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Product Lifecycle Management Market to Reach US$ 75.87 Bn by 2022

News   •   Aug 30, 2017 17:27 EDT

The growing need for product innovation, productivity enhancement as well as reduction in operational cost are the key factors driving the growth of product lifecycle management (PLM) market. A PLM solution can increase the productivity of a system substantially by providing various tools and methodologies to reduce redundancies. The PLM vendors have also started offering various customized PLM solutions according to the need of the enterprises, further aiding the growth in demand. The PLM market also faces some challenges such as low interoperability between different product versions, competitive products, data formats, data models and databases. The global PLM market has generated revenue of $40.26 Bn in 2014 and is projected to grow at a CAGR of 8.1% during the forecast period (2015 – 2022) to reach a market size of US$ 75.87 Bn by 2022.

The PLM considered here includes both software and service components. Based on the deployment type, PLM software can be segmented into on-premise and cloud-based. 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. In 2014, on-premise PLM software occupied a major share of the PLM software market. This was due to the large demand for on-premise PLM solutions due to the concerns related to security and accessibility in various end-use sectors for cloud-based solutions. However, increasing security of cloud and access to increased features over cloud are driving the demand for cloud-based PLM software. The cloud-based PLM solutions are increasingly being deployed by enterprises across the globe. The cloud-based implementation models lower the costs by avoiding the need for infrastructure investments along with the increase in scalability, and accessibility to information, processes, and functions. The SMEs are more likely to adopt cloud-based PLM solutions during the coming years due to its low cost.

The growth of CAx segment is driven by the demand for lowering time-to-market products among enterprises. 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 as these enterprises have started investing in the standalone software to have better visualization of the product as well as reduction in operational costs.

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Aerospace and defense was the largest end-use segment of the PLM market in 2014. This segment has a significantly long product development cycle and in order to manage this, the companies in this sector started adopting PLM solutions in wide manner. The increasing global competition, reduction in budgets related to defense and aerospace, and a rising commercial aircraft backlog would significantly drive the demand for PLM in the companies in aerospace and defense sector. The non-traditional end-use sectors such as consumer products and retail, and medical devices and pharmaceutical have also started using PLM solution and services in order to increase their production efficiency. Thus, the growing demand from non-traditional end-use sectors is also one of the major factors that drive the growth of PLM market globally.

During the coming years, Asia Pacific, Latin America, and Middle East and Africa (MEA) would be the key geographies driving the demand for PLM solutions. The market for PLM is highly competitive with the presence of multiple global and local players.