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Product Life Cycle Management (PLM) Market Size, Share & Industry Analysis, By Deployment (Cloud and On-Premises), By Industry (Discrete Industry and Process Industry), and Regional Forecast, 2019-2026

Region : Global | Published Date: Nov, 2019 | Report ID: FBI100370| Status : Published

 

KEY INDUSTRY INSIGHTS

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The global product life cycle management (PLM) market size stood at USD 16.76 Billion in 2018 is expected to reach USD 26.73 Billion by 2026, exhibiting a CAGR of 6.3% during the forecast period.


Product life cycle management (PLM) is an information system, that is used to manage and optimize products while it moves over the stages of development, growth, maturity, and decline. PLM is a set of plans and strategies used by business management to improve the product while it drives through its life-cycle phases. Some of the key benefits of product life cycle management are to enhance product quality and reliability, reduce prototype costs, and identify sales opportunities for revenue generation.


PLM provides a framework for product optimization and improves forecasting to minimize resources and material costs. Also, PLM helps the companies to draw effective operational strategy for their activities depending on consumer behavior. Furthermore, Industrial Internet of Things (IIoT) is one of the key driving factors for the overall market growth. Referring to multiple secondary sources, the global IIoT industry is projected to grow between 20-40% per annum and would be worth USD 1 Billion by the end of 2020.


The present global product life cycle management market trends are meant to determine the life cycle or age of the product. Moreover, the increasing popularity of PLM software in various industrial applications, such as predictive analytics, advanced visualization, additive manufacturing, and model-based engineering are accelerating technology adoption. Also, PLM software is adopted as a core technology solution in designing and developing advanced and smart connected products in intelligent factories. PLM solutions also help to enhance the value proposition by developing integration capabilities for small and medium enterprises.


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To effectively monitor the product life cycle, companies need to focus on their key business:


Development: In this stage, with the help of PLM software, the product is effectively designed and developed based on the need and insights of customers and emerging market trends. Also, research and upgradation of the product is a significant phase in the overall development process.


Financing: In this stage, companies need to invest in developing strategies and plans for research & development and various other marketing activities. This would help to create a strong pipeline for the product and also strengthen the geographic expansion. Further, additional investment may be needed in the declining stage to adopt more advanced manufacturing process and move to a new market. Companies need to find ways to appropriately invest throughout the life cycle in order to maximize their business profit potential. PLC system helps to provide investing strategies, including the amount to be invested and time,  and the investment is done.


Manufacturing: To generate more income, key companies need to adopt various core technologies such as cloud and AI in their manufacturing process. As the industry evolves and production increases, prices would start to decrease. The cost of manufacturing can vary and change during the life cycle. Companies also need to discover new ways of reducing cost and time throughout the manufacturing process.


Marketing: During a product’s life, the organization needs to develop various marketing and promotional activities depending on the stage of the life cycle. With the maturity of the market and product, consumer behavior for the product also changes. So, the company needs to focus on the fact that the marketing and promotion activities during the launch must be different and innovative from the campaigns that would be designed to secure the product in its declining stage.


MARKET DRIVERS


“Rising adoption of integrated IoT solutions in PLM applications”


Adoption of integrated internet of things (IoT) solutions and flexible scale-up or scale-down infrastructure backed by rising deployment of cloud-based solutions in the PLM system are expected to boost the market. Key players in this market are focused to integrated IoT applications in their PLM product portfolio. For instance, in January 2019, PTC successfully combines product life cycle capabilities with its “ThingWorx”, IoT technology, to assist manufacturers to connect their product operation data directly to the PLM platform. Other factors such as evolution in core technologies such as blockchain, AI, and machine learning are anticipated driving factors.       


“Evolution of connected devices and smart factories”


Digital transformation trends are encouraging the companies in industries such as heavy manufacturing and automation, to focus on developing and adopting next-generation smart product and factories. These smart products and factories are quite complex in developing in terms of connectivity, security compliances, functionalities, and others. To built these connected products efficiently, manufacturing companies need a solution that includes mechanical, electrical and software capabilities. To develop these connected products, software providers are focused on developing PLM software infused with advanced functionalities, namely 3D designing, simulation and authenticate the complex behavior of smart products and production system. Hence, the increasing demand for connected devices is expected to drive the growth of PLM market in forecast period.


