The “Global Product Lifecycle Management Market, By Component (Software (On-premise (Cax, NC, S&A, AEC, CPDM, Digital Manufacturing, EDA, Others), Cloud Based (Cax, NC, S&A, AEC, CPDM, Digital Manufacturing, EDA, Others)), and Services (Consulting, Integration, and Operation and Maintenance)), By End-use (Automotive and Transportation, Aerospace and Defense, Industrial Machinery and Heavy Equipment, Electronics and Semiconductor, Energy and Utilities, Consumer Products and Retail, Medical Devices and Pharmaceutical, IT and Telecom, and Others (Marine, Chemical), and by Geography (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) - Global Forecast to 2027”, was valued at US$ 61.31 billion in 2019, witnessing a CAGR of 8.1% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Product lifecycle management (PLM) is handling a good as it moves through the typical stages of its product life. This handling involves both the manufacturing of goods and marketing. The use of PLM technology and principles enables higher product quality, faster time to market, more efficient value chain management, faster and easier compliance with industry regulations, and increased profitability for every product. Product businesses have to be agile, efficient, and innovative, simultaneously ensuring traceability, quality, and safety, in order to sustain themselves in such conditions.
The global product lifecycle management market is estimated to account for US$ 61.31 Bn in terms of value by the end of 2019.
Rapid growth of industrial activities worldwide is expected to boost the global product lifecycle management (PLM) market growth over the forecast period
Rapid economic growth, increasing GDP of emerging economies such as South Africa, India, Brazil, Russia, South Korea, Taiwan, and Vietnam has led to increased demand for product lifecycle management solutions. The manufacturing sector is increasingly looking for PLM solutions that offer high-speed production, quick planning, and designing of products, active communication, collaboration among various departments, and the availability of updated information on products. Retailers and manufacturers have realized the significance of managing product flows, owing to increasing capacity and business stability concerns affecting profitability. The emergence of new, rapidly growing economies in various regions has similarly offered myriad outsourcing opportunities for manufacturers. This has further extended the breadth and depth of global supply chains and increased the demand for seamless product availability and sharing of information among business partners in real-time. Hence, these factors are expected to propel the global product lifecycle management (PLM) market growth in the near future.
Growing adoption of cloud-based PLM solutions can present lucrative growth opportunities in the global product lifecycle management (PLM) market
Cloud computing is an innovative technology that offers numerous advantages such as increased scalability, data security, disaster recovery, efficiency, cost reduction, and mobility. Cloud PLM helps internal teams and supply chain partners to design, develop, and produce products during new product development (NPD) and new product introduction (NPI). Cloud PLM has gained significant popularity among manufacturers, in order to manage the complete product lifecycle and provide high-quality products under a given timeline.
High cost of implementation is expected to hinder the global product lifecycle management (PLM) market growth over the forecast period
Although PLM solutions are beneficial in numerous ways, the initial implementation cost of PLM is significantly high. As a result of this, many small and medium-sized companies are hesitant to adopt PLM solutions due to economic constraints. Hence, these factors are expected to hinder the global product lifecycle management (PLM) market growth over the forecast period.
Among regions, North America is expected to witness significant growth in the global product lifecycle management (PLM) market during the forecast period. This is owing to growing need to enhance consumer experience and reduce operational costs across the region. Furthermore, the presence of major market players is expected to propel the regional market growth over the forecast period.
Europe is expected to register a robust growth rate in the global product lifecycle management (PLM) market over the forecast period. This is owing to rising digitalization and effective management of the product lifecycle process across the region. Furthermore, increasing the need for a streamlined product lifecycle process is expected to accelerate the regional market growth in the near future.
Key players operating in the global product lifecycle management (PLM) market are Dassault Systems, Hewlett-Packard Company, PTC, Inc., Atos SE, Siemens AG, Accenture plc, Autodesk, Inc., IBM Corporation, SAP SE, and Aras Corporation.
Major companies are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in May 2020, Accenture plc acquired PLM Systems to its clients to make the best use of product data in design.