BELGRADE, December 4, 2023 – According to the Worldwide Semiannual Software Tracker published by International Data Corporation (IDC), the European asset life-cycle management (ALM) applications market will grow by 12.5% year on year in 2023, reaching a value of $1.3 billion. By 2027, the value of the ALM market will total almost $1.8 billion. The market share of cloud-deployed solutions is expected to record a compound annual growth rate (CAGR) of 17.7% between 2023 and 2027.
While the current economic uncertainty poses a challenge for some vendors planning to install cloud ALM solutions due to their significant up-front price, ROI analyses predominantly show that cloud is more cost-effective than on-premises ALM solutions in the long run.
Companies are taking a strategic approach in another pivotal area — sustainability. The amount of data relating to asset condition and usage is increasing, which is improving detection of poor asset performance and inefficient resource allocation.
These need for such efforts is further bolstered by external market forces. “ESG regulations on reporting, such as the Corporate Sustainability Reporting Directive and the Carbon Border Adjustment Mechanism (carbon tariff) applied to heavy industries, coupled with high energy prices, will push companies to optimize their resource spending, either through retrofitting their old ALM systems or deploying new ones, increasingly on cloud and with advanced AI and IoT capabilities”, says Matija Misic, research analyst with IDC European Software Data & Analytics.
Market growth continues to be affected by mobile working solutions, which make it possible to document and evaluate work and use the knowledge gained to standardize asset management operations and improve their quality. This is especially important in the context of a skilled workforce shortage, as technicians’ informed input can be captured and turned into automated task or guidance for their less experienced colleagues.
Another way of improving ALM operations lies in the shift from preventive to predictive and prescriptive maintenance, which is helping to reduce downtime in a more intelligent manner, avoiding early end of life for company assets, thus reducing costs and contributing to sustainability goals.
About IDC’s Worldwide Semiannual Software Tracker
IDC’s Worldwide Semiannual Software Tracker provides an in-depth look into the competitive landscape and the market dynamics shaping the current and future direction of the global software industry. It tracks and details individual software vendors’ historical business performance, and it forecasts the development of the industry 5 years into the future — across 54 geographies and 81 discrete software market segments.
In addition, the tracker provides an understanding of the transition from traditional on-premises deployments to public cloud services by segmenting software revenue by deployment type, vendor, geography, and market segment. With the rapid transition from 2nd Platform to 3rd Platform technologies, it is critical for software vendors, public cloud services providers, supply chain partners, and the investment community to understand the underlying dynamics behind this transition. This extensive coverage of vendor share information enables both global and local players to benchmark themselves in terms of business growth and market penetration.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.