Product Lifecycle Management (PLM) Market Size, Share & Industry Analysis, By Deployment (Cloud and On-Premises), By Enterprise Type (Small and Mid-Sized Enterprises (SMEs) and Large Enterprises), By Industry (Automotive, Aerospace and Defense, Manufacturing, Healthcare, Retail, and Others), and Regional Forecast, 2024-2032

The global Product Lifecycle Management (PLM) market size was valued at USD 24.82 billion in 2023. The market is projected to grow from USD 26.24 billion in 2024 to USD 46.81 billion by 2032, exhibiting a CAGR of 7.5% during the forecast period.

A Product Lifecycle Management (PLM) solution allows teams from different disciplines and locations to collaborate effectively with partners and customers by using the latest product information. It helps organizations centralize, distribute, automate, and secure product data, thereby regulating the product development process. Additionally, PLM software consolidates business systems, data, personnel, and processes involved in product development.

The implementation of PLM software is being driven by the growth in smart manufacturing, as a result of the adoption of IoT technologies and 3D printing/modeling. Furthermore, the increasing focus on smart products is leading to a rise in demand for cloud-based PLM solutions. Technological trends, such as engineering and Augmented Reality (AR) and additive manufacturing are expected to fuel the market during the forecast period. These technologies are projected to encourage companies to enhance their PLM solutions with new capabilities, leading to increased demand.

• For instance, America Makes, a top collaborative partner in Additive Manufacturing (AM)/3D printing (3DP) technology and talent development, decided to transition to AWS and utilize the Siemens PLM Teamcenter solution for its digital storefront. The company saved around USD 30 million compared to the expense of developing an in-house solution. This decision has contributed to the development of new solutions to drive the growth of the Product Lifecycle Management market growth.

The COVID-19 pandemic led to an increased adoption of cloud technology by businesses to support remote work and maintain operations. Many organizations also turned to remote work and utilized cloud-based solutions, which boosted the demand for Product Lifecycle Management solutions. Overall, the pandemic had a positive effect on the market's growth as a result of the widespread adoption of cloud-based solutions by various organizations.

GENERATIVE AI IMPACT

Deployment of Generative AI across all Product Lifecycle Levels to Address Challenges Will Boost Market Growth

The present product life cycle management solutions have helped simplify various characteristics of product development. However, there are still challenges, predominantly in areas where LLMs (Large Language Models), such as GPT-3.5 could provide solutions. The various challenges with the current systems include data fragmentation, time-consuming work operations, inadequate decision-making aid, difficulty in predictive insights, incomplete support for innovation and creativity, and others.

Numerous applications of Generative AI are poised to upgrade Product Lifecycle Management systems, providing enterprises with an added advantage in today's competitive market. As enterprises strive for superior efficiency, agility, and innovation, Generative AI plays an essential role in PLM.

• According to industry experts, Generative AI would play a part in 70% of text- and data-driven heavy tasks by 2025, which was less than 10% in 2023. They have also predicted that by 2026, Gen AI competencies would be applied in 50% of PLM solutions, which is 5% presently.

Product Lifecycle Management (PLM) Market Trends

Adoption of Digital Twin Technology to Enhance Simulation and Analytics Capabilities of PLM Software

Digital twins are advanced virtual representations of physical products and assets that are seamlessly integrated into Product Lifecycle Management systems. They enable manufacturers to create virtual duplicates of real-world products. Digital twins capture real-time data from sensors and connected devices, providing a comprehensive and accurate representation of the physical product's behavior and performance throughout its lifecycle. By using digital twins within the PLM software, businesses can perform advanced analytics, gain valuable insights, and conduct detailed simulations.

The cutting-edge technology enables manufacturers to optimize designs, predict performance outcomes, identify potential issues, and conduct virtual testing. This significantly reduces development costs and accelerates time-to-market for innovative products.

• In March 2024, NVIDIA announced the launch of Omniverse Cloud APIs to empower digital twin software tools for industries. The five new Omniverse Cloud programming interfaces allow developers to effortlessly incorporate core Omniverse mechanisms straight into the present design and automation software applications for digital twins.

Request a Free sample to learn more about this report.

Product Lifecycle Management (PLM) Market Growth Factors

Rising Adoption of Green Engineering to Enhance Demand for PLM Software

Manufacturing enterprises make decisions that can have a substantial influence on the future of the ecosystem and the people living within it. Some solutions allow 'eco-friendly' product development progressions, which help enterprises lessen their carbon footprint. Green Engineering is the practice of making use of Product Lifecycle Management data, which helps measure the C02 emissions of a product and estimates supply chain and design decisions while taking care of sustainability.

Along with the environmental and social causes they make, green strategies can also have numerous business benefits, such as:

• Minimization of raw materials and energy ingestion.


• Growth in top- and bottom-line with the help of reuse and recycling programs.