SEGMENTATION


By Deployment Analysis


Based on the deployment of solutions, the scope of study segmented market into cloud and on-premises. Cloud-based PLM segment is expected to cover the largest market share. This growth is mainly due to the rising demand for an automated storage system with enhanced security from various industries including high-tech, electronics and others. Cloud solutions help to create enhanced communication medium between manufacturers, suppliers, and clients. Key companies in the product life cycle management market are shifting towards adopting cloud solutions-based enterprise software in their business system. With the growth of cloud solutions market, PLM market is also expected to grow in forecast period. According to sources, the global cloud service market was valued at USD 107 Billion in 2017.


Cloud-based PLM solutions help to eliminate key challenges related to implementation, up-gradation, and customization in PLM system. Cloud-based PLM solutions help to reduce capital expenditure (CapEx), time duration and also eliminates risks related to implementation and up-gradation. Further, in order to retain customers and enhance their services, software providers are focusing on developing advanced SaaS, IaaS and PaaS cloud services to provide organizations, with an approach to expand product portfolio and optimize business.


Furthermore, on-premises PLM solutions helps the organization to gain detailed understanding regarding the trends, challenges, and development in the market and further helps to apply effective and efficient marketing and manufacturing decisions by integrating advanced technologies such as IoT, big data and others. On-premises PLM solutions provide benefits such as customized self-service, broad network access, dynamic resources, and reliability.


By Industry Analysis


Based on the industry usage of PLM, the scope of study segments industry into discrete and process. Process industry is expected to grow with a decent CAGR due to fast adoption of leading-edge PLM enabling and cutting edge technologies by oil & gas, healthcare, energy & utilities, among others. Healthcare is expected to grow with the highest CAGR during the forecast period. Key companies are focusing on development of PLM solution based on advanced Platform. For example, in June 2019, Wipro Limited acquired International TechneGroup Inc., a digital engineering and manufacturing solutions company. ITI’s business solutions and offering are consolidated as a part of Wipro’s Industrial & Engineering Services business. This acquisition would help Wipro to develop and offer end-to-end digital engineering and healthcare solutions. Examples of process industry considered in the scope are life science, food & beverages, construction, and consumer goods.


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In the discrete industry, automotive, electronics, and heavy manufacturing are the primary industries embracing  PLM solutions. In 2018, heavy manufacturing contributed 26.6% of total market share. This industry is expected to grow at a CAGR  of 9.7 % during the forecast period. Key players in this market are focused on mergers and acquisition to develop industry specific solutions. For instance, in August 2017, Siemens AG acquired TASS International B. V., provider of integrated solutions. This acquisition was completed to add automated driving solutions to their portfolio. This acquisition would help to build an integrated toolchain solution for validation and verification of complex automotive functions.


REGIONAL ANALYSIS


Based on the geographical usage of PLM, the scope of study segments geography into North America, Europe, Asia Pacific, Middle East & Africa and Latin America. North America is anticpated to dominate by capturing major market share throughout the forecast period. This dominance is mainly due to the demand for mechanical computer-aided design (MCAD) and electronic computer-aided design (ECAD) system in developed countries such as the U.S. and Canada. Also, large manufacturing companies in this region are focused on adopting and upgrading their business unit with PLM solutions to set up long term technology trends in their business units to support marketing and customer-centric product development.


Further, APAC’s PLM market in the aerospace and defense sector holds excellent growth potential during the forecast period. Cloud-based PLM software is also gaining popularity in countries such as China, Japan, and India that would further drive the growth of the market. The ‘Made in India’ initiative by the Indian government focuses on various plans related to technology such as industrial internet and connected factories and products.


North America Product life cycle management Market Size, 2018

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Moreover, in Latin America and the Middle East and Africa, PLM business and deployment models are undergoing updation due to the innovation and deployment of cloud-based solutions in PLM software. PLM software demand is growing in this region due to the rising adoption of digital technologies including IoT, cutting edge technologies and industry 4.0 in various industries such as oil & gas, food & beverages and others.


