GVR Report cover Product Lifecycle Management Market Size, Share & Trends Report

Product Lifecycle Management Market Size, Share & Trends Analysis Report By Software, By Deployment, By End Use, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Aug, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-631-8
  • Format: Electronic (PDF)
  • Historical Data: 2018 - 2019
  • Number of Pages: 170

Report Overview

The global product lifecycle management market size was valued at USD 25.93 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2028. The growing demand for software solutions for change management, bills of materials, cost management, compliance management, data management, and governance management are estimated to drive the demand for the product lifecycle management (PLM)software over the forecast period. The continued integration of the latest technologies, such as Industrial Internet of Things (IIoT), virtual reality, augmented reality, and additive manufacturing, with PLM solutions, is anticipated to contribute to the growth of the market. The outbreak of the COVID-19 pandemic has prompted businesses to opt for cloud technology to facilitate remote working and ensure business continuity, thereby driving the adoption of cloud-based services. As such, PLM software providers are anticipating their customers to aggressively opt for cloud migration.

U.S. product lifecycle management market size, by software, 2018 - 2028 (USD Billion)

Product lifecycle management envisages systematic management of information throughout the entire lifecycle of the product in real-time. The information typically includes information related to production and product design, product development and delivery process, performance management, and other phases of the lifecycle of the product. The product lifecycle processes are evolving continuously in line with the changes in different variables, such as functions, time, price, and performance. Given the continuously changing variables, a product innovation process adaptive enough to meet the new market requirements has become of paramount importance. At this juncture, PLM solutions can help in reducing operational costs and the time to market while encouraging innovations in business operations. Such benefits are expected to drive the adoption of PLM software. The continued establishment of smart factories and the adoption of smart manufacturing, particularly by SMEs, leveraging low-cost, customized solutions, are expected to open new growth opportunities for the market players. However, challenges associated with the integration and costs of implementation and concerns over data security are expected to restrain the growth of the market over the forecast period.

The PLM market has been witnessing several new developments, particularly in the form of enhanced software capabilities, over the past few years. One of the major developments includes the introduction of IoT-enabled PLM solutions. The integration of IoT with PLM solutions has helped in enhancing the capabilities of PLM solutions, thereby allowing to obtain the data related to product development and delivery process in real-time and focus on quality management during the post-manufacturing phase. IoT-compatible product lifecycle management software can help in generating large volumes of actionable data, which can be utilized to gain deeper insights into the product development process and identify any early signs of failure of a particular part of the product. Incumbents of several industries and industry verticals are increasingly realizing the benefits of leveraging IoT data for enhancing the lifecycle management of products and services and hence looking forward to adopting PLM systems with improved capabilities. As such, the growing demand for PLM solutions capable of leveraging IoT data is expected to drive the growth of the Product Lifecycle Management (PLM) market over the forecast period.

The rising adoption of PLM solutions capable of leveraging IoT data is expected to emerge as a key factor driving the growth of the market. Enterprises have realized the potential of IoT in managing the lifecycle of the product. Advances in the latest technologies, such as Augmented Reality (AR) and Virtual Reality (VR), and their integration with PLM solutions are expected to further enhance the capabilities of PLM solutions and offer new opportunities for growth for the market. Key market players, such as PTC Inc. and Siemens, are responding to these evolving trends and focusing on integrating IoT with their respective PLM software.

Software Insights

The design and engineering management segment accounted for a market share exceeding 30% in 2020. The design and engineering processes are evolving continuously in line with the unabated advances in technology. The lean and collaborative product development approaches being pursued progressively by businesses are the core of product lifecycle management. As such, PLM 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 is expected to emerge as the fastest-growing segment over the forecast period. Simulation and testing management solutions help organizations in managing and controlling the simulation processes, tools, data, and workflows in the context of an overall product lifecycle management system. The growing need to manage and standardize the processes, reduce implementation costs, increase traceability, and accelerate industrial automation is emerging as the key factors driving the demand for simulation and testing management solutions.

Deployment Insights

The cloud segment accounted for the largest revenue share of more than 70% in 2020 and is expected to register a CAGR of over 7% from 2021 to 2028. SaaS deployment is emerging as the most preferred way for the deployment of PLM software. Benefits, such as scalability, flexibility, security, and control over data, are some of the important factors that are expected to boost the adoption of cloud-based deployment of the product lifecycle management software. Industry estimates are already indicating a significant rise in the number of enterprises opting for the SaaS delivery model, with 73% of the enterprises shifting most of their applications to SaaS platforms.

On the other hand, on-premise deployment can offer organizations more flexibility to customize their IT infrastructure. On-premise deployment also allows organizations to reduce their dependency on the internet. As such, on-premise deployment can typically help enterprises in protecting their data from online fraud and avoiding potential losses. Such benefits are anticipated to encourage organizations to opt for on-premise deployment.