• Capability to compete in markets with comprehensive and strict environment, safety, and health regulations.


• Enhanced goodwill and brand reputation.


• Improved enterprise culture and team member engagement.

These benefits of using green engineering mechanisms help in the overall growth of the businesses, and PLM capabilities and features support green engineering with Model-based Systems Engineering (MBSE), supplier & component management, concurrent engineering, classification of parts, and many such capabilities. Hence, the demand for PLM solutions supporting green engineering mechanisms is helping the market grow.

RESTRAINING FACTORS

Complexity of PLM Software and Lack of Standardization to Impede Market Progress

Engineering software, such as Product Lifecycle Management comes with various features, tools, and integration technologies, making the software complex to use. This complexity can be challenging for new users. Many engineers and designers seek feature improvements that can enhance individual productivity and advance their proficiency in the engineering design process.

The software's complexity makes it difficult for new users or those with limited time and resources to learn and use it. It requires a high-end computer with ample storage and memory, making it less portable and incompatible with low-power devices, such as tablets and laptops. Consequently, the overall productivity is reduced. The complexity of the PLM software can lead to various issues, such as system difficulties, storage problems, costly errors, and others, thereby hindering its usage and development.

Product Lifecycle Management (PLM) Market Segmentation Analysis

By Deployment Analysis

Cloud Segment Dominated Market due to Advancements in PLM Capabilities

By deployment, the market has been classified into cloud and on-premises. The cloud deployment segment dominated the market share in 2023 and is expected to witness the highest growth rate during the forecast period. The major factors driving the adoption of cloud computing are increasing digital transformation across verticals, growing penetration of internet & mobile devices globally, and rising usage of big data. According to industry experts, the public cloud spending of global end-users is estimated to reach over USD 650 billion in 2024 and exceed USD 1 trillion by 2027. Key companies are shifting toward adopting cloud-based enterprise software in their business system, which is expected to drive the Product Lifecycle Management market share.

The on-premises segment held a decent market share in 2023 due to the flexibility it provides to customers as transactions are only done once. Costs are relatively lower compared to cloud expenditures. These solutions also allow organizations to reduce their dependence on internet infrastructure and protect their data from online fraud and potential losses. These benefits are expected to encourage organizations, especially large ones, to choose on-premises deployment.

By Enterprise Type Analysis

Adoption of PLM Software Increased Among Large Enterprises to Enhance Collaboration

By enterprise type, the market has been classified into small and mid-sized enterprises (SMEs) and large enterprises.

The large enterprises segment held the major market share in 2023. Large businesses with extensive product offerings benefit from using advanced Product Lifecycle Management solutions to streamline processes, enhance collaboration, and ensure compliance across their global operations. These organizations have the financial means to invest significantly in state-of-the-art PLM solutions, which in turn fosters innovation and helps them maintain a competitive edge.

Furthermore, the SMEs segment is projected to showcase the highest CAGR over the forecast period. According to industry experts, small and medium businesses that utilize cloud computing experienced a 21% increase in profit and a 26% faster growth rate over the past few years.

By Industry Analysis

To know how our report can help streamline your business, Speak to Analyst

Healthcare Industry to Witness Remarkable Market Growth Owing to Need to Maintain Compliance

Based on industry, the global market is categorized into automotive, aerospace and defense, manufacturing, healthcare, retail, and others. The healthcare sector segment is likely to experience the highest growth rate in the coming years. The healthcare industry is highly regulated to ensure patient safety and product efficacy. Medical device manufacturers must comply with various standards and regulations, such as ISO 13485 and FDA rules. Product lifecycle management solutions help companies manage documentation, track design changes, and maintain compliance throughout the product lifecycle, reducing the risk of non-compliance issues and potential penalties.

The automotive industry segment accounted for the largest market share in 2023. The rising integration of Internet of Things (IoT) in the manufacturing of smart automobiles and rising use of digital manufacturing are major trends likely to drive the market growth in the automotive sector. For example, Siemens' product lifecycle management software offers a comprehensive range of smart vehicle solutions for all major technical areas, from chip design to full vehicle validation.

• In October 2022, Siemens and Applied EV announced a partnership with an EV company to use Siemens' PLM software for improving the design, assembly, and quality assurance of autonomous vehicles. Siemens’ software was instrumental in enabling the EV firm to meet the increasing demand for fully autonomous vehicles by improving change management and quality control.

REGIONAL INSIGHTS

The global market scope is studied across five regions, namely North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

To get more information on the regional analysis of this market, Request a Free sample

In 2023, North America held the highest market share due to the rise in cloud computing usage, availability of major computing hardware & software companies, fast advancements in digitization, and strong investments in technical research & development in the region. Moreover, the automotive sector is experiencing significant growth in North America. Economic development in the region directly affects the sales of both automobiles and commercial vehicles. As a result, PLM software is mainly utilized during the product development stage, which starts well before the actual manufacturing of automobiles.

