Asset Finance Software Market Expected to Reach $11.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Asset Finance Software Market, By Asset Type (Hard Assets and Soft Assets), By Deployment Mode (On-premise and Cloud), By Enterprise Size (Large Enterprises and Small and Medium-sized Enterprises), and By End User (Banks, Transportation, IT and Related Services, Construction, Healthcare, Agriculture, and Others): Global Opportunity Analysis and Industry Forecast, 2022-2032". The asset finance software market was valued at $3.8 billion in 2022, and is estimated to reach $11.1 billion by 2032, growing at a CAGR of 11.5% from 2023 to 2032.

Asset finance software is a solution designed to help organizations manage and maintain their assets throughout their lifecycle. It provides a centralized solution for tracking, monitoring, and optimizing the performance of assets such as equipment, machinery, vehicles, and infrastructure. It offers a comprehensive range of functionalities beyond basic asset tracking. By leveraging these capabilities of asset finance software, businesses can streamline their asset management processes, improve operational efficiency, and minimize downtime.

Furthermore, increase in adoption of technology in finance, the need for efficient asset management, and rise in demand for automation and streamlined processes in financial institutions are asset finance software market trends that provide major growth opportunities to the asset finance software market. Moreover, rise of subscription and usage-based models, integration of AI and machine learning for better decision-making, and expansion of asset financing into new industries foster the market growth. The ongoing shift towards cloud-based solutions and emphasis on data security and compliance further contribute to the growth asset finance software industry.

Rise in demand for streamlined financial processes among organizations to efficiently manage assets, optimize resource allocation, and improve overall financial planning and reporting is one of the primary drivers of the market. Furthermore, automation of asset management processes to help track and manage assets throughout their lifecycle accelerates the market growth. In addition, rise in demand for increased risk assessment and compliance procedures drives the growth of the asset finance software market by driving firms to seek innovative solutions that can effectively manage and reduce lending and asset management risks.

However, data privacy and security concerns hamper the expansion of the asset finance software market by reducing trust among customers. Moreover, asset finance software allows clients to purchase assets and manage them, but the installation costs are high and require professionals to execute the tasks, thus limiting the asset finance software market growth. However, the integration of technologies in asset finance software to provide products such as financial asset management software, loan asset management software, and others is expected to bring attractive growth prospects to the asset finance software market in the future years.

By enterprise size, the large enterprises segment acquired a major share in 2022. The growth of the large enterprises segment in the asset finance software market is being pushed by large companies that need efficient ways to manage and keep track of their assets, such as machinery and vehicles. Furthermore, as businesses expand, they require more advanced tools to handle their growing number of assets. However, the small and medium-sized enterprises segment is the fastest-growing segment during the forecast period. This is attributed to the fact that asset finance software helps SMEs optimize their asset utilization, leading to better productivity and growth.

Region-wise, North America dominated the market in 2022. North America has taken a major position in infrastructure development and technology adoption. The market is being driven by the existence of significant IT corporations and growing digitization in the U.S. and Canada. Furthermore, an increase in usage of connected, smart, and secure technologies for asset-centric applications is expected to boost the market growth. However, Asia-Pacific is considered to be the fastest-growing region during the forecast period. Asia-Pacific is emerging as one of the fastest-growing geographical marketplaces, with significant market growth potential. The increasing adoption and deployment of modern technologies, such as cloud-based solutions, drives the demand for subscription-based asset finance software.

The COVID-19 pandemic had a notable impact on the asset finance software market size. The pandemic accelerated digital transformation efforts across industries. Businesses realized the importance of automating and streamlining their operations. Asset finance software became crucial in this process, helping companies digitize their leasing and financing workflows. With lockdowns and social distancing measures, consumers preferred remote and online transactions. This led to a surge in demand for digital platforms that allow seamless application, approval, and management of asset finance. Furthermore, uncertainty caused by the pandemic made consumers seek more flexible terms for loans and leases, and the adoption of asset finance software supported customizable repayment schedules and terms.    

Key Findings of the Study

• On the basis of asset type, the hard assets segment accounted for the highest asset finance software market share, in terms of revenue in 2022.
• On the basis of deployment mode, the on-premise segment attained the highest market share in 2022.
• On the basis of region, North America generated the highest revenue in 2022.  

The key players operating in the asset finance software market analysis include Odessa, FIS, NETSOL Technologies, Alfa Financial Software Limited, Banqsoft, CGI Inc., Lendscape Limited, ieDigital, Oracle, and CHG-MERIDIAN. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.