IT Asset Management (ITAM) Software Market Is Estimated To Witness High Growth Owing To Increasing Digital Transformation and Growing Cybersecurity Threats
The IT Asset Management (ITAM) Software Market is estimated to be valued at US$ 2.17 Bn in 2024 and exhibit a CAGR of 6.1% over the forecast period 2024-2031. The adoption of cloud computing and software as a service (SaaS) is expected to drive significant growth in the market.
Market Dynamics:
The Global IT Asset Management (ITAM) Software Market growth is driven by the increasing digital transformation across various end-use industries as well as the growing need for improved cybersecurity. With more organizations migrating critical workloads and operations to the cloud, IT asset management has become imperative to track software licenses, maintain compliance and optimize technology spending. Additionally, the rising sophistication of cyberattacks and data breaches has heightened the need for robust IT asset inventorying and monitoring solutions. ITAM solutions help identify unprotected assets, vulnerable configurations and out-of-date software versions that could potentially be exploited by hackers. This plays a crucial role in strengthening overall cyber resilience for businesses. The market is expected to further gain traction due to stringent regulations around software licensing and audits.
Market Drivers
Increasing Demand for Optimal IT Asset Utilization
One of the major drivers of the Global IT Asset Management (ITAM) Software Market is the rising need among organizations to optimize the utilization of their IT assets. As IT spending continues to grow exponentially, companies are looking to maximize the returns on their IT investments. IT asset management solutions help track software licenses, hardware inventories, and usage patterns to ensure IT resources are being used as efficiently as possible. This drives up adoption of ITAM software.
Stringent Compliance Regulations
Another key factor fueling the market is the stringent regulations surrounding software license compliance and data privacy. Non-compliance can result in hefty penalties. IT asset management solutions help organizations closely monitor software licenses and asset details to avoid any compliance issues. The software provides auditing capabilities and reports to ensure all licensing terms and data regulations are being followed. The threat of non-compliance fines has boosted demand for ITAM solutions.
Market Restraints
Lack of Top Management Support
One challenge restraining the global IT asset management software market is the lack of top management support in some organizations. Since ITAM solutions require changes to existing IT operations and processes, strong backing from executive leadership is important. However, many senior managers do not see IT asset optimization as a priority or understand its long-term benefits. This has slowed adoption rates for ITAM software to some extent.
High Initial Costs
The high upfront costs associated with IT asset management software also act as a barrier. While the solutions offer significant returns in the long-run through improved efficiencies, their implementation involves sizable licensing fees and infrastructure expenses. This high initial investment deters price-sensitive small and medium enterprises. Ongoing maintenance and support fees further inflate costs over time. The expense factor limits market growth especially in cost-constrained organizations and regions.
Market Opportunities
Expansion into New Verticals
One major opportunity for IT asset management software providers lies in expanding into newer verticals where adoption rates are currently low. While ITAM solutions are widely used in IT, telecom, and manufacturing industries, there is headroom for growth in sectors like healthcare, energy, transportation, and government. Vendors can tap into these verticals by tailoring their offerings to address industry-specific needs.
Integration with Other ITSM Tools
Another key area offering prospective growth is the integration of IT asset management capabilities with broader IT service management suites. As organizations increasingly adopt unified platforms for services like incident and problem management, change control, and help desk support, vendors see an opening to package ITAM functionalities as well. Seamless consolidation of different IT functionalities on one platform boosts usability and saves costs in the long-run, driving up demand.
Link: https://www.coherentmarketinsights.com/market-insight/it-asset-management-software-market-3768
Key Developments:
- In November 2022, Microsoft Corp announced the Microsoft Supply Chain Platform, which helps organizations maximize their supply chain data estate investment with an open approach. The platform brings together the best of Microsoft's AI, collaboration, low-code, security, and SaaS applications in a composable platform.
- In April 2022, Freshworks Inc., a software company focused on empowering businesses through its solutions, announced the expansion of its strategic partnership with Device42. Device42 is the market leader in asset management solutions. This collaboration aims to provide Freshservice customers with enterprise-grade asset management capabilities, ultimately contributing to improved business continuity
- In April 2022, SysAid, a service automation company and a leading provider of IT service management software, announced a partnership with Oomnitza, a market leader in Enterprise Technology Management (ETM) solutions. This collaboration aims to provide customers with a comprehensive ETM approach that extends beyond the traditional capabilities of IT asset management (ITAM).
- In March 2022, Aptean, a leading provider of mission-critical enterprise software solutions, introduced Aptean EAM, a cloud-based enterprise asset management (EAM) platform tailored for manufacturing firms and other businesses that depend on advanced equipment to support their production processes. This comprehensive solution offers a wide range of EAM capabilities and can also function as a standalone computerized maintenance management system (CMMS), providing organizations with versatile options to efficiently manage their assets.
Detailed Segmentation:
Altaro Software, Atlassian, BMC Software Inc., Cherwell Software, Deloitte, Flexera Software LLC, Hewlett Packard Enterprise Development LP, IBM Corporation, JustSAMIt, Microsoft Corporation, Oracle Corp., Samanage, Scalable Software, ServiceNow Inc., and Snow Software
