Product Lifecycle Management Market Size, Share & Trends Analysis Report By Software (Portfolio Management, Design & Engineering Management), By Deployment, By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global product lifecycle management market size was valued at USD 26.86 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The major factors expected to drive the growth include a rising focus on developing smart products and factories and the increasing demand for cloud-based product lifecycle management (PLM) solutions for secure IT infrastructure. The outbreak of the COVID-19 pandemic has prompted businesses to adopt cloud technology to facilitate remote working and ensure business continuity. In addition, several organizations have opted for remote working and deployed cloud-based solutions, which has surged the demand for PLM solutions. The pandemic had a positive impact on the growth of the market due to the high adoption of cloud-based solutions across various organizations.

Product lifecycle management envisages systematic management of information through the entire lifecycle of the product in real-time. The information typically includes production and product design, development, and delivery process. The product lifecycle processes continuously evolve with variables such as functions, time, price, and performance. As a result, product innovation is flexible to match the new market requirements which have become extremely important owing to these continuously changing variables. These product lifecycle management solutions can help achieve low operational costs and time efficiency while encouraging innovations in business operations. These benefits are expected to impact the market growth positively over the forecast period.

The increasing demand for product lifecycle management solutions in small and medium enterprises across various industry verticals to optimize manufacturing costs is fostering the growth of the market. Companies need to find ways to invest to maximize their business profit potential throughout their life cycle.  However, concerns over data security and other factors such as integration and costs of implementation are expected to restrain the growth of the market over the forecast period. Technological trends such as additive manufacturing and engineering and Augmented Reality (AR) are predicted to drive the market during the forecast period. These technologies are expected to encourage companies to enable their PLM solutions with new capabilities, which are projected to extend the demand.

Currently, an outsized number of commercial enterprises are instrumental in completing digital transformation initiatives or developing their roadmap towards digitalization. One of the significant developments includes the integration of the Internet of Things (IoT) with PLM solutions. This integration has amplified the capabilities of product lifecycle management solutions, which has enabled real-time performance and quality management post-manufacturing. IoT sensors embedded in smart products and systems generate a vast set of actionable data, such as insights regarding the early signs of failure of a particular part in the product.

Technological advancements such as the Industrial Internet of Things (IIoT), virtual reality, augmented reality, and additive manufacturing, are anticipated to boost the growth of the product lifecycle management market. The key market players, such as PTC Inc. and Siemens are focused on integrating these technologies to strengthen their position in the market. For instance, in February 2021, Siemens launched AssistAR 3.0, which supports assembly, inspection, and maintenance procedures with a new generation of accurate and robust augmented reality (AR) technologies. It connects to the company’s PLM system and uses regular PCs and displays to guide company operators through complex operations without the use of glasses or a headset.

Software Insights

The design and engineering management segment captured a market share of over 30% in 2021. Product life cycle management software allows a company to manage information through the entire lifecycle of a product efficiently and cost-effectively. It includes processes from design, manufacture, and disposal of the product in various applications, such as retail, IT & telecom, and automotive, among others. Moreover, the lean and collaborative product development approaches, such as business strategy, work process, and collection of software applications, are pursued progressively by businesses which are the core of product lifecycle management. As such, product lifecycle management software is being extensively used by manufacturing units to manage the designing, development, and engineering processes in the wake of the continued industrial digitization, rollout of connected value chains, and adoption of Industry 4.0.

The simulation, testing, and change management segment are expected to register a significant CAGR of 9.7% over the forecast period. The simulation and test management solutions enable organizations to improve product performance, drive and increase simulation use throughout the product lifecycle. The increasing need to manage and standardize the process, minimize implementation cost, and increase traceability and industrial automation are the key factors favoring the demand for simulation & testing management solutions. Several key companies, such as Dassault Systèmes and Siemens, are adopting inorganic and organic growth strategies, including partnerships and collaborations, to expand their footprint in the simulation software market.

Deployment Insights

The cloud segment held the largest revenue share of over 70% in 2021. Cloud deployment has become the foremost preferred way for the deployment of the PLM and is expected to maintain its dominance over the forecast period. Cloud-based product lifecycle management solutions help eliminate key challenges related to implementation, upgrades, and customization. Benefits such as scalability, flexibility, security, and control over data are some of the major factors that are expected to boost the adoption of cloud-based deployment of product life cycle management software. Moreover, the technology industry experts emphasize that approximately 60% of workloads are executed on hosted cloud services.

The on-premise segment is expected to expand at a significant CAGR of 7.5% over the forecast period. On-premises solutions help the organizations gain a detailed understanding of the trends, challenges, and development in the market and also help to apply effective and efficient marketing and manufacturing decisions by integrating advanced technologies such as the Internet of Things (IoT) and big data. These solutions also allow organizations to reduce their dependency on the internet infrastructure and protect their data from online fraud and potential losses. Such benefits are anticipated to encourage organizations, especially large organizations, to opt for on-premise deployment.

