The PLM Market Performance Report
Product innovation has become a vital concept for companies looking to explore new technology horizons. We witness daily how organizations use it to drive new methods of engagement and digital operations and execution. In this climate, the only way businesses can make an impact is with new products and solutions that can reduce development and production time. PLM (Product Lifecycle Management) helps companies to remove the barriers to product innovation and product enhancement. It brings down costs and maintains product quality, providing a way to manage the lifecycle of a product from, ideation to delivery.
According to a new market report published by Transparency Market Research “Product Lifecycle Management (PLM) Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015 - 2022”, the global PLM market is expected to generate revenues of US$ 75.87 Bn by 2022. The market for PLM solutions can be divided into on-premise and cloud-based segments. Different on-premise and cloud-based PLM software types include CAD/CAM/CAE (CAx), numerical control (NC), simulation and analysis (S&A), architecture, engineering and construction (AEC), collaborative product definition management (CPDM), digital manufacturing, electronic design automation (EDA), and others.
On-premise PLM software were leading the market till recently. Now, the cloud-based PLM solutions, driven by the demand of SMEs are making new waves across the PLM industry. With cloud expected to have a significant impact on the business within the next few years, cloud-based implementation models will become a part of the IT environment, with infrastructure investments automatically increasing scalability, and accessibility to information, processes, and functions. During the coming years, the market for both on-premise and cloud-based CAx solutions is expected to be majorly driven by the demand from SMEs.
North America was the largest market for PLM in the year 2014 accounting for a market share of around 33%. Aerospace and defense are the two industries with the maximum adoption rates for PLM solutions. “It is no longer PLM and CAD tools for a few guys in an engineering workgroup,” says Jeff Hojlo, program director of product innovation strategies at analyst firm IDC. “PLM [now] encompasses suppliers and non-engineers on the manufacturing side so that changes can be made quickly, quality issues can be serviced quickly, and adjustments can be made [based on] product demand.”