If you have any doubts about the viability — or necessity — of digital asset management (DAM), new estimates about its projected growth should dispel the notion.
The DAM market is estimated to grow from $1.42 billion in 2015 to $5.36 billion by 2020, according to new research from MarketsandMarkets, a Pune, India-based research firm.
More Assets to Manage
Marketsandmarkets attributed this impressive compound annual growth rate (CAGR) of 30.4 percent to the increasing enterprise use of digital marketing solutions and applications for various purposes such as asset analytics and lifecycle and rights management.
The rising usage of rich media assets such as video, audio, images and other media files among almost every industry has encouraged the users to adopt DAM solutions, the company said.
Other significant factors driving this market are increasing demand for integrated solutions and rising Software-as-a-Service (SaaS) solutions.
Marketing Plays a Major Role
Among all DAM solutions, Marketsandmarkets reported that brand portals and the asset and metadata-archiving segments are growing at the highest CAGR through 2020. These solutions are being adopted because of the increased marketing importance of components such as logos and fonts.
DAM consulting services are also booming and will continue to grow over the next four years as organizations address the challenges of training employees and keeping DAM solutions updated.
Marketing applications are also growing at a faster CAGR — a reality that reflects the increased use of digital assets in in innovative marketing concepts.
DAM Industry Watch
The DAM market is growing at the highest CAGR in the retail and consumer goods industry, which is increasingly adopting DAM solutions to optimize resources, manage marketing assets and adopt more customer-centric approaches.
The government sector is also adopting DAM to modernize their services for public.
Global DAM Outlook
As for DAM use by geography, the Asia-Pacific (APAC) region is expected to grow at the highest CAGR through 2020. This is due to the adoption of cloud and mobile, as well as infrastructural development to incorporate secured usages of mobile-based applications for various purposes.
Several countries in the APAC region such as China, Japan, India and Australia have started adopting and investing in DAM technology in efforts to attract high-tech customers.
Use Cases and Vendors
The research from MarketsandMarkets aligns with a recent DAM report from Forrester, which noted that the increasing numbers of rich media assets and a diverse set of distribution channels is forcing application development and delivery professionals to take a closer look at DAM solutions.
According to Forrester, DAM has evolved from a niche solution primarily designed to help media and publishing firms manage production content to an integral component of a larger technology ecosystem that enables companies to provide engaging digital experiences to existing and potential customers.
However, Forrester cautioned, the market is fragmented, and relatively few big-name vendors offer DAM solutions.Forrester identified three use-case scenarios for DAM, noting that DAM vendors tend to support one or more of the following:
- Enterprise-wide DAM solutions are designed to provide rich media management capabilities that support broad customer experience needs.
- Marketing-focused DAM solutions provide capabilities for marketing departments or groups and tend to emphasize functionality such as brand management and creative agency collaboration.
- Media- and production-focused DAM systems, which primarily support the management of high-end, production-oriented content for media firms, publishing companies and similar enterprises.