It’s no wonder that businesses that want to optimise performance and save energy and money are turning to smartasset managementsolutions.
We keep telling you how great asset management is and how it can transform your business operations but where is the data?
Let’s explore some of the relevant industry statistics to help you make an informed decision about what’s best for your business.Table of ContentsToggleAsset Management TrendsTotal Assets Under Management (AUM)Geographic DistributionInventory Management ValueBusinesses Lacking Inventory ManagementWasted TimeReactive MaintenanceSecurity RisksKey Industry TrendsSustainable and ESG InvestingTechnological AdvancementsRegulatory ComplianceError Reduction With TaggingFuture ProjectionsGrowth ExpectationsSmartphone Apps
Asset Management Trends
CategoryStatisticDetailsThe Current LandscapeTotal Assets Under Management (AUM)Global AUM (2022)$98.3 Trillion, showing steady growthGeographic DistributionNorth America AUM (2022)$46.5 Trillion, leading the industryEurope AUM (2022)$22.2 Trillion, significant presenceInventory Management ValueInventory Capital Tied Up$1.1 Trillion, emphasizes the importance of proper managementSmall Businesses Not Tracking Inventory43% don’t track assets efficiently, leading to potential costsEmployees Wasting Time on Information Retrieval80% waste half an hour daily, causing significant inefficiencyReactive Maintenance80% of equipment maintenance is reactive, leading to delays and costsPreventative Maintenance PotentialAbout 75% of maintenance could be preventative, reducing downtimeSecurity Risks35% of company data unprotected, highlighting security importanceKey Industry TrendsSustainable and ESG InvestingAsset Managers Incorporating ESG76% of asset managers incorporate ESG factors into decisions, aligning with sustainability goalsTechnological AdvancementsAdoption of AI in Asset Management28% invested in AI-driven tools, 17% developing AI applicationsConsidering AI Adoption46% considering AI investment, while 9% have not seriously considered itRegulatory ComplianceTop Challenge in Asset Management46% of asset managers consider regulatory compliance as a top challengeError Reduction With TaggingReduction in Administration Errors41% reduction in harmful errors with asset tagging in a healthcare facilityBeneficial PracticesTagging systems improve asset management in various industriesFuture ProjectionsGrowth ExpectationsPredicted Global AUM (Next 4 Years)Predictions of surpassing $128 Trillion and growth in the asset management marketSmartphone AppsWarehouses Planning Mobile Inventory Management67% of warehouses plan to use mobile devices for inventory management
Total Assets Under Management (AUM)
The AUM is a key indicator of the industry’s scale and influence. As of 2022, the global AUM in the asset management industry stands at$98.3 Trillion, reflecting steady growth over the past few years.
Geographic Distribution
Asset management is a huge global industry, but certain regions dominate. North America leads the pack with $46.5 Trillion of the global AUM of $98.3 Trillion, followed by Europe with $22.2 Trillion.
Inventory Management Value
Around $1.1 Trillion of workingcapitalis tied up in inventory. Inventory makes for a large part of overall capital, and it’s critically important for businesses to manage it properly. Assetspire’s asset management solution tracks and manages inventory to achieve accuracy and efficiency. You won’t find the top performing businesses still managing their inventory on spreadsheets.
Businesses Lacking Inventory Management
Almost half of smallbusinesses(43%) fail to track assets and inventory effectively and use manual methods such as spreadsheets or simply do not track at all. Having either too much or not enough inventory can be costly. The benefits of utilising asset management software to manage inventory far outweigh the costs. Every asset can be tracked and monitored, allowing for efficient asset management that saves money and boosts productivity.
Wasted Time
A whopping 80% ofemployeeswaste half an hour a day retrieving information. Add that up over the year and you’ve wasted weeks! Not being able to retrieve assets quickly, whether physical or digital, is a wasteful practice and an expensive one.
Reactive Maintenance
80% of equipmentmaintenanceis reactive instead of proactive. The majority of businesses only do maintenance as reactive work when their equipment breaks down. This is far more expensive than preventative maintenance and can cause major disruption in the workflow (could someone please tell McDonalds, their ice cream machine is on the blink again). Delays and expensive repairs don’t sound very profitable. This can be easily avoided with preventative maintenance.
Although it differs between industries, around 75% of maintenance could be preventative, with 25% reserved for those occasions where unscheduled repair can’t be avoided.
Security Risks
35%of company data is unprotected, despite requiring strong security measures. Businesses risk having their most vital and confidential data compromised in data breaches. Asset management is one of the most important security practices for IT and could protect you against cyber attacks.
Key Industry Trends
Sustainable and ESG Investing
Environmental, Social, and Governance (ESG) investing is no longer a niche market.76%of asset managers are incorporating ESG factors into their investment decisions. The industry is aligning with the globalsustainabilityagenda and this figure is most certainly expected to grow as theCorporate Sustainability Reporting Directive (CSRD)amps up.
Technological Advancements
Fintech andartificial intelligence (AI)are transforming asset management. Robo-advisors, data analytics, and machine learning are being widely adopted.28%of asset managers have invested in AI-driven tools, including Assetspire, with a further 17% actively developing AI applications. 46% are considering investing in AI whereas 9% have not seriously considered it.
Regulatory Compliance
The regulatory landscape continues to evolve.46%of asset managers consider regulatory compliance as one of their top challenges. The industry is adapting to meet new standards and ensure transparency.
Error Reduction With Tagging
In one healthcare facility in New England, harmful administration errors were reduced by41%following the implementation of a tagging system. The medical centre streamlined its asset management processes by introducingbarcodelabels. Using a smartphone scanner, staff were able to track assets more effectively and improve processes. Tagging is one of the best practices for medical facilities and can benefit many other industries.
Future Projections
Growth Expectations
Despite challenges, the asset management industry is poised for growth. Industries worldwide have recognised that downtime has to be kept to a minimum to achieve top performance. Experts predict that global AUM will surpass$128 Trillionin the next four years and the asset management system market will top$27 Billionby 2025. Emerging markets, demand for more effective methods of handling assets and innovative investment products will drive this growth.
Smartphone Apps
67%of warehouses plan to use mobile devices to manage inventory. Assetspire’sasset managementsolution comes with a smartphone app, so you can access your data anywhere, anytime. You can even scan barcodes, respond to alerts or produce reports.
Have we convinced you yet? Asset management is the way forward for business. Try thefree demo.