INDUSTRY KEY PLAYERS


“Market leaders such as Dassault Systemes and Siemens AG would focus on strengthening the market position with respect to providing PLM solutions.“


Dassault Systemes offers comprehensive PLM functionalities to support customers throughout life cycle stages of products. Dassault offers PLM solutions which include Catia, Enovia, Solidworks, Delmia, Simulia, and others. Dassault Systemes is one of the key players in providing advanced PLM solutions, with a strong product portfolio.  


Dassault Systemes is actively working on providing industry-specific PLM solutions for a wide range of industries to fulfill their specific requirements. Further, the company is focused to strengthen their product portfolio and expand their geographic presence. For instance, In June 2017, the company extended its PLM business unit by finalizing a renewed agreement with Rockwell Collins. According to this agreement, Rockwell Collins invested in Dassault Systemes to improve its research & development, and manufacturing process and monitor its internal cost for rising complex systems. This would help both the organization to strengthen its product portfolio and expand their business unit geographically.


LIST OF KEY COMPANIES COVERED:



  • Hewlett-Packard Company

  • BigLever Software

  • PTC Inc.

  • IBM Corporation

  • Siemens AG

  • Accenture PLC

  • Dassault Systems

  • Autodesk, Inc.

  • Oracle Corporation

  • IFS

  • SAP SE



REPORT COVERAGE


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This report provides an elaborative analysis of the global product life cycle management market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global product life cycle management market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape and company profiles.


Report Scope & Segmentation








































 ATTRIBUTE



 DETAILS



Study Period



  2015-2026



Base Year



  2018



Forecast Period



  2019-2026



Historical Period



  2015-2017



Unit



  Value (USD Billion)



Segmentation



By Deployment



  • Cloud

  • On-Premises



By Industry



  • Discrete Industry

    • Automotive

    • Electronics

    • Heavy Manufacturing

    • Others (Aerospace and Defense, High Tech and Others)



  • Process Industry

    • Oil & Gas

    • Chemicals

    • Healthcare

    • Others (Pharmaceuticals, Petroleum and Others)





By Geography



  • North America (U.S. and Canada)

  • Europe (U.K., Germany, France, Italy, Spain, and Rest of Europe)

  • Asia Pacific (Japan, China, India, Southeast Asia, and Rest of Asia Pacific)

  • Middle East & Africa (South Africa, GCC and Rest of Middle East & Africa)

  • Latin America (Brazil, Mexico, and Rest of Latin America)



 


INDUSTRY DEVELOPMENT:



  • June 2018: BigLever Software merged with PTC Inc. to deliver product Data as a Service (PDaaS) solution that integrates PTC's PLM solution with BigLever's PLE Life cycle Framework. This solution would help organizations to cope with increasing complexity and engineering challenges of developing new products.


Frequently Asked Questions

As per our study, the global product life cycle management market held a revenue of US$ 16.76 Bn in 2018 and it is anticipated to grow at a CAGR of 6.3% during the forecast period (2019 -2026).

Cloud-based PLM is expected to be the leading segment in product life cycle management market during the forecast period. Cloud-based PLM solutions help to eliminate key challenges related to implementation, up-gradation, and reduce capital expenditure (CapEx), time duration and eliminates risks related to implementation and up-gradation

Rising adoption of integrated solutions in IIoT industrial applications and increasing implementation of flexible scale-up or scale-down infrastructure backed by rising deployment of cloud-based solutions are favoring the growth of the product life cycle management market

Hewlett-Packard Company, BigLever Software, Hewlett-Packard Company, BigLever Software, PTC Inc., IBM Corporation, Siemens AG, Accenture PLC, Dassault Systems, Autodesk, Inc., Oracle Corporation, IFS and SAP SE are the top players in product life cycle management market.

North America is expected to hold the highest market share in the product life cycle management market. This domination is mostly due to the rising demand for electronic computer-aided design (ECAD) and mechanical computer-aided design (MCAD) system in developed countries such as the U.S. and Canada

The product life cycle market is estimated to reach US$ 26.73 Bn by the end of 2026.

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