Global Market for Product Lifecycle Management (PLM) to Reach $44.2 Billion by 2017, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Product Lifecycle Management (PLM) market. Although tempered by the recent economic recession, the global market for product lifecycle management (PLM) is forecast to achieve steady growth in the short to medium term period to reach $44.2 billion by the year 2017. Growth in the market over the next few years will be primarily driven by increased corporate focus on achieving collaborative product development/innovation, cost reduction and improvements in time to market. Robust demand from Asia-Pacific also augurs well for the market.

Product Lifecycle Management (PLM): A Global Strategic Business Report

Effective product development and management of the product during its life in the market has grown in importance over the last few decades, driven by rapidly changing dynamics of competition in the marketplace. Optimally timed decisions revolving around product lifecycle lengthening and strategies to inject new life into the product, influences corporate profitability by helping companies ensure product relevance in a changing marketplace. Against this backdrop, Product Lifecycle Management (PLM), which helps the entire supply network to optimally manage product lifecycle with reduced time, ease, and cost effectiveness, has grown in popularity.

However, hurting declines in manufacturing, shortage of credit, a still volatile consumer market, and the bearish expectations on the recovery of IT spending, have all combined to squeeze opportunities for the global Product Lifecycle Management market during 2009. Recession-induced cutbacks in enterprise infrastructure spending and the subsequent delay, downsizing and cancellation of several pending projects have especially squeezed vendor revenues during that year. Also with IT adoption taking a direct hit due to weak corporate bottomline, all application segments within the traditional EAS market, including product lifecycle management (PLM), ERP, supply chain, human capital management (HCM), and CRM witnessed dampened market conditions during the period.

Although hurt by the recession, PLM market fared better in comparison to most other areas of enterprise IT. This is primarily because all areas of enterprise application software (EAS) including PLM require continuous investments to ensure against corporate obsolesce, and loss of competitiveness by enabling quick identification of changing customer purchasing patterns, shifting market fundamentals and timely nailing down of bottlenecks, and market disruptions. All of these help improve a company’s profitability as every dollar saved directly shores up the corporate bottom line. Also, cost cutting measures and blanket spending freezes, which are typically knee jerk reactions to a deteriorating economic climate, cannot continue for long in the Enterprise IT industry, especially so for PLM which is a business necessity. Additionally, the increasing complexity of environmental compliance, financial regulations, supplier relationships, global trade management, changing distribution dynamics, supply and production equations, make PLM a mission critical application.

In the post recession period, growing corporate awareness over the importance of product innovation as a key enabler of competitive differentiation in the market and the ensuing commitments to invest in improvements in time-to-market, collaborative product development/innovation, product quality and cost reduction, will create increased demand for PLM applications and solutions, especially cPDm. Market undertones especially point towards growing flavor towards PLM suite of applications that run in the cloud. The convergence of cloud computing & PLM is forecast into blow into a major trend in the upcoming years, thus driving market prospects for overall PLM market. Key factors driving the convergence include cost effectiveness of cloud computing business model, inability of SMBs to invest in expensive in-house infrastructure, and constant pressure among companies to quicken their pace of innovation and time to market.

Advantages of PLM offered as a plug & play Software as a Service (SaaS) include cost effective option of subscribing to PLM software as per need that eliminates the need for purchasing software licenses, middleware, database or hardware, enables easy customization, and offers high levels of scalability and reliability. Cloud based on-demand PLM services/solutions help replace network infrastructure by eliminating the need for provisioning and management tools required to run the application in-house. The pay as you go option additionally allows the customer to expand capacity based on real needs. And together with the rapid implementation benefits, the concept is forecast to benefit SMBs, and therefore result in windfall gains in this customer cluster.

As stated by the new market research report on Product Lifecycle Management, North America is the largest regional market for PLM. Asia-Pacific remains the fastest growing regional market for PLM, with revenue from the region growing at a CAGR of more than 8.0% over the analysis period. Rapidly waxing levels of industrialization, economic growth, rising GDP, continued shifting of manufacturing/production bases across industrial sectors to low cost countries such as China, and India and subsequent rise in manufacturing prowess of these countries are expected to drive market prospects for PLM in the Asia-Pacific region. PLM Tools remains the largest segment worldwide, while Collaborative Product Definition (cPDm) Management represents the fastest growing product segment in North America.

Major players in the marketplace include Accenture, Ansys Inc., Aras Corporation, Arena Solutions Inc., Autodesk Inc., Bentley Systems Inc., Centric Software Inc., Computer Science Corporation, Dassault Systemes SA, Enginuity PLM LLC, Gerber Technology, Hewlett-Packard Development Company, Intergraph Corporation, International Business Machines Corporation, Lectra SA, MSC. Software Corporation, Omnify Software Inc., Oracle Corporation, Parametric Technology Corporation, SAP AG, Selerant, Siemens PLM Software Inc., Tata Technologies Limited, and T-Systems International GmbH among others.

The research report titled “Product Lifecycle Management (PLM): A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, and key strategic industry activities. The report analyzes the global PLM market by following segments - Collaborative Product Definition Management (cPDm), PLM Tools, and Digital Manufacturing Solutions. Market estimates and projections are presented for all major geographic markets including North America, Europe (France, Germany, Italy, UK, and Rest of Europe), Asia-Pacific, and Rest of World.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Product_Lifecycle_Management_PLM_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
E-mail: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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