Asset Management Market Size, Share, Competitive Landscape and Trend Analysis Report, by Component, by Asset Type, by Function, by Application : Global Opportunity Analysis and Industry Forecast, 2023-2032

Asset Management Market Research, 2032

The global asset management market was valued at $376.8 billion in 2022, and is projected to reach $8.3 trillion by 2032, growing at a CAGR of 36.5% from 2023 to 2032.

Asset management solutions refer to a set of tools, processes, and strategies employed by businesses to effectively track, organize, and optimize their assets throughout their lifecycle. These assets can include physical resources such as equipment, machinery, vehicles, and infrastructure, as well as intangible assets like software licenses and intellectual property. Asset management solutions typically involve the use of specialized software systems that provide comprehensive visibility, control, and analysis of assets, enabling companies to make informed decisions regarding maintenance, utilization, procurement, and disposal.

The asset management market is driven by several factors which include a rising need for optimum utilization of assets, which has led organizations to seek effective asset management solutions. In addition, the increasing adoption of cloud-based IT asset management solutions offers enhanced flexibility, scalability, and accessibility for businesses. However, the high initial costs of asset management systems are hampering the asset management market growth, particularly for smaller businesses with limited resources.

Moreover, the lack of awareness and understanding among SMEs hinders their adoption of asset management solutions. Furthermore, budget constraints can impede the market's expansion, as organizations may face financial limitations in implementing such systems. On the contrary, the market also presents opportunities, such as the expansion of interconnected IT infrastructure, which creates a greater demand for robust asset management solutions.

The report focuses on growth prospects, restraints, and trends of the asset management market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers, on the asset management market share.

Segment Review

The asset management market outlook is segmented on the basis of component, asset type, function, and application. Based on component, the market is bifurcated into solution and service. On the basis of asset type, it is divided into digital assets, returnable transport assets, in-transit assets, manufacturing assets, and personnel/staff. By function, it is classified into location & movement tracking, check-in/check-out, repair & maintenance, and others. As per application, it is segmented into infrastructure asset management, enterprise asset management, healthcare asset management, aviation asset management, and other. Region wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of asset type, the digital asset segment attained the highest growth in 2022. This is attributed to the fact that investors are looking for new avenues to diversify their portfolios and generate higher returns. Digital assets, such as cryptocurrencies, tokenized securities, and digital tokens, offer alternative investment opportunities beyond traditional asset classes such as stocks and bonds. The potential for high returns and the allure of innovative technologies attract investors to the digital assets segment. However, the in-transit assets segment is attributed to be the fastest-growing segment during the forecast period. This is due to the fact that it is experiencing significant growth due to globalization and supply chain complexity, technological advancements, cost reduction, and efficiency improvement, regulatory compliance and risk mitigation, demand for improved customer service, and rising security concerns.

On the basis of region, North America attained the highest growth in 2022. This is attributed to the fact that asset management services are critical for North American institutions such as pension funds, endowments, foundations, insurance companies, and government bodies. Institutional asset managers manage vast investment portfolios, utilizing multiple asset classes such as equities, bonds, real estate, and alternative investments to meet the specific investment objectives of their customers. These services are designed to build wealth over time, assuring financial security in retirement. Therefore, investment management, wealth management, and retirement are driving the growth of the asset management market in the North American region.

However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. This is attributed to individuals in the region becoming more aware of and comprehending financial goods and investment opportunities. As a result, traditional savings strategies have given way to investments in mutual funds, shares, and other asset classes, increasing demand for asset management services. Therefore, the rise of the middle class, pension, and retirement savings, and increasing institutional investor participation drive the adoption and growth of the asset management market.

The report analyses the profiles of key players operating in the asset management market such as ABB, BlackRock, Inc., Charles Schwab Investment Management, Inc., FMR LLC., IBM Corporation, J.P. Morgan Chase & Co., Morgan Stanley, Oracle Corporation., Rockwell Automation Inc., and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset management market.   

