It’s no wonder that businesses that want to optimise performance and save energy and money are turning to smart asset management solutions.
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.
Asset Management Trends
| Category | Statistic | Details |
|---|---|---|
| The Current Landscape | ||
| Total Assets Under Management (AUM) | Global AUM (2022) | $98.3 Trillion, showing steady growth |
| Geographic Distribution | North America AUM (2022) | $46.5 Trillion, leading the industry |
| Europe AUM (2022) | $22.2 Trillion, significant presence | |
| Inventory Management Value | Inventory Capital Tied Up | $1.1 Trillion, emphasizes the importance of proper management |
| Small Businesses Not Tracking Inventory | 43% don’t track assets efficiently, leading to potential costs | |
| Employees Wasting Time on Information Retrieval | 80% waste half an hour daily, causing significant inefficiency | |
| Reactive Maintenance | 80% of equipment maintenance is reactive, leading to delays and costs | |
| Preventative Maintenance Potential | About 75% of maintenance could be preventative, reducing downtime | |
| Security Risks | 35% of company data unprotected, highlighting security importance | |
| Key Industry Trends | ||
| Sustainable and ESG Investing | Asset Managers Incorporating ESG | 76% of asset managers incorporate ESG factors into decisions, aligning with sustainability goals |
| Technological Advancements | Adoption of AI in Asset Management | 28% invested in AI-driven tools, 17% developing AI applications |
| Considering AI Adoption | 46% considering AI investment, while 9% have not seriously considered it | |
| Regulatory Compliance | Top Challenge in Asset Management | 46% of asset managers consider regulatory compliance as a top challenge |
| Error Reduction With Tagging | Reduction in Administration Errors | 41% reduction in harmful errors with asset tagging in a healthcare facility |
| Beneficial Practices | Tagging systems improve asset management in various industries | |
| Future Projections | ||
| Growth Expectations | Predicted Global AUM (Next 4 Years) | Predictions of surpassing $128 Trillion and growth in the asset management market |
| Smartphone Apps | Warehouses Planning Mobile Inventory Management | 67% 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 working capital is 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 small businesses (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% of employees waste 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 equipment maintenance is 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 global sustainability agenda and this figure is most certainly expected to grow as the Corporate Sustainability Reporting Directive (CSRD) amps up.
Technological Advancements
Fintech and artificial 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 by 41% following the implementation of a tagging system. The medical centre streamlined its asset management processes by introducing barcode labels. 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 Trillion in the next four years and the asset management system market will top $27 Billion by 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’s asset management solution 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 the free demo.
