Product Lifecycle Management Industry Overview
The global product lifecycle management market size is expected to reach USD 54.36 billion by 2030, registering a CAGR of 8.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. Product lifecycle management is gradually advancing and witnessing continuous developments in the form of improved software capabilities. In addition to this, the demand for robust data analytics software platforms is also increasing and has been augmented by the evolution of core technologies such as blockchain, artificial intelligence, machine learning. Furthermore, the emergence of smart products and factories by small-scale enterprises is expected to open new avenues for the market players. These smart products have complex functionalities in terms of connectivity, security compliances, and others. Hence, the increasing demand for connected devices is anticipated to drive the growth of the product lifecycle management market over the forecast period.
Over the past few years, the product lifecycle management market has been witnessing several new developments, particularly in the end-use sectors to increase transparency in supply chain & manufacturing processes. Product lifecycle management software has the potential to offer improved supply chain accuracy, lower lead times, and increase sales. For instance, in June 2021, Accenture, an Ireland-based company that provided professional services, acquired DI Square, a Japan-based IT company specialized in data analytics software, for firm’s consulting for product lifecycle management (PLM) and application lifecycle management (ALM) systems integration. This acquisition of DI Square will increase Accenture’s engineering expertise for the automotive and other manufacturing clients in Japan and other markets.
The growing need for the latest IT technologies, such as cloud computing, Artificial Intelligence (AI), big data, and communication technologies, such as 5G, is expected to open new opportunities for the adoption of product lifecycle management solutions in various end-use industries. Several large enterprises are already pursuing a cloud-first strategy for deploying their enterprise software and other systems. It has led to the amalgamation of interconnected devices, robots, and a quick knowledge network within a factory environment. Moreover, the PLM cloud deployments are mostly focused on non-conventional industries and small and medium enterprises. It allows the manufacturers to consolidate information about product development, streamline or change orders and requests, and improve communication with the suppliers. In addition to this, the increasing specialization in customer experience, rapid implementation times, and deeper integration capabilities are propelling the growth of the market over the forecast period.
Product Lifecycle Management Market Segmentation
Grand View Research has segmented the global product lifecycle management market based on software, deployment, end use, and region:
Based on the Software, the market is segmented into Commercial Vehicles, and Passenger Vehicles.
- 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.
- 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.
Based on the Deployment, the market is segmented into On-premise, and Cloud.
- 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.
- 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.
Based on the End-use, the market is segmented into Aerospace & Defense, Automotive & Transportation, Healthcare, IT & Telecom, Industrial Equipment & Heavy Machinery, Retail, Semiconductor & Electronics, and Others.
- 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 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.
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.
Order a free sample PDF of the Product Lifecycle Management Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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