Summary
This IDC study analyzes the market for asset life-cycle management applications, which is expected to grow to $5.8 billion in revenue by 2027 from $3.9 billion in 2022, an 8.5% CAGR. Demand has been driven by increased post-pandemic enterprise spending. Future growth will be driven by enterprises' increasing concern with sustainable reporting requirements, which ALM vendors can increasingly provide, in addition to the related movement to both cloud and mobile solutions. Cloud migration offers enterprises the added benefit of reduction in the need for servers, IT manpower, and security requirements needed for on-premises solutions. "Maintenance organizations expect to see growth based on the needs of enterprises, and they are ready with organizational structures that have been honed by a needed reevaluation of procedures and support systems during the global pandemic. Now these organizations are planning to upgrade or replace systems to react to changing business conditions," says Brian O'Rourke, research manager, Asset Life-Cycle Management and Smart Facilities at IDC. "In addition, trends to the cloud, mobile solutions, and AI and ML and increasing corporate interest in sustainability should contribute to growth for the ALM software market. However, economic conditions are a wild card as executives look to trim costs and study potential investments more carefully."