End-use Insights

The automotive & transportation segment held the dominant revenue share of over 20% in 2021. The increasing use of digital manufacturing and rising integration of IoT in producing smart automobiles are the key trends expected to drive the growth of the market in the automotive sector. For instance, Siemens PLM software offers a full set of smart vehicle solutions for all key technical domains, from chip design to full vehicle validation. The adoption of PLM helps minimize shipment errors, resulting in low product damage, on-time orders, high productivity, better alignment with customer requirements, and complete regulatory compliance. These factors are anticipated to drive the adoption of product lifecycle management software by the incumbents of the automotive & transportation industries.

The aerospace & defense segment is anticipated to register a significant CAGR of 8.1% over the forecast period. The requirement for product lifecycle management solutions in the defense and aerospace sector is determined by budget reduction, rising global competition, and mounting backlog in commercial aircraft delivery and production. The growing demand for lifecycle management solutions from military aerospace & defense companies can be attributed to the evolving need for technologically-advanced solutions that can potentially streamline the core operations. These solutions include IoT, AI-based solutions, and other automation solutions to manage critical activities. Moreover, some of the major lifecycle management solution providers, such as Siemens provide a wide range of technological solutions to cater to the requirements of small and large-scale companies operating in the military aerospace & defense industry.

Regional Insights

North America accounted for the major revenue share of over 35% in 2021. The region’s strong financial position enables it to invest heavily in advanced solutions, such as IoT, connected industries, telecommunication technologies (5G, LTE), additive manufacturing, and augmented reality providing a competitive edge in the market. Moreover, large enterprises are increasingly upgrading their product lifecycle management solutions in line with the evolving technology trends in their companies to aid customer-centric product development. For instance, in March 2020, IBM launched a new version of the Engineering Lifecycle Management (ELM) solution, ELM 7.0, to scale the engineering operations and handle more complex projects. The solution will use AI to uncover valuable, real-time insights across engineering data.

The Asia Pacific regional market is expected to witness a significant CAGR of 10.2% over the forecast period. With the exploding digitalization and industrialization in emerging nations such as India and China, the demand for PLM would increase in the region. The region has several large enterprises operating across diverse industries, including electronics, automotive, and telecommunications, which are focusing on transforming their respective processes engineering and product development functions and are aggressively deploying product lifecycle management tools as a part of their growth strategies.

Key Companies & Market Share Insights

The key players operating in the market include Aras Corporation; Arena Solutions, Inc.; Oracle Corporation; SAP SE; AUTODESK, INC.; Siemens AG; and PTC Inc. Market players are investing aggressively in R&D activities, improving their internal processes, actively engaging in new product development, and improving their existing products as part of the efforts to acquire new customers and increase their respective market shares. They are also focusing on mergers & acquisitions and strategic partnerships to develop technologically advanced products and gain a competitive edge in the market.

For instance, in January 2022, Aras Corporation announced the merger with Minerva Group, a software provider that optimizes business and product processes. With this merger, Minerva brings product lifecycle management functionality that will be built on the Aras platform for medical devices and high-tech electronics companies. The company also provides extensive vertical industry expertise in automotive, aerospace, defense, and industrial equipment manufacturing.

Market players are aggressively investing in R&D activities to drive organic growth. For instance, in June 2021, PTC Inc. and KPMG have piloted a private cellular network (5G), which is designed to provide clients and professionals with a controlled environment to collaborate, experiment, and explore new business models. It will also showcase how companies can leverage next-generation networks to drive digital transformation for their business purposes. Some of the prominent players operating in the global product lifecycle management market are:

• ANSYS, Inc.

• Aras Corporation

• Arena Solutions, Inc.

• Oracle Corporation

• SAP SE

• AUTODESK, INC.

• Siemens AG

• PTC Inc.

• Dassault Systèmes

• Synopsys Inc.

Product Lifecycle Management Market Report Scope

Segments Covered in the 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 2017 to 2030. For this study, Grand View Research has segmented the global product lifecycle management market report based on software, deployment, end use, and region:

• Software Outlook (Revenue, USD Million, 2017 - 2030)

  • Portfolio Management

  • Design & Engineering Management

  • Quality & Compliance Management

  • Simulation, Testing, & Change Management

  • Manufacturing Operations Management

  • Others

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premise

  • Cloud

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Aerospace & Defense

  • Automotive & Transportation

  • Healthcare

  • IT & Telecom

  • Industrial Equipment & Heavy Machinery

  • Retail

  • Semiconductor & Electronics

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)