Product Lifecycle Management (PLM) Market

Product Lifecycle Management (PLM) Market Growth Outlook

The global product lifecycle management (PLM) market is valued at US$ 45 billion in 2023 and is projected to reach US$ 98 billion by 2033, registering a noteworthy CAGR of 8% from 2023 to 2033 (forecast period).

Product lifecycle management is the process of designing, planning, producing, distributing, promoting, selling, and servicing products. Product lifecycle management is a business discipline that examines products and services at all stages, beginning with creation and continuing until they are removed from the market. PLM allows companies to keep expenses under control, reduce development time, and get products to market rapidly.

The COVID-19 pandemic wreaked havoc on the worldwide economy. The pandemic disrupted many manufacturing businesses, causing substantial supply chain gaps and delays. This prompted several businesses to accelerate Industry 4.0 adoption and digital transformation activities, increasing the demand for product lifecycle management to support the requisite growth rates.

The automotive and transportation sectors are the biggest end users of product lifecycle management solutions. The burgeoning usage of digital manufacturing and the growing incorporation of IoT in the manufacturing of smart autos are the primary factors projected to fuel the demand for product lifecycle management in the automotive industry.

• For example, Siemens PLM software offers an extensive range of smart automobile solutions for all important technical areas, from chip design to full vehicle validation.

Product lifecycle management aids in the reduction of shipment mistakes, resulting in fewer damaged goods, on-time orders, enhanced productivity, greater synchronization with customer expectations, and full regulatory compliance. Such aspects are estimated to boost the uptake of product lifecycle management software in the automotive industry.

Product lifecycle management is also widely used in the aerospace and defense industries. Budget constraints, rising global competitiveness, and an increasing backlog in commercial airplane production and delivery drive the demand for product lifecycle management systems in the aerospace and defense industries.

Moreover, the military aerospace and defense firms’ increased demand for lifecycle management tools can be ascribed to the growing requirement for technologically sophisticated solutions that can effectively streamline key operations. These solutions comprise AI, IoT-powered technologies, and other automation solutions for managing vital processes.

Siemens, one of the leading lifecycle management solution providers, provides a diverse variety of technological solutions to address the needs of large and small-scale military aerospace and defense enterprises. Companies like Siemens are developing software to help improve aircraft production performance and cut costs.

• For example, by partnering with Siemens PLM Software technologies, UEC Saturn, a Russian aircraft engine manufacturer, is gaining global prominence for its PLM software NPO Saturn.

Such aspects are projected to accelerate the growth of the product lifecycle management market over the coming years.

Report Attributes	Details
Market Size (2023)	US$ 45 Billion
Projected Market Value (2033)	US$ 98 Billion
Global Market Growth Rate (2023-2033)	8% CAGR
North America Market Share (2022)	39%
Cloud Segment Share (2022)	70%
Key Companies Profiled	Accenture Arena Solutions, Inc Aras Corporation Autodesk, Inc Dassault Systemes SA Centric Software, Inc Oracle Corporation PTC Siemens PLM Software, Inc

Which Factors are Pushing the Sales Growth of Product Lifecycle Management Solutions?

“Increasing Adoption of Integrated IoT Solutions in PLM Applications”

The adoption of integrated IoT solutions and flexible scale-up or scale-down infrastructure, supported by increasing cloud-based solution deployment in the PLM system, is likely to drive the global market. Key market players are focusing on integrating IoT applications into their PLM product offerings.

• For example, PTC successfully combined product lifecycle features with its 'ThingWorx' IoT technology in January 2020 to aid manufacturers in connecting their product operation data straight to the PLM platform.

“Development of Smart Factories & Connected Devices”

Digital transformation trends are pushing organizations in fields such as heavy manufacturing and automation to concentrate on designing and implementing next-generation smart products and factories. These smart products and factories are relatively complex to design in terms of connectivity, functionality, security compliances, and so on. Manufacturing businesses want a system that integrates electrical, mechanical, and software skills to effectively build these connected products.

To create such connected products, software providers are focusing on developing PLM software with advanced functions, such as 3D design, simulation, and authentication of the complicated behavior of smart products and production systems. As a result, the growing demand for connected devices is predicted to boost the demand for PLM solutions throughout the forecast period.

Country-wise Insights

Why is the United States Holding a Leading Position in North America?

“High Demand for ECAD & MCAD Systems and Presence of Numerous Prominent Players”

North America held 39% share of the worldwide PLM market in 2022. Due to the region's solid economic position, it can spend substantially on advanced solutions like telecommunication technologies (LTE, 5G), IoT, connected industries, augmented reality, and additive manufacturing, providing a significant advantage in the worldwide market.