End-use Insights

The automotive and transportation segment accounted for the largest market share of over 20% in 2020.PLM software allows the incumbents of the automotive industry to track defects in automobiles and respond to customer concerns, thereby reducing the product dispatch time in the field. Apart from pulling product data from engineering applications, systems, and custom databases; PLM software can also track the functionality throughout the lifecycle of the product, thereby allowing the incumbents of the automotive industry to identify and resolve core issues affecting the customer experience. When it comes to the transportation industry, PLM software can potentially help in minimizing errors in shipments, thereby leading to low product damage, on-time order delivery, higher productivity, better alignment with customer requirements, and complete regulatory compliance. These factors are anticipated to drive the adoption of PLM software by the incumbents of the automotive and transportation industries.

Global product lifecycle management market share, by end use, 2020 (%)

The growing demand for PLM solutions across other industries and industry verticals, such as aerospace and defense, medical devices, pharmaceuticals, consumer products, and retail, also bodes well for the growth of the market over the forecast period. Limited budgets, intensifying competition, and mounting backlogs of commercial aircraft delivery are typically driving the demand for PLM solutions from the incumbents of the aerospace and defense industry.PLM software can particularly help in compliance management and in adapting to the growing product variety while nurturing product innovation and reducing the time to market. PLM solutions can also help in aligning dissimilar product development practices, especially after mergers and acquisitions, and subsequently in controlling the manufacturing costs.

Regional Insights

North America dominated the global market in 2020 with a market share of over 35%. North America has always been a leader in incorporating the latest, advanced IT and telecommunications technologies. Large enterprises in North America are particularly upgrading their PLM solutions in line with the evolving technology trends to aid in customer-centric product development. Besides, North America is also home to some of the leading market players, which also bodes well for the growth of the regional market.

Asia Pacific is estimated to witness significant growth over the forecast period. The continued infrastructure development and industrial expansion, particularly in emerging economies, such as India and China, among other Asia Pacific countries, is primarily expected to drive the growth of the Asia Pacific PLM market. In Asia Pacific, several large enterprises operating across diverse industries and industry verticals, including aerospace and defense, electronics, automotive, and telecommunications, are focusing on transforming their respective engineering processes and product development functions and are hence aggressively deploying PLM tools. Such trends bode well for the growth of the Asia Pacific regional market over the forecast period.

Key Companies & Market Share Insights

The market players are investing aggressively in research and development activities, improving their internal processes, improving their existing products, and developing new products as part of the efforts to acquire new customers and increase their respective market shares. They are also focusing on strategic mergers and acquisitions and partnerships to develop technologically advanced products and gain a competitive edge in the market. For instance, in June 2020, SAP SE announced a partnership with Siemens AG, a multinational conglomerate company based in Germany that primarily offers products related to automation, electrification, and digitalization. The partnership envisages leveraging the expertise of both the companies and bringing together complementary solutions for supply chain, product lifecycle, and asset management and delivering a new, innovative, and collaborative business model fostering industrial transformation.

Market players are particularly investing in research & development activities to drive organic growth. For instance, in June 2019, PTC Inc. announced enhancements to its WINDCHILL PLM platform with integrated systems engineering and software management capabilities. The enhancements would allow customers to leverage a combined, up-to-date digital thread of product information comprising requirements and system design. Some of the prominent players operating in the global Product Lifecycle Management (PLM)market are:

  • ANSYS, Inc.

  • Aras Corporation

  • Arena Solutions, Inc.

  • Oracle Corporation

  • SAP SE

  • AUTODESK, INC.

  • Siemens AG

  • PTC Inc.

  • DassaultSystèmes

  • Synopsys Inc.

Product Lifecycle Management Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 26.86 billion

Revenue forecast in 2028

USD 43.64 billion

Growth rate

CAGR of 7.2% from 2021 to 2028

Base year for estimation

2020

Historical data

2018 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Software, deployment, end use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa (MEA)

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico

Key companies profiled

ANSYS, Inc.; Aras Corporation; Arena Solutions, Inc.; Oracle Corporation; SAP SE; AUTODESK, INC.; Siemens AG; PTC Inc.; DassaultSystèmes; Synopsys Inc.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


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 2018 to 2028. 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, 2018 - 2028)

    • Portfolio Management

    • Design & Engineering Management

    • Quality & Compliance Management

    • Simulation, Testing, & Change Management

    • Manufacturing Operations Management

    • Others

  • Deployment Outlook (Revenue, USD Million, 2018 - 2028)

    • On-premise

    • Cloud

  • End-use Outlook (Revenue, USD Million, 2018 - 2028)

    • Aerospace & Defense

    • Automotive & Transportation

    • Healthcare

    • IT & Telecom

    • Industrial Equipment & Heavy Machinery

    • Retail

    • Semiconductor & Electronics

    • Others

  • Regional Outlook (Revenue, USD Million, 2018 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa (MEA)

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