Increased Investments in Product Research to Drive Gains in the Global Product Lifecycle Management Market, 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) markets. Global market for Product Lifecycle Management (PLM) is projected to reach US$44.2 billion by the year 2017. Growth will be primarily driven by waxing competition, effervescently changing marketplace scenarios, and the ensuing need to keep an eagle’s eye on changing customer preferences. All of these factors sharpen the need for effective product lifecycle management as a tool to navigate through changing customer requirements and to enable efficiencies in product engineering and marketing. The growing trend of outsourcing research and design activities to third party service providers is additionally helping generate robust demand for PLM in Asian-Pacific, led by countries such as China and India, which are a growing hub for design outsourcing.

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

Follow us on LinkedIn – Ever growing competition, blistering pace of innovation and commensurately shrinking product lifecycles have shortened the period between new product introduction, growth, maturity and terminal decline. The ensuing need to flexibly and swiftly react to changes in customer demands, and develop superior products in shorter timeframes creates a need for PLM solutions. The growing complexity of modern supply chain additionally catapults PLM as a collaborative tool between manufacturers, component suppliers, and other specialist partners in the supply network. PLM, in other words, helps the entire supply network to optimally manage product lifecycle with reduced time, ease, and cost effectiveness. Therefore, benefits, such as, on-schedule product launches, first mover advantages, improved brand value, consumer loyalty, cost effective adherence to regulatory requirements, reduced product development costs, among others, are resulting in companies paying increased attention to PLM solutions. Return on investment (ROI) on adroit PLM strategies is typically manifested in the form of improved market share, superior brand building and maximum milking of revenues from the product during its life in the marketplace. The growing base of product related information included in the PLM application suite, such as, component event management, product configuration management, regulatory compliance, computer-aided process planning, and inclusion of sales related information, among others, is helping PLM change character from being a mere engineering tool to full enterprise application.

In this regard, the logical integration of PLM into Enterprise Resource Planning (ERP) to allow for data flows from PLM to ERP and ERP to PLM, is beginning to gather momentum. In the upcoming years, as ERP & PLM integration reaches saturation, PLM is forecast to be integrated into the wider enterprise ecosystem comprising of quality management systems (QMS), Supplier Relationship Management (SRM), Content Management System (CMS). The trend will be largely fuelled by manufacturer’s efforts to achieve greater downstream visibility.

Another interesting trend worthy of note is the growing popularity of cloud based on-demand PLM services/solutions and the initial impetus extended by the 2007-2009 recession to push cloud based PLM out of its orbit. The bad economy has been feeding the market for cloud computing as cash, and revenue starved companies prowl for IT solutions that are cost-effective, require minimum to zero investments, and low management of computing resources. Technically, the feature of multi-tenancy, or the ability to scale up or scale down services on demand, makes fiscal sense in taut economic conditions. Simplicity in implementation and low costs are prime factors driving adoption of clouds by large and small enterprises alike. The rise in the number and variety of vendor products/offerings in this space will additionally drive acceptance.

The continuous need among companies to reduce lead times and development cycles, provide innovatively superior quality products, maintain flexibility for executing mass customization, reduce errors in product prototyping and design, and nurture the ability to integrate engineering workflows to ensure rapid and market responsive product changes, will help ensure the creation of steady demand for PLM solutions in the upcoming years. Growth will also be driven by the expansion in the use of PLM away from the traditional confines of the manufacturing industry into newer industries, such as, packaging, pharmaceuticals, construction, oil & gas, life sciences, and mining. Expansion of PLM functionality is also triggering newer application possibilities for PLM. For instance, new generation PLM solutions are designed to support not just end-to-end product development processes but also to enable complete traceability for regulatory compliance. Process & Life Sciences industries, for instance, are characterized by a high need to conform to regulatory standards, and as a result environmental and regulatory compliance PLM (ERC-PLM) is witnessing increased adoption.

IT spending in Europe currently remains nervous, as sentiments in the IT industry continues to swing between hopes and fears. With mixed signals emanating from the unfolding drama surrounding the crisis, it still remains too early on to forecast the reactive impact on demand for IT solutions in the region. While no easy and immediate solutions exist for Europe’s macroeconomic imbalances, current economic data leaves room for hope. The currently jumpy yet improving “Business Climate Indicator” in the EU mirrors the guarded optimism prevailing in the marketplace. Also, there exists little signs of changes in corporate spending on critical IT products and services, and against this backdrop demand for PLM solutions is expected to hold up in the year 2012.

As stated by the new market research report on Product Lifecycle Management, North America and Europe represent equally large markets worldwide. Asia-Pacific represents the fastest growing region trailing a CAGR of 8%, over the analysis period. Growth in the region will be driven by the increase in manufacturing prowess of Asian countries and continued shifting of manufacturing/production bases into the region.

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 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 –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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