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Product lifecycle management (PLM) software helps organizations manage product information related to their design, development, sourcing and after-sales support. PLM software facilitates collaboration between various teams such as design, engineering, quality, marketing and manufacturing throughout a product’s lifecycle. It helps streamline processes such as new product introduction, product data management, change management, compliance and sustainability. Common PLM applications include computer-aided design (CAD), product information management, sustainable product development, collaborative product definition management, and engineering change management.
The global product lifecycle management market is estimated to be valued at US$ 27,321 million 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. The growing adoption of cloud technologies is expected to fuel the growth of the market over the forecast period.
Market Dynamics
The growing adoption of cloud technologies is expected to be a major driver for the growth of the product lifecycle management market over the forecast period. Cloud-based PLM solutions offer benefits such as low upfront costs, ease of deployment, scalability, flexibility, remote access and collaboration. They help organizations reduce IT expenses related to hardware, software and technical staff. This is encouraging more companies, especially small and medium enterprises to adopt cloud-based PLM solutions. Another driver for the market growth is the growing requirements from industries such as automotive, aerospace and manufacturing for improved product quality, reduced time-to-market and compliance with evolving regulations which is propelling them to adopt advanced PLM solutions. Cloud-based PLM solutions help address these needs effectively by facilitating quick design changes, remote collaboration and seamless product data sharing.
Segment Analysis
The product lifecycle management market is segmented into hardware, software, and services. The software segment is expected to be the largest as well as fastest growing segment during the forecast period. This is due to the increasing demand for software among organizations to manage product design and development processes efficiently. The services segment is also expected to grow significantly due to rising need of various implementation, integration, and support services from software vendors.
PEST Analysis
Political: Regulations regarding privacy and data security are influencing PLM software providers to focus on building secure systems. Economic: Growing digitization trend and increasing focus on reducing product design & development costs are driving increased PLM adoption. Social: Younger workforce is more comfortable with digital tools which is prompting organizations to invest in PLM. Technological: Advancements in IoT, cloud, and AI are enabling the development of new interactive and intelligent PLM 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.
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 and PTC Inc. hold a significant market share due to their extensive product portfolios and global presence.
Key Takeaways
The global product lifecycle management market is expected to witness high growth over the forecast period. Regionally, North America holds the largest share currently due to presence of major players and established industries in the region offering lucrative opportunities. However, Asia Pacific is projected to emerge as the fastest growing region with increasing adoption of PLM solutions across industries such as automotive, aerospace & defense and industrial machinery.
North America is currently the dominant region in the global PLM market. This is attributed to presence of major PLM vendors and growing digitalization across industries in the US and Canada. Asia Pacific is projected to witness the fastest growth. Countries such as China, India, Japan and South Korea are increasingly adopting PLM solutions to enhance product development processes.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