Market Landscape and Trends

One major trend in asset management solutions is the adoption of cloud-based platforms. Cloud technology offers scalability, flexibility, and real-time data access, enabling organizations to centralize asset information and streamline operations across multiple locations. Cloud-based asset management solutions also support integration with other business systems, such as enterprise resource planning (ERP) and customer relationship management (CRM) software, further enhancing data visibility and decision-making capabilities. Another emerging trend is the integration of Internet of Things (IoT) devices with asset wealth management solutions. IoT sensors and connected devices enable real-time asset monitoring, data collection, and predictive maintenance. This integration facilitates proactive asset management by providing insights into asset health, usage patterns, and potential failures, allowing organizations to optimize maintenance schedules, reduce downtime, and improve overall asset performance.

Top Impacting Factors

Rise in need for Optimum Utilization of Assets

The asset management organization is seeing a considerable increase in the demand for optimal asset utilization. Organizations in a variety of industries recognize the value of successfully managing their assets in order to increase operational efficiency and create cost savings. Companies can maximize their value and reduce costs by ensuring efficient asset utilization.

Furthermore, the emphasis on cost optimization is a primary driver of this trend. Organizations are actively looking for ways to cut unnecessary expenditures on asset maintained, repairs, and replacement. Companies can save money by properly managing assets and extending their lifespan through good maintenance. Owing to this, there is a greater need for asset management solutions that provide insights into asset performance, maintenance schedules, and utilization trends. In addition, another element driving the increased demand for optimal asset utilization is the increasing complexity of asset ecosystems. Assets are increasingly interconnected through digital networks as technology advances and the Internet of Things (IoT) spreads. Managing and optimizing the use of these networked assets necessitates sophisticated asset management solutions capable of collecting and analyzing real-time data. These technologies offer preventive maintenance, predictive analytics, and better decision-making based on data insights.

Moreover, the requirement for optimal asset utilization is also driven by regulatory compliance; many industries have stringent laws and compliance requirements. Organizations can maintain compliance and prevent penalties and legal concerns by properly managing assets and ensuring they satisfy regulatory criteria. Asset management solutions with built-in compliance capabilities help businesses optimize procedures, automate documentation, and demonstrate regulatory compliance. Therefore, the rise in the need for optimum asset utilization has fueled the growth of the asset management market.

Rising Adoption of Cloud-based IT Asset Management Solution

One key driver for the rising adoption of cloud-based IT asset management solutions is the flexibility and scalability they provide. Organizations may quickly scale their asset management capabilities up or down based on their needs with cloud-based solutions. The cloud infrastructure enables seamless asset integration and management across many locations, divisions, and even internationally distributed teams. This adaptability is especially useful for organizations that are experiencing growth, acquisitions, or changes in their IT infrastructure.

Furthermore, cloud solutions improve accessibility and collaboration; users can access the digital asset management system from any place and device with an internet connection, allowing for remote work, mobility, and real-time team collaboration. This accessibility removes geographical obstacles while also increasing the effectiveness of asset management activities. In addition, another benefit of cloud-based IT asset management solutions is that IT infrastructure and maintenance costs are decreased. To support their asset management system, organizations no longer need to invest in costly hardware, servers, or IT infrastructure. The infrastructure, software updates, and maintenance are handled by the cloud provider, freeing up resources for other strategic endeavors. Because of their low cost, cloud-based solutions are particularly appealing to small and medium-sized organizations with restricted IT budgets. Therefore, the adoption of cloud-based IT asset management solutions is driven by the advantages they offer in terms of flexibility, scalability, accessibility, and cost-effectiveness.

Cost Savings and Increased Profit for Enterprise

In recent years, the asset management market has seen significant cost savings and higher profits for enterprises. With the development of modern technologies such as artificial intelligence, machine learning, and data analytics, businesses can now optimize asset utilization and streamline processes, resulting in significant financial gains. Furthermore, improved efficiency is a crucial cost-cutting component in asset management. Enterprises successfully track and manage their assets by utilizing automated systems and clever algorithms, eliminating manual labor and minimizing errors. This automation not only saves time but also reduces operational expenses, allowing organizations to better manage their resources.

Moreover, in the asset management industry, predictive maintenance has emerged as a game changer. Enterprises proactively identify and address maintenance issues before they escalate into costly breakdowns by employing data analytics and IoT sensors. This predictive strategy aids in the optimization of asset performance, the extension of asset lifespan, and the reduction of unscheduled downtime, resulting in significant cost savings. In addition, better decision-making is another area where asset management helps for higher revenues.