Additionally, large firms are constantly updating their product lifecycle management solutions to keep up with changing technology trends to support customer-focused product development.

• For example, IBM unveiled ELM 7.0, the latest edition of its Engineering Lifecycle Management (ELM) product, in March 2021 to extend engineering processes and manage highly complicated projects. The system employs artificial intelligence to extract significant, real-time insights from engineering data.

The United States is a leading market in North America due to the high demand for electronic computer-aided design (ECAD) and mechanical computer-aided design (MCAD) systems. Moreover, the presence of numerous prominent PLM software providers in the country, including Oracle Corporation, PTC Inc, and IBM Corp, is supporting the market growth in the United States.

Which Countries are Driving Market Expansion in Asia Pacific?

“Japan & South Korea to Aid Asia Pacific Market Growth”

Asia Pacific is projected to experience significant growth during the study period. With rising industrialization and digitalization in developing nations, the region's demand for PLM solutions is increasing.

Moreover, as part of their growth objectives, several major regional firms active in varied industries, such as automotive, telecommunications, and electronics, are concentrating on reforming their product development activities and aggressively using product lifecycle management solutions.

Japan and South Korea are promoting market growth in Asia Pacific due to the increasing demand for product lifecycle management in these countries.

Why is Germany Considered a Lucrative PLM Market in Europe?

“Increasing Production of Autonomous Vehicles”

The demand for PLM solutions is growing in Europe. Germany is the largest revenue generator in the European market due to the increasing production of autonomous vehicles, which is raising the demand for PLM software.

• For example, in October 2022, Siemens and Applied EV announced a partnership to employ Siemens' PLM software to improve autonomous vehicle design, production, and quality assurance. Siemens' software was assisting the EV company in meeting the increased demand for completely autonomous vehicles through improved change management and quality.

Category-wise Insights

Why is Cloud the Preferred Deployment Model?

“Cost-effectiveness of Cloud-based PLM Solutions”

Cloud deployment has emerged as the most popular method for deploying product lifecycle management and captured 70% of the worldwide market in 2022. Cloud-based product lifecycle management solutions help businesses address significant deployment, upgrade, and customization difficulties. Moreover, scalability, security, flexibility, and data control are some of the primary aspects likely to drive the adoption of cloud-based deployment of product lifecycle management software. Furthermore, IT industry experts state that nearly 60% of workloads are performed on hosted cloud services.

Businesses all around the world are increasingly using cloud-based PLM solutions. Cloud-based implementation approaches reduce costs by minimizing infrastructure investments. Due to the low cost, small and medium-sized enterprises are more likely to use cloud-based PLM solutions.

Competitive Landscape

The global PLM market is extremely competitive due to the existence of several global companies. Key players in the product lifecycle management market are implementing growth tactics such as collaborations, technological developments, investments, and acquisitions to gain market share.

• In June 2022, Infor joined forces with Everstream Analytics, a worldwide supply chain insights and risk analytics provider, to help businesses predict supply chain disruptions. By giving data on external occurrences such as labor strikes, weather, cybersecurity, and port congestion, Evertsream's solution will boost inventory and shipment capabilities throughout the supply chain and order visibility. As part of the collaboration, Infor will incorporate its end-to-end supply chain risk assessment with the Infor Nexus multi-enterprise business network platform.
• PTC and ITC Infotech decided in April 2022 to extend their 20-year collaboration and boost customer digital transformation activities by using PTC's Windchill PLM software as a service (SaaS). ITC Infotech would buy a portion of PTC's PLM implementation services business, forming a new business unit called DxP Services. This would bring together PLM professionals from both companies.
• Simple Energy, an electric vehicle (EV) start-up, formed a collaboration with worldwide technology leader Siemens in January 2022 to increase EV mobility solutions with cutting-edge technologies. According to the agreement, Simple Energy will use Siemens' Teamcenter X, a cloud-based PLM platform that will assist the company in establishing a solid digital base for its e-mobility products. Together with Siemens, Simple Energy has enlisted Prolim, Siemens' Technology Partner, to provide world-class technology to support India's aspiration to become the world's EV capital.
• Accenture, an Ireland-based professional services firm, acquired DI Square's consulting capabilities for application lifecycle management and product lifecycle management systems integration in June 2021. Accenture's engineering capabilities for automotive and other manufacturing clients in Japan and other regions will be expanded as a result of the acquisition.

Key Segments of PLM Industry Research

• By Component :

  • Software
  • Services

• By Deployment :

  • On-premise
  • Cloud

• By End Use :

  • Aerospace & Defense
  • Automotive & Transportation
  • Semiconductors & Electronics
  • Retail & Consumer Goods
  • Industrial Equipment & Heavy Machinery
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA