return on Assets (RoA). These services are intended to assist organisations in achieving their objectives by ensuring that all functions work together to attain the same objectives.
In 2020, the digital category led the market with a sales share of about 25%. Businesses are rapidly adopting digital solutions and services to reduce overall operational costs and standardise company processes. Digital solution and service companies will benefit from the ongoing digitalization trend. Increasing volumes and densities of digital assets across enterprises are likely to enhance demand for digital solutions over the forecast period.
Over the projected period, the in-transit segment is expected to grow at a fast rate. The expanding e-commerce activities throughout the world are boosting demand for in-transit solutions for tracking the products supplied by the seller, which is driving the segment's growth. In-transit management solutions can also assist transportation service companies in tracking and identifying their assets while they are in transit. With the expanding population and continued digitalization, demand for in-transit management solutions is expected to rise.
In 2020, the location and movement tracking category lead the market with a revenue share of 35%. Location and movement tracking solutions are being rapidly deployed by aviation companies, shipping companies, third-party logistics (3PLs), and shared mobility providers to keep track of their assets in real-time. Disruptive technologies that provide real-time information on asset health and availability for usage and maintenance are becoming more popular. At the same time, the integration of the Geographic Information System (GIS) and the Global Positioning System (GPS) allow for easier access to spatial data in a single view.
Over the projected period, the repair and maintenance category is expected to increase rapidly. Equipment, machinery, transportation, and infrastructure, among other assets, require routine maintenance to perform properly and last longer. As a result, the demand for support and maintenance services is expected to grow significantly. After installation, development, or production, support and maintenance services take over and play an important role throughout the asset's life cycle. Support and maintenance services may be able to assist firms in increasing their efficiency and, as a result, their overall revenue generation.
The market is segmented into Infrastructure Asset Management, Enterprise Asset Management, Healthcare Asset Management, Aviation Asset Management and Others.
The aviation segment dominated the market in 2020, with a sales share of more than 80%. An increase in air passenger traffic and the introduction of new aircraft models are driving the aviation segment's growth. The aviation industry is built on a network of interconnected assets that must all be managed efficiently to ensure long-term profitability and reliability. Predictive and prescriptive maintenance solutions, GR-aware software packages, and tracking systems are just a few of the key aviation management technologies that are gaining traction.
Over the projection period, the infrastructure industry is expected to grow at a high rate. Infrastructure solutions and services aid in the reduction of costs connected with infrastructure purchase and maintenance. Furthermore, suppliers in the infrastructure management sector are employing a two-track method known as Design-Build and Build-Operate-Transfer. Local suppliers will carry out the construction work, while multinational firms will provide operation and maintenance software and services.
North America dominated the market in 2020, accounting for roughly 30% of total sales. North America has gained a significant lead in terms of infrastructural development and technological uptake. A considerable presence of multinational IT businesses in the United States and Canada, as well as fast digitization, would drive regional market growth. The market is also expected to grow as more connected, smart, and secure technologies for asset-centric applications are adopted.
The Asia Pacific region is emerging as one of the fastest-growing regional marketplaces, with enormous potential for market expansion. The regional market is being driven by the increasing adoption and deployment of modern technologies such as cloud-based solutions, AI, IoT, and big data analytics. The Asia Pacific region is also home to developing economies like India and China, providing considerable prospects for asset management systems and services implementation. The existence of a big number of SMEs in the region is also driving demand for cloud-based solutions, which are typically very cost-effective.
BlackRock Inc is the largest asset management company serving in over 80 offices around the world with AUM valued at over $9000 billion.
Despite the effects of the COVID-19 health crisis, the global assets management market increased in 2020, however, operational profitability were flat at roughly 34% of net revenues due to cost pressure and fee contraction across all asset classes. Retail portfolios increased by 11% in 2020, accounting for 41% of global assets at $42 trillion. Institutional investments expanded at a comparable rate, accounting for 59 per cent of the worldwide market at $61 trillion. North America's status as the world's largest asset management region was maintained, with AuM rising by 12% to $49 trillion. Other regions saw considerable growth as well, with Europe at 10%, Asia-Pacific at 11%, and the Middle East and Africa at 12%.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Asset Management Market, By Component
6.1.3 Market Size Estimations & Forecasts (2021-2026)
6.1.4 Y-o-Y Growth Rate Analysis
6.1.5 Market Attractiveness Index
6.2 Asset Management Market, By Asset Type
6.2.3 Market Size Estimations & Forecasts (2021-2026)
6.2.4 Y-o-Y Growth Rate Analysis
6.2.5 Market Attractiveness Index
6.3 Asset Management Market, By Function
6.3.1 Location & Movement Tracking
6.3.2 Check-In/ Check-Out
6.3.3 Repair and Maintenance
6.3.5 Market Size Estimations & Forecasts (2021-2026)
6.3.6 Y-o-Y Growth Rate Analysis
6.3.7 Market Attractiveness Index
6.4 Asset Management Market, By Application
6.4.1 Infrastructure Asset Management
6.4.2 Enterprise Asset Management
6.4.3 Healthcare Asset Management
6.4.4 Aviation Asset Management
6.4.6 Market Size Estimations & Forecasts (2021-2026)
6.4.7 Y-o-Y Growth Rate Analysis
6.4.8 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Asset Management Market, by Region
7.2 North America - Market Analysis (2021 - 2026)
7.2.1 By Country
7.2.2 By Component
7.2.3 By Asset Type
7.2.4 By Function
7.2.5 By Application
7.3.1 By Country
22.214.171.124 Rest of Europe
7.3.2 By Component
7.3.3 By Asset Type
7.3.4 By Function
7.3.5 By Application
7.4 Asia Pacific
7.4.1 By Country
126.96.36.199 South Korea
188.8.131.52 South East Asia
184.108.40.206 Australia & NZ
220.127.116.11 Rest of Asia-Pacific
7.4.2 By Component
7.4.3 By Asset Type
7.4.4 By Function
7.4.5 By Application
7.5 Latin America
7.5.1 By Country
18.104.22.168 Rest of Latin America
7.5.2 By Component
7.5.3 By Asset Type
7.5.4 By Function
7.5.5 By Application
7.6 Middle East and Africa
7.6.1 By Country
22.214.171.124 Middle East
7.6.2 By Component
7.6.3 By Asset Type
7.6.4 By Function
7.6.5 By Application
8. Key Player Analysis
8.1 Vanguard Group
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.2 Morgan Stanley
8.3 JP Morgan Chase
8.4 UBS Group
8.5 Credit Suisse
8.6 Allianz Group
8.7 AXA Group
8.9 Sun Life Financial
8.10 Sumimoto Mitsui Trust Holdings
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures