The global Product Lifecycle Management Market is estimated to account for US$ 27,321 Mn in terms of value by the end of 2022. Asia Pacific region held a dominant position in the global product lifecycle management market in 2022, accounting for an 8.98% share in terms of value, followed by North America, Europe, Latin America, and Middle East & Africa (MEA) respectively.
Global Product Lifecycle Management Market: Drivers
- Increasing product innovation and reduction in operational cost
The company's key revenue growth strategies include production innovation and development. Key characteristics of today's industrial operations include the need for customer-specific customization or the demand for newer products in short bursts. In a similar vein, businesses must collaborate both internally and internationally with partners and suppliers. In addition, the significant expansion of environmental and regulatory requirements necessitates the management of increasing product complexity as well as manufacturing processes. By providing various sets of tools and methods to reduce redundancies, a PLM solution can significantly increase a system's productivity. It cuts down on risks and the amount of time it takes to develop a product by providing knowledge and support for data sharing within an organization. It can significantly shorten the design cycle and tooling preparation time. This, in turn, facilitates the market introduction of new products and accelerates their penetration. Every time a change is made, product lifecycle management automatically adjusts any design feature. The global product lifecycle management (PLM) market is expected to expand as a result of these factors during the forecast period.
- Rapid growth of end use sectors
PLM has recently seen significant expansion from a variety of end use industries like aerospace and automotive. However, there are a lot of nonconventional end use industries, like retail, the pharmaceutical industry, and consumer packaged goods (CPG), that are experiencing rapid demand, and this demand is anticipated to grow in the not-too-distant future. These economies have seen significant adoption of PLM in sectors like automotive and aerospace, and demand for PLM has reached a level of significant maturity, if not complete saturation. This growth is prevalent in developed nations like Germany, Japan, and the United States. As a result, the global product lifecycle management (PLM) market is anticipated to expand rapidly as a result of these factors.
Global Product Lifecycle Management Market: Opportunities
- Emergence of smart factories
The highly developed and digital factory systems that make up smart factories, also known as smart manufacturing, include cyber-physical systems that make it easy to move materials around the factory floor. In industrial settings, it is anticipated that sensing components like actuators and sensors will become smart because they will become self-efficient with computing capabilities and low power consumption. Data models and templates for both factory-specific and manufacturing execution system (MES) applications are part of smart factories. A digital or smart manufacturing strategy is required to reap the long-term advantages of PLM. In a smart factory, product lifecycle management is expected to become a crucial link between various floor applications and equipment, facilitating product-related information exchange between designing and manufacturing teams.
- Providing SMEs with customized solutions
Products that support their business processes and have a low total cost of ownership (TCO) are preferred by small and medium-sized businesses. However, in order for small and medium-sized businesses (SMEs) to function effectively, they have been subjected to greater pressure to optimize their processes due to factors such as globalization, new entrants, and substitute products. PLM solutions can be used by smaller businesses as a go-to-market strategy for managing growth, increasing market visibility for the future, and improving supply chain communication. Non-traditional markets have the potential to expand, and PLM solution providers are beginning to recognize this. They are increasingly attempting to target small and medium-sized businesses (SMEs), which have been hesitant to invest in new technologies.
Global Product Lifecycle Management Market: Restraints
- Low adoption by small- and medium-sized enterprise
Global economies benefit significantly from SMEs. The automotive, electronics, and aerospace industries, in particular, are the only ones with extensive supplier networks and variable, complex product lines that have received PLM exposure. Despite the fact that mid-sized businesses are aware of the significance of PLM, they are hesitant to implement it due to their limited IT resources, resistance to any changes to standard operating procedures (SOPs), unknown total costs, and potential user disruption. High implementation costs, alterations to business procedures, and a lack of internal resources are some of the most significant obstacles for SMEs. As a result, the global market for product lifecycle management (PLM) is anticipated to experience growth restraints during the forecast period.
- Challenges associated with interoperability
The process of mapping new attributes to product data typically requires a lot of time and resources. However, in order for the system to be useful, businesses must ensure that all necessary work has been completed prior to migrating any data. Obtaining complete control of product-related data is one of PLM's challenges. Data is dispersed among the various data sources, even when PLM is implemented successfully. In addition, a wide range of applications that play a significant role in product development contain product-related data. The extent to which PLM makes use of product-related data and how it does so directly affect its value. Customers require interoperability between various product versions, rival products, data formats, data models, and databases. As a result, the growth of the global lifecycle management (PLM) market is anticipated to be stifled during the forecast period
Global Product Lifecycle Management Market Covid-19 analysis
The Product Lifecycle Management market has benefited from the COVID-19 pandemic. Lockdowns imposed to stop the virus from spreading have had a significant impact on the global economy. To cut down on human contact, people have been forced to work from home and remotely, boosting the growth of the Internet of Things and the cloud-based Product Lifecycle Management market.
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Key Takeaways:
The global product lifecycle management market was valued at US$ 27,321 Mn in 2022 and is estimated to reach US$ 54,362.4 Mn by 2030 exhibiting a CAGR of 8.98% between 2023 and 2030.
Global Product Lifecycle Management Market Trends:
- Use of advanced technologies such as IoT
Smart and connected products are necessary for product development across all industry sectors. this includes automobiles, household goods, consumer goods, and mobile devices. All products are now designed to be intelligent, connected, and compatible with the ecosystem in which they operate—a fundamental shift in product design. In order to save time and money on operations, manufacturers are increasingly investing in connected service platforms. In addition, products are significantly becoming software-driven, necessitating the use of systems applications to manage the increasing complexity of the processes and products. Approaches based on the Internet of Things (IoT), which enables the connection between the digital and physical worlds, offer numerous opportunities in both design and manufacturing. PLM developers are now considering expanding functions to include connectivity and intelligence to meet IoT requirements. It is becoming increasingly common for enterprise IT, smart-product-related technology, and other pillar technologies to collaborate on new PLM solutions and service strategies.
- Adoption of cloud-based PLM is another trend
As cloud adoption in businesses matures, PLM vendors are taking steps to shift toward cloud-based PLM implementations. PLM analytics have also seen an increase in demand in recent years due to manufacturers' need to use product data to make better decisions. Cloud-based analytics for PLM data is expected to be a major trend in the near future.
Global Product Lifecycle Management: Competitive Landscape
Dassault Systems, Hewlett-Packard Company, PTC, Inc., Atos SE, Siemens AG, Accenture plc, Autodesk, Inc., IBM Corporation, SAP SE, and Aras Corporation.
For Instance, Major market players are involved in partnerships and collaborations, in order to enhance the market presence. For instance, in July 2020, Siemens AG partnered with SAP to enhance solutions for product lifecycle management.( Siemens is a German multinational conglomerate corporation and the largest industrial manufacturing company in Europe).
Key companies are focused on product launches, in order to enhance the product portfolio. For instance, in June 2020, PTC Inc. launched Windchill product lifecycle management (PLM) software. (PTC, Inc. engages in the development and provision of software-based product management and development solutions. It operates through the Software products and Professional Services segments. The Software Products segment includes license, subscription and related support revenue for its product).
