The Global Product Lifecycle Management Market size is expected to reach $41.9 billion by 2027, rising at a market growth of 6.8% CAGR during the forecast period. Product lifecycle management (PLM) is considered as the systematic management of a product when it moves across various crucial stages of its product life that include development & introduction, growth, maturity, and decline. This whole process also includes product manufacturing and marketing. Through this approach, companies can make informed business decisions, from determining prices and product promotion to expansion or even cost-cutting.
The demand for product lifecycle management software is anticipated to boost in the coming years due to the factors like increasing demand for software solutions for change management, data management, bills of materials, compliance management, cost management, and governance management. With the ongoing integration of several new technologies like augmented reality, virtual reality, Industrial Internet of Things (IIoT), and additive manufacturing with PLM solutions, the demand for PLM solutions in the upcoming years. The high adoption of various cloud-based solutions by the companies to facilitate remote working and sustain in the competitive market during the COVID-19 pandemic would accelerate the demand for PLM solutions in the market. There are several PLM software providers who are estimating their users to vigorously migrate to cloud-based solutions.
The outbreak of the global COVID-19 pandemic has a different impact on various industrial verticals of the business domain. Numerous impositions like the travel ban, lockdown, and temporary ban on manufacturing units have significantly impacted various businesses. In addition, the work from home culture has become the new normal, for which companies are digitally transforming them for better operations. This digital transformation leads to the increasing demand for advanced solutions like PLM.
As numerous organizations have adopted remote working, the deployment of cloud-based solutions by these companies has surged the demand for product lifecycle management solutions in the market. The pandemic has a positive impact on the growth of the product lifecycle management market due to the high adoption of cloud-based solutions across various organizations.
PLM solutions help in boosting productivity
In the absence of PLM solutions, a company spends more time carrying out the activities related to product lifecycle management. This requires more investment of time and cost from the company and further increasing the time to promote any product. But, by adopting PLM solutions, companies can consolidate all product data like designs, workflows, plans, and communication on a single PLM platform, which boosts the overall productivity of the organization.
Product compliance is one of the important factors in completing the process of the product lifecycle including manufacturing, sales, and service. Thus, non-compliance with regulatory standards results in critical damage to the brand image, which would affect customer retention. Though, a company can tackle this problem by using product lifecycle management solutions that help in informing the authorities about any deviation in the process.
Inflexible PLM systems result in the wastage of time or expensive workarounds
The PLM software structure is inflexible; however, engineering teams require an adaptable solution to work in a smooth manner. It results in a cause-and-effect concept wherein the product teams consider that these PLM systems hamper the progress, and thus, they usually get workarounds that have negative effects. Users would often work remotely to the system in order to accelerate the product development process.
Based on Software Type, the market is segmented into Design & Engineering Management, Manufacturing Operations Management, Portfolio Management, Simulation, Testing, & Change Management, Quality & Compliance Management and Others. The design & engineering management segment dominated the market by obtaining the highest market share in 2020. The design & engineering procedures are changing constantly along with the constant technological advancements. The collaborative and lean product development approaches are majorly used by organizations in product lifecycle management.
Based on Deployment Type, the market is segmented into Cloud and On-Premise. The on-premise deployment type helps the companies to be more flexible to tailor their IT infrastructure. In addition, this kind of deployment also enables companies to decrease their dependency on the internet. Moreover, on-premise deployment can also assist companies in safeguarding their data from any kind of online fraud and prevent the company from potential losses. These benefits would attract more companies to adopt on-premise PLM solutions.
Based on End User, the market is segmented into Automotive & Transportation, IT & Telecom, Aerospace & Defense, Retail, Healthcare, Semiconductor & Electronics, Industrial Equipment & Heavy Machinery and Others. The automotive and transportation segment procured the highest market share of the PLM market in 2020. PLM software enables the key companies of the automotive sector to track any kind of faults in automobiles and reply to customer concerns, and thus, minimizing the product dispatch time in the field. Along with extracting the product information from engineering systems, applications, and custom databases, PLM software also helps in tracking the functionality across the product lifecycle and thus, enabling the key players of the automotive industry to detect and solve any core issues negatively impacting the customer experience.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific is anticipated to register promising growth rate during the forecast period. The ongoing infrastructure development and industrial expansion, especially in developing countries like India and China, is projected to augment the growth of the product lifecycle management market in this region. Various large enterprises in the Asia Pacific, operating across numerous industry verticals like electronics, automotive, aerospace & defense, and telecommunications, are increasingly aiming at the transformation of their engineering procedures and product development operations and thus, highly implementing PLM tools. These trends are fueling the growth of the regional product lifecycle management market during the forecast period.
