Published Date : 18 May 2023
The global product lifecycle management market value is expanding to USD 71.37 billion in 2023 and is expected to touch around USD 120.38 billion by 2030, growing at a noteworthy CAGR of 7.7% from 2022 to 2030.
The development of smart goods and factories as well as the increased need for cloud-based product lifecycle management (PLM) solutions for secure IT infrastructure are the main drivers anticipated to fuel growth.
The management of a good as it progresses through the stages of its product life is known as product lifecycle management, or PLM for short. These are the market introduction, market growth, market maturity, and market decline.
It's sufficient to know for the time being that product lifecycle management is a complex procedure. Everything, from the product's creation to its promotion, is included. Controlling that process is crucial since it supports executives' decision-making on everything from product pricing to marketing, growth, and cost-cutting. The product lifecycle refers to how a company addresses the many stages of a product's development, from conception through decline. All phases of the procedure are included in it, from development through production, marketing, and client segmentation. Product development timelines may be sped up, production can be ramped up or down, and marketing efforts can be concentrated. In order to simplify tasks, successful product lifecycle management must integrate diverse teams inside the firm as well as external businesses. If done correctly, this can result in a product that outperforms its rivals on the market.
Due to its solid financial standing, North America has been able to make significant investments in cutting-edge products and technologies that have given it a competitive advantage in the market. Other significant product lifecycle management software providers are also present in the area, including IBM Corp. (United States), PTC Inc. (United States), and Oracle Corporation (United States). As a result, there is fierce rivalry among the participants.
North America's automobile industry is expanding significantly. PLM software is mostly utilized in the product development stage, which starts long before manufacturing begins in the automobile sector since the region's economic growth directly affects the sales of passenger cars and commercial vehicles. It guarantees the modern electronics, embedded software, and safety features of automobiles.
Throughout the projected period, the Asia-Pacific region is anticipated to grow at the quickest pace, 15.23%. Numerous sizable businesses in the Asia-Pacific region, including those in the automotive, aerospace, defense, telecommunications, and electronics sectors, are putting a lot of effort into modernizing their engineering processes and product development departments. They are also aggressively implementing product lifecycle management tools.
Product Lifecycle Management Market Report Scope:
|Market Revenue in 2023||USD 71.37 Billion|
|Projected Forecast Revenue in 2030||USD 120.38 Billion|
|Growth Rate from 2022 to 2030||CAGR of 7.7%|
|Largest Market||North America|
|Forecast Period||2022 to 2030|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
Due to the existence of multiple international competitors, the product lifecycle management (PLM) software industry is extremely competitive and fragmented. Several international businesses are investing in R&D using the most recent software approaches, which is intensifying competition in the industry.
The following are a few of the key companies in the global product lifecycle management market:
Market Drivers: The market will grow via increasing production of autonomous vehicles
The future adoption of autonomous cars will provide numerous, more complicated obstacles for those developing them, forcing them to reassess their current procedures and toolkits.
Fully functional autonomous driving systems demand some of the most complex software implementations that the auto industry has ever encountered for combining various data feeds, such as information from sensors, traffic data from the cloud, and data coming from other vehicles or infrastructure, and tying it all into the electronic and mechanical components of the vehicle to create a network of onboard systems that all work reliably together without user input or correction.
One major trend anticipated to propel the PLM software market in the automotive industry during the projected period is the growing usage of digital manufacturing and the increasing demand for autonomous vehicles. For instance, Siemens and Applied EV established a cooperation with the EV business in October 2022 to utilize Siemens' PLM software to support the design, assembly and quality assurance of autonomous vehicles. By improving change management and quality, Siemens' software was assisting the EV company in meeting the rising demand for completely autonomous vehicles.
Market Restraints: Low adoption of small and medium enterprises
PLM exposure has mostly been seen in sectors like the automobile, electronics, and aerospace that have diverse, intricate product lines and extensive supplier networks. Mid-sized businesses understand the value of PLM, but they are hesitant to deploy it because of their limited IT resources, reluctance to any changes in standard operating procedures (SOPs), uncertainty about overall costs, and potential user disruption. The high cost of implementation, changes to company procedures, and a lack of internal resources are some of the major problems SMEs confront. Thus, throughout the anticipated period, these factors are anticipated to limit the expansion of the worldwide product lifecycle management (PLM) market.
The Internet of Things (IoT) is bringing more devices online, and designers and engineers stand to gain significantly more insight into goods in use as well as the potential to upgrade products that are already in customers' hands. This enables producers to continue producing new consumer value over the course of the product lifecycle, as McKinsey emphasizes.
Businesses will attempt to update their product development processes through green product design, production, and logistics with the aim of attaining full supply chain sustainability as sustainability continues to gain prominence.
PLM systems are increasingly being delivered in the cloud as "software as a service," similar to other forms of corporate software (SaaS). Due to the increased accessibility of PLM for smaller businesses, efficient product development teams will continue to be driven by collaboration as their workforces become more dispersed.
In 2022, the design and engineering management market share was above 35%. With product life cycle management software, a business may effectively and efficiently manage information across a product's full existence.
Throughout the projected period, the market for simulation, testing, and change management is anticipated to experience a notable CAGR of 10.56%. Organizations may enhance product performance and drive and expand simulation use across the product lifecycle with the help of simulation and test management tools.
In 2022, the cloud sector had the highest revenue share at over 77%. The cloud has emerged as the most popular method for PLM deployment, and it is anticipated that this trend will continue during the projection period. The specialists in the IT sector note that about 62% of workloads are carried out by hosted cloud services.
Throughout the projection period, the on-premise category is anticipated to grow at a noteworthy CAGR of 8.3%. By integrating cutting-edge technologies like the Internet of Things (IoT) and big data, on-premises solutions assist organizations in gaining a thorough understanding of the trends, challenges, and developments in the market and in applying effective and efficient marketing and manufacturing decisions.
In 2022, the segment that dominated sales with a share of almost 28% was automotive and transportation.
Throughout the projection period, the aerospace & defense segment is predicted to post a noteworthy CAGR of 10.78%. Military aerospace and defense firms are seeing an increase in demand for lifecycle management solutions, which may be due to the increased desire for technologically sophisticated solutions that might perhaps streamline the core processes.
By End Use
By Organization size
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