Cleveland, Ohio – A new market report published by Transparency Market Research shows the global product lifecycle management (PLM) market should reach $75.87 billion by 2022. The market is estimated to grow at a CAGR of 8.1% during the forecast period from 2015 to 2022. The rising demand for product innovation, productivity enhancement, reduction in operational costs, as well as increasing deployment of PLM solutions in the non-traditional end-use sectors such as medical devices, consumer products and retail, and pharmaceutical are some of the key factors driving the growth of PLM market, globally.
North America was the largest market for PLM in the year 2014 accounting for a market share of around 33%. North America is a mature market in terms of adoption of PLM solutions due to high investments in various end-use segments in technologies to reduce the time-to-market products and reduce the overall cost of production. The Middle East and Africa (MEA) region is expected to be the fastest growing market for PLM with estimated CAGR of 14.7% during the forecast period. Until now, MEA had a comparatively low adoption of PLM; however, the continued growth in industrial sector is expected to lead to significant growth of PLM market during the coming years.
On the basis of component types, the PLM services had the largest share of around 56% in 2014, while the rest of the share was held by PLM software segment. The cloud-based PLM software market is expected to grow at a faster rate with a CAGR of 17.7% during the forecast period from 2015 to 2022. The traditional PLM solutions are generally costly and complex for SMEs that have limited resources for undergoing product development and engineering change. Therefore, PLM cloud-based solutions have enabled the SMEs to have minimum investments for maintaining their product design efforts. The PLM vendors have started providing various cloud-based offerings in their portfolio which has increased the growth rate of cloud-based PLM software segment during the forecast period. Additionally, cloud-based PLM solutions also support integration of analytics solutions and mobile devices at a lower cost.
Among the various on-premise software types, the on-premise digital manufacturing software is anticipated to register a significant growth rate of 10.2% due to its rising demand in the enterprises. This software improves the overall efficiency of manufacturing processes by undergoing process optimization and data management in the product development cycle further driving the growth of the PLM market, globally.
The major digital manufacturing software vendors are mainly focusing on small and medium sized enterprises (SMEs) by providing customized software according to their needs. During the coming years, the demand for digital manufacturing software is expected to be driven by rising trend of digital and smart factories across the globe.
Aerospace and defense was the largest end-use segment of the PLM market, accounting approximately for 23% of the total market share in the year 2014. The reduction in defense and space budget and increase of commercial aircraft outstandings is leading to increased pressure on the companies to reduce the cost of production. PLM solutions can help the companies in achieving significant reduction in cost of production and the time-to-market. The automotive and transportation sector is also experiencing a continued growth in demand for PLM solutions in the market as this sector witnessed considerable expansion during the recent years. The demand for new products and features from consumers are very high in this sector which further increase the use of PLM solutions by respective companies. The non-traditional end-use sectors such as consumer packaged goods and retail and medical devices and pharmaceuticals are expected to show fastest growth rate of 10.4% during the forecast period.
During the recent years, the leading PLM software vendors such as PTC, Inc., Siemens AG, Dassault Systemes and Autodesk, Inc. are enhancing their cloud-based PLM portfolio. Further, they are also increasingly looking to offer highly customized PLM solutions as per the needs of customers. The leading PLM service providers in the year 2014 included IBM Corporation, Accenture PLC and Hewlett-Packard Company.
Source: Transparency Market Research