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; SAP SE, Tata Consultancy Services Ltd., Oracle Corporation are the forerunners in the Product Lifecycle Management Market. Companies such as Dassault Systemes SE, Autodesk, Inc., Infor, Inc. are some of the key innovators in the market.
Recent Strategies Deployed in Product Lifecycle Management Market
Jun-2021: Dassault Systèmes came into collaboration with Alstom, along with Accenture. Under this collaboration, Alstom selected Accenture and Dassault Systèmes to make the latest cloud platform for product lifecycle management (PLM), which helps in accelerating the company’s competitiveness and support its growth.
Jun-2021: Infor collaborated with Atria, one of the leading meat and food companies in the Nordic countries, Estonia and Russia. Under this collaboration, Atria selected Infor PLM for Process (Optiva) is a standardized platform for their product development across the company. Infor PLM for Process (Optiva) substituted a legacy solution including various separate applications. This would assist in supporting future digital transformation initiatives, boost and enhance R&D processes and improve industry-specific calculations.
Jun-2021: Infor came into collaboration with Tresoldi Metalli, a leading international metal-cutting service center. In this collaboration, Tresoldi Metalli deployed Infor LN, an ERP solution for manufacturing companies, to assist in enhancing production planning and control, which makes it the most efficient and effective management via the review of business procedures.
Apr-2021: Dassault Systèmes extended its partnership with Bouygues Construction. This expansion aimed to the capacity offered by Dassault Systèmes’ 3DEXPERIENCE platform to partner across the lifecycle of a project and also to develop and model product lines, wherein interactions with architects, developers, subcontractors, customers, suppliers, and operating organizations would be simplified and streamlined.
Jan-2021: Siemens collaborated with the U.S. Air Force (USAF). Under this collaboration, the U.S. Air Force (USAF) chosen Siemens’ Teamcenter software to complement the service branch’s digital acquisition and sustainment strategy for crucial systems & technologies. By offering the Air Force and other defense agencies a comprehensive enterprise PLM solution, time-sensitive and actionable information could be accessed over the starting phases of a system lifecycle, leading to reduced operational costs, fewer downtimes, and entire enhanced readiness.
Dec-2020: SAP extended its partnership with Microsoft, an American multinational technology corporation. This expansion aimed to enable users to design and run intelligent digital supply chains and Industry 4.0 solutions in the cloud and at the edge. In this partnership, SAP would utilize Microsoft Azure to operate such solutions in a software-as-a-service (SaaS) model, which assists in decreasing the customer’s requirement to manage the software and underlying infrastructure and also boosting the time to value of supply chain applications.
Jul-2020: SAP SE formed a partnership with Siemens, a German multinational conglomerate corporation. This partnership aimed to bring together companies’ software solutions for product lifecycle, supply chain, and asset management to deliver their customers with new innovation and collaborative business models, which would boost industry transformation across the world. Together, the companies would help users to break down siloes so that manufacturers, product design teams, and service managers have the data that they require to rapidly make and manage customer-centric product and service offerings.
May-2020: Dassault Systèmes extended its partnership with Persistent Systems, a technology services company. Through this expansion, Persistent Systems would add up to its digital transformation capabilities in Northern Europe. This expansion aimed to bring industrial OEMs and suppliers to the Dassault Systèmes 3DEXPERIENCE platform. In addition, the partnership would assist customers to decrease costs, enhance supplier collaboration, support agility, and accumulate better field insights for future product iterations and customer support.
Aug-2021: Accenture acquired DI Square’s consulting capabilities for product lifecycle management (PLM) and application lifecycle management (ALM) systems integration. This acquisition aimed to expand Accenture’s engineering expertise for automotive and other manufacturing customers in Japan and other markets.
May-2021: Autodesk took over Upchain, a provider of instant-on, cloud-based product lifecycle management (PLM) and product data management (PDM) solutions. This acquisition aimed to expand Autodesk’s portfolio and strengthen their commitment to provide the next-generation software platform for design & manufacturing and make more value for users by eliminating collaboration barriers and boosting efficiency and resiliency.
Jan-2021: IBM took over 7Summits, a leading Salesforce consultancy. This acquisition aimed to expand IBM’s portfolio of Salesforce services and experience design offerings and further improve IBM’s hybrid cloud and AI strategy.
Aug-2020: Accenture took over Turin-based boutique systems integrator PLM Systems. This acquisition aimed to expand Accenture’s capabilities to assist customers to enhance the way they generate, manage and get advantage from product data in design, engineering, and manufacturing.