Enterprises make informed decisions about asset allocation, procurement, and utilization if they have access to real-time data and comprehensive analytics. This allows them to discover high-performing assets, retire low-performing ones, and optimize their asset portfolio for maximum returns. Enterprise reduce risks, improve productivity, and ultimately increase profitability by adopting data-driven decisions. Therefore, the asset management market has witnessed cost savings and increased profit for enterprises through improved efficiency, predictive maintenance, and better decision-making.

High Initial Costs of Asset Management System

One of the major challenges associated with implementing an asset management system is the high initial costs involved. There is the expense of acquiring the asset management system's software or technology. The software itself can be quite expensive, depending on the system's complexity and scope. Furthermore, organizations may need to invest in specialized hardware or infrastructure to support the system, raising the initial expenses even higher. Moreover, implementing an asset management system frequently necessitates substantial customization and modification to meet the specific objectives and processes of the organization. This customization process can be time-consuming and expensive, requiring specialized people or outside consultants.

Furthermore, organizations must factor in the costs of data migration and integration with existing systems. Transferring and aggregating data from several sources into the asset management system can be a difficult and time-consuming operation. It could include data cleansing, mapping, and assuring data quality, all of which can add to the cost. In addition, training and change management are critical components of an asset management system's effective adoption. Employees must be instructed on how to successfully use the system and adapt to new processes. This training may necessitate the use of specialized resources, such as trainers or training materials, and may incur significant costs. Therefore, the high initial costs of asset management systems hamper the growth of the asset management market.

Lack of Awareness and Understanding among SMEs and Budget Constraints Impedes the Market Growth

Many SMEs have limited awareness of the benefits and significance of asset management. They frequently believe asset management practices to be complex, time-consuming, and only relevant to larger organizations. As a result, they fail to recognize the potential benefits of effective asset management to their operations, such as increased efficiency, cost savings, and better decision-making. This lack of awareness and comprehension causes SMEs to be reluctant to engage in asset management solutions or implement best practices, stifling market growth.

Furthermore, one reason for this lack of knowledge is that asset management is often associated with larger organizations or industries that deal with complicated and high-value assets. SMEs may regard asset management as unimportant to their operations, considering that it is limited to large-scale industrial, infrastructure, or energy sectors. As a result, they may overlook the potential benefits it might bring to their own enterprises, such as enhanced operational efficiency, lower maintenance costs, better decision-making, and increased asset lifespan.

Furthermore, SMEs may suffer resource constraints, such as restricted access to specialized expertise or asset management people. Unlike bigger corporations, which may have dedicated asset management teams or departments, SMEs frequently operate with limited employees and resources, putting day-to-day operations ahead of long-term asset management strategy. Because they are focused on urgent requirements, they may fail to perceive the long-term benefits and possible cost savings associated with good asset management. Therefore, lack of knowledge and awareness of asset management are the main factors that hinder the growth of the asset management market.

Expansion of Interconnected IT Infrastructure

The fast growth of interconnected IT infrastructure is opening up a number of attractive opportunities for the asset management industry. With the increasing digitization of organizations across numerous industries, the number of devices, systems, and networks that comprise the modern IT ecosystem has increased significantly. Because of this interconnection, these assets generate a massive amount of data, including information on their performance, health, and utilization.

Furthermore, organizations are turning to advanced asset management systems to properly manage these assets and maximize their value. These solutions make use of cutting-edge technology like the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to monitor, track, and optimize asset performance in real-time. They give organizations a comprehensive perspective of their assets, allowing them to make data-driven decisions about maintenance, upgrades, and replacements. In addition, the growth of networked IT infrastructure increases the demand for asset management. The amount and diversity of assets within organizations’ ecosystems grow quickly as they continue to use cloud computing, edge computing, and hybrid IT environments. This comprises not only typical IT assets like servers, storage devices, and networking equipment, but also a wide range of Internet of Things (IoT) devices, sensors, and endpoints Therefore, the expansion of interconnected IT infrastructure presents lucrative opportunities for the asset management market size.

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the asset management market forecast from 2023 to 2032 to identify the prevailing asset management market opportunity.
• Market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the asset management market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes an analysis of the regional as well as global asset management market trends, key players, market segments, application areas, and market growth strategies.

  Asset Management Market Report Highlights

Aspects	Details
Market Size By 2032	USD 8.3 trillion
Growth Rate	CAGR of 36.5%
Forecast period	2022 - 2032
Report Pages	356
By Component	Solution Service
By Asset Type	Digital Assets Returnable Transport Assets In-transit Assets Manufacturing Assets Personnel/ Staff
By Function	Location and Movement Tracking Check-In/ Check-Out Repair and Maintenance Others
By Application	Infrastructure Asset Management Enterprise Asset Management Healthcare Asset Management Aviation Asset Management Others
By Region	North America  (U.S., Canada) Europe  (UK, Germany, France, Italy, Spain, Rest of Europe) Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific) LAMEA  (Latin America, Middle East, Africa)
Key Market Players	SAP SE, Charles Schwab Investment Management, Inc., Morgan Stanley, FMR LLC., ABB, IBM Corporation, J.P. Morgan Chase & Co., Rockwell Automation Inc., Oracle Corporation, BlackRock, Inc.

Analyst Review

Asset management solutions refer to software systems and methodologies employed by IT departments to effectively manage and control the lifecycle of digital assets within an organization. Digital assets include software licenses, applications, databases, network resources, and other IT infrastructure components. Asset management solutions enable organizations to track software usage, maintain license compliance, streamline procurement processes, and optimize resource allocation. Overall, the asset management market is witnessing the adoption of cloud-based platforms, integration with IoT devices, convergence with Artificial Intelligence and Machine Learning technologies, and enhanced data analytics capabilities. These trends collectively aim to improve asset visibility, optimize maintenance processes, and drive operational efficiency for organizations across various industries.

Another emerging trend is the integration of Internet of Things (IoT) devices with asset management solutions. IoT sensors and connected devices enable real-time asset monitoring, data collection, and predictive maintenance. This integration facilitates proactive asset management by providing insights into asset health, usage patterns, and potential failures, allowing organizations to optimize maintenance schedules, reduce downtime, and improve overall asset performance.

Furthermore, market players are adopting various strategies for enhancing their services in the market and improving customer satisfaction. For instance, In March 2023, J.P. Morgan Asset Management launched its newest active ETF, the JPMorgan Active China ETF. The Fund is designed to provide investors with access to a best ideas portfolio of Chinese equities and focuses on an investment process driven by bottom-up stock selection while being mindful of macro and policy considerations. The launch of JPMorgan Active China ETF is another example of the company’s commitment to deliver innovative and differentiated investment solutions to clients. These strategies by the market players operating at a global and regional level will help the market to grow significantly during the forecast period.

Furthermore, on April 2023, the J.P. Morgan Asset Management (JPMAM) announced the launch of three new fixed income Betabuilders ETFs, JPMorgan BetaBuilders U.S Treasury Bond 20+ Year ETF (BBLB), JPMorgan BetaBuilders U.S Treasury Bond 3-10 Year ETF (BBIB), and JPMorgan BetaBuilders U.S Treasury Bond 1-3 Year ETF (BBSB). BBLB, BBIB, and BBSB will be index-tracking, offering low-cost Beta-exposure as an addition to JPMAM's active offerings. The new ETFs complement the firm's existing BetaBuilders ETF line-up which consists of funds such as the JPMorgan BetaBuilders 1-5 Year U.S. Aggregate Bond ETF (BBSA), the JPMorgan BetaBuilders U.S. Aggregate Bond ETF (BBAG), the JPMorgan BetaBuilders USD Investment Grade Corp (BBCB), and the JPMorgan BetaBuilders USD High Yield Corp (BBHY). Such factors are expected to create opportunities for market growth. Some of the key players profiled in the report include ABB, BlackRock, Inc., Charles Schwab Investment Management, Inc., FMR LLC., IBM Corporation, J.P. Morgan Chase & Co., Morgan Stanley, Oracle Corporation, Rockwell Automation Inc., and SAP SE. These players have adopted various strategies to increase their market penetration and strengthen their position in the asset management market.

Author Name(s) : Pradeep Ravi| Kanhaiya Kathoke | Onkar Sumant

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