Infrastructure Asset Management Market

Infrastructure Asset Management Market size

The global Infrastructure Asset Management Market size was valued at USD 29.18 billion in 2022 and is projected to reach USD 76.48 billion by 2030, growing at a CAGR of 13.17% from 2023 to 2030.

One of the driving factors for infrastructure asset management is the need for organizations to maintain their aging infrastructure assets. Across various Industries, from energy and utilities to transportation, infrastructure assets such as roads, bridges, pipelines, and tunnels are often under the strain of constant wear and tear. Systems such as asset tracking, maintenance scheduling, and predictive maintenance software can help an organization in keeping track of the health of these assets and can provide information about when repairs or maintenance is required.

The growth of the infrastructure asset management market may face certain challenges posed by the lack of adequate infrastructure in developing economies and the high cost of software. Infrastructure asset management systems play a crucial role in ensuring the long-term functionality and safety of physical and digital infrastructure assets. However, the development of these systems requires a considerable investment in both time and resources.

Analyst’s Review

The convergence of cutting-edge technologies such as IoT, AI, and data analytics is revolutionizing infrastructure asset management. This convergence allows for real-time monitoring and predictive maintenance, emerging as key trends driving market growth. Governments worldwide are prioritizing infrastructure development and implementing comprehensive asset management strategies to optimize existing assets and drive operational excellence. Infrastructure asset management practices prioritize sustainability and resilience, incorporating measures to mitigate climate change impacts and reduce environmental footprints. Rapid urbanization poses unique challenges that demand tailored solutions for urban infrastructure. Regulatory compliance and global economic conditions, which influence funding availability, further boost the market's growth trajectory. These trends underscore the critical need for organizations to adapt and embrace emerging technologies to ensure the longevity and optimal performance of their infrastructure assets.

Market Definition

Infrastructure asset management is a process that involves the effective management of an organization's physical and digital assets, such as bridges, roads, buildings, power grids, and other critical infrastructure. Its primary objectives are the timely allocation of resources to maintain and improve these assets while ensuring their future accessibility. Infrastructure Asset Management is crucial as it enables organizations to accurately monitor their asset status, plan and allocate budgets for infrastructure repairs and maintenance, and ensures optimal utilization of infrastructure assets.

Additionally, it also involves the systematic management of assets over the entire lifecycle and within a wider asset portfolio. This branch of management includes elements from finance, engineering, economics, and management practices to address the varied challenges faced in the optimal management of infrastructure assets.

Market Dynamics

The trend towards cloud computing has been growing in recent years, and the adoption of cloud-based deployment models for infrastructure asset management solutions is not for the growth of the market. These solutions help organizations manage their physical and digital infrastructure assets, while also providing scalability, flexibility, and cost-effectiveness.

Scalability is a primary advantage of adopting cloud-based deployment models as they enable organizations to readily adjust to varying infrastructure asset demands, due to circumstances such as changes in regulations or seasonality. Adaptability is critical as infrastructure asset needs can fluctuate, and cloud-based deployment models facilitate the flexibility required to accommodate evolving business requirements. As a result, the market for infrastructure asset management is projected to expand during the forecast period.

The lack of adequate infrastructure in developing countries and the high cost of software can pose significant challenges to the growth of the infrastructure asset management market. To overcome these challenges, collaboration, research, and development efforts to create affordable and efficient asset management solutions are crucial for the overall growth of the market.

Segmentation Analysis

The global infrastructure asset management market is segmented based on asset ownership, application, and geography.

By Asset Ownership Type

Based on the asset ownership, the market is bifurcated into government and private. The government segment is expected to hold the largest market share of 63.76% in 2022. Public infrastructure refers to infrastructure systems, buildings, and facilities owned and maintained by the government that are accessible to the general public. It encompasses essential facilities like telecommunications, electricity, water supply, and roads, and is crucial for ensuring a smooth and efficient functioning economy that enhances the standard of living for citizens. Examples of critical infrastructure recognized by the government include facilities for agriculture, housing, public health, telecommunication, heating, and natural resources like water, gas, and medicine.

By Application

Based on the application, the market is categorized into energy infrastructure, transportation, communications, water & waste infrastructure, and others. The energy infrastructure is predicted to hold the most significant market share of 34.47% in 2022. Energy infrastructure is a vital element in supporting economic growth and enhancing well-being. As demand for clean and affordable energy options increases, governments are prioritizing investments in energy applications, particularly in the context of SMART cities and infrastructure asset management which is expected to fuel the infrastructure asset management market revenue.

Infrastructure Asset Management Market Regional Analysis

Based on regional analysis, the global market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. North America has dominated the infrastructure asset management market share of 45.30% in 2022 and is projected to grow at a CAGR of 11.72% from 2023 to 2030. The significant growth in the market is primarily due to the presence of numerous key players in the countries such as the United States and Canada.

Additionally, the market is being further propelled by increasing government investments in maintaining and upgrading existing infrastructure. The encouragement of private investments in infrastructure by the U.S. Government, with a promise of fair returns, has led to the United States emerging as the most preferred destination for Greenfield investments. Due to all these factors, the market for infrastructure asset management is expected to grow.

Competitive Landscape

The infrastructure asset management industry study report will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization.

List of Key Companies in Infrastructure Asset Management Market

• EverStream Energy Capital Management LLC
• Brookfield Asset Management
• Macquarie Group Limited
• Pitney Bowes Inc.
• Aabasoft
• ThomasLloyd Group
• WSP
• RPS Group
• SIMCO Technologies
• SNC-Lavalin

Key Industry Developments

• June 2022 (Launch): The Institutional Investors Group on Climate Change (IIGCC) has added a new component to the Paris Aligned Investment Initiative's Net Zero Investment Framework which provides guidance on managing and aligning infrastructure portfolios to achieve global net zero emissions by 2050.

The Global Infrastructure Asset Management Market is segmented as:

By Asset Ownership Type

• Government
• Private

By Application

• Energy Infrastructure
• Transportation
• Communications
• Water & Waste Infrastructure
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America