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Product lifecycle management (PLM) is a software solution that encompasses processes, people and information required to bring a product to market, from its conception to end-of-life. It integrates people, data, processes and business systems, and provides a product information backbone for companies and their extended enterprise. PLM applications help companies collaborate, share information and processes with extended enterprise partners throughout a product’s lifecycle. Industries such as automotive, aerospace, high-tech electronics, chemicals, healthcare devices and medical implants are increasingly adopting PLM solutions to enhance product designs, streamline processes and reduce costs across their global operations. PLM solutions enable industries to gain higher control over their product development procedures and supply chain operations through seamless data exchange and visibility.
The global Product Lifecycle ManagementMarket is estimated to be valued at US$ 27,321 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Adoption of cloud-based PLM solutions is expected to drive the market growth over the forecast period. Cloud deployment of PLM provides on-demand access to product data and applications from any location, thus enabling product data collaboration between teams located across different geographies. It eliminates upfront capital expenditure and shifts expenditure from a capital to an operational model. Cloud-based PLM also offers benefits such as scalability, reduced operational costs, simplified upgrades and real-time information sharing. Growing demand for paperless product definition and simplification of collaborative product data management throughout the product lifecycle are propelling adoption of cloud-based PLM solutions across industries.
Another driver for the market growth is increasing need to streamline complex product design and manufacturing processes. Sophisticated products today comprise of components sourced from globally distributed contract manufacturers and suppliers. PLM solutions help integrate such complex and distributed product development supply chain. They offer capabilities for digital product definition, product structure management, change process management, program/project management and compliance management. This enables organizations to accurately manage relationships between changed components and bills-of-materials, make trade-off analyses, track design changes and ensure compliance with safety and quality standards. These factors are increasing adoption of PLM solutions across industries with geographically distributed manufacturing footprint.
Segment Analysis
The global Product Lifecycle Management Market is segmented based on Component, Deployment, Industry vertical and Region. By Component, Software segment dominates the market with over 60% share as software forms the core of PLM solutions. The software segment is further divided into CAD, Visualization, Digital manufacturing, DM and Co-engineering. DM and Digital manufacturing software is dominating the component segment as companies are focusing on advanced digital solutions.
Key players operating in the Product Lifecycle Management market are Dassault Systems, Hewlett-Packard Company, PTC, Inc., Atos SE, Siemens AG, Accenture plc, Autodesk, Inc., IBM Corporation, SAP SE, and Aras Corporation. Dassault Systems leads the market with over 20% share due to its extensive product portfolio and global clientele. PTC, Inc. and Siemens AG are other prominent players focusing on R&D and strategic partnerships to strengthen their positioning.
PEST Analysis
Political: Governments across the globe are supporting digitization of manufacturing processes by offering subsidies and incentives to adopt Industry 4.0 solutions like PLM. This is positively impacting the adoption of PLM solutions.
Economic: Cost optimization and reducing time to market are the key factors driving organizations to invest in PLM solutions. PLM solutions help achieve these goals by facilitating data and document management across product lifecycle.
Social: Younger workforce is technology savvy and encouraging organizations to embrace new technologies. Also, the availability of trained workforce proficient in PLM solutions is augmenting the market growth.
Technological: Emerging technologies like IoT, AI and cloud computing are helping PLM vendors to offer more advanced solutions. Integration of these technologies in PLM solutions is enhancing their functionalities.
Key Takeaways
The global Product Lifecycle Management is expected to witness high growth during the forecast period owing to increasing focus on digitization across industries.
Regionally, North America dominates the market currently however Asia Pacific is expected to witness fastest growth due to growing manufacturing industries in China, India and other emerging economies of the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
