Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Product Lifecycle Management market.
Trusted Business Insights presents an updated and Latest Study on Product Lifecycle Management Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Product Lifecycle Management market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Product Lifecycle Management Market
The global product lifecycle management market size was valued at USD 14.11 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2020 to 2025. The increasing demand for Product Lifecycle Management (PLM) solutions in small and medium enterprises across various industry verticals to optimize the manufacturing cost is the prime factor fostering market growth. Some products such as change management, bills of material, cost management, compliance, data management, and governance management are estimated to gain traction over the forecast period 2021-2027. Moreover, digital transformation in several industries and growing use of Industrial Internet of Things (IIoT) devices is expected to drive the utility of PLM solutions across various industries.
PLM involves systematic management of information through the entire lifecycle of the product such as the information related to production and product design, product development and delivery process, performance management, and other sets of information on real time basis. The product lifecycle processes are constantly evolving with changes in variables such as time, price, functions, and performance. Based on the differences in variables, a product innovation process is required to be adaptive in order to meet dynamic market requirements. Other factors such as product enhancements and development management are anticipated to fuel the PLM market growth.
Various factors such as commercialization, R&D, internal and external process complexity, and inaccurate product information, among others are expected to influence the profitability and growth of the market. Electronic Design Automation (EDA) used in designing electronic systems such as printed circuit boards and integrated circuits is likely to foster the utility of PLM software in the electronics and automotive industries. Moreover, technological trends such as additive manufacturing and engineering Augmented Reality (AR), and Virtual Reality (VR) is expected to drive the market during the forecast period. These technologies are expected to encourage companies to work toward enabling their PLM solutions with new capabilities, which is projected to increase the demand.
PLM solutions offer benefits such as a reduction in operational costs and time to market, along with facilitating innovation in business operations. These benefits are expected to impact market growth positively. The emergence of smart factories, as well as smart manufacturing in SMEs along with the introduction of customized and low-cost PLM solutions, is expected to offer new growth opportunities for the vendors. For instance, PTC Inc. by combining its ThingWorx capability into Windchill PLM application suite and Creo CAD software has gained a significant edge among the market competitors.
The on-premise deployment of PLM solutions has a range of drawbacks, including specific infrastructure requirements and high deployment costs, which might hamper the adoption of PLM solutions. To overcome this challenge, many key providers of PLM solutions and systems have begun offering cloud deployments with subscription models to reduce the overall cost of deployment. Concerns regarding data security and data theft are also hampering market growth prospects as various users across the supply chain have access to business-critical data. However, key vendors are offering technologically upgraded solutions with enhanced security and safety. For instance, Siemens offers a Team center, a secure PLM system, which only allows access to entitled users with the aim of reducing data thefts and data duplicity.
In December 2019, the World Health Organization (WHO) declared a public emergency amid the outbreak of COVID-19 disease that has spread to almost all the countries across the globe. The shutdown, travel bans, and quarantine measures declared by the countries have adversely affected the industrial manufacturing across all sectors. Owing to this impact, temporary repercussions on the manufacturing industry is likely to be witnessed in the coming year. However, with the relaxation of worldwide restrictions on the industrial sector, the revival in the utility of PLM solutions is anticipated to witness a positive growth post 2022.
Software Insights: Product Lifecycle Management Market
In this segment, the design and engineering management segment accounted for the major market share of over 35% in 2019 owing to its extensive utility in the manufacturing sector. Currently, a large number of industrial enterprises are instrumental in carrying out digital transformation initiatives or developing their roadmap towards digitalization. With industrial digitization and development of the Industrial Internet of Things (IIoT), PLM solutions are considered as core technology platform for managing smart, complex, and connected product development processes. Moreover, the utility of the PLM has been growing tremendously across all the industrial verticals to automate the engineering change, validation and approval process, to speed up the cycle time, and improve product quality
Simulation, testing, and change management are likely to be the fastest growing segment over the forecast period. The pressure to reduce time-to-market while enhancing product performance has been pushing the use of simulation. Moreover, PLM through simulation management aids to get control of data and processes to escape collective problems such as analysis of obsolete data and poor visibility over simulation results. In addition, the increasing shift of competition from the management of operations to the effective and efficient management of change is likely to boost the growth in the coming years.
Services Insights: Product Lifecycle Management Market
In the services segment, integration and deployment accounted for a market share of over 40% in 2019. This can be attributed to the large number of software deployments occurring across various industry verticals. The integrations between applications within the manufacturing enterprise have been complex and expensive. This has led to a growing demand for integration capabilities by manufacturing enterprises to optimize its operational functions.
Support and maintenance services have become crucial, as they are directly concerned with customer issues and satisfaction. Each software vendor has a devoted support team to serve its customers. Software maintenance, post-deployment assistance, and client feedback are some of the important services provided under the support and maintenance segment. To ensure constant customer satisfaction, service providers are constantly improving their product knowledge base through customer feedback via interviews and surveys.
Deployment Insights: Product Lifecycle Management Market
Software as a Service (SaaS) held the largest revenue share of more than 70% in 2019 and is expected to expand at a CAGR of over 6% from 2020 to 2025. SaaS and on-premise are the two types of PLM deployment methods used across industries. SaaS deployment has become the most preferred way for the deployment of PLM, and is predicted to maintain its dominance over the next six years. The scalability and flexibility of this SaaS, security aspects and control over the data center are some of the important factors that will boost the utility of cloud technology in the product lifecycle management market. Moreover, the technology industry experts emphasize that around 60% of workloads are executed on a hosted cloud service.
The industry estimates suggest that there is a significant rise in the number of enterprises moving towards SaaS with 73% enterprises shifting almost all of their applications to SaaS platform. Moreover, the enterprise user data suggests that it is estimated that the user spending on business intelligence SaaS applications is likely to grow around 23.3% between 2017 and 2022. In addition, the industry survey claims that by 2022, about 60% of the companies will utilize an external cloud service providerâ€™s (CSP) managed service offering, which is twice the percentage share of organizations from 2018.
Enterprise Size Insights: Product Lifecycle Management Market
The large enterprise segment accounted for the largest market share of over 60% in 2019. The growth can be attributed to the increasing digitization of the manufacturing industry. It has led to the amalgamation of interconnected devices, robots, and a fast network of data within a factory environment. Increasing focus on customer experience, rapid implementation times, and deeper integration capabilities are some of the other factors propelling the segment growth.
Due to the growing number of PLM solutions, demand for high customer service expectations from users has made customer experience feature a key differentiator among vendors. Competitive pricing improved user interface, and better customer service and support are the key aspects that large enterprises are focusing on to attract customers in the long run. Moreover, the small and medium enterprises segment is likely to grow rapidly over the forecast period owing to increasing government initiatives for strengthening SMEs in countries such as India, Brazil, and other South Asian nations.
End-use Insights: Product Lifecycle Management Market
In terms of market revenue automotive and transportation segment accounted for the largest market share of over 25% in 2019.PLM solution deployment is no longer limited to discrete industries since PLM vendors have significantly developed their technology value proposition to aim for diverse industry sectors. PLM vendors continue to focus on emerging industries and emerging market applications. Discrete industries such as life sciences, energy and utilities, food and beverage, chemicals, shipbuilding, medical devices, and others are increasingly adopting advanced PLM technologies.
The increasing demand for PLM solutions across areas such as defense, aerospace as well as other non-traditional end-use sectors is anticipated to propel the demand for product lifecycle management over the next six years. The IoT technologies are currently widely being accepted amongst healthcare, retail, industrial manufacturing, energy and utilities, and transportation industries. Moreover, PLM vendors are now embedding the analytical abilities of IoT technology into their PLM solutions. For instance, PTC Inc.â€™s PLM software Wind chill is embedded with analytics aimed for discrete manufacturing companies looking for IoT capabilities.
Regional Insights: Product Lifecycle Management Market
North America accounted for the major revenue share of over 35%in 2019 owing to the increased adoption of next gen emerging technologies. North America is also a leader in embracing other advancing technologies such as IoT, connected industries, telecommunication technologies (5G, LTE), additive manufacturing, and augmented reality. Moreover, large enterprises are increasingly upgrading their PLM solutions to instill long term technology trends into their companies to aid customer centric product development. Besides, key vendors in the market such as PTC Inc.; Autodesk; Oracle; SAP SE; and Arena PLM are accelerating the market growth.
Enterprises in Asia Pacific regions are instrumental in transforming their product development and engineering operations by adopting advanced PLM tools to promote their global growth strategies. Asia Pacific region is anticipated to be the fastest growing market owing to increasing industrial and infrastructure expansion activities in India and China. The â€œMade in China 2025â€ initiatives by China and â€Make in Indiaâ€ by India are some of the initiatives that are likely to bring in significant investments in IT, technology, and innovation. Moreover, as the PLM market in Japan remains flat, the vendors are looking at other potential regions such as Australia and New Zealand.
Key Companies & Market Share Insights: Product Lifecycle Management Market
The vendors offer comprehensive technology driven solutions with a focus on design, simulation, innovation, digital manufacturing solution sets, and product data management. These vendors are also instrumental in offering integrated advanced visualization, IoT, collaborative engineering, analytics, and other innovative technologies in their PLM portfolio. Partnerships, strategic mergers, and acquisitions are anticipated to be the most effective way for industry players to gain quick access in emerging markets and enhance technological capabilities.
In September 2019, Siemens AG announced that it had acquired U.K.-based Lightwork Design, a computer software, and a technology licensing company. With this acquisition, Siemens PLM Software will be able to offer its customers with improved 3D data visualization capabilities, VR capabilities, and high-end rendering via its comprehensive suite of 3D product lifecycle management PLM applications. In June 2019, PTC Inc. announced that it had enhanced its WINDCHILL PLM platform with integrated systems engineering and software management capabilities. This extension will augment the Windchill solution for customers wanting to leverage a combined, up-to-date digital thread of product information, comprising requirements and system design. Some of the prominent players in the product lifecycle management market include:
Key companies Profiled: Product Lifecycle Management Market Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Trusted Business Insights has segmented the global product lifecycle management market report on the basis of software, services, deployment, enterprise size, end use, and region:
Software Outlook (Revenue, USD Million, 2014 – 2025)
- Portfolio Management
- Design & Engineering Management
- Quality & Compliance Management
- Simulation, Testing, & Change Management
- Manufacturing Operations Management
Services Outlook (Revenue, USD Million, 2014 – 2025)
- Integration & Deployment
- Support & Maintenance
Deployment Outlook (Revenue, USD Million, 2014 – 2025)
Enterprise Size Outlook (Revenue, USD Million, 2014 – 2025)
- Large Enterprises
- Small & Medium Enterprises
End-use Outlook (Revenue, USD Million, 2014 – 2025)
- Aerospace & Defense
- Automotive & Transportation
- IT & Telecom
- Industrial equipment & Heavy Machinery
- Semiconductor & Electronics
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