• According to the International Energy Agency, in the U.S., more than 320,000 electric cars were sold in the first quarter of 2023, which was 60% more than the sales in the same period in 2022. Thus, the automotive sector emerged as a primary user of PLM software in North America over the past few years.

Asia Pacific is expected to experience the highest CAGR in the global market. Various initiatives, such as the Regional Comprehensive Economic Partnership (RCEP) and the Southeast Asian Manufacturing Alliance (SMA) aim to connect businesses with a network of trusted partners to confidently grow and navigate in the diverse region of Southeast Asia. In particular, RCEP facilitates economic integration with nearly 30% of the world's population. As Southeast Asia is transforming into a manufacturing and logistics center with a low-cost base, the incorporation of digital technologies into manufacturing processes is also crucial to its future strategy, with the widespread adoption of Industry 4.0.

Moreover, the PLM software market in Europe is experiencing substantial growth due to the increasing influence of Industry 4.0 and IoT. Industry 4.0, which is a strategic initiative established by the government and the Ministry for Economic Affairs and Energy (BMWI), prioritizes digitization, product connectivity, value chain, and business models. This initiative is anticipated to strengthen the importance of PLM software in smart manufacturing facilities. Eurostat, which is the statistical office of the European Union, had estimated that industrial production (seasonally adjusted) in June 2022, increased by 0.6% in the EU and 0.7% in the Eurozone, compared to May 2022. In May 2022, industrial production had increased by 2.1% in the Eurozone and by 1.9% in the EU.

The use of Product Lifecycle Management is on the rise in the Middle East & Africa, and South America. Increased investment in digital transformation in South American countries, such as Brazil and Argentina is driving the market growth. Additionally, the governments of the UAE and Saudi Arabia are ramping up investments in intelligent design, PLM/CAD software, and digital manufacturing. This initiative is significantly boosting the Product Lifecycle Management market in the Gulf Cooperation Council (GCC).

KEY INDUSTRY PLAYERS

Product Enhancements and Strategic Collaborations to Become Prominent Strategies among Key Market Players to Increase Profitability

The global market is competitive, with the presence of prominent players, such as Autodesk, Siemens, Rockwell Automation, and Aegis Software, among others. These players are focusing on offering modernized solutions with the integration of emerging technologies and other software, such as CAD, PDM (Product Data Management), ERP, and others while developing tools and fulfilling the changing demands of customers. They are, therefore, increasing their market share by investing in projects, introducing new products in the market, and forming various partnerships.

• In May 2024, Siemens announced a partnership with Microsoft to offer AI-driven solutions for resistant PLM with Azure. The continued partnership builds on the introduction of the Teamcenter application on Microsoft Teams, which links service teams and frontline factories to the engineering and design teams through Siemens' Teamcenter software for PLM.

List of Top Product Lifecycle Management (PLM) Companies:

• PTC (U.S.)


• Siemens AG (Germany)


• Dassault Systèmes SE (France)


• Autodesk Inc. (U.S.)


• SAP SE (Germany)


• Oracle Corporation (U.S.)


• Aras Corporation (U.S.)


• Centric Software Inc. (U.S.)


• HCL Technologies Limited (India)


• Infor Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS

• May 2024 – Clarks announced a partnership with Centric Software for its globalization extension platform. Centric Software’s PLM software helped Clarks plan, develop, design, source, price, and sell products, such as apparel, footwear, and others to accomplish strategic and operative digital transformation objectives.


• January 2024 – PEACEBIRD Group collaborated with Centric Software to enhance its product-driven digital transformation. PEACEBIRD implemented Centric PLM and Centric Visual Boards as a crucial component of its global approach for consumer-driven omnichannel success.


• July 2023 – Deloitte acquired d-twin, a Melbourne-based PLM provider. D-twin specializes in the delivery of Siemens-enabled PLM solutions. The acquisition enabled the company to expand its PLM capabilities and services.


• June 2023 – CONTACT Software announced the launch of a cloud PLM solution, a new ready-to-use solution for end-on digital product development. The codeless software unifies organization-level PLM features with advanced cloud mechanisms and delivers innovative IT security along with robust DevOps facilities.


• April 2023 – Siemens and Microsoft partnered to develop a new application that integrates Siemens’ PLM software with Microsoft Teams. The application utilizes Azure OpenAI Service language models to enable better collaboration and communication between employees and automate tasks, such as code creation and debugging.

REPORT COVERAGE

The research report includes prominent regions across the globe to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry trends and an analysis of technologies that are being adopted quickly on a global scale. It also emphasizes on the market’s drivers and restrictions, allowing the reader to obtain a thorough understanding of the industry.

An Infographic Representation of Product Life cycle Management Market

View Full Infographic

To get information on various segments, share your queries with us

REPORT SCOPE & SEGMENTATION