Military Aerospace & Defense Lifecycle Management Market Size, Share & Trends Analysis Report By Type (Product Lifecycle Management (PLM), Service Lifecycle Management (SLM)), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global military aerospace and defense lifecycle management market size was valued at USD 7.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2020 to 2027. The growing demand from defense OEMs for new and innovative approaches that can potentially help in reducing costs and enhancing product quality is expected to drive the market growth. Lifecycle Management solutions help optimize every facet of the product lifecycle from inception to disposal, thereby improving the throughput and quality. Defense OEMs can implement these solutions to carry out the operations virtually across vastly distributed sites and enable a cross-site workflow. The growing demand for lifecycle management solutions from military aerospace and defense companies can be attributed to the evolving need for technologically-advanced solutions that can potentially streamline the core operations. 

Such solutions may typically be the Internet of Things (IoT)-based solutions, Artificial Intelligence (AI)-based solutions, and other automation solutions designed to manage critical activities. The implementation of these solutions for maintenance and overhaul activities has been rising continuously as these solutions can help in ensuring the management and dissemination while improving the productivity of equipment throughout the entire lifecycle. Warfighting vehicles and weapons have been evolving continuously to feature various features driven by the latest technologies and reliable communication capabilities. Hence, the aerospace and defense industry has also been evolving rapidly with the integration of cutting-edge technologies that can build faster and lighter connected tools. Military Aerospace and Defense OEMs are aggressively adopting product lifecycle management (PLM) solutions as part of a well-established and mature technology strategy they are pursuing in managing the product or service lifecycle, right from the early stages of concept generation to retirement. The OEMs are adopting additive manufacturing to print complicated parts and components that would otherwise require complex machining processes and incur extensive time and cost. Some of the major lifecycle management solution providers are integrating additive engineering and advanced manufacturing capabilities in their offerings as part of the efforts to cater to the end-customers’ requirements.

OEMs and tier-1 suppliers are increasingly demanding highly tailored solutions that would help in addressing use-case specific issues related to their end products. As a result, the lifecycle management solution providers are pursuing a customer-centric approach to cater to the evolving needs of their clients. Leading lifecycle management solution providers, such as Siemens, offer a broad range of technology solutions to cater to the requirements of both small and large-scale companies operating in the aerospace and defense industry. They are particularly focusing on delivering solutions that improve efficiency and reduce total ownership costs. Prominent military and defense companies, such as Lockheed Martin and The Boeing Company, have been utilizing PLM/SLM solutions for more than a decade to improve collaboration and enhance workflow management.

Defense applications are gradually switching from conventional communication protocols to ethernet connections that can potentially offer reliable and faster connectivity options. Additionally, the continued digitization and emergence of Industry 4.0 and connected value chain are enabling solution providers to offer advanced capabilities by incorporating emerging technologies, especially for military aerospace and defense companies. The latest technologies, such as AR/VR, IoT, and big data analytics, are expected to play a pivotal role in shaping the operations associated with the aerospace and defense industry, including aftersales and maintenance services. These digital transformation technologies are expected to augment the efficiency and intelligence of service, design, testing, and production processes. The ability of these technologies to address product complexity and successfully streamline the product lifecycle is anticipated to create immense opportunities to implement lifecycle management solutions.

Type Insights

The PLM segment accounted for the largest revenue share in 2019 and is expected to continue dominating the military aerospace and defense lifecycle management market over the forecast period. PLM solutions provide accurate information about individual systems and sub-systems to the OEMs and tier-1 suppliers and update them with the required specifications for the latest versions. These solutions also allow users to communicate, collaborate, define, and predict how designs would perform so that designs can be optimized before they are implemented. The companies are increasingly utilizing PLM solutions integrated with planning and execution competencies to ensure a longer equipment lifespan, obtain compliance certifications, and strike a closer association with regional aviation and defense authorities.

On the other hand, SLM solutions are expected to witness the fastest CAGR of 9.9% over the forecast period. SLM solutions offer timely updates of field service information to the concerned teams to ensure regular repairs and maintenance services for the effective functioning of defense products/equipment, such as aircraft, battle tanks, and submarines. These solutions can also handle service parts management, field service management, product support operations, and technical documentation required by customers to maximize equipment uptime. The leading solution providers are offering SLM solutions with BI capabilities to track and monitor opportunities for offering proactive customized solutions as well as striking service agreements the level of the product usage of end customers.

Regional Insights

North America accounted for the largest revenue share in 2019 and is expected to register a CAGR of 6.2% over the forecast period. The U.S. happens to be the leading regional market owing to the aggressive investments it has been making in strengthening its defense capabilities over the past few years. The defense budget is one of the U.S.’s major spending and a significant part of that is allocated for aircraft maintenance and service activities. For decades, the U.S. has been playing a dominant role in every defense category, including the land, air, and sea; and has been making huge investments in implementing advanced solutions across all these sectors.

Asia Pacific is expected to exhibit the fastest CAGR of 10.6% from 2020 to 2027. The regional market size is anticipated to exceed USD 5 billion by 2027 surpassing North America. The large-scale industries in the region are opting for advanced lifecycle management tools for upgrading their process engineering and product development procedures. The on-going developments in the defense infrastructure coupled with the continued expansion of the aerospace and defense industry in countries, such as China and India, are compelling the concerned authorities to make significant investments in automation and information technology, thereby contributing significantly to the rising demand.

Key Companies & Market Share Insights

The market is consolidating gradually with a few market participants accounting for a significant market share. The rising demand has triggered an intense competition among the market players, with each player focusing on providing quality solutions. Prominent companies are pursuing various strategies, such as strategic collaborations and long-term agreements with established aerospace and defense OEMs and service providers as part of the efforts to strengthen their foothold in the market. At the same time, startups are gradually discovering the market potential and are keen on leveraging the growing investor confidence to tap the opportunities presented by the industry. Some of the prominent players in the military aerospace and defense lifecycle management market include:

• Dassault Systèmes

• Siemens AG

• PTC

• Autodesk Inc.

Military Aerospace & Defense Lifecycle Management Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the military aerospace and defense lifecycle management market report based on type, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • PLM

  • SLM

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

  • Middle East & Africa (MEA)

    • UAE

    • KSA